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Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. report re: Chile (1 page) n.d. P1/b(1) COLLECTION: Clinton Presidential Records First Lady's Office Christine Macy OA/Box Number: 17205 FOLDER TITLE: Chile 1995/HRC [2] 2013-0936-S rc1321 RESTRICTION CODES Presidential Records Act - |44 U.S.C. 2204(a)] Freedom of Information Act 15 U.S.C. 552(b)] P1 National Security Classified Information |(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office |(a)(2) of the PRA b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA an agency |(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute |(b)(3) of the FOIA| financial information |(a)(4) of the PRAJ b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information |(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes ((b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions |(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. CHILE: Press Material Q. What is the purpose of your visit to Chile? A. Among the many values and ideals that Chile and the United States share, none is more important than our countries' common commitment to promote the economic and social welfare of our citizens, particularly through assisting the poor and disadvantaged. I look forward to meeting again with Mrs. Frei and continuing our discussion of these issues. During my stay here, I will also be meeting with government and private sector leaders who are working to develop programs in these areas. CHILE: Press Material Q. Can you tell us if you have brought some special message from President Clinton regarding the present state of US-Chilean relations? A. President Clinton is committed to building on what is already a close and mutually beneficial relationship between the US and Chile. This excellent bilateral relationship is rooted in our shared democratic values and common economic goals. The President is also committed to a strong trade agenda that includes successfully negotiating Chile's accession to the NAFTA and building the Free Trade Area of the Americas discussed during the Summit of the Americas in Miami last December. Q. In the latter regard, what are the prospects for Chile's obtaining "fast-track" authorization and entering NAFTA this year? A. The Administration is continuing to work with the Congress to develop an acceptable fast-track trade negotiating authority. The President looks forward to continuing discussions with Chile and our NAFTA partners regarding Chiles's accession to the NAFTA and believes that now is not the time to stop or slow down those efforts. CHILE: Press Material Q. What is your view of the delays here in carrying out the Supreme Court-ordered sentences against General Contreras and Brigadier Espinoza in the Letelier case? Does the United States still consider that justice has been done? A. We continue to applaud the successful efforts of the Chilean Government to investigate and prosecute the 1976 assassinations in Washington of Orlando Letelier and his American citizen aide, Ronni Moffitt. We are gratified that justice has prevailed. The Chilean justice system is taking the appropriate legal steps in applying these sentences. Q. Nevertheless, don't you think Chile's image in the United States has been tarnished by delays in carrying out the sentences? A. Chile has a strong and positive international image. The Government of Chile is to be applauded for its steadfast commitment to prosecuting and carrying out the sentences in the Letelier/Moffitt case. CHILE: Press Material Q. You recently attended the United Nations Fourth World Conference on Women. In your view, what did the conference accomplish? A. The Beijing conference focused world-wide attention on the status of women and the challenges and burdens they face in trying to improve their own lives and those of their children and families. For the first time, a significant portion of a United Nations document underscored the need to end violence against women. The conference's "platform for action" which the United States signed proposes concrete and important steps to improve women's lives. CHILE: Press Material Q. How would you respond to those in Chile, including the Catholic Church, who charge the Beijing Conference's definition of gender undermines the family? A. The Beijing Conference considered issues related to education, health care, economic opportunity and political freedom because these are the essentials for keeping families strong and secure. As I have said before, if women and girls don't flourish, families won't flourish. And if families don't flourish, communities and nations won't flourish. Drafted: Embassy Santiago x72575 SEARABSC 3099 09/2795 Cleared: ARA/BSC: DJPlanty 19 ARA/BSC: JWSwigert ARA: EACasey Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. report re: Chile (1 page) n.d. P1/b(1) COLLECTION: Clinton Presidential Records First Lady's Office Christine Macy OA/Box Number: 17205 FOLDER TITLE: Chile 1995/HRC [2] 2013-0936-S rc1321 RESTRICTION CODES Presidential Records Act - |44 U.S.C. 2204(a)] Freedom of Information Act - 15 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRAJ b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute |(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or h(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information |(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors |a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes |(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells |(b)(9) of the FOIA] RR. Document will be reviewed upon request. 80 NORTH ATLANTIC Regions 1. TARAPACA 2. ANTOFAGASTA 3. ATACAMA 4. COQUIMBO 5. VALPARAÍSO 6. METROPOLITANA DE SANTIAGO 7. LIBERTADOR GENERAL BERNARDO O'HIGGINS 8. MAULE 2. 9. BIO-BIO 10. ARAUCANIA ATLANTIC 11. LOS LAGOS REEAM 12. AISEN DEL GENERAL CARLOS IBÁÑEZ DEL CAMPO 26 13. MAGALLANES Y DE LA ANTÁRTICA 3 CHILENA if 8 SOUTH 9 PACIFIC 10 Termino - dd Plate OCEAN Parte Moner 42 SOUTH Chile ATLANTIC International boundery OCEAN Region boundery National capital Region capital Refired I Read - by LLK 0 300 400 I claimed by Argention) 8 & 0 200 400 - - - - me % 8 72 3 background notes Chile November 1994 People Political parties: Major parties include Nationality: Noun and adjective- the Christian Democrat Party, the Chilean(s). National Renewal Party, the Party for Population (1994): 18.8 million. Democracy, the Radical Party, and the Annual growth rate: 1.0%. Socialist Party. La 1993, the Communist Ethnic groups: Spanish-Indian (mas- Party did not win a sest. tiso), European, Indian Suffrage: Universal at 18, including Religions: Roman Catholic 80%; foreigners legally resident for more than Protestant 16%. five years. Language: Spanish. Education: Years compulsory-8. Economy (1993) Attendance-3 million. Adult literacy GDP: $43.6 billion rate-94%. Annual real growth rate: 6%. Health: Infant mortality rate-17/1,000. Per capita GDP: $3,200. Life expectancy of newborns-72 years. Natural resources: Copper, timber, Official Name: Work force (5.2 million): Services and fish, iron ore, nitrates, precious metals, Republic of Chile government-36%. Industry and and molybdenum. commerce-34% Agriculture, forestry, Agriculture and fisheries (8% of GDP): and fishing-14%. Construction-7%. Products-wheat, potatoes, corn, sugar TLE Mining-2%. beets, onions, beans, fruits, livestock, fish. Government Geography Industry (17% of GDP): Types-mineral Area: 756,945 sq. km. (302,778 sq. mi); Type: Republic. refining, metal manufacturing, food Independence: September 18, 1810. processing, fish processing, paper and nearly twice the size of California Cities: Capital-Santiago (metropolitan Constitution: Approved in a 1980 wood products, finished textiles. national referendum. Trade: Exports-$9.4 billion: copper, area est. 5.2 million). Other cities- Branches: Ezecutive-president. fishmeal, fruits, wood products, paper Concepcion-Taleahuano (840,000); Vina del Mar-Valparaiso (800,000); Legislative-bicameral legislature. products. Major markets-U.S. 18%, Judicial-Supreme Court, courts of Japan 16%, Argentina 6%, U.K. 6%, Antofagasta (245,000); Ternuco (230,000). Terrain: Desert in north; fartile central appeal, military courts. Germany 5%, Branl 4%. Imports-$10.7 Administrative subdivisions: 12 billion: petroleum, chemical products, valley, volcanoes and lakes toward the capital goods, vehicles, electronic south, giving way to rugged and complex numbered regions, plus Santiago metropolitan region, administered by equipment, consumer durables, machin- coastline; Andes Mountains on the intendentes, regions are divided into ery. Major suppliers-U.S. 23%, Branl eastern border. 10%, Japan 8%, Germany 0%, Argentina Climate: Arid in north, Iike the Mediter- provinces, administered by governors; 5%, Nigeria 4%. ranean in center, cool and damp in south. provinces are divided into municipalities Exchange rate: 420 pesos-U.S.$1. и administered by mayors. ) United States Department of State Vol. V, No. 14 Bureau of Public Affairs Office of Public Communication PEOPLE About 86% of Chile's population live in urban centers; 40% live in greater Sentiago. Most have Spanish ancestry, but 8 small, yet influential, number of Irish and English immigrants came to Code during the colonial period. German immigration began in 1848 and lasted for 90 years; the southern provinces of Valdivia, Lienquince, and Ouorno show a strong German infrance. Other signifi- cant immigrant groups are Italian, Yugosiev, French, and Arab. About 400,000 persons of predominantly aboriginal descent, mostly of the = Mapuche tribe, reside in the south- \ Pacific central area, around Tennuco. - i The northern Chilesn desert contains - ! great minoral wealth, primarlly copper Ocean and altrates. The relatively small central area dominates the country in terms of population and agricultural resources. This is also the historical center from which Chile expanded until the late 19th century, when k incorpo- - BLAS - rated its northern and southern regions. ! I Southern Chile is rich in forests and grazing lands and features a string of volcanoes and lakes. The southern coast is a labyrinth of fjords, inlets, eanals, 18 - Isla Sala , Gémez twisting peninsulas, and islands It also has small, rapidly declining petroleum reserves, which supplied about 10% of 5 - Chile's domestic requirements during 1993. .99 NO 1 HISTORY " Б Atlantic Easter Island - About 10,000 years ago, migrating - Hole " Passenal Indians followed the line of the Andes and settled in fartile valleys and along the coast of what is now Chile. The Takes Incas briefly extended their empire into the north, but the area's remoteness Chile prevented extensive settlement. FALKLAND ISLANDS In 1541, the Spanish, under Pedro de AS BM Vaklivia, encountered about 1 million International boundery National copital Indians from various cultures who Refreed be us. Read - I supported themselves principally + International airport through alash-and-burn agriculture and " - - les hunting. Although the Spanish did not I find the gold and silver they sought . - - - - - - I - I 1 - there, they recognized the agricultural CAPS I potential of Chile's central valley, and . Chile became part of the Viceroyalty of Peru. 2 The drive for independence from Radical Party dominance (1932-52), the These factors, plus consure of the Spain was precipitated by usurpation of state increased its role in the economy. Allende Government by the Chilean the Spanish throne by Napoleon's Despite these tendencies, presidents Congress, judiciary, and comptroller brother Joseph A national junta in the generally were more conservative than general for many abuses-including ns Ferdinand-heir to the deposed the parties supporting them, and violations of the constitution-helped k ras formed on September 18, conservative political elements contin- produce a military coup that overthrew 18.0 spanish attempts to reimpose usd to exert considerable power over the Allende on September 11, 1972, after arbitrary rule during what was called economy. armed forces bembarded and attacked the Reconquista led to a prolonged The 1964 presidential election of the presidential palace. Allends did not struggle under Bernardo O'Higgina, Christian Democrat Eduardo Frei by an survive the coup. His death was Chile's most renowned patriot. Chilean absolute majority initisted a period of reported efficially as a suicide. independence was formally proclaimed major reform. Under the slogan The new military regime, led by on February 12, 1818. "Revolution in Liberty," the Frei Angusto Pinochot, severely repressed The political revolution brought Httle Administration-the first Christian personved apponents, especially those social change, however, and 19th-century Democratic government in Latin believed to be Marxista. Congress was Chilean society preserved the essence of Americe-emberked on far-reaching abolished, and all political parties the stratified colonial social structure, social and economic programs, particu- hanned. Thousands of Chilesns were family politics, and the influence of the larly in education, housing, and agrarian imprisoned or expelled from the country. Roman Catholic Church. The system of reform, including rural unionization of About 700 others disappeared after presidential absolutism eventually agricultural workers. By 1967, however, arrest by security forces and are predominated, but wealthy landowners Frei encountered increasing opposition presumed dead. continued to control Chile. from leftists, who charged that his During its 16 years in power, the Toward the end of the 19th century, reforms were inadequate, and from military moved Chile away from sco- Chile consolidated its position in the conservatives, who found them exces- nomic statism toward a largely free- south by ruthlessly suppressing the sive. At its term's end, the Frai Admin- market economy, fostering an increase in Mapuche Indiana. In 1881, it signed a istration had noteworthy accomplish- domestic and foreign private investment. treaty with Argentina confirming ments but did not achieve the party's After years of repression, the regime Chilean sovereignty over the Strait of ambitious goals. began to reinstitutionalize political life Magellan. As a result of the War of the The 1970 presidential election was and permit broad freedom of assembly, Pacific against Peru and Bolivis (1879- won narrowly by Dr. Salvador Allende, a speech, and association, including trade B3). Chile expanded its territory north- Marxist and member of Chile's Socialist union activity. was hv almost one-third and acquired Party, who headed the "Popular Unity" General Pinochet was denied another VI nitrate deposits, the exploits- (UP) coalition of socialists, communists, eight-year term as President in & tic. which led to an era of national radicals, and dissident Christian Demo- national plebiacite on October 5, 1988. affluence. crats His program included the take- On December 14, 1989, Christian Although Chile established a repre- over of much of Chile's remaining Democrat Patricio Aylwin, running as sentative democracy in the early 20th private industries and banks, massive the candidate of a 17-party enalition, was century, it soon became unstable and land expropriation and collectivization, elected President. After a four-year degenerated into a system protecting and the nationalization of U.S. interests transition period, former President Frei the interests of the ruling oligarchy. By in Chile's major copper mines. was elected President of the Republic for the 1920s, the emerging middle and Elected with only 36% of the vote and a six-year term and took office in March working classes were powerful enough by a plurality of only 36,000 votes, 1994. to elect a reformist president, whose Allende never enjoyed majority support In the Senate races, the ruling program was frustrated by a conserva- in the Chilean Congress or broad popular ecalition of four center-left parties won tive congress. Continuing political and support. By 1973, most domestic 54% of the vote (and took half the seats), economic instability resulted in the production had declined, and severe while the opposition right won 20% of quasi-dictatorial rule of Gen Carlos shortages of consumer goods, food, and the vote (and took the other half). The Ibanez (1924-32). manufactured products were wide- Senate contains 21 members from the When constitutional rule was re- spread. Inflation reached 1,000%, and a governing coalition, 17 from the rightist stored in 1932, a strong middle-class general collapes of the economy seemed opposition, and 8 senstors designated in party, the Radicals, emerged. It became inevitable to many. There were mass 1989 by the Pinochet Government for the key force in coalition governments demonstrations against the government, eight-year terms. In the race for the for the next 20 years. In the 1920s, recurring strikes, violence by both Chamber of Deputies, the ruling ecali- Marxist groups with strong popular government supporters and opponents, tion won 58% of the vote and 58% of the support developed. During the period of and widespread rural unrest. Chilean sents. society split into hostile camps. ) 3 GOVERNMENT Mary. Adm. Jorge marane Dusch 60 around 40%. international copper The constitution was approved in a directs the 29,000 person may, including PI continue to have a major effect on September 1980 national plebiacite by a 5,200 marines. The fleet of 11 surface overall economic performance, however, vessels and four submarines is based in two-thirds majority. It entered into as each 1%-per-pound increase in namel force in March 1981. Following discus- Valparaiso. The navy operates its own copper prices adds about $44 million to aircraft. sions between the minister of interior, export revenues. Air Force: Air General Ramon Vega the leader of the coalition parties Under the democratic government Hidalgo heads a force of 12,000. Air opposing Pinochet, and the president of which took office in 1990, the purmit of assets are distributed among four air the center-right National Renewal mecrosconomie stability within the brigndes headquartered in Iquique, Party, a list of amendments to the framework of a market economy Santiago, Puerto Montt, and Punta constitution was submitted to a plebi- become a national goal This newly Arenaa. The air force also operates an scite and endorsed by more than 85% of elected government responded to the the electorate. The reforms eased airbase on King George Island, danger of an overheating economy with Antartica. provisions for amending the constitution, an adjustment plan that reduced GDP After the military coup in September increased the number of senstors, growth to 2% in 1990. Growth rese to diminished the role of the national 1972, the Chilean national police were 0% in 1991 and reached 10% in 1993, well security council, and equalized the incorporated into the defense ministry. above the estimated medium-term rate Wkh the return of democratic govern- of S%-0%. The central bank raised number of civilian and military members. ment, the police were placed under the interest rates in 1982 to reduce the risk A 1994 amendment set the presidential operational control of the interior term at six years. of inflation. This, and a rapid fall in the Senators serve for eight years with ministry. They are led by General prices of Chile's principal export prod- staggered terms; deputies are elected Stange, who directs a paramilitary force nots led to a slowdown in growth rates in of 27,000 engaged in law enforcement, 1993 and early 1994. GDP growth was every four years. The Congress is located in the port city of Valparaiso, traffic management, narcotics suppres- e% in 1993 and expected to reach 4%- sion, border control, and counter- about 140 kilometers (84 mi.) west of the 4.5% in 1994 before rising in 1995. terrorism throughout Chile Although growth slowed in 1993, capital, Santiago. Chile's congressional elections are overall economic activity was healthy. governed by a unique binomial system Principal Government Officials Inflation fall alightly. Unemploy that inevitably rewards large coalition President-Eduardo Frei Ruiz-Tagie reached a 20-year low-4.0%-for the slates and punishes small independent Foreign Affairs- year, and employment growth was well parties. Each coalition can run two Jose Miguel Insulza above population growth, as women continued to enter the labor force in candidates for the two Senate and Ambassador to the United States— Chamber seats apportioned to each type John Biehl Del Rio record numbers. A decline in exports to of electoral district. Typically, the two Ambassador to the Organization of $9.4 billion and an increase in imports to $10.7 billion led to the first trade deficit largest coalitions split the seats in a American States (OAS)- in a decade and a current account deficit district. Only if the leading alate outpolls Edmundo Vargas Carreno the second place finisher by a margin of Ambassador to the United Nations- of almost 5% of GDP. Continuing capital inflows more than balanced the current more than 2 to 1 does the winner gain Juan Somavia Altamirano account deficit, however, and net both seats. Chile maintains an embassy in the The political parties with the largest international reserves rose by 8%, to United States at 1732 Massachusetts representation in the Chilean Congress $9.8 billion, during the year. The Avenue NW, Washington, DC 20036 are the centrist Christian Democrat slowdown in growth rates appeared to (tel 202-785-1746). Party and the center-right National have ended by mid-1994, with higher Renewal Party. The Communist Party export prices and continuing export ECONOMY and two green (ecological) parties failed growth signaling renewed dynamism in Chile has a diversified free market that sector. to gain a seat. economy and one of the most educated In recent years, Chile has taken work forces in Latin America. The several steps to open both domestic and National Security economy rests on exports of natural foreign markets. It lowered tariffs on The armed forces are subject to civilian resources and primary products, with nearly all imports from 15% to 11% in control exercised by the president copper, fishmeal, fresh fruit, and 1991. Since 1991, the country has signed through the minister of defense. How- woodpulp as the principal export free trade agreements with Mexico, ever, each service is headed by a products. Chile is the world's largest Colombia, and Venemela, continued commander-in-chief. producer and exporter of copper, with negotiating an agreement with Eendor, Army: 55,000 troops under Augusto reserves estimated at 20% of the world and is expected to begin negotiations on Pinochet. The army is organized into six total Rapid growth in non-copper a trade-Hberalizing agreement with the divisions, one separate brigade, and an four-member Southern Cone Common exports during the last decade has air wing. reduced copper's share of total exports Market. Chile also has signed invest- ( 4 ment protection agreements with about principally irrigated; in the southern Chile is enjoying a major boom in 12 European, Latin American, and Asian half, rainfall is plentiful and furnishes direct foreign investment in its mineral nations. Chile is expected to be the next ample water for both erops and sector based upon its strong geological nation to enter into B free trade agree- pastureland. Although land devoted to base and the favorable investment rent with the U.S. export crops has increased over the last regime which the democratic govern- In recent years, Chile also has become two decades, traditional crops (grains, ment has maintained. Major U.S., much more integrated with world offsseds, sugar beets, otc) still play an Canadian, U.K., and Japanese natural financial marketa The country's foreign important role in the agricultural resource firms have invested in large, debt is below 50% of annual CDP, and economy. Of Chile's 300,000 farms, new copper and gold mines. Several private firms have increasingly raised about 50% produce whest. Chile also important new projects are planned. At capital in international markets via possesses a significant livestock sector. the same time, CODELCO, the state horrowing or issuing bonds Over a Chile is a net agricultural exporter, copper enterprise and the world's dozen firms have sold stock overseas. with exports more than two times largust copper producer, plans to carry Both domestic and foreign investment greater than imports. Fresh and out major investments in coming years have reached record levels, and the processed fruits and vegetables account to make up for declining production at its economy has registered large capital for more than 70% of total farm exports. existing mines. account surpluses. Investment inflows Principal imports include wheat, beef, Bituminous coal is mined in the Gulf have been so strong that the govern- vegetable oils, corn, and dry milk. The of Arauca region, south of Concepcion, ment has felt obliged to impose non- entire agricultural sector (including and in the area around Valdivia. These interest-bearing reserve requirements forestry and farmed fish) now accounts aging, underground mines are facing on foreign borrowing to discourage for more than 85% of Chile's total export painful retrenchment. A modern, low- inflows of short-term capital attracted by earnings. The country is the southern cost, open-pit coal mine exists north of high Chilean interest rates. hemisphere's top fresh fruit exporter the Strait of Magellan. Chilean coal In June 1991, the U.S. and Chile and the world's second-largest producer faces competition from coal imported signed an agreement to forgive a portion and exporter of farmed salmon. from Colombia and Venezuela, however. of Chile's PL 480 (Food for Paace) debt The growth in Chile's forestry sector All of Chile's domestic petroleum to the U.S. under the Enterprise for the has been equally impressive, both as a production is from the Strait of Magellan Americas Initiative. Chile and the U.S. result of natural advantages and and the island of Tierra del Fuego at the signed in 1993 an environmental frame- government incentives to commercial southern tip of the country. The state- work agreement under which Chilean forestry planting. Over the past two owned petroleum company, ENAP, is payments on aid loans will be used for decades, forest plantings have increased the country's only producer of crude oil domestic environmental projects. around tenfold, while exports of forest and natural gas, although several foreign products jumped almost 20 times in petroleum firms have been granted Agriculture volume. exploration contracts. Domestic petro- The agricultural sector plays a key role The United States is Chile's principal leurn production provided about 10% of in Chile's export-led economy. Agricul- agricultural trading partner. Although domestic petroleum consumption in the tural output has benefited from policy Chile's agricultural exports to the U.S. first quarter of 1994. reforms which have significantly reduced greatly exceed U.S. farm sales to Chile, the margin has narrowed in recent FOREIGN RELATIONS government involvement in agriculture. These reforms, combined with natural years. In 1993, Chile exported $610 resource advantages, use of advanced million of fresh fruits and other agricul- With the transition to democracy tural products to the U.S. Chile im- complete, Chile has become an active production technology, and improved marketing, have doubled Chile's agricul- ported $121 million in agricultural participant in the international political arena. It is an active member of the Rio tural production since 1980. Government products from the U.S., a 83% increase involvement in agriculture is now over the previous year's total Group, and it rejoined the Non-Aligned Movement. Chile is a driving force in the principally limited to import protection for whest, sugar beet, and oilseed Minerals and Mining world summit for social development to be held in Copenhagen in March 1995. producers. Mining continues to play a critical role in The Chilean Government has reestab- Because much of the country is Chile's economy, despite increasing lished diplomatic relations with most of unsuitable for farming. cultivated land diversification. For 1994. minerals are the countries that broke them during the accounts for only about 3% of Chile's expected to account for 46% of Chile's military regime but maintains only total area. Most farming occurs in the exports, with a value of $4.8 billion. consular relations with Bolivia and Cuba rich central valley, which extends from Copper exports alone will account for Often driven by economic interesta, the area north of Santiago to Puerto more than 75% of that total La addition relations between Chile and its other Montt, 1,000 kilometers (600 miles) south to copper, Chile is an important exporter Latin American neighbors have signifi- of the capital. Agricultural production in of gold, ailver, molybdenum, iron are, cantly improved. Relations with the northern half of the country is and non-metallic minerals such as lithium and iodine. Argentina and Bolivis, although at times Frei Government has sought a "special still strained by controversy over border TravelInformation relationship" with the United States issues, are improving. President Clinton and President Frei The loss of territory by Peru and The U.S. Department of State's Con- agreed to a consultative framework to via to Chile during the war of the sular Information Program provides Travel Warnings and Consular increase the scope and frequency of the (1879-83) continues to influence Information Sheets. They can be consultations on issues of common some of its neighbors' national attitudes obtained by telephone at (202) 647. concern. and policies. Bolivia seeks an outlet to 5225 or by fax at (202) 647-3000; to the see and severed relations with Chile access the Consular Affairs Butletin Principal U.S. Embassy Officials in 1978, following a breakdown in Board by computer modem, dial (202) negotiations. By treaty, any Bolivian- 647-0225. Travel Warnings are is. Ambassador- Chilean agreement involving former sued when the Department recom- Gabriel Guerra Mondragon mends that Americans avoid travel to Peruvian territory also would require Deputy Chief of Mission- a certain country. Consuler Informa- Michael W. Cotter Peru's agreement. However, Peru tion Sheets exist for of countries and Public Affairs Officer- maintains an embassy in Chile, and Include information on immigration recent high level trips by Bolivian Barbara C. Moore practices, currency regulations, health leaders to Chile suggest improved conditions, areas of instability, crime Political Counselor-PhIllip T. Chicola relations. While politics frame current and security Information, political Economic Counselor- Chilean foreign relations, economic disturbances, and the addresses of Anthony J. Interlandi the U.S. embassies and consulates in Administrative Counselor- integration with its neighbors has the subject country. become a driving force in Chilean foreign F. Coleman Parrott Travelers can check the latest policy. information on health requirements Chief, Consular Section- and conditions with the U.S. Centers Richard S. Mann U.S.-Chilean Relations for Disease Control and Prevention in Commercial Attache-Carlos F. Poza Atlanta, Georgia. A hotine at (404) Defense Attache- Relations between the two countries are 332-4559 provides telephonic or tax Capt. (USN) Thomas L Breitinger better than at any other time in history. information on the most recent health Chief, U.S. Military Group- Many members of the Chilean Govern- advisories, Immunization recommen- CoL. (USAF) Steven E. Cady ment were active in the opposition to the dations or requirements, and advice Agricultural Attache-Richard B. Helm military regime and appreciate the role on food and drinking water safety for regions and countries. A booklet Labor Attache-Joseph C. McLean played by the United States in Chile's entitled Health Information for Interna- U.S.AID Representative- ocratic transition. tional (HHS publication number Thomas Nicastro a 1976 car bomb assassination in CDC-94-8280, price $7.00) is evall. Peace Corps Director- nington, DC, of Orlando Letelier, a able from the Superintendent of David Valenmela former Chilean ambassador to the Documents, U.S. Government Print. United States and a member of Presi- ing Office, Washington, DC 20402, The U.S. embassy and consulate in tel. (202) 512-1800. Santiago are located at 2800 Andres dent Allende's cabinet, and Ronni Information on travel also may be Bello Avenue, Las Condes, (tel (562) Moffitt, a U.S. citizen, caused a sharp obtained from this country's embassy deterioration in relations and led the 232-2600). The mailing address is and/or consulates in the U.S. (see Casilla 27-D, Santiago, Chile (FAX: U.S. Congress to ban security assistance *Principal Government Officials"). O 562-330-2710). and arms sales to Chile In 1981, Congress banned all military sales to Chile until the President that a commander and an operations Published by the U.S. Department of State Buress of Public Affairs . Office of Public determined that Chile had made signifi- officer in the Pinochet-ara secret police Communication . Washington, DC cant human rights progress, was not had ordered the assassination and November 1994 . Managing Editor. aiding international terrorism, and had sentenced them to prison. The Chilean Peter A. Knecht taken appropriate steps to cooperate in Government has made an ex gratis Department of State Publication 7998 Background Notes Series . This material is in bringing to justice those indicted by a payment to the victims of the families. the public domain and may be reprinted U.S. grand jury in connection with the President Aylwin's state visit to the without permission; eltation of this source is assassination. United States in May 1992 was the first appreciated. Responding to the Aylwin Govern- in more than 40 years. President For sale by the Superintendent of Documents, Eduardo Freis working visit to the US Government Printing Office, Washington, ment's commitment to bring the case to DC 20402 justice in the Chilean judicial system, United States in June 1994 was his first President Bush issued a finding in late trip outside of South America as head of 1990 that removed the sanctions. The state. United States continued to press for Chile is currently the only country justice in the Letelier/Moffitt case. The that the Clinton Administration has Chilean special investigating judge found identified as meeting NAFTA criteria to negotiste 8 free trade agreement. The 6 AID/AA/LAC 202 647 9671 Page 2 Job 803 Oct-11 Wed 13:51 1995 DRAFT 3 Address by First Lady Hillary Rodham Clinton at the University of Chile Santiago, Chile October 13, 1995 It is a great pleasure to be here in Chile today and to join you at this great university. The University of Chile is one of Latin America's premier institutions of higher learning, forged in the last century by Chileans with the participation of some of the world's leading scholars, like its founders, Andres Bello from Venezuela, educator Ignacio Domeyko from Poland, physician Laurence Sazie from France, naturalist Rudolph Philippi from Germany, and jurist Eugenio Maria de Hostos from Puerto Rico. From the beginning, your university has been a center of international thought, bringing students and faculty into intellectual contact and debate with the world outside. This university can rightfully boast that all but two of this country's democratically elected Presidents are alumni. You suffered along with others the years of intervention; but you have recovered the right to free inquiry that is the essence of education and liberty. AID/AA/LAC 202 647 9671 Page 3 Job 803 Oct-11 Wed 13:51 1995 Chile and the United States have a close and firm relationship built on common ideals and shared commitment to democracy, social justice and equality of opportunity. We have worked together for many decades. I an pleased that we also have been partners with you here at the University of Chile, at the creation of the School of Geology and the Labor and Organization Department, sending faculty to Cornell's MA and Phd program in Labor studies, and benefitting from joint scientific research. Like the great poet Ruben Dario, who came here a century ago from his native Nicaragua to learn and to write, I also have come here from Nicaragua. Chile already has passed perhaps the most crucial hurdle in the restoration of democratic institutions -- the transfer of the mantle of the presidency from one democratically elected President, don Patricio Aylwin, to & second, President Eduardo Frei. Nicaragua is poised to overcome that second hurdle next year with the election of a successor to President Violeta Barrios de Chamorro. During one of his long periods of exile, your Nobel laureate Pablo Neruda wrote a famous poem, "When": "Oh, Chile, long petal of sea and wine and snow, oh when oh when and when 2 AID/AA/LAC 202 647 9671 Page 4 Job 803 Oct-11 Wed 13:52 1995 will I be home again? ... "Oh when, patria, at election time will I go from house to house leading timid freedom by the hand to shout in the middle of the street?' For Chile, the question of "when" was answered in with the unceasing march of the people to restore the rule of law, to achieve respect for human rights, and to guarantee open, free and fair elections. It was answered in the countless struggles for human rights over so many long years. It was answered in the triumph of the "No" campaign in the plebescite and in the victory of the Concertacion and President Aylwin. It was answered by President Frei placing over his head the Presidential sash his father once wore, so powerfully symbolizing the linkage to Chile's democratic heritage. It was answered by everyone of you here, and the answer is NOW-AND FOREVER. During these past five years, the people of Chile have done far more than restore democratic institutions. You have maintained a strong, political coalition, fostered a vigorous debate with the political opposition and produced a growing 3 AID/AA/LAC 202 647 9671 Page 5 Job 803 Oct-11 Wed 13:53 1995 national consensus that strong market-led growth without inflation can be maintained under democratic governance. Your economic growth was built in large part on expanding your markets abroad. Chile, like the United States, continues to see its economy grow through rising trade with the rest of the hemisphere and the world at large. The United States already exports more to Chile with your 14 million people than to India with its 920 million. The Administration of President Clinton remains fully committed to hemisphere economic integration, and I am personally convinced that Chile will become a partner with us in NAFTA. Together we will help create the largest Free Trade Area in the history of the world by the year 2005. Your economic statistics deserve to be cited: an average of 7.3% GDP growth since 1991, more than 6% for a decade; inflation declining from 26% in 1990 every single year to 11.4% last year and today to 7.4%; unemployment at a low of 5.3%. But most significant is the fact that 1.3 million fewer people are living in poverty today than in 1990. In fact, from 1990 to 1994, there was a 30% drop in the portion of the population living in poverty (40.1% to 28.5%). You have shown the way across the continent to those who questioned whether your democracy could maintain steady economic 4 AID/AA/LAC 202 647 9671 Page 6 Job 803 Cct-11 Wed 13:53 1995 reform and also produce a public-private partnership that included the poor. When people ask where can we see the recovery of democracy, I say, "Look to Chile." When people ask where can we see democracy and sustainable economic growth, I say "Look to Chile." When people ask where can we see democracy, sustainable growth and poverty reduction, I say, "Look to Chile." Democracy, sustainable economic growth and investing in people--those are critical tests for any society, and the government of Chile, the private sector of Chile, and the people of Chile are meeting that test. President Frei has maintained the high priority of your democratic government on social development. That focus on human capital investment, investing in people, constitutes the full expression of the Partnership for Prosperity and Development announced at the Summit of the Americas in Miami last year. Your democratic resurgence also has carried with it another key element of the Summit commitment. It has unleashed an explosion of civic organizations in every sphere of society. 5 AID/AA/LAC 202 647 9671 Page 7 Job 803 Oct-11 Wed 13:54 1995 Civil society has become a vigorous partner alongside government in environment, public advocacy, health, education and legal assistance. Groups like Participa, CDU (Corporation for University Promotion), CIDE (Center for Educational Development), and Aprofa, are part of the democratic awakening and I am pleased that USAID has been able to support those groups in working for change and development. Your First Lady, Mrs. Frei also is engaged directly with many of the groups on the front lines of concerns with education and women, like Integra with its focus on early childhood education, PRODEMU working on vocational education for adult women and the Foundation for the Family which recognizes and supports families. The development of Chile's institutions stems from the resilience, courage and special talent of the Chilean people. We have worked closely with you as a partner as you have laid the foundations for broad-based economic growth here. Democracy, broad-based economic growth, poverty reduction, and environmental protection were the themes of the Summit of the Americas. They are the basis for our belief that the coming century can be one of prosperity for every nation of the 6. AID/AA/LAC 202 647 9671 Page 8 Job 803 Oct-11 Wed 13:55 1995 Americas. And, each of those pillars of the Summit, to a considerable degree, revolves around one fundamental source of energy and purpose--the education of our peoples. Chile and the United States have long recognized the critical importance of education in the process of democratic change. We can see that one of the dominant themes of modern democratic governments in this country, as in my own, has been the importance of education and the importance of insuring that women have full access to learning. Thomas Jefferson, one of our founders, wrote: "I know of no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education." Both of our nations have understood that education is the stairway that offers every child the hope of reaching his or her dreams. In 1964, when President Eduardo Frei came to office he said, "I am here to give education to all the children of Chile, and to open to them all the opportunities, without another limit than 7 AID/AA/LAC 202 647 9671 Page 9 Job 803 Oct-11 Wed 13:55 1995 their own capacity, in the certainty that a people that overcomes ignorance inevitably defeats misery and servitude." His campaign identified 186,000 out-of-school youngsters and turned storerooms and offices into classrooms. To appreciate the educational advances of Chile and your fulfillment of the rhetoric of equality of education opportunity, one can look at a single fact: In 1970, nearly 16 per cent of the women employed in Chile were in technical or professional positions when the comparable figure for the United States was 14 per cent. That same Chilean commitment to education continues today and has yielded impressive rates of progress. Chile has achieved 95% literacy, almost 100 per cent elementary school coverage, 76% secondary school coverage and a major commitment to decentralization. Chile is one of the leaders in the education reform revolution taking place in the hemisphere. And it is that revolution and the challenge of education that I would like to discuss with you today. That challenge extends beyond Chile to every country in the hemisphere including my own. 8 AID/AA/LAC 202 647 9671 Page 10 Job 803 Oct 11 Wed 13:56 1995 At the Summit of the Americas, the plan of action stated, "Universal literacy and access to education at all levels, without distinction by race, national origin or gender, are an indispensable basic for sustainable social and cultural development, economic growth and democratic stability. Fundamentally, education must fulfill its multiple roles: as a source of democratic citizenship and civic participation, as a creator of human capital and international competitiveness, and as an equalizing mechanism of social opportunity. Those objectives are as relevant for the United States as they are for any country in the hemisphere. It is why President Clinton viewed investing in people as the core of his social agenda when he was elected. It is why we expanded Head Start programs to pre-school children and sought to make direct loans available to college students. We depend on today's students to build our economies tomorrow, to unravel the mysteries of untold scientific endeavors and to learn more about human needs and human institutions and how to make them work effectively. The consensus Summit goal was to attain by the year 2010, a primary completion rate of 100% and a secondary enrollment rate 9 AID/AA/LAC 202 647 9671 Page 11 Job 803 Oct-11 Wed 13:57 1995 of at least 75% and to prepare programs to eradicate illiteracy, prevent truancy and improve human resources training. To meet those goals, education reform in the Americas demands that we address together the challenges of access, equity, and quality. They must be addressed together because they are closely and intricately bound together. Most of the region of the Americas offers access at the initial school level to children 6 to 11 years of age. The average is nearly 86%, not as good as Chile, but still far higher than other developing regions of the world. But, barely half of children finishing elementary school have access to further education. In more than a half dozen countries, that rate hovers around 30%. The level of access for women in countries with high indigenous populations continues to be unacceptably low, particularly for high school. The issue of quality of education is clear when we look at what happens to children once they get to school. It is estimated 10 AID/AA/LAC 202 647 9671 Page 12 Job 803 Cct-11 Wed 13:57 1995 that 20% of children enter school late, 42% repeat the first grade, and barely 50% ever graduate from elementary school. Estimates are that $4 billion is spent each year on teaching primary school repeaters. Statistics for indigenous populations in several countries show average completion rates of less than four years of school for boys and even less for girls. Part of the reason is the lack of adequate facilities; part of the reason is the lack of adequate teaching techniques; and part of the reason is the lack of political will. How can nations build vigorous economies when half of the potential work force never achieves a primary school education. Some of the countries in the hemisphere with per capita income even higher than in Chile still have three out of every four entering children failing to complete elementary school. The Summit plan of action defined a fundamental strategy for responding to these challenges: First, it called for adequate funding for decentralization of elementary and secondary education to expand access of opportunity and the quality of what is taught in the schools 11 AID/AA/LAC 202 647 9671 Page 13 Job 803 Oct-11 Wed 13:58 1995 through broad participation and engagement of parents, educators, and community and government leaders. Here in Chile the government's decision last year to increase public expenditure on education from 4.5% of GDP to 7% of GDP by 1999 sends a strong message to the entire region regarding the importance of education to Chile's plans for economic growth and social advance. Second, the Summit called for improved human resource training and technical, vocational, professional and teacher training as part of pursuit of an educated work force equal to the demands of international competition. It specifically charged business and the international financial institutions with making worker education more relevant to the marketplace. Again in Chile, we can see in the program I just visited at the school, evidence of what can be done. Competency-based teaching innovations managed by a the Chilean NGO, CIDE, and supported by USAID have helped students from lower income backgrounds obtain the jobs skills needed for upward mobility. In the process, a public-private sector partnership in education has begun. 12 AIC/AA/LAC 202 647 9671 Page 14 Job 803 Oct-11 Wed 13:59 1995 Third, the Summit directed a focus on the education of indigenous children and particularly girls and women as is essential in several countries in the Americas. Nations cannot afford to open the doors of learning to only half of their people. Finally, universities must continue to be centers of learning and intellectual expansion even as they provide the critical level of preparation for our Nation's business, professional and political leaders. However, there must be a careful examination to insure that government subsidies for those who can easily pay for the highest levels of education do not absorb the resources necessary to assure access got the poor to the most basic levels of education. Surely as we enter the 21st century, we can do better. In assuring access, equity and quality there are unique and exciting experiments in learning taking place in the Americas. Here in Chile, the 900 Schools Program is one of those, targeting primary schools in poverty areas and concentrating on five fundamental areas of action: improving infrastructure; focusing on the child's world and awakening teacher awareness to 13 AID/AA/LAC 202 647 9671 Page 15 Job 803 Oct-11 Wed 13:59 1995 the cultural backgrounds of students; distributing textbooks; creating a desire to read; and involving the community. A democratic perspective was woven throughout the program by calling on students, teachers, directors, supervisors, families and community to reward personal initiative, participation and responsibility and to break the vicious circle of poor achievement in school. In other countries, including my own and Canada, there are innovations in learning that we can share with each other. One of the initiatives of the Summit was the commitment to create a hemispheric Partnership for Education Revitalization in the Americas (PERA in English, PREA in Spanish). Its purpose is to help countries adopt and implement effective education reform policies. PERA will spread across the hemisphere the best examples of how countries meet the challenges of access, equity and quality in basic education for all children. PERA will be a consultative forum for governments, NGOs, and international organizations. It will identify and showcase the best programs and then disseminate and help countries replicate those innovative programs, adapting them to each individual national reality. 14 AID/AA/LAC 202 647 9671 Page 16 Job 803 Cct-11 Wed 14:00 1995 I am pleased to announced that the United States will provide some $3.75 million over the next five years to help fund that hemispheric partnership with education leaders across the Americas to identify the most innovative policies and programs in girls and women's education, educational quality; school finance; decentralization; and school-performance evaluation. The PERA forum will identify those programs, work to disseminate them and to help nations replicate them. An American poet, Robert Frost, once wrote of someone's death, "And nothing to look backward to with pride, "And nothing to look forward to with hope." We have the chance as we approach the 21st century to look backward with pride on what we have done to open educational opportunity to all Americans. We have the chance to insure that every child can look forward with hope and in so doing we will strengthen our democracies, build our mutual prosperity and move us closer to just societies. 15 Fineberg # 812 meet at 8 am in # 126 draft #1 Bre akfast to be served there. FIRST LADY HILLARY RODHAM CLINTON REMARKS AT THE UNIVERSITY OF CHILE SANTIAGO, CHILE OCTOBER 13, 1995 It is a great honor for me to be with you here in Santiago. This is my first trip to South America, and I am delighted to have the chance to spend time in your country, which represents so much hope and promise for democracy and prosperity in our region of the world. For me, it is always a special pleasure to visit a University, and I am particularly delighted to visit the University of Chile. I once heard someone say that "Chile's greatest export is its ideas." It was a reference not only to this artists, MUSICIANS, country's many great writers, poets, philosophers and teachers, but to an 1 approach to political and economic reforms that has become a model for many nations on this continent. Today, far too many nations around the world waste precious resources on building weapons of mass destruction, staging wars, and doing violence to basic human rights. Too often, natural resources are destroyed, and human ones exploited through socially irresponsible behavior. Today, too much time is spent in pursuit of power instead of in pursuit of peace and prosperity. What we see occurring in Chile, however, is the kind of progress that can be achieved when there is a genuine commitment to investing in people -- and that means investing in education and training, health care, and jobs and respecting the rights of every citizen, including women, to participate fully in the political life of their country. Chile and the United States share a commitment to democracy, social justice and equality of opportunity. We have worked together for many decades. I am pleased that we also have been partners with you here at the University of Chile, at the creation of the School of Geology and the Labor and Organization Department and in faculty exchanges that have resulted in joint scientific research. Improving the quality of teaching and schooling has been a principal focus of investment in both of our countries. That makes sense because education, universally, is a cornerstone of any strong and lasting democracy. I feel particularly keenly about this issue, not only because education has played such an important role in my own life as well as my husband's, but because around the world we have seen how the acquisition of knowledge and 2 skills can lift whole groups of people out of poverty and dependence and into self-reliance and prosperity. I learned about this firsthand when my husband was governor of Arkansas, one of the poorest states in the United States. At the time he was first elected in 1978, Arkansas ranked almost at the bottom in national measures of education. For decades, there had been very little public support for the schools. And there were very few resources available with which to initiate reforms. I became chair of his education task force and I spent days and weeks and months traversing the state, talking to parents, teachers, community and business leaders. And an extraordinary thing happened in Arkansas: business leaders joined together to lobby the state legislature in support of a special tax to raise money for education. It was unheard of to ask for any kind of tax, let alone one for the public schools. But businesses, whose successes depended so heavily on the availability of an educated and skilled workforce, understood that better schools would mean better workers. And better workers would mean greater prosperity for individual families, communities, and for the state as a whole. 3 Within a few years of the reform measure being approved, the quality of teachers and schools had improved, as had the standard of living of many people living in our state. I tell you this long story because it mirrors so much of what you have experienced here in Chile. Could Chile have succeeded in its transition to democracy, or in the achievement of lasting economic growth, or in the alleviation of poverty, without a commitment to education? Would the United States have endured as the longest living democracy without an education tradition that began with one-room schoolhouses on the western frontier and extended to a nationwide system of public universities? Throughout our hemisphere, we will continue to depend on today's students to build the economies of tomorrow and to afford working people the dream of middle-class life. Increasingly, the nations of our hemisphere are recognizing that education is central to our goals for the 21st century. For that reason, government leaders participating in the Summit of the Americas in Miami last year agreed to create a hemispheric Partnership for Education Reform Alternative. PERA will create a network of public and private institutions working in concert to asure that 4 children throughout Latin America not only receive schooling but are trained to compete in the modern global economy. I am pleased to announce that the United States will provide some $3.75 million over the next five years to help fund that hemispheric partnership with education leaders across the Americas to identify the most innovative policies and programs in girls and women's education, educational quality; school finance; decentralization; and school performance evaluation. The PERA forum will identify those programs, work to disseminate them and to help nations replicate them. Of course, education alone will not guarantee social and political progress. As was made clear at last year's Miami Summit -- and made clear again at the international women's conference in Beijing -- democracy, prosperity and social progress cannot be sustained in countries where women and girls are not valued as full and equal partners in society. Some of you, like me, had the privilege of attending the United Nations Fourth World Conference on Women last month. It was an extraordinary coming together that succeeded in focusing world attention on theissues that matter most to the lives of women and children. 5 There were some -- even in my country -- who doubted that the conference would result in any call to action or change. But the coference achieved a remarkable consensus about what is needed to improve the lives of women around the world. More than 180 nations endorsed a documnt that reflects a new understanding that improving the lives of women makes for strong, healthy, and loving families -- and that, in turn, if families are strong, communities and nations will be strong too. As I said in Beijing, the single most important message echoing forth from that conference is that human rights are women's rights -- and women's rights are human rights. Now we must take the consensus of Miami and Beijing and move our hemisphere forward by ensuring that women and girls have the opportunity to fulfill their God-given potential in their homes, schools, communities and workplaces. Just yesterday, on my way here, I stopped in Nicaragua, a nation that has started down the path to democracy and a market economy. The transition has been difficult and about half the population continues to live in poverty. The first stop I made was at a tiny bank in a barrio in Managua. It is run by 30 poor women who borrow modest amounts of money to invest in their own 6 businesses. One woman told me she had started a bakery; another made mosquito netting; a third was a seamstress. Not only had these women organized themselves to improve their own circumstances, they were also improving the circumstances of their families and communities. They were taking control of their lives and their futures. One sign of their new self-esteem and determination was that they have a loan repayment rate of 100 percent. Small and seemingly insignificant initiatives such as these are changing lives and changing nations. And they are sprouting up all over the globe. In fact, one of the women at the bank in Managua asked me about my trip to India last spring, because she knew I had visited a similar bank there. Earlier today, I had the opportunity to visit Prodemu with your First Lady. Here again is a wonderful example of how we can reach out to women -- through public and private institutions -- and help them secure training and skills that enable them to get jobs and earn decent wages; the comprehensive health services they need throughout their lives; and develop networks like those offer them more opportunities to build better lives with scarce resources. 7 We have the chance as we approach the 21st century to look backward with pride on what we have done to open educational opportunity to all Americans. We have the chance to insure that every child can look forward with hope and in so doing we will strengthen our democracies, build our mutual prosperity and move us closer to just societies. 8