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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13495 Folder ID Number: 13495-005 Folder Title: Karl Marx University 7/12/89 [1] Stack: Row: Section: Shelf: Position: G 25 6 4 1 Determined To Be an Administrative Marking Per E.O. 12356 Sec. 1.1 (a) CONFIDENTIAL PM 9/27/04 CLASSIFICATION CIRCLE ONE BELOW MODE PAGES / IMMEDIATE SECURE FAX 45 DTG 1015082 ADMIN FAX # RELEASER H JUL 09 PRIORITY ROUTINE FROM/LOCATION 1. Philip zelikow TO/LOCATION/TIME OF RECEIPT 3. 2. 1. AMB. DR. COND, BLACKWILL Rice /warsaw 4. 5. 6. 7. INFORMATION ADDEES/LOCATION/TIME OF RECEIPT 1. 2. SPECIAL INSTRUCTIONS/REMARKS: Deliver ASAP. CONFIDENTIAL CLASSIFICATION PG.02 21:11 68 INF 01 NOW WM IDENTIAL Sentences on CFE for use in Karl Marx University speech One of the key skepo in moving beyond containment IS easing INSERT I place a high priority on steps to ease the military confrontation in Europe. To this end, the NATO allies joined, at * the May Summit meeting, in my proposal of a comprehensive an anitiative #1" conventional arms control initiative that would cut the numbers of tanks, armored troop carriers, artillery, combat aircraft, attack helicopters, and US and Soviet troops stationed on foreign as well as soil in Europe all to a lower, equal levels. The We said we were ready to move fast. The Western allies promised that we would be ready to table the details of our new proposal at the negotiating H2" table in Vienna by early September. I am pleased to be able to announce today that we will do even better than that. Tomorrow, in Vienna, NATO will [present] follow through with the specifics on its be proposal. The issues may be tought complex, but we are working, day and night, to get a solid, historic agreement to strengthen stability in Europe, and get it soon. Determined To Be an Administrative Marking Per E.O. 12356 Sec. 1.1 (a) CONFIDENTIAL sa'nd 11:11 68 Inn at NOT given to Hogher Document No. 7/6/89 12:25 5228 WHITE HOUSE STAFFING MEMORANDUM 6/30/89 7/3/89 5:00 PM DATE: ACTION/CONCURRENCE/COMMENT OUE BY: PRESIDENTIAL REMARKS: KARL MARX UNIVERSITY SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER ROGERS BREEDEN CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 5:00 Monday, July 3, 1989, with an info copy to my office. RESPONSE: James W. Cleconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 NATIONAL SECURITY COUNCIL TIME STAMP URGENT EXECUTIVE SECRETARIAT STAFFING DOCUMENT 89 JUN 30 P6: 18 SYSTEM LOG NUMBER: 5228 ACTION OFFICER: RICE DUE: 3:30pm 3J4L Prepare Memo For Scowcroft/Gates Appropriate Action Prepare Memo For Cicconi Prepare Memo for Hughes Prepare Memo to CONCURRENCES/COMMENTS* PHONE* to action officer at ext. 3912 FYI FYI FYI Basora Lampley Rademaker Beers Leach Reiss Blackwill Levin Rice Briggs Lewis Rodman Brooks Mahley Rostow Charles Mandel Salvetti Coulson McCue Snider Deal Melby Tilley Donley Menan Tobey Dyke Miller Welch Ebner Miskel Whitley Grant Needels Working Haass Paal Zelikow Hoffmann Pacelli Hutchings Passage Jackson Popadiuk LaMagna Porter Kanter Pryce INFORMATION Hughes Gates (advance) Exec. Sec. Desk Scowcroft (advance) Secretariat SITTMAN COMMENTS Logged By CDM Return to Secretariat / Davis/Martin June 29, 1989 Title: Hungary Draft: One PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY (Date, Time) Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. ((And I have to admit, from my vantage point, he does seem to be staring right at me )) But those who know this great university know just how fitting this forum is for an American President to address the people of Hungary. After all, it is said that Tramline Number Two runs the nation, since it originates at Karl Marx and makes stops at the National Center, Parliament and the Central Committee. Many great Hungarian leaders have also moved along this same route, NAY-met among them Miklos Nemeth (Namath) and Zsigmond (Zig-mund) Jarai (JAR-ree). But before any of them, there was a teacher at Karl Marx University, and his name was Imre ((EEMH-ray) Nage (NAZH). funeral As his slow ^ procession moved through Heroes' any) Square, the R few weeks A rising voice of Hungary was heard in the singing of the Szozat (SO-zat). And in this simple, somber reburial, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, [one] more solid than stone, that Hungarians have begun to build a 2 2 new future a generation waited to honor his courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of the world once again looks to you for inspiration. Europe, America is rediscovering you. One of the ((bestselling)) 2 non-fiction books in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory ( (Quote to come)) This was a city that rivaled Paris in its splendor, Vienna in its music and London in its literature. This was a center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was torn from Europe and the West. But the city and country I see today is again opening to the West, again becoming a leading light in European culture. I see people in motion. I see color and creativity replacing grey conformity. I sense an atmosphere that is electric, alive with optimism. There is a new spirit of experimentation -- of making This is happening because your people and your leaders a new vegianing. are no. afraid government and opposition alike have the courage to break with the past, to act in the spirit of truth. And what better example than this ironic fact : Karl Mary University ha > dropped of thio of could there be than one simple facto Karl Marx University Das Kapital from its required reading list. has dropped Das Kapital from its required reading list ] Karl Marx traced only one thread of human existence, and missed the rest of the tapestry the colorful and varied 3 3 tapestry of civilization. Marx regarded Man as an economic being. But Man is more than that. He is artistic Man. He has an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. And Man is something else which cannot be denied he is a creature of God The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season of freedom. It's a rebirth, a Renaissance of Hungary. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will soon broadcast everything from the news to Huey Lewis and the News. And [even] Radio Free Europe is opening its first Budapest bureau. along your border with Austria, suched wire is being removed barbed wire, the Symbol of Europe diagion More than one hundred thousand Americans visited Hungary last year -- and more than 20 000 Hungarians have come to of separation from the rest of Europe America. This very university operates exchange programs with 23 U.S. schools. For the first time, the Iron Curtain has begun to part. Hungary is changing the world. also The Soviet Union has withdrawn many troops, which I take as of overcomers the decision of Europe. a first sign that Moscow truly respects your severeignty. And as leaders they leave, let the Soviets know they have everything to gain, and nothing to lose or fear, from peaceful change. [Hor should we 4 4. We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, pale before this --- Hungary is at the threshold of great and historic change. You are writing a new consitution -- a real constitution -- and you are moving toward democratic, multiparty elections. This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. BF. Hungary is embarking on an odyssey of change. I am here to tell you that the United States is with you. We want to help you build an alternative future -- a democratic future. We are ready to help promote lasting change in Hungary in three vital spheres -- economics, the creation of democratic instituions, and the envrionment. Last Thursday, before leaving Washington, I hosted a White House Symposium on Eastern Europe. I spoke to leaders fromt he American private sector -- from business, education, labor and other fields -- and I urged them to be involved in Hungary, to help Hungary build its democratic future. Their response was encouraging. America will be involved. INVESTING IN HUNGARY The United States believes aid should accelerate change, not delay it. So this is our guiding principle -- the united States offers aid not to prop up the status quo, but to propel reform. the 4(a) Of course, the dead weight of the past still burdens Hugnarian enterprise. The remnants of the Stalinist economy, with its huge, inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. (5) 5 5 And, ultimately, it's a burden to be discarded. To make the transition to a market economy will test your mettle as a people. The prices of some commodities will rise. Some inefficient factories will close. Hard choices already await you. But the creative drive of the people, once unleashed, will create a momentum of its own. This will eventually bring you something each of greater than the riches you will create. It will give you control over your destiny a Hungarian destiny. The Hungarian government has already started to leave the business of running shops to shopkeepers and farms to farmers. As you change, so will you integrate into the world economy. Just look to the West of the Danube -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But the United States will also be your partner in this transformation to a successful 1 NEERT competitive economy. Se with trade in mind, once your future Parliament pener legalizes Third, enigration legislation proposednum your Couneilief ministers, the free movement of its citizens, I will inform Congress that in compliance our Hungary will then Hungary is complying with the 1974 Trade Act. This will entitle quality for you to the maximum most-favored nation tariff status possible under U.S. law. Simply put, the largest single market in the world is opening its doors to you. Fouith, and access to out America is also prepared to Include Hungary in the sizer: taiff generalized system of preferences, which provides duty free entry " geneticicing for certain goods. Bungary can and should -- develop the same / 6 NATIONAL SECURITY COUNCIL 5-Jul-1989 16:45 EDT CONFIDENTIAL MEMORANDUM FOR: Condoleezza Rice (RICE) FROM: Robert L. Hutchings SEWRITE FROM m DDDLE (HUTCHINGS) OF PAGE 5 ON SUBJECT: KarlMarx First, as I announced in Warsaw, I will propose at the Paris Economic Summit the formation of a Consortium for Poland and Hungary, which will coordinate the economic and technical assistance programs of our Summit partners in support of your reforms. And we need to take account of the de Herent decome thations in the two countries : our coordinated for progra Second, I will ask the U.S. Congress to authorize a $25 million grant to establish a Hungarian-American Enterprise will)be aimed. a Foundation to capitalize and invigorate the Hungarian private meen, sector. I will also encourage parallel efforts from the other your needs nations of the Economic Summit. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 Trade Act. Hungary will then qualify for the maximum most-favored-nation tariff status possible under U.S. law. Simply put, the largest single market in the world is opening its doors to you. Fourth, America is prepared to provide Hungary access to our 2 7 Generalized System of Preferences, which offers selective tariff relief for beneficiary countries. Fifth, I am pleased to note the formation of the Hungarian Enterprise Group, which will match venture capital, both foreign and Hungarian, with entrepreneurs -- the small businessmen and -women with grand ideas. Some of you here today may have a few grand ideas of your own. Perhaps you will benefit from just this kind of collaboration. Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Many innovate programs are underway already. Consider, for example, the American investment company Bears-Stearn, which has established a special "Hungary Fund," which pools resources to purchase shares in Hungarian companies. What does private investment mean for Hungary? restorday at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi SAY chaney), who coined a phrase in his great work on economics:- Hungary was not but will be of this are ains Hungary will be great again 3 DEMOCRATIC CHANGE But what Hungary seeks is not measured just in economic terms. And the assistance we offer is not only economic. We want to help you as you seek an alternative future for your country -- a democratic alternative. 3 8 also The United States is committing more than $6 million for to Provite cultural a education appointies initiatives to support democratic change in Eastern Europe. We mdu availa)( will provide funds for a series of major new U.S.-Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among experts and practitioners in the field of law, among community leaders, educators, and young people. We are creating dozens of fellowships whereby Hungarians can study at American universities, and we will fund endowed chairs in American studies at your universities. And books -- many thousands of them -- to fill the shelves of your American Management Institute and the libraries of schools and universities across Hungary. The United States will also open, within the next two years, an America House in the center of Budapest. The celebrated American architect Robert Stern will design the plans for this center, which will be an open house of books, magazines, and videocassettes -- and open house of ideas. I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come DO Budapest and all 19 counties to teach English. As students, you know that English is the language of world business, the key to successful commerce from Hong Kong to Toronto. It also opens the doors to science, technology, and the arts. It is among our most valuable exports. ENVIRONMENTAL INITIATIVE To build democratic institutions, to embark on a path of economic revitalization -- these are the elements of Hungary's 4 9 future. But to realize a promising future, we must work together to protect our basic common possession -- the environment. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. What a tragedy it would be if your continent were again spoiled, this time not by war, but by a more subtle danger -- that of poisoned rivers and acid rain. Hungary has led eastern and central Europe in addressing the concerns of its citizens for cleaner air and water. And you are leading the way in environmental agreements with the West. ( (ENVIRONMENTAL INITIATIVE TO COME) ) Pollution is no respecter of borders. Let us work together to save our common inheritance. MEETING THE FUTURE In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities -- and, yes, great challenges. Hungary has. a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a democratic future. Your challenge is enormous and historic. No nation has yet attempted what you are now attempting: to build political democracy and decentralized economic enterprise on the ruins of a failed Stalinist system. Given the opportunity to show your characteristic initiative, creativity, and resourcefulness I believe that the Hungarian people can meet the challenge. You stand on the threshold of a new era of economic development and democratic change. I believe you are ready to meet the future. I see a country 5 10 well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you. 4 fear new thinking from EF. Gorbacher] We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, steat and pale before this -- Hungary is at the threshold of doing what no misturic change. you are wring s new constitution a real other Communist power has done in History. You are going to become the first Warsaw Pact nation to ever hold a truly free constitution and non are moving howard demonshe multiparhy elections election. This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. We are ready to help promote lasting change in Hungary in three vital spheres -- economics, cultural exchange and the democratic change, environment. Hungary is embarking on an odyssey of change. I am here to tell you that the United States is with you. We want to help you build an alternative futur a democrate INVESTMENT IN HUNGARY alternative The United States believes aid should accelerate change, not delay it. So this our guiding principle -- the United States offers aid not to prop up the status quo, but to propel reform. Of course, the dead weight of the past still burdens Hungarian enterprise. The remnants of the Stalinist economy, with its huge, inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. white Last Thersday, before ospohe labor a House is mas Symps and T, sector them to be involveding thong. in help Univery's demosiate future. Their response was encounting they be 6 trade access to the A rican market that your Western neighbors anjoy. The United States will offer some government assistance, including an entrepreneurial fund for economically depressed regions of your country. In years past, loans were written and accepted with little thought paid to their utility. We've learned that massive government and institutional loans hobble whole nations with debty while private investment liberates creditor and debtor alike. The U.S. government can and will match American private sector investment in Hungary investment where it counts, in Hungarian factories, products and jobs. Fifth, I am pleased to note the recent U.S. Hungarian agreement to premete the formation and development of small, private formation of businesses all across your country membled the Hungarian Enterprise Group, this center will match venture capital, both foreign and Hungarian, with entrepreneurs the small businessmen and -women with the grand ideas. Some of you here today may have a few grand ideas of your own. Perhaps you will benefit from just such a collaboration. Sixth, name wreduded = draft a rement, to We will seen authorize the Overseas Private Investment Corporation ta encourage American investment in private enterprises in Hungary. Se far, however, little encouragement much progres has been make elseady has been needed. Consider the American investment company, Bears-Stearn, which has already established a special "Hungary Fund." This private pool of investment will purchase shares in Their Hungarian companies, helping to develop a Hungarian stock market. white House Symposism on chekin Enjoye opine Last Thursday, before learn Wash gton. + hold a a leader from the American purch meets from business, them advication, labor, and other griends and I urgea - be engaged in Hungary, to help build Hingarys dminate 7 What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (Say-chaney), who coined a phrase in his great work on edonomics: "Hungary was not, but will be." Of this we are sure -- Hungary will be great again. CULTURAL EXCHANGE These are the economic proposals I will discuss with your leaders. But I am also here to meet the Hungarian people. I hope this visit leads to a wider exchange between East and West. Let our scientists, our artists, our environmentalists share the knowledge that can benefit us all. Let our soldiers and statesmen discuss peace and our students discuss the future. In fact, our student exchange programs are already the most ensimonsly successful. They have grown fast and can still accommodate thousands more. For this reason, I am pleased to announce that the United States Information Agency is going to initiate six new youth exchange programs in Hungary. To the students here today, I want you to know that the doors of America's universities are open to you. THE am pleased to announce two agreements with your government was on tourism and civilian air exchange to come)) The United States will also open, within the next two years, an America House in the center of Budapest. The celebrated American architect Robert Stern will design the plans for this It also opens The awars TV science, technology , and the 8 arts. It is one if our most valuable exprrts. center, which will promote bilateral trade by helping Hungarians to learn American culture. And when it comes to the language of America, the teaching of English is one of our most popular exports. As students you langue know that English is the lingua franca of world business, the key to elinching deals from Hong Kong to Toronto. so to give Hungarians greater entree into the global marketplace, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. INITIATIVE ENVIRONMENTAL EXCHANGE To learn a language, to start a business, is to embark on a great adventure. But to fulfill a promising future, we must also protect our basic common possession -- the environment. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. What a tragedy it would be if your continent was again spoiled, this time not by war, but by a more subtle and insidious danger -- that of poisoned rivers and acid rain. Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. And you are leading the way in environmental agreements with the West. [The U.S. Environmental Protection Agency and the Hungarian government 9 have just agreed on new programs for exchanges and joint training of environmental experts , ( (Substance to come) ) Pollution is no respecter of borders. Let us work together to save our common heritage. In economics culture and the environment, we have much to share and learn from each other. The United States is especially determined to stand by Hungary as you meet an enormous challenge. No Communist nation has yet attempted what Hungary is already doing -- to build democracy and a free market Substance on Democracy consortium/help from great parties of the West to come)) I see a great Hungarian future in the bright faces of your students But not all young people in the East Bloc have as much freedom as you do to plan their future. Certainly not your brothers and sisters in Transylvania. Your press recently reported that a Romanian girl was lost in the Maros River. #e don't know exactly sure how she died. But we know that if she had been traveling from Hungary to Austria, she would have received nothing more than a friendly wave from the border guard. But she attempted to cross the Maros, and paid with her life Her two brothers made it across safely. We do not know the torments that drove her to risk her life. But we do know her heart. It is the heart of Anne Frank and 10 Hertelendy (HERT-IIndy) Jamos (Yamosh). It is the heart of youth determined to live in freedom Throughout the Communist world today, as a younger generation prepares to assume power, a great debate is underway. In this debate, Moscow advocates limited political freedom, but without economic rights. Beijing practices limited economic freedom, but without political liberty. Where are political and economic liberty peacefully advancing together? In Hungary. The people of Hungary know it is not enough to let men and women purchase what they want or cast a symbolic vote. They must be allowed to say what they believe. They must be allowed to choose their government. Limited freedom, whether it is economic or political, will not provide sufficient TOOM for the restless human spirit. Benjamin Franklin, the sage of the American Revolution, said that love of liberty and the rights of man should someday become so widespread, "that a philosopher may set his foot upon anywhere on the surface (of the earth) and say: 'this is my country. Because of your courage, that is the Hungary we can see before us; a better Hungary, a greater Hungary, a place any countryman of freedom could call home. Thank you and God bless you all. # # # - 2 - AS HIS FUNERAL PROCEEDED IN HEROES' SQUARE A FEW WEEKS AGO, THE RISING VOICE OF HUNGARY WAS HEARD RECITING THE SZOZAT [SO-ZAT]. AND IN THIS SIMPLE, SOMBER CEREMONY, THE WORLD SAW SOMETHING MORE THAN A DIGNIFIED ACT FAMAGE OF RECONCILIATION. WE WITNESSED AN ACT OF TRUTH. IT IS ON THIS FOUNDATION OF TRUTH, MORE SOLID THAN STONE, THAT HUNGARIANS HAVE BEGUN TO BUILD A NEW FUTURE ... A GENERATION WAITED TO HONOR IMRE (EEMH-RAY) NAGY'S (NUDGE'S) COURAGE; MAY A HUNDRED GENERATIONS REMEMBER IT. WHILE HUNGARY REDISCOVERS ITS NATURAL ROLE IN THE AFFAIRS OF EUROPE, THE WORLD AGAIN LOOKS TO YOU FOR INSPIRATION. A POPULAR NON-FICTION BOOK IN MY COUNTRY TODAY IS ENTITLED BUDAPEST 1900. DR. JOHN LUKACS LOVINGLY DESCRIBES THE BUDAPEST OF MEMORY, WITH ITS PROUD STOCK EXCHANGE AND GREAT OPERA; A TIME WHEN EUROPE'S FIRST ELECTRIC SUBWAY RAN UNDERNEATH THE HANDSOME SHOPS OF ANDRASSY AVENUE. - 3 - A CITY THAT RIVALED PARIS IN ITS SPLENDOR VIENNA IN ITS MUSIC LONDON IN ITS LITERATURE. A CENTER OF LEARNING THAT ENLIGHTENED THE WORLD, AND GAVE AMERICA ONE KIND OF GENIUS IN JOSEPH PULITZER, AND ANOTHER IN BELA BARTOK. BUT FOR FOUR DECADES, THIS GREAT CITY, THIS GREAT NATION, so CENTRAL TO THE CONTINENT IN EVERY RESPECT, HAS BEEN SEPARATED FROM EUROPE AND THE WEST. V TODAY HUNGARY IS OPENING AGAIN TO THE WEST -- BECOMING A BEACON OF LIGHT IN EUROPEAN CULTURE. I SEE PEOPLE IN MOTION. I SEE COLOR, CREATIVITY, EXPERIMENTATION. I SEE A NEW BEGINNING FOR HUNGARY OF THISCITY, THE VERY ATTNOSPHERE THE VERY ATMOSPHERE OF BUDAPEST IS ELECTRIC, ALIVE WITH OPTIMISM. YOUR PEOPLE AND YOUR LEADERS -- GOVERNMENT AND OPPOSITION ALIKE -- ARE NOT AFRAID TO BREAK WITH THE PAST, TO ACT IN THE SPIRIT OF TRUTH. AND WHAT BETTER EXAMPLE OF THIS COULD THERE BE THAN ONE SIMPLE FACT: KARL MARX UNIVERSITY HAS DROPPED DAS KAPITAL FROM ITS REQUIRED READING LIST - 4 - SOME HISTORIANS ARGUE THAT MARXISM AROSE OUT OF A HUMANE IMPULSE. BUT KARL MARX TRACED ONLY ONE THREAD OF HUMAN EXISTENCE, AND MISSED THE REST OF THE TAPESTRY HE -- THE COLORFUL AND VARIED TAPESTRY OF HUMANITY. MARX REGARDED MAN AS HAPLESS --UNABLE TO SHAPE HIS ENVIRONMENT OR DESTINY. BUT MAN IS NOT DRIVEN BY IMPERSONAL ECONOMIC FORCES. HE ) IS NOT SIMPLY AN OBJECT ACTED UPON BY VA MECHANICAL "LAWS" OF HISTORY. RATHER, MAN IS IMAGINATIVE AND INVENTIVE. HE IS P ARTISTIC, WITH AN INNATE NEED TO CREATE AND ENJOY BEAUTY. HE IS A LOVING MEMBER OF A FAMILY, AND A LOYAL PATRIOT TO HIS PEOPLE. MAN IS DYNAMIC, DETERMINED TO SHAPE HIS OWN FUTURE. THE CREATIVE GENIUS OF THE HUNGARIAN PEOPLE, LONG SUPPRESSED, IS AGAIN FLOURISHING WERE IN YOUR SCHOOLS, YOUR BUSINESSES, YOUR CHURCHES. THIS IS MORE THAN A FLEETING SEASON OF FREEDOM. IT IS HUNGARY RETURNING TO ITS (NORMAL TRADITIONAL VALUES. IT IS HUNGARY RETURNING HOME. - 5 - VOICES LONG STILLED ARE BEING HEARD AGAIN. AN INDEPENDENT DAILY NEWSPAPER IS NOW SOLD ON THE STREETS. COMMERCIAL RADIO AND TELEVISION STATIONS WILL BROADCAST EVERYTHING FROM THE NEWS TO THE MUSIC OF STEVIE WONDER. AND RADIO FREE EUROPE IS OPENING ITS FIRST EAST EUROPEAN BUREAU RIGHT HERE IN BUDAPEST. ALONG YOUR BORDER WITH AUSTRIA, THE UGLY SYMBOL OF EUROPE'S DIVISION AND HUNGARY'S ISOLATION IS COMING DOWN, AS THE BARBED WIRE FENCES ARE ROLLED AND STACKED INTO BALES. FOR THE FIRST TIME, THE IRON CURTAIN HAS your GREAT COUNTRY BEGUN TO PART. AND HUNGARY IS LEADING THE WAY. A THE SOVIET UNION HAS WITHDRAWN TROOPS, WHICH I ALSO TAKE AS A STEP IN OVERCOMING EUROPE'S DIVISION. AND AS THOSE FORCES LEAVE, LET THE SOVIET LEADERS KNOW THEY HAVE EVERYTHING TO GAIN, AND NOTHING TO LOSE OR FEAR, FROM PEACEFUL CHANGE. WE CAN WORK TOGETHER TO MOVE BEYOND CONTAINMENT, BEYOND THE COLD WAR. AND AMDETERMINED THAT WE WILL) - 6 - ONE OF THE KEY STEPS IN MOVING BEYOND CONTAINMENT IS EASING THE MILITARY CONFRONTATION IN EUROPE. TO THIS END, THE NATO ALLIES JOINED, AT THE MAY SUMMIT MEETING, IN MY PROPOSAL OF A COMPREHENSIVE CONVENTIONAL ARMS CONTROL INITIATIVE - -- AN INITIATIVE THAT WOULD CUT THE NUMBERS OF TANKS, ARMORED TROOP CARRIERS, ARTILLERY, COMBAT AIRCRAFT, ATTACK HELICOPTERS, AS WELL AS U.S. AND SOVIET TROOPS STATIONED ON FOREIGN SOIL IN EUROPE - ALL TO LOWER, EQUAL LEVELS. THE ISSUES MAY BE COMPLEX, BUT WE ARE WORKING, DAY AND NIGHT, TO GET A SOLID, HISTORIC AGREEMENT TO STRENGTHEN STABILITY IN EUROPE AND REDUCE THE RISK OF WAR. AND WE ARE DETERMINED TO GET IT SOON. A LNOW, THERE IS NO MISTAKING THE FACT THAT WE ARE ON THE THRESHOLD OF A NEW ERA. AND THERE IS ALSO NO MISTAKING THE FACT THAT HUNGARY IS AT THE THRESHOLD OF GREAT AND HISTORIC CHANGE. YOU ARE WRITING A REAL CONSTITUTION - - AND YOU ARE MOVING TOWARD DEMOCRATIC, MULTI-PARTY ELECTIONS. - 7 - THIS IS PARTLY POSSIBLE BECAUSE BRAVE MEN AND WOMEN HAVE FORMED OPPOSITION PARTIES. AND THIS IS POSSIBLE BECAUSE HUNGARIAN LEADERS ARE GOING TO SHOW THE ULTIMATE POLITICAL COURAGE -- THE COURAGE TO SUBMIT TO THE CHOICE OF THE PEOPLE IN FREE ELECTIONS. I BUT TO SUCCEED IN REFORM, YOU WILL NEED PARTNERS - - PARTNERS TO HELP PROMOTE LASTING CHANGE IN HUNGARY. AND today I AM HERE TO OFFER HUNGARY THE PARTNERSHIP OF THE UNITED STATES OF AMERICA. AA THREE VITAL SPHERES STAND OUT IN OUR PARTNERSHIP - - ECONOMICS, THE ENVIRONMENT, AND DEMOCRATIC AND CULTURAL EXCHANGE. INVESTMENT IN HUNGARY THE UNITED STATES BELIEVES IN THE ACCELERATION OF PRODUCTIVE CHANGE, NOT IN ITS DELAY. SO THIS OUR GUIDING PRINCIPLE -- THE UNITED STATES WILL OFFER ASSISTANCE NOT TO PROP UP THE STATUS QUO, BUT TO PROPEL REFORM. - 8 - OF COURSE, THE WEIGHT OF THE PAST STILL BURDENS HUNGARIAN ENTERPRISE. THERE ARE REMNANTS OF THE STALINIST ECONOMY - -- HUGE, INEFFICIENT INDUSTRIAL HARDFOR ANYONETO PLANTS; A BEWILDERING PRICE SYSTEM NO ONE UNDERSTANDS THE MASSIVE SUBSIDIES THAT CLOUD ECONOMIC DECISIONS -- ALL OF THIS SLOWS WHAT YOU COULD OTHERWISE ACHIEVE. IT S AN ECONOMIC RUBIK'S CUBE THAT DEFIES SOLUTION. TO MAKE THE TRANSITION TO A PRODUCTIVE ECONOMY WILL TEST YOUR METTLE AS A PEOPLE. THE PRICES OF SOME COMMODITIES MAY RISE. SOME INEFFICIENT FACTORIES WILL CLOSE. BUT THE HUNGARIAN GOVERNMENT IS INCREASINGLY THE THE LEAVING THE THE BUSINESS OF RUNNING SHOPS TO SHOPKEEPERS, THE AND FARMS TO FARMERS. AND THE CREATIVE DRIVE OF THE PEOPLE, ONCE UNLEASHED, WILL CREATE A MOMENTUM OF ITS OWN. THIS WILL BRING YOU A GREATER TREASURE THAN SIMPLY THE RICHES YOU WILL CREATE. IT WILL GIVE EACH OF YOU CONTROL OVER YOUR DESTINY A HUNGARIAN A DESTINY. AND, AS I SAID, THE UNITED STATES WILL BE YOUR PARTNER IN THIS TRANSFORMATION TO A SUCCESSFUL ECONOMY. - 9 - ATTHC WHITEHOUSE LAST THURSDAY, I INVITED AMERICAN LEADERS FROM UP THC WH BUSINESS, EDUCATION, LABOR AND OTHER FIELDS -- TO COME TO THE WHITE HOUSE AND DISCUSS THE NEW PRIVATE SECTOR OPPORTUNITIES OPENING UP IN HUNGARY. THEIR RESPONSE WAS ENTHUSIASTIC. THIS WAS ESPECIALLY TRUE OF HUNGARIAN-AMERICANS, so PROUD TO BE BUILDING A BRIDGE BETWEEN THEIR NEW COUNTRY AND THEIR MOTHERLAND. AS LONG AS OUR TWO GOVERNMENTS EASE THE WAY, THE PEOPLE OF THE PEOPLE CANDO AMERICA AND HUNGARY CAN DO THE REST. THE REST. AND IT IS IN THIS SPIRIT THAT I ANNOUNCE THE FOLLOWING MEASURES. FIRST, AS I SAID IN WARSAW, I WILL PROPOSE AT THE PARIS ECONOMIC SUMMIT CONCERTED WESTERN ACTION FOR POLAND AND HUNGARY, TO BACK YOUR REFORMS WITH ECONOMIC AND TECHNICAL ASSISTANCE FROM THE SUMMIT PARTNERS A OF COURSE, OUR EFFORTS FOR HUNGARY WILL BE TARGETED TO YOUR NEEDS. - 10 - AND SECOND, I WILL ASK THE U.S. CONGRESS TO AUTHORIZE A $25 MILLION FUND AS A SOURCE OF NEW CAPITAL TO INVIGORATE THE HUNGARIAN PRIVATE-SECTOR. I WILL ALSO ENCOURAGE PARALLEL EFFORTS FROM THE OTHER NATIONS OF THE ECONOMIC SUMMIT. THIRD, ONCE YOUR PARLIAMENT PASSES THE NEW EMIGRATION LEGISLATION PROPOSED BY YOUR COUNCIL OF MINISTERS, I WILL INFORM OUR CONGRESS THAT HUNGARY IS IN FULL COMPLIANCE WITH THE JACKSON-VANIK AMENDMENT TO OUR 1974 TRADE LAW. NO COUNTRY HAS YET BEEN RELEASED FROM THE RESTRICTIONS OF THIS AMENDMENT. so I AM PLEASED TO TELL YOU THAT HUNGARY WILL BE THE FIRST. A ((PAUSE)) THIS ACTION WILL GIVE HUNGARY THE MOST LIBERAL ACCESS TO THE AMERICAN MARKET FOR THE LONGEST TERM POSSIBLE UNDER OUR LAWS. D FOURTH, AMERICA IS PREPARED TO PROVIDE YOUR COUNTRY WITH ACCESS TO OUR GENERALIZED SYSTEM OF PREFERENCES, WHICH OFFERS SELECTIVE TARIFF RELIEF. SIMPLY PUT, THESE LAST TWO MEASURES WILL ALLOW YOU TO TAKE ADVANTAGE OF THE LARGEST SINGLE MARKET IN THE WORLD. - 11 - FIFTH, WE HAVE CONCLUDED A DRAFT AGREEMENT TO OPIC we AUTHORIZE THE OVERSEAS PRIVATE INVESTMENT CORPORATION call it, TO OPERATE IN HUNGARY. ONCE OUR SENATE PASSES THE ENABLING LEGISLATION, OPIC WILL BE ABLE TO PROVIDE INSURANCE TO ENCOURAGE AMERICAN INVESTMENT IN PRIVATE ENTERPRISES IN HUNGARY. THROUGH OPIC, AMERICAN BUSINESS EXECUTIVES WILL SEE FIRSTHAND THE GREAT OPPORTUNITY OF HUNGARY. PRIVATE INVESTMENT IS CRITICAL FOR HUNGARY. IT MEANS JOBS, INNOVATION, PROGRESS. BUT MOST OF ALL, PRIVATE INVESTMENT MEANS A BRIGHTER FUTURE FOR YOUR CHILDREN; A BRIGHTER FUTURE FOR HUNGARY. - 12 - ENVIRONMENTAL INITIATIVE YET ECONOMIC PROGRESS CANNOT BE AT THE EXPENSE OF THE AIR WE BREATHE AND THE WATER WE DRINK. SIX WEEKS AGO, IN MAINZ, I PROPOSED COOPERATION BETWEEN EAST AND WEST ON ENVIRONMENTAL ISSUES. THAT IS WHY I WILL ASK THE U.S. CONGRESS TO APPROPRIATE $5 MILLION TO ESTABLISH AN INTERNATIONAL ENVIRONMENTAL CENTER FOR \RIGHTHERE CENTRAL AND EASTERN EUROPE, TO BE BASED IN BUDAPEST, WHICH WILL BRING TOGETHER PRIVATE AND GOVERNMENT EXPERTS AND ORGANIZATIONS TO ADDRESS THE ECOLOGICAL AFTER ALL, CRISIS OUR SHARED HERITAGE IS THE EARTH. AND THE FATE OF THE EARTH TRANSCENDS BORDERS; IT IS* NOT JUST AN EAST-WEST ISSUE. HUNGARY HAS LED EASTERN AND CENTRAL EUROPE IN ADDRESSING THE CONCERNS OF YOUR CITIZENS FOR CLEANER AIR AND WATER. LAND NOW YOU CAN DO EVEN MORE, WORKING WITH THE WEST TO BUILD A BRIDGE OF TECHNICAL AND SCIENTIFIC COOPERATION. - 13 - ALONG THESE LINES, I AM ALSO PLEASED TO ANNOUNCE THAT THE U.S. HAS PROPOSED AN AGREEMENT BETWEEN OUR TWO COUNTRIES TO ESTABLISH SCIENTIFIC AND TECHNICAL COOPERATION IN THE BASIC SCIENCES, AND IN SPECIFIC AREAS, INCLUDING THE ENVIRONMENT, MEDICINE AND NUCLEAR SAFETY. DEMOCRATIC AND CULTURAL EXCHANGE IT IS MY HOPE THAT THIS VISIT WILL ALSO LEAD TO A WIDER EXCHANGE BETWEEN EAST AND WEST, SO OUR SCIENTISTS, OUR ARTISTS AND OUR ENVIRONMENTALISTS CAN LEARN FROM ONE ANOTHER SO THAT OUR SOLDIERS AND (GOBBLESSTHEM STATESMEN CAN DISCUSS PEACE AND OUR STUDENTS CAN 1 1 DISCUSS THE FUTURE. ((PAUSE)) - 14 - BUT TO DISCUSS ANYTHING REQUIRES A COMMON THE LANGUAGE LANGUAGE. THE TEACHING OF ENGLISH IS ONE OF THE MOST POPULAR AMERICAN EXPORTS. AS STUDENTS YOU KNOW THAT ENGLISH IS THE LINGUA FRANCA OF WORLD BUSINESS, THE KEY TO CLINCHING DEALS FROM HONG KONG TO TORONTO. so TO OPEN THE GLOBAL MARKET TO MORE HUNGARIANS, I AM PLEASED TO ANNOUNCE THAT THE PEACE CORPS WILL, FOR THE FIRST TIME, OPERATE IN A EUROPEAN COUNTRY. AND OUR PEACE CORPS INSTRUCTORS WILL COME TO BUDAPEST AND ALL 19 COUNTIES TO TEACH ENGLISH. - 15 - LAND IN SUCH EXCHANGES, WE WANT TO HELP YOU IN YOUR QUEST FOR A NEW BEGINNING AS A DEMOCRATIC HUNGARY. SO THE UNITED STATES IS ALSO COMMITTING MORE THAN $6 ? MILLION TO CULTURAL AND EDUCATIONAL OPPORTUNITIES IN EASTERN EUROPE. WE WILL MAKE AVAILABLE FUNDS FOR A SERIES OF MAJOR NEW U.S. -HUNGARIAN EXCHANGE PROGRAMS -- AMONG CONGRESSMEN AND LEGISLATIVE EXPERTS, AMONG LTHE LABOR AND BUSINESS LEADERS, AMONG THE LEGAL EXPERTS, AMONG COMMUNITY LEADERS, EDUCATORS AND YOUNG PEOPLE. WE ARE CREATING DOZENS OF FELLOWSHIPS TO ENABLE HUNGARIANS TO STUDY AT AMERICAN UNIVERSITIES. AND WE WILL FUND ENDOWED CHAIRS IN AMERICAN STUDIES AT YOUR UNIVERSITIES ... AND BOOKS -- MANY THOUSANDS OF THEM -- TO FILL THE SHELVES OF YOUR NEW INTERNATIONAL MANAGEMENT CENTER AND THE LIBRARIES OF SCHOOLS AND UNIVERSITIES ACROSS HUNGARY. A THE UNITED STATES WILL ALSO OPEN, WITHIN THE NEXT SEVERAL YEARS, AN AMERICA N HOUSE IN THE CENTER OF BUDAPEST. A TODAY, THE CELEBRATED AMERICAN ARCHITECT ROBERT STERN IS RELEASING HIS DESIGN FOR THIS CENTER, WHICH WILL BE AN OPEN HOUSE OF BOOKS, MAGAZINES AND VIDEOCASSETTES -- AN OPEN HOUSE OF IDEAS. PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY JULY 12, 1:15 P.M. LADIES AND GENTLEMEN, DR. CSAKI (CHAH-KEE). IT'S A PLEASURE FOR TO BE BACK IN BUDAPEST, AND I AM PROUD TO BE BARB ME Q THE FIRST AMERICAN PRESIDENT TO VISIT HUNGARY. SOME MIGHT FIND IT IRONIC THAT I AM SPEAKING AT A UNIVERSITY NAMED AFTER KARL MARX. @Ad-Lib BUT THE FACT THAT I AM HERE TODAY IS LESS A CAUSE FOR SURPRISE THAN PROOF THAT AMERICA WELCOMES THE UNFETTERED COMPETITION OF IDEAS. [AD-LiB] THE UNIVERSITY'S PRINCIPAL TASK IS TO PROMOTE THIS COMPETITION. THAT IS THE SPIRIT THAT BRINGS US TOGETHER -- A SPIRIT THAT GUIDED A GREAT TEACHER AT KARL MARX UNIVERSITY, WHOSE NAME WAS IMRE (EEMH-RAY) NAGY (NUDGE). ((PAUSE)) - 16 - CONCLUSION AND IN ECONOMIC REFORM AND DEMOCRATIC CHANGE, IN CULTURAL AND ENVIRONMENTAL COOPERATION, THERE ARE GREAT OPPORTUNITIES -- AND GREAT CHALLENGES. HUNGARY HAS A LOT OF WORK AHEAD; (AND so DO THE UNITED STATES AND HUNGARY, WORKING TOGETHER TO BUILD A BETTER FUTURE -- A DYNAMIC FUTURE. YOUR CHALLENGE IS ENORMOUS AND HISTORIC: TO BUILD A STRUCTURE OF POLITICAL CHANGE AND DECENTRALIZED ECONOMIC ENTERPRISE ON THE RUINS OF A FAILED STALINIST SYSTEM. GIVEN THE OPPORTUNITY TO SHOW YOUR CHARACTERISTIC INITIATIVE, CREATIVITY AND RESOURCEFULNESS, I BELIEVE THAT THE HUNGARIAN PEOPLE WILL MEET THE CHALLENGE. YOU STAND ON THE THRESHOLD OF A NEW ERA OF ECONOMIC DEVELOPMENT AND YES POLITICAL CHANGE. Davis/Martin July 8, 1989 Title: b:karl Draft: Five PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY July 12, 1:15 p.m. Ladies and gentlemen, Dr. Csaki (CHAH-kee) . It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. ((And I have to admit, from my vantage point, he does seem to be staring right at me .)) But those who know this great university know just how fitting this forum is for an American President to address the people of Hungary. After all, it is said that Tramline Number Two runs the country, since its route joins business with academe - academe with government. Many Hungarian leaders have also moved along ? this same route, including Miklos (MEEK-losh) Nemeth (NAY-met). But before any of them, there was a teacher at Karl Marx University, and his name was Imre (EEMH-ray) Nagy (NUDGE). ((PAUSE)) funeral proceded in As his slow reburial procession moved through Heroes' Square 1 rising of Hungary was heard in the singing of a few the weehs ago, voice reciting The Szozat. the National Hymn And in this simple, somber ceremony, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, more solid than stone, that Hungarians have begun to build a new SZOZAT [SO-zat] PRONANCIATION 2 future a generation waited to honor Imre (EEMH-ray) Nagy's (NUDGE'S) courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular non-fiction book in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor Vienna in its music London in its literature. A center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was separated from Europe and the West. Today Hungary is opening again to the West -- becoming a leading light in European culture. I see people in motion. I see color, creativity, experimentation. I see a new beginning for Hungary ... The very atmosphere of Budapest is electric, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped Das Kapital from its required reading list 3 Some historians argue that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of humanity. Marx regarded Man as a hapless being shaped by impersonal economic forces. But Man is more than that. He is artistic -- Man has an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. And Man is something else which cannot be denied he is a creature of God The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season of freedom. It is Hungary returning home. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will broadcast everything from the news to the pop music of Huey Lewis and the News. And Radio Free Europe is opening its first Budapest bureau. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary is leading the way. 4 The Soviet Union has withdrawn troops, which I also take as a first sign of overcoming Europe's division. And as they leave, let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We can work INSERT together to move beyond containment, beyond the Cold War. A But all of these developments, as significant as they are, pale before the fact that Hungary is at the threshold of great and historic change. ( (You are writing a real constitution -- and you are moving toward democratic, multi-party elections.) ) This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. But to succeed in reform, you will need partners -- partners to help promote lasting change in Hungary. I am here to offer Hungary the partnership of the United States of America. Three vital spheres stand out in our partnership -- economics, the environment, and democratic and cultural exchange. INVESTMENT IN HUNGARY The United States believes in the acceleration of change, not in its delay. So this our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, 5 inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient factories will close. But the Hungarian government is increasingly leaving the business of running shops to shopkeepers and farms to farmers. And the creative drive of the people, once unleashed, will create a momentum of its own. This will bring you a greater treasure than the riches you will create. It will give each of you control over your destiny a Hungarian destiny. Just look to the West -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But, as I said, the United States will also be your partner in this transformation to a successful economy. Last Thursday, I invited American leaders from business, education, labor and other fields -- to come to the White House and discuss the new opportunities opening up in Hungary. Their response was enthusiastic. Most enthusiastic of all were Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two governments ease the way, the people of America and Hungary can do the rest. 6 It is in this spirit that I announce the following measures. First, as I said in Warsaw, I will propose at the Paris Economic Summit concerted Western action for Poland and Hungary, to back your reforms with economic and technical assistance programs from the Summit partners. of course, our program for Hungary will be targeted to your needs. Second, I will ask the U.S. Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private-sector. I will also encourage parallel efforts from the other nations of the Economic Summit. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 trade law. No country has yet been released from the restrictions of this Jackson-Vanik Act. So I am pleased to tell you that Hungary will be the first. ((PAUSE)) This action will give Hungary the most liberal access to the American market for the longest term possible under our laws. Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures will open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy relies on the creativity of millions of small businesses. Therefore, I am pleased to note our fifth measure, the formation of the Hungarian Enterprise Group, which will match private 7 venture capital, both foreign and Hungarian, with entrepreneurs - - the small businessmen and -women with the grand ideas. Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see firsthand the great opportunity of Hungary. ( (What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think that Hungary has been; I like to think it will be." of this we are sure -- Hungary will be great again. )) ENVIRONMENTAL INITIATIVE Yet economic progress cannot be at the expense of the air we breathe and the water we drink. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. That is why I will ask the U.S. Congress to appropriate $5 million to establish an International Environmental Center for Central and Eastern Europe, to be based in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. Our shared heritage is the earth. And the fate of the earth is not just an East-West issue; it is the issue of our times. 8 Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. Now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce that the U.S. has proposed an agreement between our two countries to establish scientific and technical cooperation in the basic sciences, and in specific areas, including the environment, medicine and nuclear safety. DEMOCRATIC AND CULTURAL EXCHANGE It is my hope that this visit will also lead to a wider exchange between East and West, so our scientists, our artists and our environmentalists can learn from one another So that our soldiers and statesmen can discuss peace and our students can discuss the future. ( (PAUSE)) But to discuss anything requires a common language. The teaching of English is one of the most popular American exports. As students you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. In such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So the United States is 9 also committing more than $6 million to private cultural and educational opportunities in Eastern Europe. We will make available funds for a series of major new U.S. -Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities and books -- many thousands of them -- to fill the shelves of your American Management Institute CENTER - - INITIATED and the libraries of schools and universities across Hungary. The United States will also open, within the next several two years, an America House in the center of Budapest. Today, The celebrated is releasing this American architect Robert Stern will design the plans for this center, which will be an open house of books, magazines and videocassettes -- an open house of ideas. CONCLUSION In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities -- and, yes, great challenges. Hungary has a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a dynamic future. Your challenge is enormous and historic: to build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. 10 Given the opportunity to show your characteristic initiative, creativity and resourcefulness, I believe that the Hungarian people can meet the challenge. You stand on the threshold of a new era of economic development and political change. I believe you are ready to meet the future. I see a country well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you. # # # Davis/Martin July 8, 1989 Title: b:karl Draft: Five PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY July 12, 1:15 p.m. Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. ((And I have to admit, from my vantage point, he does seem to be staring right at me ...)) But those who know this great university know just how fitting this forum is for an American President to address the people of Hungary. After all, it is said that Tramline Number Two runs the country, since its route joins business with academe- - academe with government. Many Hungarian leaders have also moved along this same route, including Miklos (MEEK-losh) Nemeth (NAY-met). But before any of them, there was a teacher at Karl Marx University, and his name was Imre (EEMH-ray) Nagy (NUDGE). ((PAUSE)) As his slow reburial procession moved through Heroes' Square, the rising voice of Hungary was heard in the singing of the National Hymn. And in this simple, somber ceremony, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, more solid than stone, that Hungarians have begun to build a new 2 future a generation waited to honor Imre (EEMH-ray) Nagy's (NUDGE'S) courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular non-fiction book in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor Vienna in its music London in its literature. A center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was separated from Europe and the West. Today Hungary is opening again to the West -- becoming a leading light in European culture. I see people in motion. I see color, creativity, experimentation. I see a new beginning for Hungary The very atmosphere of Budapest is electric, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped Das Kapital from its required reading list 3 Some historians argue that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of humanity. Marx regarded Man as a hapless being shaped by impersonal economic forces. But Man is more than that. He is artistic -- Man has an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. And Man is something else which cannot be denied he is a creature of God The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season of freedom. It is Hungary returning home. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will broadcast everything from the news to the pop music of Huey Lewis and the News. And Radio Free Europe is opening its first Budapest bureau. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary is leading the way. 4 The Soviet Union has withdrawn troops, which I also take as a first sign of overcoming Europe's division. And as they leave, let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, pale before the fact that Hungary is at the threshold of great and historic change. ( (You are writing a real constitution -- and you are moving toward democratic, multi-party elections.) This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. But to succeed in reform, you will need partners -- partners to help promote lasting change in Hungary. I am here to offer Hungary the partnership of the United States of America. Three vital spheres stand out in our partnership -- economics, the environment, and democratic and cultural exchange. INVESTMENT IN HUNGARY The United States believes in the acceleration of change, not in its delay. So this our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, 5 inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient factories will close. But the Hungarian government is increasingly leaving the business of running shops to shopkeepers and farms to farmers. And the creative drive of the people, once unleashed, will create a momentum of its own. This will bring you a greater treasure than the riches you will create. It will give each of you control over your destiny a Hungarian destiny. Just look to the West -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But, as I said, the United States will also be your partner in this transformation to a successful economy. Last Thursday, I invited American leaders from business, education, labor and other fields -- to come to the White House and discuss the new opportunities opening up in Hungary. Their response was enthusiastic. Most enthusiastic of all were Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two governments ease the way, the people of America and Hungary can do the rest. 6 It is in this spirit that I announce the following measures. First, as I said in Warsaw, I will propose at the Paris Economic Summit concerted Western action for Poland and Hungary, to back your reforms with economic and technical assistance programs from the Summit partners. Of course, our program for Hungary will be targeted to your needs. Second, I will ask the U.S. Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private-sector. I will also encourage parallel efforts from the other nations of the Economic Summit. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 trade law. No country has yet been released from the restrictions of this Jackson-Vanik Act. So I am pleased to tell you that Hungary will be the first. ((PAUSE)) This action will give Hungary the most liberal access to the American market for the longest term possible under our laws. Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures will open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy relies on the creativity of millions of small businesses. Therefore, I am pleased to note our fifth measure, the formation of the Hungarian Enterprise Group, which will match private 7 venture capital, both foreign and Hungarian, with entrepreneurs - - the small businessmen and -women with the grand ideas. Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see firsthand the great opportunity of Hungary. ((What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think that Hungary has been; I like to think it will be." of this we are sure -- Hungary will be great again.) ) ENVIRONMENTAL INITIATIVE Yet economic progress cannot be at the expense of the air we breathe and the water we drink. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. That is why I will ask the U.S. Congress to appropriate $5 million to establish an International Environmental Center for Central and Eastern Europe, to be based in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. Our shared heritage is the earth. And the fate of the earth is not just an East-West issue; it is the issue of our times. 8 Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. Now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce that the U.S. has proposed an agreement between our two countries to establish scientific and technical cooperation in the basic sciences, and in specific areas, including the environment, medicine and nuclear safety. DEMOCRATIC AND CULTURAL EXCHANGE It is my hope that this visit will also lead to a wider exchange between East and West, so our scientists, our artists and our environmentalists can learn from one another So that our soldiers and statesmen can discuss peace and our students can discuss the future. ( (PAUSE) ) But to discuss anything requires a common language. The teaching of English is one of the most popular American exports. As students you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. In such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So the United States is 9 also committing more than $6 million to private cultural and educational opportunities in Eastern Europe. We will make available funds for a series of major new U.S. -Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities and books -- many thousands of them -- to fill the shelves of your American Management Institute and the libraries of schools and universities across Hungary. The United States will also open, within the next two years, an America House in the center of Budapest. The celebrated American architect Robert Stern will design the plans for this center, which will be an open house of books, magazines and videocassettes -- an open house of ideas. CONCLUSION In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities -- and, yes, great challenges. Hungary has a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a dynamic future. Your challenge is enormous and historic: to build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. 10 Given the opportunity to show your characteristic initiative, creativity and resourcefulness, I believe that the Hungarian people can meet the challenge. You stand on the threshold of a new era of economic development and political change. I believe you are ready to meet the future. I see a country well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you. # # # #992 THE WHITE HOUSE Office of the Press Secretary (Budapest, Hungary) For Immediate Release July 12, 1989 REMARKS BY THE PRESIDENT AT KARL MARX UNIVERSITY OF ECONOMICS Aula Hall Karl Marx University of Economics Budapest, Hungary 1:35 P.M. (L) THE PRESIDENT: Mr. President and Mr. Prime Minister and Mrs. Nemeth, ladies and gentlemen, Dr. and Mrs. Csaki. It is a great pleasure for Barbara and me to be back in Budapest. And I am very proud to be the first American president to visit Hungary. (Applause.) Some might find it ironic that I am speaking at a university named after Karl Marx. (Laughter.) If you don't find it ironic in Hungary, try it on for size in the United States. But the fact that I am here today is less a cause for surprise than proof that America welcomes the unfettered competition of ideas. And I understand that 50 or so of the faculty from this great university have been as either students or teachers in the United States of America. And that is a very good thing for my country and I'm glad you came our way. The University's principal task is to promote a competition -- an unfettered competition of ideas. And that is the spirit that brings us together -- a spirit that guided a great teacher at Karl Marx University, whose name was Imre Nagy. As his funeral proceeded in Heroes Square a few weeks ago, the rising voice of Hungary was heard reciting the Szozat. And in this simple, somber ceremony, the world saw something more than a dignified act, an act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, more solid than stone, that Hungarians have begun to build a new future -- a generation waited to honor Imre Nagy's courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular non-fiction book in my country today is entitled "Budapest 1900". Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor, Vienna in its music, London in its literature. A center of learning that enlightened the world and gave America one kind of genius in Joseph Pulitzer, another in Bela Bartok. But for four decades, this great city, this great nation, so central to the continent in every respect, has been separated from Europe and the West. And today Hungary is opening again to the West -- becoming a beacon of light in European culture. And I see people in motion. Color, creativity, experimentation. I see a new beginning for Hungary. The very atmosphere of this city, the very atmosphere of Budapest is electric and alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one MORE - 2 - simple fact: Karl Marx University has dropped "Das Kapital" from its required reading list. Some historians argue that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of humanity. He regarded man as hapless -- unable to shape his environment or destiny. But man is not driven by impersonal economic forces. He's not simply an object acted upon by mechanical "laws" of history. Rather, man is imaginative and inventive. He is artistic, with an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. Man is dynamic, determined to shape his own future. The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. And this is more than a fleeting season of freedom. It is Hungary returning to its normal, traditional values. It is Hungary returning home. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations will broadcast everything from the news to the music of Stevie Wonder. And Radio Free Europe is openings its first Eastern European Bureau right here in Budapest. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary, your great country, is leading the way. (Applause.) The Soviet Union has withdrawn troops, which I also take as a step in overcoming Europe's division. And as those forces leave, let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We can -- and I am determined that we will -- work together to move beyond containment, beyond the Cold War. One of the key steps in moving beyond containment is easing the military confrontation in Europe. To this end, the NATO allies joined, at the May summit meeting, in my proposal of a comprehensive conventional arms control initiative -- an initiative that would cut the number of tanks, armored troop carriers, artillery, combat aircraft, attack helicopters, as well as United States and Soviet troops stationed on foreign soil in Europe -- all to lower, equal levels. The issues may be complex, but we're working, day and night, to get a solid, historic agreement to strengthen stability in Europe and reduce the risk of war. And we are determined to get it soon. (Applause.) No, there is no mistaking the fact that we are on the threshold of a new era. And there's also no mistaking the fact that Hungary is at the threshold of great and historic change. You're writing a real constitution -- and you're moving toward democratic, multi-party elections. And this is partly possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are going to show the ultimate political courage -- the courage to submit to the choice of the people in free elections. (Applause.) But to succeed in reform, you'll need partners -- partners to help promote lasting change in Hungary. And I am here today to offer Hungary the partnership of the United States of MORE - 3 - America. (Applause.) Three vital spheres stand out in our partnership -- economics, the environment, and democratic and cultural exchange. The United States believes in the acceleration of productive change, not in its delay. So this is our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, inefficient industrial plants and a bewildering price system that is hard for anyone to understand; and the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cone that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficent businesses and factories will close. But the Hungarian government is increasingly leaving the business of running the shops to the shopkeepers, the farms to the farmers. And the creative drive of the people, once unleashed, will create momentum or its own. And this will bring you a greater treasure than simply the riches you create. It'll give each of you control over your destiny -- a Hungarian destiny. (Applause.) And, as I said, the United States will be your partner in this transformation to a successful economy. Last Thursday at the White House, I invited leaders from business, education, labor and other fields -- to come to the White House and discuss the new private sector opportunities opening up in Hungary. And their response was enthusiastic. This was especially true of Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two governments ease the way, the people of America and Hungary can do the rest -- the people can do the rest. And it is in this spirit that I want to announce the following measures. First, as I said in Warsaw, I will propose at the Paris Economic Summit concerted Western action for Poland and Hungary, to back your reforms with economic and technical assistance from the summit partners. (Applause.) Of course, our efforts for Hungary will be targeted to your needs. And second, I will ask the United States Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private sector. I'll also encourage parallel efforts from the other nations of the economic summit. And third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with the Jackson-Vanik Amendments to our 1974 trade law. No country has yet been released from the restrictions of this amendment. So I am pleased to tell you that Hungary will be the first. (Applause.) And this action will give Hungary the most liberal access to the American market for the longest terms possible under our laws. (Applause.) Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures will allow you to take advantage of the largest single market in the entire world. And fifth, we've concluded a draft agreement to authorize the Overseas Private Investment Corporation -- OPIC we call it -- to operate in Hungary. And once our Senate passes the enabling MORE - 4 - legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see first-hand the great opportunity of Hungary. Private investment is critical for Hungary. It means jobs, innovation, progress. But most of all, private investment means a brighter future for your children; a brighter future for Hungary. And yet economic progress cannot be at the expense of the air we breathe and the water we drink. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. And that is why I will ask the United States Congress to appropriate $5 million to establish an International Environmental Center for Central and Eastern Europe, to be based right here in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. (Applause.) After all, our shared heritage is the Earth, and the fate of the Earth transcends borders; it isn't just an East-West issue. Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. And now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce that the United States has proposed an agreement between our two countries to establish scientific and technical cooperation in the basic sciences and in specific areas, including the environment, medicine and nuclear safety. It is my hope that this visit will also lead to a wider exchange between East and West, so our scientists, our artists and our environmentalists can learn from one another -- so that our soldiers and statesmen can discuss peace and our students -- God bless them -- can discuss the future. (Applause.) But to discuss anything requires a common language. The teaching of the English language is one of the most popular American exports. And as students, you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. (Applause.) And in such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So the United States is also committing more than $6 million to cultural and educational opportunities in Eastern Europe. We will make available funds for a series of major new J.S.-Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities, and books -- many thousands of them -- to fill the shelves of your new International Management Center and the libraries of schools and universities across Hungary. (Applause.) And the United States will also open, within the next several years, an American House in the center of Budapest. (Applause.) Today, the celebrated American architect, Robert Stern, is releasing his design for this center, which will be an open house of books, magazines and video cassettes -- an open house of ideas. And so, in conclusion, in economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities and great challenges. Hungary has a lot of work ahead; MORE - 5 - and so do the United States and Hungary, working together to build this better future dynamic future. Your challenge is enormous and historic: To build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. And given the opportunity to show your characteristic initiative, creativity and resourcefulness, I believe that the Hungarian people will meet the challenge. You stand on the threshold of a new era of economic development and, yes, political change. And I believe with all my heart that you are ready to meet the future. (Applause.) I see a country well on the way. I see a country rich in human resources -- rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. And let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you all. God bless each and every one of you. Thank you very much. (Applause.) END 2:01 P.M. (L) Davis/Martin July 7, 1989 Title: b:karl Draft: Four PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY July 12, 1:15 p.m. Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. ((And I have to admit, from my vantage point, he does seem to be staring right at me )) But those who know this great university know just how fitting this forum is for an American President to address the people of Hungary. After all, it is said that Tramline Number Two runs the country, since it stops at Karl Marx and goes on to Parliament and the Central Committee. Many great Hungarian leaders have also moved along this same route, including Miklos (MEEK-losh) Nemeth (NAY-met). But before any of them, there was a teacher at Karl Marx University, and his name was Imre (EEMH-ray) Nagy (NUDGE) ((PAUSE)) As his slow reburial procession moved through Heroes' Square, the rising voice of Hungary was heard in the singing of the National Hymn. And in this simple, somber ceremony, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, 2 more solid than stone, that Hungarians have begun to build a new future a generation waited to honor Imre (EEMH-ray) Nagy's (NUDGE'S) courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular non-fiction book in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor Vienna in its music London in its literature. A center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was separated from Europe and the West. Today Hungary is opening again to the West -- becoming a leading light in European culture. I see people in motion. I see color, creativity, experimentation. I see a new beginning for Hungary The very atmosphere of Budapest is electric, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped Das Kapital from its required reading list 3 Some historians argue that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of humanity. Marx regarded Man as a hapless being shaped by impersonal economic forces. But Man is more than that. He is artistic -- Man has an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. And Man is something else which cannot be denied he is a creature of God The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season of freedom. It is Hungary returning home. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will broadcast everything from the news to the pop music of Huey Lewis and the News. And Radio Free Europe is opening its first Budapest bureau. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary is leading the way. 4 The Soviet Union has withdrawn troops, which I also take as a first sign of overcoming Europe's division. And as they leave, let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, pale before the fact that Hungary is at the threshold of great and historic change. ((You are writing a new constitution -- your version of the Rights of Man that will sanction democratic, multi-party elections. )) This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. But to succeed in reform, you will need partners -- partners to help promote lasting change in Hungary. I am here to offer Hungary the partnership of the United States of America. Three vital spheres stand out in our partnership --- economics, the environment, and democratic and cultural exchange. INVESTMENT IN HUNGARY The United States believes in the acceleration of change, not in its delay. So this our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. 5 Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient factories will close. But the Hungarian government has already started to leave the business of running shops to shopkeepers and of farms to farmers. And the creative drive of the people, once unleashed, will create a momentum of its own. This will bring you a greater treasure than the riches you will create. It will give each of you control over your destiny a Hungarian destiny. Just look to the West of the Danube -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But, as I said, the United States will also be your partner in this transformation to a successful economy. Last Thursday, I invited American leaders from business, education, labor and other fields -- to come to the White House and discuss the new opportunities opening up in Hungary. Their response was enthusiastic. Most enthusiastic of all were Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two 6 governments ease the way, the people of America and Hungary can do the rest. It is in this spirit that I announce the following measures. ( (First, as I said in Warsaw, I will propose at the Paris Economic Summit the formation of a Consortium for Poland and Hungary, to back your reforms with economic and technical assistance programs from the Summit partners. Of course, our program for Hungary will be targeted to your needs. Second, I will ask the U.S. Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private-sector. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 trade law. No country has yet been released from the restrictions of this Jackson-Vanik Act. So I am pleased to tell you that Hungary will be the first. ((PAUSE)) This action will give Hungary the most liberal access to the American market for the longest term possible under our laws. Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures will open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy relies on the creativity of millions of small businesses. Therefore, I am pleased to note our fifth measure, the formation 7 of the Hungarian Enterprise Group, which will match private venture capital, both foreign and Hungarian, with entrepreneurs - - the small businessmen and -women with the grand ideas. Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see firsthand the great opportunity of Hungary.) ) What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. ( (But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think that Hungary has been; I like to think it will be.")) Of this we are sure -- Hungary will be great again. ENVIRONMENTAL INITIATIVE ( (Yet economic progress cannot be at the expense of the air we breathe and the water we drink. That is why I will ask the U.S. Congress to appropriate $5 million to establish an International Environmental Center for Central and Eastern Europe, to be based in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. Our shared heritage is the earth. And the fate of the earth is not just an East-West issue; it is the issue of our times. 8 Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. Now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce an agreement between our two countries to establish scientific and technical cooperation in the basic sciences, and in specific areas, including the environment, medicine and nuclear safety. ) ) DEMOCRATIC AND CULTURAL EXCHANGE It is my hope that this visit will also lead to a wider exchange between East and West, so our scientists, our artists and our environmentalists can learn from one another So that our soldiers and statesmen can discuss peace and our students can discuss the future. ( (PAUSE)) But to discuss anything requires a common language. The teaching of English is one of the most popular American exports. As students you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. In such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So the United States is also committing more than $6 million to private cultural and 9 educational opportunities in Eastern Europe. We will make available funds for a series of major new U.S. -Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities and books -- many thousands of them -- to fill the shelves of your American Management Institute and the libraries of schools and universities across Hungary. The United States will also open, within the next two years, an America House in the center of Budapest. The celebrated American architect Robert Stern will design the plans for this center, which will be an open house of books, magazines and videocassettes -- an open house of ideas. CONCLUSION In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities --- and, yes, great challenges. Hungary has a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a Hungarian future. Your challenge is enormous and historic. No nation has yet attempted what you are now attempting; to build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. 10 Given the opportunity to show your characteristic initiative, creativity and resourcefulness, I believe that the Hungarian people can meet the challenge. You stand on the threshold of a new era of economic development and political change. I believe you are ready to meet the future. I see a country well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that were the generation that made Europe whole and free. Thank you. # # # ALTERNATE CONCLUSION In our economic, environmental and cultural relations we have much to share and learn from each other. The United States is especially determined to stand by Hungary as you meet an enormous challenge. No Communist nation has yet attempted what Hungary is already doing -- to build democracy and a free market. Throughout the Communist world today, as a younger generation is preparing to assume power, a great debate is underway. In this debate, Moscow advocates limited political freedom, but without economic rights. Beijing practices limited economic freedom, but without political liberty. Where are political and economic liberty peacefully advancing together? In Hungary. I see a great Hungarian future in the bright faces of your youth. You know it is not enough to let you purchase what you want or cast a symbolic vote. You must be allowed to say what you believe. You must be allowed to choose your government. Limited freedom, whether it is economic or political, will not provide sufficient room for the restless human spirit. Benjamin Franklin, the sage of the American Revolution, said that love of liberty and the rights of man should someday become so widespread, "that a philosopher may set his foot anywhere on the surface (of the earth) and say: 'This is my country. Because of your courage, that is the Hungary we can see before us; a better Hungary, a greater Hungary, a place any countryman of freedom could call home. Thank you and God bless you all. # # # Patmer Davis/Martin July 8, 1989 Title: b:karl Draft: Six A PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY July 12, 1:15 p.m. Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. But the fact that I am here today is less That America welcomes the unfettered competition of idear. a cause for surprise than proof of how the world is changing The university 5 pm all universities m promote the this principal task is to competition. of ideas That is the spirit that brings us together -- a spirit that guided a great teacher at Karl Marx University, whose name was Imre (EEMH-ray) Nagy (NUDGE) ( (PAUSE)) As his funeral proceeded in Heroes' Square a few weeks ago, the rising voice of Hungary was heard reciting the Szozat [SO-zat]. And in this simple, somber ceremony, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, more solid than stone, that Hungarians have begun to build a new future a generation waited to honor Imre (EEMH-ray) Nagy's (NUDGE'S) courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular non-fiction book in my country today is entitled Budapest 1900. 2 Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor Vienna in its music London in its literature. A center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for four decades, this great city, this great nation, so central to the continent has been in every respect, was separated from Europe and the West. Today Hungary is opening again to the West -- becoming a beacon of leading light in European culture. I see people in motion. I see color, creativity, experimentation. I see a new beginning for Hungary The very atmosphere of Budapest is electric, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped Das Kapital from its required reading list Some historians argue that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of humanity. Marx regarded Man as hapless unable to shape his environment destiny. or Being driven instead by unchanging not driven by impersonal being Shaped by impersonal economic forces. But Man is more than economic forces that not impaccive, and man He is not simply an object acted upon by mechanical "laws" of history. Rather Man is imaginative and inventive. 3 1 He is artistic, Man with an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot Man is dynamic, determined to shape has own future. to his people. And Man Is something else which cannot be denied he is a creature of Cod The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season It is Hungary returning to its traditional values. of freedom ^ It is Hungary returning home returning to to aditional valves, Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations financed by American companies will stevie Wonder, broadcast everything from the news to the pop music of Huey Lewis and the News. And Radio Free Europe is opening its first East European Budapest bureau right here in Budapest. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary is leading the way. The Soviet Union has withdrawn troops, which I also take as step in a first sign of overcoming Europe's division. And as they leave, those forces let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We can work together to move beyond containment, beyond the Cold War. One of the key steps in moving beyond containment is easing the military confrontation in Europe. To this end, the NATO 4 allies joined, at the May Summit meeting, in my proposal of a comprehensive conventional arms control initiative --- an initiative that would cut the numbers of tanks, armored troop carriers, artillery, combat aircraft, attack helicopters, as well as U.S. and Soviet troops stationed on foreign soil in Europe -- all to lower, equal levels. and we are. We said we were ready to move fast, The Western allies promised that we would be ready to table the details of our new proposal at the negotiating table in Vienna by early September well, we're going to sI am pleased to be able to announce today that we will do even better than that. Tomorrow, in Vienna, NATO will present the specifics on its proposal. The issues may be complex, but we are working, day and night, to get a solid, historic agreement to and reduce the riskef was. And we are determined to wold strengthen stability in Europe ^ and get it soon. There is no mistaking the fact that we are on the threshold of a new era. And there is also But all of these developments, as significant as they are, no mistaking pale before the fact that Hungary is at the threshold of great and historic change. You are writing a real constitution -- and you are moving toward democratic, multi-party elections. partly This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian going to leaders are show the ultimate political courage -- the courage to The choice of to submit their names before the people in free elections But to succeed in reform, you will need partners -- partners to help promote lasting change in Hungary. I am here to offer Hungary the partnership of the United States of America. 5 Three vital spheres stand out in our partnership -- economics, the environment, and democratic and cultural exchange. INVESTMENT IN HUNGARY productive The United States believes in the acceleration of change, not in its delay. So this our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, a inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient factories will close. But the Hungarian government is increasingly leaving the business of running shops to shopkeepers and farms to farmers. And the creative drive of the people, once unleashed, will create a momentum of its own. This will bring you a greater treasure than simply the riches you will create. It will give each of you control over your destiny a Hungarian destiny. Just look to the West your European neighbors are forming a single market. Soon you will have the to trade with And this new economic colessus, But as I said, the United States 6 will also be your partner in this transformation to a successful economy. Last Thursday, I invited American leaders from business, education, labor and other fields -- to come to the White House private sector and discuss the newAopportunities opening up in Hungary. Their This was especially true of response was enthusiastic. Most enthusiastic of all were Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two governments ease the way, the people of America and Hungary can do the rest. It is in this spirit that I announce the following measures. First, as I said in Warsaw, I will propose at the Paris Economic Summit concerted Western action for Poland and Hungary, to back your reforms with economic and technical assistance programs from the Summit partners. Of course, our program efforts for Hungary will be targeted to your needs. Second, I will ask the U.S. Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private-sector. I will also encourage parallel efforts from the other nations of the Economic Summit. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform The Jackson Vanik amendment to our Congress that Hungary is in full compliance with our 1974 trade law. No country has yet been released from the amendment. restrictions of this Jackson Vanik Act. So I am pleased to tell you that Hungary will be the first. ( (PAUSE)) This action will 7 give Hungary the most liberal access to the American market for the longest term possible under our laws. Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures allow you to take advantage of will^ open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy relies on the creativity of millions of small businesses. Therefore, I am pleased to note our fifth measure/, the formation of the Hungarian Enterprise Group, which will match private venture capital, both foreign and Hungarian, with entrepreneurs - - the small businessmen and -women with the grand ideas. Fifth, Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see firsthand the great opportunity of Hungary. ((What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (SAY chancy), who said: "Some think that Hungary has been, I like to think it will be " of this we are Dure Hungary will be great again.)) Private investment is critical for Hungary. It means jobs, innovation, progres But most ofall, private investment means a brighter future for your children; a ENVIRONMENTAL INITIATIVE brighter future for Hungary. 8 Yet economic progress cannot be at the expense of the air we breathe and the water we drink. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. That is why I will ask the U.S. Congress to appropriate $5 million to establish an International Environmental Center for Central and Eastern Europe, to be based in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. Our shared heritage is the Transcends borders; it earth. And the fate of the earth is not just an East-West issue it is issue of times Hungary has led Eastern and Central Europe in addressing the concerns of your citizens for cleaner air and water. Now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce that the U.S. has proposed an agreement between our two countries to establish scientific and technical cooperation in the basic sciences, and in specific areas, including the environment, medicine and nuclear safety. DEMOCRATIC AND CULTURAL EXCHANGE It is my hope that this visit will also lead to a wider exchange between East and West, SO our scientists, our artists and our environmentalists can learn from one another So that our soldiers and statesmen can discuss peace and our students can discuss the future. ( (PAUSE)) 9 But to discuss anything requires a common language. The teaching of English is one of the most popular American exports. As students you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. In such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So the United States is also committing more than $6 million to private cultural and educational opportunities in Eastern Europe. We will make available funds for a series of major new U.S. -Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities and books -- many thousands of new International them -- to fill the shelves of your American Initiated Management Center and the libraries of schools and universities across Hungary. The United States will also open, within the next several years, an America House in the center of Budapest. Today, the celebrated American architect Robert Stern is releasing his 10 design for this center, which will be an open house of books, magazines and videocassettes -- an open house of ideas. CONCLUSION In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities -- and great challenges. Hungary has a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a dynamic future. Your challenge is enormous and historic: to build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. Given the opportunity to show your characteristic initiative, creativity and resourcefulness, I believe that the will Hungarian people meet the challenge. You stand on the threshold of a new era of economic development and political change. I believe you are ready to meet the future. I see a country well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you. THE WHITE HOUSE for fle WASHINGTON 89 JUN 4 P4: 55 July 5, 1989 MEMORANDUM FOR CHRISS WINSTON DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS FROM: NELSON LUND M ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Presidential Remarks: Karl Marx University At the request of James W. Cicconi, Counsel's office has reviewed the captioned draft remarks. Our comments follow. Page 5, third paragraph. We believe it would be prudent to be less definite in promising most-favored-nation status to Hungary. Accordingly, we recommend that the first two sentences be reworded as follows: "So with trade in mind, once your future Parliament legalizes the free movement of its citizens, I will be able to inform Congress that Hungary is complying with the relevant portions of the 1974 Trade Act. This will make you eligible to be granted the most favorable tariff status possible under U.S. law." Page 6, first full paragraph. The last sentence promises that the USG can and will "match" American private-sector investment in Hungary. In the time allotted for our review, we have not been able to determine whether legal authority for such "matching" exists. Accordingly, we cannot clear this language. Page 6, last paragraph. The first sentence promises that we will soon authorize OPIC to encourage American investment in Hungary. This office is informed by NSC that the Administration does not possess this authority, but that we are supporting legislation that would provide such authority. The wording of the sentence should be changed accordingly. We also have a non-legal suggestion with respect to the last paragraph on page 2 (ending at top of page 3). This description of Marx's thought is not obviously correct, even if it is meant to apply only to Das Kapital. It might usefully be reworded as follows: "Karl Marx focused too heavily on one thread in human history, and misinterpreted the rest of the tapestry -- the colorful and varied tapestry of civilization. Marx believed that Man's life has been determined by impersonal, economic forces. But Man has always been, and will always be, much more than such a theory admits. " CC: James W. Cicconi Condoleezza Rice 049898SS for file Document No. 5228 WHITE HOUSE STAFFING MEMORANDUM 6/30/89 7/3/89 5:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: KARL MARX UNIVERSITY SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER ROGERS BREEDEN CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 5:00 Monday, July 3, 1989, with an info copy to my office. P2: 28 RESPONSE: July 7, 1989 TO: CHRISS WINSTON The NSC concurs with the changes indicated. B James W. Cicconi Assistant to the President Brent Scowcroft and Deputy to the Chief of Staff Ext. 2702 CC: Cicconi / Davis/Martin June 29, 1989 Title: Hungary Draft: One PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY (Date, Time) Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure to be back in Budapest, and I am proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. ( (And I have to admit, from my vantage point, he does seem to be staring right at me ...)) But those who know this great university know just how fitting this forum is for an American President to address the people of Hungary. After all, it is said that Tramline Number Two runs the nation, since it originates at Karl Marx and makes stops at the National Center, Parliament and the Central Committee. Many great Hungarian leaders have also moved along this same route, NAY-met among them Miklos Nemeth (Namath) and Zsigmond (Zig-mund) Jarai (JAR-ree). But before any of them, there was a teacher at Karl Marx University, funeral and his name was Imre ( (EEMH-ray) Nage (NAZH). a few weeks ago) As his slow procession moved through Heroes' Square, the rising voice of Hungary was heard in the singing of the Szozat (SO-zat). And in this simple, somber reburial, the world saw something more than a dignified act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, [one] more solid than stone, that Hungarians have begun to build a 2 2 new future a generation waited to honor his courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of the world once again looks to you for inspiration. Europe, America is rediscovering you. One of the ( (bestselling) ) ? non-fiction books in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory ( (Quote to come) ) This was a city that rivaled Paris in its splendor, Vienna in its music and London in its literature. This was a center of learning that enlightened the world, and gave America one kind of ? genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was separated torn from Europe and the West. But the city and country I see today is again opening to the West, again becoming a leading light in European culture. I see people in motion. I see color and creativity. replacing grey conformity I sense an atmosphere that is electric, alive with optimism. There is a new spirit of experimentation -- of making This is happening because your people and your leaders new beginnings. are not afraid government and opposition alike -- have the courage to break with the past, to act in the spirit of truth. And what better example than th ronic fact Karl Mary University ha 5 dropped ? of this could there be than one simple fact Karl Marx University Das Kapital from its required reading list has dropped Das Kapital from its required reading list ] Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied 3 3 tapestry of civilization. Marx regarded Man as an economic being. But Man is more than that. He is artistic Man. He has an innate need to create and enjoy beauty. He is a loving member of a family, and a loyal patriot to his people. And Man is something else which cannot be denied he is a creature of God The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. This is more than a fleeting season of freedom. It's a rebirth, a Renaissance of Hungary. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will soon broadcast everything from the news to Huey Lewis and the News. And [even] Radio Free Europe is opening its first Budapest bureau. along your border with Austria, barbed wire is being removed : barbed wire, the symbol of Europe's division, More than one hundred thousand Americans visited Hungary last year and more than 20 Hungarians have come to of Hungary'- separation from the rest of earope America. This very university operates exchange programs with 23 U.S. schools. For the first time, the Iron Curtain has begun to part. Hungary is changing the world. also The Soviet Union has withdrawn many troops, which I take as of overcoming the division of Europe. a first sign that Moscow truly respects your sovereignty And as leaders they leave, let the Soviets know they have everything to gain, and nothing to lose or fear, from peaceful change. Nor should we 4 4. We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, pale before this --- Hungary is at the threshold of great and historic change. You are writing a new consitution -- a real constitution -- and you are moving toward democratic, multiparty elections. This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. Hungary is embarking on an odyssey of change. I am here to tell you that the United States is with you. We want to help you build an alternative future -- a democratic future. We are ready to help promote lasting change in Hungary in three vital spheres -- economics, the creation of democratic instituions, and the environment. Last Thursday, before leaving Washington, I hosted a White House Symposium on Eastern Europe. I spoke to leaders fromt he American private sector -- from business, education, labor and other fields -- and I urged them to be involved in Hungary, to help Hungary build its democratic future. Their response was encouraging. America will be involved. INVESTING IN HUNGARY The United States believes aid should accelerate change, not delay it. So this is our guiding principle -- the united STates offers aid not to prop up the status quo, but to propel reform. Jty 4(a) Of course, the dead weight of the past still burdens Hugnarian enterprise. The remnants of the Stalinist economy, with its huge, inefficient industrial plants; the bewildering price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. WA 5 5 And, ultimately, it's a burden to be discarded. To make the transition to a market economy will test your mettle as a people. The prices of some commodities will rise. Some inefficient factories will close. Hard choices already await you. But the creative drive of the people, once unleashed, will create a momentum of its own. This will eventually bring you something each of greater than the riches you will create. It will give you control over your destiny a Hungarian destiny. The Hungarian government has already started to leave the business of running shops to shopkeepers and farms to farmers. As you change, so will you integrate into the world economy. Just look to the West of the Danube -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But the United States will also be your partner in this transformation to a successful NSERT competitive economy. Third, passer The new So with trade in mind, once your future Parliament legalizes emig ction legislation proposedby your Council of ministers, the free movement of its citizens, I will inform Congress that in compliance our Hungary will then Hungary is complying with the 1974 Trade Act. This will entitle qualify for ? you to the maximum most-favored nation tariff status possible under U.S. law. Simply put, the largest single market in the world is opening its doors to you. S. Fourth, Drowde accessito our America is also prepared to include Hungary in the offers selective tariffi generalized system of preferences, which provides duty free entry relief for beneficiary countries. for certain goods. Hungary can and should develop the same / 6 NATIONAL SECURITY COUNCIL 5-Jul-1989 16:45 EDT CONFIDENTIAL MEMORANDUM FOR: Condoleezza Rice ( RICE ) FROM: Robert L. Hutchings SEWRITE FROM m ADDLE (HUTCHINGS) OF PAGE 5 ON SUBJECT: KarlMarx First, as I announced in Warsaw, I will propose at the Paris Economic Summit the formation of a Consortium for Poland and Hungary, which will coordinate the economic and technical assistance programs of our Summit partners in support of your reforms. And we need to take account of the (ferent economic that in the two countries :- Our coordinated programs Second, I will ask the U.S. Congress to authorize a($25 for will be Hungary million grant to establish a Hungarian-American Enterprise aimed at Foundation to capitalize and invigorate the Hungarian private meeting sector. I will also encourage parallel efforts from the other year needs. nations of the Economic Summit. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 Trade Act. Hungary will then qualify for the maximum most-favored-nation tariff status possible under U.S. law. Simply put, the largest single market in the world is opening its doors to you. Fourth, America is prepared to provide Hungary access to our 2 7 Generalized System of Preferences, which offers selective tariff relief for beneficiary countries. Fifth, I am pleased to note the formation of the Hungarian Enterprise Group, which will match venture capital, both foreign and Hungarian, with entrepreneurs -- the small businessmen and -women with grand ideas. Some of you here today may have a few grand ideas of your own. Perhaps you will benefit from just this kind of collaboration. Sixth, we have concluded a draft agreement to authorize the Overseas Private Investment Corporation to operate in Hungary. Once our Senate passes enabling legislation, OPIC will be able to provide insurance to encourage American investment in private enterprises in Hungary. Many innovate programs are underway already. Consider, for example, the American investment company Bears-Stearn, which has established a special "Hungary Fund," which pools resources to purchase shares in Hungarian companies. What does private investment mean for Hungary? Yesterday, at Kossuth Square, I quoted the words of that great Hungarian patriot. But it was another Hungarian patriot, a contemporary of Kossuth, Count Szechenyi (SAY chaney), who coined a phrase in his great work on economics: Hungary was not, but will be. Of this we are sure Hungary will be great again ? Does The male DEMOCRATIC CHANGE But what Hungary seeks is not measured just in economic terms. And the assistance we offer is not only economic. We want to help you as you seek an alternative future for your country -- a democratic alternative. 3 8 also The United States is committing more than $6 million for to Provite culture at education apportunies initiatives to support democratic change in Eastern Europe. We male available will provide funds for a series of major new U.S.-Hungarian exchange programs -- among Congressmen and legislative experts, among labor and business leaders, among experts and practitioners in the field of law, among community leaders, educators, and young people. We are creating dozens of fellowships whereby Hungarians can study at American universities, and we will fund endowed chairs in American studies at your universities. And books -- many thousands of them -- to fill the shelves of your American Management Institute and the libraries of schools and universities across Hungary. The United States will also open, within the next two years, an America House in the center of Budapest. The celebrated American architect Robert Stern will design the plans for this center, which will be an open house of books, magazines, and videocassettes -- and open house of ideas. I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come bo Budapest and all 19 counties to teach English. As students, you know that English is the language of world business, the key to successful commerce from Hong Kong to Toronto. It also opens the doors to science, technology, and the arts. It is among our most valuable exports. ENVIRONMENTAL INITIATIVE To build democratic institutions, to embark on a path of economic revitalization -- these are the elements of Hungary's 4 a future. But to realize a promising future, we must work together to protect our basic common possession -- the environment. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. What a tragedy it would be if your continent were again spoiled, this time not by war, but by a more subtle danger -- that of poisoned rivers and acid rain. Hungary has led eastern and central Europe in addressing the concerns of its citizens for cleaner air and water. And you are leading the way in environmental agreements with the West. ( ( ENVIRONMENTAL INITIATIVE TO COME) ) Pollution is no respecter of borders. Let us work together to save our common inheritance. MEETING THE FUTURE In economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities -- and, yes, great challenges. Hungary has a lot of work ahead; so do the United States and Hungary, working together to build a better future -- a Lynamic democratic future. Your challenge is enormous and historic. No nation has yet a structure attempted what you are now attempting: to build, political of democracy Change and decentralized economic enterprise on the ruins of a failed Stalinist system. Given the opportunity to show your characteristic initiative, creativity, and resourcefulness, I believe that the Hungarian people can meet the challenge. You stand on the threshold of a new era of economic development and democratic political change. I believe you are ready to meet the future. I see a country 5 to well on the way. I see a country rich in human resources and rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come so far. Let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you.