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World Bank/IMF Annual Meeting 9/27/89 [OA 4390] [2]
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25
6
5
3
McNally/Simon
September 25, 1989 7:30 pm
Draft Four (B:IMF)
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
WASHINGTON, D.C.
WEDNESDAY, SEPTEMBER 27, 1989
9:35 A.M.
Thank you. And thanks especially to my good friend Nick
Brady, for those warm words, and for his outstanding economic
leadership -- both at home, and abroad. [[PAUSE]]
Chairman Lee, President Conable, Mr. Camdessus [[KAHM-deh-
soo]] It is a pleasure for me to be here this morning, and to
welcome you to Washington. And it is a special privilege for me
to be here in the company of my old friend, Barber Conable.
We in the United States are keenly aware of the importance
which
of these annual gatherings and we are proud that we can be your
hosts as we have been for over 40 years since these institutions
were created We regard these meetings as key events events
that drive the work of all of us in maintaining a strong
international economic and financial system.
This is my first opportunity to speak to you as President.
But I have followed the activities of the International Monetary
Fund and the World Bank throughout my years of public service. I
have visited many of your homelands, and seen first-hand the
problems created by inadequate growth and development -- problems
that your two distinguished institutions are working to solve.
But today, we're here to talk not about problems -- but
about solutions.
2
We have witnessed a dramatic shift over the past few years
in the debate over how to achieve sustained growth and
development.
All across the world, there has been an almost simultaneous
rediscovery of the power created when individuals are given the
freedom to decide the freedom to act in their own best
interests.
True, we're here today mainly to discuss economic freedom.
But make no mistake. In the end, both economic freedom -- and
political freedom -- are essential and inseparable companions on
the road to national prosperity.
The jury is no longer out. Look at the two economic systems
and see who has prospered and who has struggled. Let's put
an end to this economic experiment. VV Because history has
decided. [[PAUSE]]
It is not climate, natural resources, or cultural traditions
that make the difference. I said it in my inaugural address:
"We know what works: Freedom works. We know how to secure
a more just and prosperous life for man on Earth: through free
markets, free speech, free elections, and the exercise of free
will unhampered by the state. " [[PAUSE]]
In Latin America, Africa, and Mexico
in Poland and in
Hungary, courageous leaders are turning away from state control
of their economies. Through economic restructuring and
IS
deregulation, they are opening the door to private initiative.
And already they are seeing results.
3
Even more stunning is the transformation in thinking in the
both
and
communist countries -- not only inA the Soviet Union, but in
Eastern Europe.
Our recent travels among the people of Poland and Hungary,
led to many dramatic and stirring encounters But almost as much
But also
as we were impressed by the people. we were, impressed by the
almost universal acceptance of the free market as the best hope
-- indeed, the only hope -- for reversing the economic fortunes
of these two proud countries.
The rediscovery of these basic truths in the East has been
matched by a recommitment to them in the West. Today the members
of the European Community are dedicated to eliminating internal
barriers to economic activity by the end of 1992. And, Europe's
leaders assure me that this will not be at the cost of new
external barriers to trade with the E.C.
The Peruvian economist, Hernando de Soto, has helped us
a
economic
understand this worldwide phenomenon by documenting the process
in Latin America, de So to didn't
De Soto was raised in Peru, and educated there and in
Europe, where he lived until 1979. But the chronic privation of
e
his homeland haunted him. Rather than analyzing flow-charts or
official statistics for the answer® he began walking ed the streets
of Lima.
He found that the poor of Latin America -- who have never
read Jefferson or Adam Smith -- ran their affairs democratically,
4
outside the formal economy, organizing their private, parallel
economy in a free and unregulated manner.
De Soto's great contribution has been to point out what, in
retrospect, may seem obvious: People everywhere want the same
things. And when left alone by government, people everywhere
organize their lives in remarkably similar ways.
De Soto's prescription offers a clear and promising
alternative to economic stagnation in Latin America and other
parts of the world. Governments must bring the "informal"
workers into the regular economy -- and then get out of the way,
and let individual enterprise flourish.
The wider application of these principles within our
economies is critical to achieving the stronger, more prosperous
global economy of tomorrow
We each must do our part. The industrial countries have a
special responsibility. We must coordinate economic policies to
help provide sustained growth with low inflation, reduced trade
imbalances, and greater stability in exchange markets.
We in the United States are working especially hard to
reduce the federal budget deficit, and to increase our national
savings rate.
All our nations have a responsibility to ensure a fair and
open trading system. We have a tremendous opportunity to advance
that cause now, by making a success of the Uruguay Round of trade
negotiations.
5
Making the political commitments necessary to ensure a
success will not be easy, but we must strengthen the GATT, and
allow our markets to open in a mutual, step-by-step fashion.
As we seek to extend and expand growth in the world economy,
the debt problems faced by developing countries are central to
the agendas of the IMF and the World Bank. Over the past year,
the international community's strengthened approach to these
problems has provided new hope for debtor nations.
America's Secretary of the Treasury, Nick Brady, has helped
direct the focus on debt reduction as a complement to continued
new lending -- bringing developing nations and commercial banks
back to where they belong: the negotiating table.
Quick action by both the IMF and the World Bank has given
this new strategy vital support. By making clear the terms under
which they will support the reduction of debt burdens -- and by
working with countries to develop the necessary economic reform
programs -- these institutions have made it possible to reduce
debt burdens and provide a solid foundation for growth.
Thanks to these initiatives, Mexico reached an agreement
with its creditor banks enabling Mexico to make enormous progress
in reducing its debt burden. It also helped restore confidence
in the Mexican economy which has already resulted in a return of
capital and new foreign investment.
This agreement underscores the benefits other debtor
countries stand to realize from this approach. Mexico's savings
6
from this package will free resources for productive use in the
economy, leading to increased investment and improved growth.
What Mexico has done is not a miracle. It is a product of
hard work and sustained commitment.
The strengthened debt strategy is flexible enough to address
the unique needs of each country. But the strategy will not work
without sound economic policies in debtor countries.
Inefficient, unrealistic, and growth-stifling policies must
go. Benefits are available to a broad range of other countries
that pursue economic reforms. Several are now actively engaged
with the IMF and World Bank, and with the banking community.
to play
Commercial banks have a special role in making this process
work and must follow through on efforts made with Mexico and the
Philippines, and broaden their efforts, with 0 ther countries.
We encourage these efforts steps not as self-sacrifice -- but as
self-interest. True, success not only will help the debtor
nations. But it will also strengthen the banks, by putting their
portfolios on a sounder footing.
One of the lessons of the 1980's, especially the debt
crisis, is that we're all in this together. And when we
cooperate, we all come out winners.
The IMF and the World Bank are at the crossroads of our
cooperative efforts.
The IMF must continue to foster the sound economic policies
necessary for sustained growth. As part of that responsibility,
7
the Fund has assumed an important and welcome role in the
strengthened debt strategy.
The United States recognizes that the IMF must have adequate
resources to fulfill its critical role. We will continue to work
with other members, in the hope of reaching a decision on quotas
by the end of the year. The United States has always supported
the IMF and will continue to do so.
We all look to the World Bank to help build the foundation
for a future global prosperity that reaches all peoples, our citizens
Its efforts to promote structural reform and development are
crucial to resolving debt problems. The Bank's decisions to take
on new responsibilities on the debt front are welcome.
also,
In order to address the significant problems of the poorest
countries, the international community established the
wasestabled
International Development Association (IDA) within the Bank as a
means of providing concessional resources to those countries
and
T.D.A. will continue to have the support of the United States. as
it has had in the past.
We have also learned, as I emphasized Monday at the U.N.,
and last summer at the Paris Summit, that environmental
destruction knows no borders.
To make growth truly sustainable, we must weigh
environmental considerations more heavily as we make economic
decisions. We must also find ways to strengthen our
environmental and developmental efforts, through innovative
thinking such as "debt for nature transactions."
8
Over the years -- as we've come to understand the effect of
environmental destruction on the long-term growth of developing
countries -- the World Bank has increased the priority it assigns
to environmental concerns. We applaud those efforts. But there
is more to be done. We need to work more cooperatively to
develop constructive solutions to global warming, including
measures to promote energy efficiency and conservation and
greater protection of forest resources.
In addressing the challenges of the 1980's, we have come to
a deeper understanding of the importance of cooperating as a
community of nations to address common problems.
I can think of no better current example than the need to
work together to deal with international drug trafficking and
money laundering. It is a worldwide problem. Drug money
undermines honest businesses, corrupts political institutions,
and even threatens the security of nations. To conceal their
obscene profits, drug barons must wash their money by cycling it
through financial institutions and illegitimate shell
corporations.
The United States renews its call upon all countries to
ratify the United Nations Vienna Convention, and make money
laundering a criminal and extraditable offense. We need tough
measures to track down and confiscate the profits of drug-related
crime.
I am encouraged by the G-7 democracies' interest in a
coordinated response to the money laundering menace. I urge
9
everyone to join with us to explore new ways to stop money
laundering in its tracks.
More than thirty years ago, President Eisenhower spoke to
the
allees'
this group about his experiences in wartime. He recalled working
need
succeed
with groups that had- to develop real cooperation among-themselves
or there could be no success
Ike noted, as I do now, that there were people in the
lke
audience who were our allies in that grand effort. He said:
We early found one thing- without the heart without the
enthusiasm for the cause in which we were working, no cooperation
was possible. With that enthusiasm, subordinating all else to
the advancement of the cause, cooperation was easy "
Today our mutual efforts to improve global growth, to ease
the burdens of developing country indebtedness, and to open up
markets for trade, have demonstrated anew that progress is best
achieved by facing pressing issues together.
7
This is a lesson we must carry with us into the 1990's if we
are to pass on to future generations a global economy that is
strong and resilient, and able to provide for the aspirations of
the citizens of all our countries.
Thank you for your hard work, your service, your commitment.
God bless you and the nations you represent.
#
#
#
And there may be no greater opportunity before us all togay than
the challenge of Poland and more broadly Eastern Europe --
whe
countries are in the throes of dramatic political and economic
change.
The United States and its international partners have already
undertaken new initiatives toward Poland. But now, in light of
clearly growing needs, the recent accession of a Solidarity-led
government, and our self-evident stake in its success, we must do
more. We understand the Polish government has under
consideration a bold plan for economic recovery.
I call on the IMF and the World Bank to work rapidly with Poland
to develop such a program and ensure its successful
implementation. For its part, the United States intends to be
out in front of this effort, to take advantage of this historic
development and to ensure its success.
Cleared by NSC,
Treas, CEA
Chriss-
Final of the insert,
Thanks
J.
And we welcome the efforts of the Soviet Union to liberalize and
decentralize their economy. I have said many times that I want
to see perestroika succeed. A more open and humane Soviet Union
can only be in the interest of the West. And as we see the
evidence of that reform, we can match it with steps of our own.
Document No.
Scowcroft Office says they are
9/
DATE:
meeting on this at 9am
EPT. 25, 2:00 p.m.
PRE
on Tues C Big changes.
SUBJECT:
want get their comments
until at bast 10am.
ACTION EYI
VICE PRES
Spoke to Marilyn
SUNUNU
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES Hallis Mcglothlin 535-6214
UNTERMEYER BOSKIN Dr. Taylor N/C
BREEDEN
CARD
PINKERTON
ROGERS
CICCONI
4
WINSTON
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide comments/edits directly to Chris Winston,
Room 122, x2930 with a copy to my office by Monday, September 25
at 2:00 p.m. Thank you.
RESPONSE:
89 SEP 22 P4 : 22
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
McNally/Simon
September 22, 1989
Draft Three (B:IMF)
09 SEP 22 09 Pl: 08
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
WASHINGTON, D.C.
WEDNESDAY, SEPTEMBER 27, 1989
9:30 AM
[[ACKNOWLEDGEMENTS]
It is a pleasure for me to be here this morning, and to
welcome you to Washington.
And it is a special privilege for me to be here in the
and my new colleague, Michel
company of my old friend, Barber Conable. Ca
Almost 20 years ago, when Barber sat next to me in the House
Ways and Means Committee, we had a bet about who would be first
to become President. [[PAUSE]] We never said, "President of
what" -- so now Barber claims he beat me by two years. [[PAUSE]]
Remember the reaction when Barber was named bank president?
The headlines all said: "BARBARA WHO?" [[PAUSE]] That's okay.
Until this year, the same thing happened all the time to Barbara
Bush. [[PAUSE]
We in the United States are keenly aware of the importance
of these annual gatherings, and we are proud that we can be your
as we have been for - years since these institutions were created.
hosts. We regard these meetings as key events -- events that
drive the work of all of us in maintaining a strong international
economic and financial system.
This is my first opportunity to speak to you as President.
But I have followed the activities of the International Monetary
Fund and the World Bank throughout my years of public service. I
2
have visited many of your homelands, and seen first-hand the
problems created by inadequate growth and development -- problems
that your two distinguished institutions are working to solve.
But today, we're here to talk not about problems -- but
about solutions.
We have witnessed a dramatic shift over the past few years
in the debate over how to achieve sustained growth and
development.
And although not a banker, you should know that I do have a
degree in economics. It taught me one simple lesson: When
you're standing in front of the world's greatest concentration of
financial genius -- don't talk about economics. [[PAUSE]]
Let's talk instead about FREEDOM.
All across the world, there has been an almost simultaneous
rediscovery of the power created when individuals are given the
freedom to decide -- the freedom to act in their own best
interests.
True, we're here today mainly to discuss economic freedom.
But make no mistake. In the end, both economic freedom -- and
political freedom -- are essential and inseparable companions on
the road to national prosperity.
The jury is no longer out. Take any one people, give them
two sets of rules, and see who prospers and who struggles. There
seen ?
are two Germanys, two Chinas, and two Koreas. It's been almost
this
50 years.
11 Let's put an end ton economic experiment. Because
history has decided. [[PAUSE]]
3
It is not climate, natural resources, or cultural traditions
that make the difference. I said it in my inuagural address:
"We know what works: Freedom works. We know what's right:
Freedom is right. We know how to secure a more just and
prosperous life for man on Earth: through free markets, free
speech, free elections, and the exercise of free will unhampered
by the state." [[PAUSE]]
In Latin America, Africa, and elsewhere, courageous leaders
are turning away from state control of their economies. Through
economic restructuring and deregulation, they are opening the
door to private initiative. And already they are seeing results.
In Mexico, for example, sound economic policies adopted by
1 - coupled WITH their recent agreement WITH creclitor banks
the Salinas government are pointing to a return of flight / noveased
capital and and increased foreign leading investment, and reduced domes interest rates.
Even more stunning is the transformation in thinking in the
communist countries -- not only in the Soviet Union, but in
Eastern Europe.
Our recent travels among the people of Poland and Hungary
led to many dramatic and stirring encounters. But almost as much
as we were impressed by the people, we were impressed by the
almost universal acceptance of the free market as the best hope
-- indeed, the only hope -- for reversing the economic fortunes
of these two proud countries.
The rediscovery of these basic truths in the East has been
matched by a recommitment to them in the West. Today the members
and, Europe's leaders assure
me that this will not he at the
appeare cost of new ex ternal
barriers to trade WITH THE EC,
4
of the European Community are dedicated to eliminating internal
end of
barriers to economic activity by the year 1992.
The Peruvian economist, Hernando de Soto, has helped us
understand this worldwide phenomenon by documenting the process
in Latin America.
de Soto was raised in Peru, and educated there and in
Europe, where he lived until 1979. But the chronic privation of
his homeland haunted him. Rather than analyzing flow-charts or
official statistics for the answer, he began walking the streets
of Lima.
He found that the poor of Latin America -- who have never
read Jefferson or Adam Smith -- ran their affairs democratically,
outside the formal economy, organizing their private, parallel
economy in a free and unregulated manner.
de Soto's great contribution has been to point out what, in
retrospect, may seem obvious: People everywhere want the same
things. And when left alone by government, people everywhere
organize their lives in remarkably similar ways.
offers a clear and promising alternative to
de Soto's prescription has been successful everywhere it's
economic stasnation in Latin Comevica and other parto of the world.
been tried. Governments must bring the "informal" workers into
the regular economy -- and then get out of the way, and let
individual enterprise flourish.
The wider application of these principles within our
economies is critical to achieving the stronger, more prosperous,
global economy of tomorrow.
5
We each must do our part. The industrial countries have a
special responsibility. We must coordinate economic policies to
reduced trade imbalances
help provide sustained growth with low inflation and greater
stability in exchange markets.
We in the United States are working especially hard to
reduce the federal budget deficit, and to increase our national
savings rate.
All our nations have a responsibility to ensure a fair and
open trading system. We have a tremendous opportunity to advance
that cause now, by making a success of the Uruguay Round of trade
negotiations.
Making the political commitments necessary to ensure a
success will not be easy in any of our countries. But it must be
done. We must strengthen the GATT, and allow our markets to open
in a mutual, step-by-step fashion.
As we seek to extend and expand growth in the world economy,
the debt problems faced by developing countries are central to
the agendas of the IMF and the World Bank. Over the past year,
the international community's strengthened approach to these
problems has provided new hope for debtor nations.
America's Secretary of the Treasury, my good friend Nick
reduction as a complement to
Brady, has helped direct the focus on debt relief, bringing
tinued new leaching)
developing nations and commercial banks back to where they belong
-- the negotiating table.
Quick action by both the IMF and the World Bank has given
this new strategy vital support. By making clear the terms under
6
which they will support the reduction of debt burdens -- and by
working with countries to develop the necessary economic reform
programs -- these institutions have made it possible to reduce
and provide a solid foundation for
debt burdens without eliminating growth.
Mexico reached
Thanks to these initiatives, the United States was able to
WITH its oveditor banks.
broker an agreement in July between Mexico and its biggest
private lenders. The deal enabled Mexico to make enormous
in reducing
progress against its debt burden, some ten to twelve billion
It also help ed restore confidence in the mexican economy
dollars. which has already. resulted in a return of flight
capital and new foreign investment.
This agreement underscores the benefits other debtor
countries stand to realize from this approach. Mexico's savings
from this package will free resources for productive use in the
economy, leading to increased investment and improved growth.
What Mexico has done is not a miracle. It is a product of
hard work and sustained commitment.
My father, Prescott Bush, Sr., was a successful businessman,
a banker whose forte was reorganizing failing companies, turning
money losers into profit makers. Dad believed in the old Ben
Franklin almanac maxims when it came to earning, saving, and
spending. We grew up understanding that life isn't an open-ended
checking account. This basic truth, also applies to the fuance. world of international
The strengthened debt strategy is flexible enough to address
the unique needs of each country. But the strategy will not work
without sound economic policies in debtor countries.
Inefficient, unrealistic, and growth-stifling policies must
go. Benefits are available to a broad range of other countries
7
that pursue economic reforms. Several are now actively engaged
with the IMF and World Bank, and with the banking community --
Costa Rica, Venezuela Poland and Morocco, to name a few.
Commercial banks have a special role in making this process
work. It is important that the banks follow through on efforts
broader their efforts
made with Mexico and the Philippines, and sustain this momentum
with other countries.
We encourage these efforts not as self-sacrifice -- but as
self-interest. True, success not only will help the debtor
nations. But it will also strengthen the banks, by putting their
portfolios on a sounder footing.
One of the lessons of the 1980's, especially the debt
crisis, is that we're all in this together. And when we
cooperate, we all come out winners.
The IMF and the World Bank are at the crossroads of our
cooperative efforts. They are distinct institutions, even though
their work is complementary and their objectives often overlap.
The IMF must continue to foster the sound economic policies
necessary for sustained growth. As part of that responsibility,
the Fund has assumed an important and welcome role in the
strengthened debt strategy.
recognizes
The United States believes that the IMF must have adequate
resources to fulfill its critical role. We will continue to work
rea
Machina a decision on
with other members, in the hope of completing the current review
of quotas by the end of the year. The United States has
always supported the I MF and will contenue to
do so,
8
However, if we are to ask our taxpayers to put up additional
resources, they must be assured that the funds are truly needed,
and will be used prudently and effectively to achieve shared
objectives.
We all look to the World Bank to help build the foundation
for a future global prosperity that reaches all our citizens.
Its efforts to promote structural reform and development are
crucial to resolving debt problems. The Bank's decisions to take
on new responsibilities on the debt front are welcome.
copen
In order to address significant problems of the poorest
To promote the Bank's objectives, the international
Association (IDA)
community established the International Development Agency within
stet
those
the Bank as a means of providing concessional resources to the
countries TDC IDA will con time to have the
poorest countries. We must all continue to support its
activities. support of the United states as it has had in the put.
We have also learned, as I emphasized Monday at the U.N.,
Pavis Summit
and last summer at the Group of Seven, that environmental
destruction knows no borders.
problems
The twin evils of crushing debt levels and a deteriorating
environment threaten not only the development, but even the
stability of our neighbors in Latin America, Africa, parts of
Asia and even Europe. And global warming and rapid deforestation
pose a threat to all humankind.
We face unprecedented problems. We need -- and we can find
-- unprecedented solutions.
To make growth truly sustainable, we must weigh
environmental considerations more heavily as we make economic
we must also find 9 wayo to strengthen our environmental
decisions. Let us charge those responsible for managing debt
and
reduction with finding ways and means to strengthen developmental
efforts
innovative tlinking such as
strategy through "debt for nature transactions", and other
innovative plans
Because with leadership, problems can become opportunities.
Over the years -- as we've come to understand the crippling
effects environmental destruction can have on the long-term
growth of developing countries -- the World Bank has increased
the priority it assigns to environmental concerns. The Bank has
introduced such topics as reforestation, biological diversity,
air pollution, and waste disposal, into its country programming
and economic policy dialogue. We applaud these efforts. And we
insert b
will continue to support them.
In addressing the challenges of the 1980's, we have come to
a deeper understanding of the importance of cooperating as a
community of nations to address common problems. msert C
This, too, is a matter of returning to basic truths. More
than thirty years ago, President Eisenhower spoke to this group
about his experiences in wartime. He recalled working with
groups that had to develop real cooperation among themselves --
or there could be no success.
Ike noted, as I do now, that there were people in the
audience who were our allies in that grand effort. He said:
"We early found one thing: without the heart, without the
enthusiasm for the cause in which we were working, no cooperation
10
was possible. With that enthusiasm, subordinating all else to
the advancement of the cause, cooperation was easy."
Today our mutual efforts to improve global growth, to ease
the burdens of developing country indebtedness, and to open up
markets for trade, have demonstrated anew that progress is best
achieved by facing pressing issues together.
This is a lesson we must carry with us into the 1990's if we
are to pass on to future generations a global economy that is
strong and resilient, and able to provide for the aspirations of
the citizens of all our countries.
Thank you for your hard work, your service, your commitment.
And thank you for coming to Washington. Godspeed you in your
efforts here, and God bless you and the nations you represent.
#
#
#
To: George Folsom
From: Gay/Nelson
Comments on President Bush's draft speech # 3:
page 8, para on IDA suggest change whole para to:
"In order to address the significant problems of the poorest
countries, the international community established the
A
International Development Association (IDA) within the Bank
as a means of providing concessional resources to those
countries. The U.S. has supported IDA since it was
established and will continue to do so."
page 9, in the para which begins Over the years:
"We applaud the efforts made thus far. But there is more to
be done. In particular, we need to work more cooperatively
B
to develop constructive solutions to global warming,
including measures to promote energy efficiency and
conservation and greater protection of forest resources.
Instat
(c)
PRESIDENT GEORGE BUSH
INSERT ON MONEY LAUNDERING (pg. 9)
INTERNATIONAL MONETARY FUND/WORLD BANK SPEECH
SEPTEMBER, 1989
I can think of no better current example than the need to
work together to deal with international drug trafficking and
money laundering. It is a worldwide problem. Drug money
undermines honest businesses, corrupts political institutions,
and even threatens the security of nations. To conceal their
obscene profits, drug barons must wash their money by cycling it
through financial institutions and illegitimate shell
corporations.
The United States renews its call upon all countries to
ratify the United Nations Vienna Convention and make money
laundering a criminal and extraditable offense. We need tough
measures to track down and confiscate the profits of drug-related
crime.
I was encouraged at the 1989 Economic Summit when the G-7
industrial democracies demonstrated an active interest in a
coordinated response to the money laundering menace. My country
will host next year's summit, and I guarantee that the United
States will be pushing for further progress and bold action.
I urge everyone to join with us to explore new ways to stop
money laundering in its tracks.
Document No.
WHITE HOUSE STAFFING MEMORANDUM
9/22/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY: MONDAY, SEPT. 25, 2:00 p.m.
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
SUBJECT:
WASHINGTON, DC
WEDNESDAY, SEPTEMBER 27, 1989
(9/22 - draft three)
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
"
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BOSKIN
BREEDEN
PINKERTON
CARD
ROGERS
CICCONI
WINSTON
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide comments/edits directly to Chris Winston,
Room 122, x2930 with a copy to my office by Monday, September 25
at 2:00 p.m. Thank you.
RESPONSE:
SEP 25 P5 02
See 68 Comments & Note
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
Department
to: Denise Schwarz
of the Treasury
room:
date: 09/25/89
Executive Secretary
Attached are Treasury's initial comments
on the President's IMF/World Bank speech.
We hope to see another revised version
before the speech is given for further
comments.
Hollis McLoughlin has spoken to David
Bates regarding the speech because it is
very important to Secretary Brady.
Please use Hollis 535-6214 as the Treasury
contact on this speech. If you cannot
reach him, please call me. Desiree
Tucker-Sorini is aware of this process.
We have someone who can come over to the
White. House to discuss the substantive
comments with the speechwriters. Please
call Hollis or myself if this is
necessary.
Thanks for your help.
EmilyWalker
Emily L. Walker
room 3408
phone 566-2867
7320
SENT
McNally/Simon
September 22, 1989
Draft Three (B:IMF)
SEP22 P1:08 of
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
WASHINGTON, D.C.
WEDNESDAY, SEPTEMBER 27, 1989
Noed referred
to Comdosson
[[ACKNOWLEDGEMENTS]]
also
It is a pleasure for me to be here this morning, and to
welcome you to Washington.
[and my ww colleague, Michel Comdessions
And it is a special privilege for me to be here in the
company of my old friend, Barber Conable.
Almost 20 years ago, when Barber sat next to me in the House
Ways and Means Committee, we had a bet about who would be first
to become President. [[PAUSE]] We never said, "President of
what" -- so now Barber claims he beat me by two years. [[PAUSE]]
Remember the reaction when Barber was named bank president?
The headlines all said: "BARBARA WHO?" [[PAUSE]] That's okay.
Until this year, the same thing happened all the time to. Barbara
(es we home been for
years since These
Bush. [[PAUSE]]
institutions who croche] - CD.
We in the United states are keenly aware of the importance
of these annual gatherings, and we are proud that we can be your
hosts, We regard these meetings as key events -- events that
drive the work of all of us in maintaining a strong international
economic and financial system.
This is my first opportunity to speak to you as President.
But I have followed the activities of the International Monetary
Fund and the World Bank throughout my years of public service. I
SENT BY:Xerox execopier 7020 9-22-89 6:44PM ;
3957214-
978684221# 3
2
have visited many of your homelands, and seen first-hand the
problems created by inadequate growth and development -- problems
that your two distinguished institutions are working to solve.
But today, we're here to talk not about problems -- but
about solutions.
We have witnessed a dramatic shift over the past few years
in the debate over how to achieve sustained growth and
development.
And although not a banker, you should know that I do have a
degree in economics. It taught me one simple lesson: When
you're standing in front of the world's greatest concentration of
financial genius -- don't talk about economics. [[PAUSE]]
Let's talk instead about FREEDOM.
All across the world, there has been an almost simultaneous
rediscovery of the power created when individuals are given the
freedom to decide -- the freedom to act in their own best
interests.
True, we're here today mainly to discuss economic freedom.
But make no mistake. In the end, both economic freedom -- and
political freedom -- are essential and inseparable companions on
the road to national prosperity.
No - Too sensitive for both PACT FRG.
The jury is no longer out. Take any one people, give them
two sets of rules, and see who prospers and who struggles. There
are two Germanys, two Chinas and two Koreas. It's been almost
50 years. Let's put an end to economic experiment. Because
history has decided. [[PAUSE]]
SENT
7020
- coupled Lin Their recent squarent
with creditor banks - -
3
It is not climate, natural resources, or cultural traditions
that make the difference. I said it in my inuagural address:
"We know what works: Freedom works. We know what's right:
Freedom is right. We know how to secure a more just and
prosperous life for man on Earth: through free markets, free
speech, free elections, and the exercise of free will unhampered
by the state." [[PAUSE]]
In Latin America, Africa, and elsewhere, courageous leaders
are turning away from state control of their economies. Through
economic restructuring and deregulation, they are opening the
door to private initiative. And already they are seeing results.
In Mexico, for example, sound economic policies adopted by
leading
the Salinas government are pointing to a return of flight
capital, and increased foreign investment
one reduced domestic
interest rates
Even more stunning is the transformation in thinking in the
communist countries -- not only in the Soviet Union, but in
Eastern Europe.
Our recent travels among the people of Poland and Hungary
led to many dramatic and stirring encounters. But almost as much
Do has
as we were impressed by the people, we were impressed by the
hase to
almost universal acceptance of the free market as the best hope makea
distints
-- indeed, the only hope -- for reversing the economic fortunes bother
Polomet
of these two proud countries.
Hungay
The rediscovery of these basic truths in the East has been
matched by a recommitment to them in the West. Today the members
4
of the European Community are dedicated to eliminating internal
barriers to economic activity by the year 1992.
The Peruvian economist, Hernando de soto, has helped us
understand this worldwide phenomenon by documenting the process
in Latin America.
de soto was raised in Peru, and educated there and in
Europe, where he lived until 1979. But the chronic privation of
his homeland haunted him. Rather than analyzing flow-charts or
official statistics for the answer, he began walking the streets
of Lima.
He found that the poor of Latin America -- who have never
read Jefferson or Adam Smith -- ran their affairs democratically,
outside the formal economy, organizing their private, parallel
economy in a free and unregulated manner.
de Soto's great contribution has been to point out what, in
retrospect, may seem obvious: People everywhere want the same
things. And when left alone by government, people everywhere
organize their lives in remarkably similar ways.
Note
de Soto's prescription has been successful everywhere it's
de Sofo
prescipt
been tried Governments must bring the "informal" workers into
not
tried
the regular economy -- and then get out of the way, and let
tested
that
individual enterprise flourish.
Lidy
The wider application of these principles within our
economies is critical to achieving the stronger, more prosperous,
global economy of tomorrow.
offers a clear are promising alternative to Destric
stagmatic in Latin America in and other parts 1 The world.
SENT BY:Xerox 7020 9-22-89
moducad mbalances trade
5
We each must do our part. The industrial dountries have a
special responsibility. We must coordinate economic policies to
help provide sustained growth with low inflation and greater
stability in exchange markets.
We in the United States are working especially hard to
reduce the federal budget deficit, and to increase our national
savings rate.
All our nations have a responsibility to ensure a fair and
open trading system. We have a tremendous opportunity to advance
that cause now, by making a success of the Uruguay Round of trade
negotiations.
Making the political commitments necessary to ensure a
success will not be easy in any of our countries. But it must be
done. We must strengthen the GATT, and allow our markets to open
in a mutual, step-by-step fashion.
As we seek to extend and expand growth in the world economy,
the debt problems faced by developing countries are central to
the agendas of the IMF and the World Bank. Over the past year
reduction
the international community's strengthened approach to these
as a
complement
problems has provided new hope for debtor nations.
to confirmed
new
America's Secretary of the Treasury, my good friend Nick
lending
Brady, has helped direct the focus on debt
bringing
developing nations and commercial banks back to where they belong
-- the negotiating table.
Quick action by both the IMF and the World Bank has given
this new strategy vital support. By making clear the terms under
one provide
a
solid Foundation for grown
or
as a stimulus to grown
6
which they will support the reduction of debt burdens -- and by
working with countries to develop the necessary economic reform
programs these institutions have made it possible to reduce
debt burdens eithout liminating growth.
Mexico reached
Thanks to these initiatives, the United States was able to
with its creditor banks.
an agreement in July between Menico and its biggest
private lenders. The deal enabled Mexico to make enormous
in reducing
progress against its debt burden some ten to twelve billion
dollars and helper restore confidence in the Mexicon economy
It also
which has almody results in a return 8 flightcopital and foreign new
This agreement underscores the benefits other debtor
investment.
countries stand to realize from this approach. Mexico's savings
from this package will free resources for productive use in the
economy, leading to increased investment and improved growth.
What Mexico has done is not a miracle. It is a product of
hard work and sustained commitment.
CD
quevies
My father, Prescott Bush, Sr., was a successful businessman, this
sector.
a banker whose forte was reorganizing failing companies, turning
money losers into profit makers. Dad believed in the old Ben
Notes
which emphasized have work one sacing
Foreign
Franklin almanac maxims when it came to earning, saving, and
andience
may not
spending. We grew up understanding that life isn't an open-ended
be
fomiliar
checking account and The one show act producty in timerous mother
with
Ben
The strengthened debt strategy is flexible enough to address
Franklins
meries
the unique needs of each country. But the strategy will not work
without sound economic policies in debtor countries.
Inefficient, unrealistic, and growth-stifling policies must
go. Benefits are available to a broad range of other countries
SENT BY:Xerox ecopier 7020 9-22-89
3957214-
978684221# 8
7
that pursue economic reforms. Several are now actively engaged
with the IMF and World Bank, and with the banking community --
Costa Rica, Venezuela, and Morocco, to name a few.
Commercial banks have a special role in making this process
work. It is important that the banks follow through on efforts
employer
made with Mexico and the Philippines, and sustain this momentum
broom their efforts
with other countries.
en
We encourage these efforts not as self-sacrifice -- but as
self-interest. True, success not only will help the debtor
nations. But it will also strengthen the banks, by putting their
portfolios on a sounder footing.
One of the lessons of the 1980's, especially the debt
crisis, is that we're all in this together. And when we
cooperate, we all come out winners.
The IMF and the World Bank are at the crossroads of our
cooperative efforts. They are distinct institutions, even though
their work is complementary and their objectives often overlap.
The IME must continue to foster the sound economic policies
necessary for sustained growth. As part of that responsibility,
the Fund has assumed an important and welcome role in the
strengthened debt strategy.
recognizes
The United States believes that the IMF must have adequate
resources to fulfill its critical role. We will continue to work
reaching a decision 04
with other members, in the hope of completing the current review
quotas by the end of the year. The United States has always
supported The IMF
and will
SENT BY:Xerox 7020
3957214-
97866422.=
suggest on.y.
Too much in what
Brancy is saying in
his spead.
8
However, if we are to ask our taxpayers to put up additional
resources, they must be assured that the funds are truly needed,
and will be used prudently and effectively to achieve shared
objectives.
We all look to the World Bank to help build the foundation
for a future global prosperity that reaches all our citizens.
Its efforts to promote structural reform and development are
crucial to resolving debt problems. The Bank's decisions to take
on new responsibilities on the debt front are welcome.
attatled see
To promote the Bank's objectives, the international Associate.
community established the International Development Agency within
A
the Bank as a means of providing concessional resources to the
poorest countries. We must all continue to support its
activities.
We have also learned, as I emphasized Monday at the U.N.,
Paris Summit
and last summer at the Group of Seven, that environmental
destruction knows no borders.
OASIA
The twin evils problems of crushing debt levels and a deteriorating
Jurgest
deletin
environment threaten not only the development, but even the
stability of our neighbors in Latin America, Africa, parts of
Asia and even Europe. And global warming and rapid deforestation
pose a threat to all humankind.
We face unprecedented problems. we need -- and we can find
-- unprecedented solutions.
To make growth truly sustainable, we must weigh
environmental considerations more heavily as we make economic
Don't
we must also find ways to
overaphes.
our anviron mental -nd development effors
9
decisions. Let us charge those responsible for managing debt
reduction with finding ways and means to strengthen development
strategy through "debt for nature transactions", and other
innovative plans.
innovative Thinking such as
Because with leadership, problems can become opportunities.
Over the years -- as we've come to understand the crippling
effects environmental destruction can have on the long-term
growth of developing countries -- the World Bank has increased
the priority it assigns to environmental concerns. The Bank has
B
see
introduced such topics as reforestation, biological diversity,
a Hosel
air pollution, and waste disposal, into its country programming
and economic policy dialogue. We applaud these efforts.
is
to
will consinue support them.
develop
to
problems
like
global
working
In addressing the challenges of the 1980's, we have come to
1
a deeper understanding of the importance of cooperating as a
Ros
community of nations to address common problems.
C
place for
This, too, is a matter of returning to basic truths. More
see
daug
attotcher
paragraph.
than thirty years ago, President Eisenhower spoke to this group
about his experiences in wartime. He recalled working with
groups that had to develop real cooperation among themselves --
or there could be no success.
Ike noted, as I do now, that there were people in the
audience who were our allies in that grand effort. He said:
"We early found one thing: without the heart, without the
enthusiasm for the cause in which we were working, no cooperation
SENT
BYixerox
10
was possible. With that enthusiasm, subordinating all else to
the advancement of the cause, cooperation was easy."
Today our mutual efforts to improve global growth, to ease
the burdens of developing country indebtedness, and to open up
markets for trade, have demonstrated anew that progress is best
achieved by facing pressing issues together.
This is a lesson we must carry with us into the 1990's if we
are to pass on to future generations a global economy that is
strong and resilient, and able to provide for the aspirations of
the citizens of all our countries.
Thank you for your hard work, your service, your commitment.
And thank you for coming to Washington. Godspeed you in your
efforts here, and God bless you and the nations you represent.
#
#
Document No.
7520
WHITE HOUSE STAFFING MEMORANDUM
9/22/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY: MONDAY, SEPT. 25, 2:00 p.m.
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
SUBJECT:
WASHINGTON, DC
WEDNESDAY, SEPTEMBER 27, 1989
(9/22 - draft three)
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
"
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BOSKIN
BREEDEN
PINKERTON
CARD
ROGERS
CICCONI
WINSTON
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide comments/edits directly to Chris Winston,
Room 122, x2930 with a copy to my office by Monday, September 25
at 2:00 p.m. Thank you.
RESPONSE:
TO: CHRISS WINSTON
September 25, 1989
05:58
NSC concurs with the Presidential remarks for the World Bank/IME Annual
Meeting with the suggestions noted.
Brent Rates fr Scowcroft
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
CC: James W. Cicconi
Ext. 2702
McNally/Simon
September 22, 1989
Draft Three (B:IMF)
SEP 22 08
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
WASHINGTON, D.C.
WEDNESDAY, SEPTEMBER 27, 1989
[[ACKNOWLEDGEMENTS]]
It is a pleasure for me to be here this morning, and to
welcome you to Washington.
And it is a special privilege for me to be here in the
company of my old friend, Barber Conable.
Almost 20 years ago, when Barber sat next to me in the House
Ways and Means Committee, we had a bet about who would be first
to become President. [[PAUSE]] We never said, "President of
what" -- so now Barber claims he beat me by two years. [[PAUSE]]
Remember the reaction when Barber was named bank president?
The headlines all said: "BARBARA WHO?" [[PAUSE]] That's okay.
Until this year, the same thing happened all the time to Barbara
Bush. [[PAUSE] ]
We in the United States are keenly aware of the importance
of these annual gatherings, and we are proud that we can be your
hosts. We regard these meetings as key events -- events that
drive the work of all of us in maintaining a strong international
economic and financial system.
This is my first opportunity to speak to you as President.
But I have followed the activities of the International Monetary
Fund and the World Bank throughout my years of public service. I
2
have visited many of your homelands, and seen first-hand the
problems created by inadequate growth and development -- problems
that your two distinguished institutions are working to solve.
But today, we're here to talk not about problems -- but
about solutions.
We have witnessed a dramatic shift over the past few years
in the debate over how to achieve sustained growth and
development.
And although not a banker, you should know that I do have a
degree in economics. It taught me one simple lesson: When
you're standing in front of the world's greatest concentration of
financial genius -- don't talk about economics. [[PAUSE]]
Let's talk instead about FREEDOM.
All across the world, there has been an almost simultaneous
rediscovery of the power created when individuals are given the
freedom to decide -- the freedom to act in their own best
interests.
True, we're here today mainly to discuss economic freedom.
But make no mistake. In the end, both economic freedom -- and
political freedom -- are essential and inseparable companions on
the road to national prosperity.
The jury is no longer out. Take any one people, give them
MMAX
two sets of rules, and see who prospers and who struggles. There
fo.
are two Germanys two Chinas and two Koreas. It's been almost
50 years. Let's put an end to economic experiment. Because
history has decided. [[PAUSE]]
3
It is not climate, natural resources, or cultural traditions
that make the difference. I said it in my inuagural address:
"We know what works: Freedom works. We know what's right:
Freedom is right. We know how to secure a more just and
prosperous life for man on Earth: through free markets, free
speech, free elections, and the exercise of free will unhampered
by the state." [[PAUSE]]
In Latin America, Africa, and elsewhere, courageous leaders
are turning away from state control of their economies. Through
economic restructuring and deregulation, they are opening the
door to private initiative. And already they are seeing results.
In Mexico, for example, sound economic policies adopted by
the Salinas government are pointing to a return of flight
capital, and increased foreign investment.
Even more stunning is the transformation in thinking in the
communist countries -- not only in the Soviet Union, but in
Eastern Europe.
Our recent travels among the people of Poland and Hungary
led to many dramatic and stirring encounters. But almost as much
as we were impressed by the people, we were impressed by the
almost universal acceptance of the free market as the best hope
-- indeed, the only hope -- for reversing the economic fortunes
of these two proud countries.
The rediscovery of these basic truths in the East has been
matched by a recommitment to them in the West. Today the members
And, Empi's leaders assure me thet this will
not be at the cost of new external
barriers to trade with the EC.
4
of the European Community are dedicated to eliminating internal
end of
barriers to economic activity by the (year) 1992.
1
D
The Peruvian economist, Hernando de Soto, has helped us
understand this worldwide phenomenon by documenting the process
in Latin America.
(CApital
de Soto was raised in Peru, and educated there and in
1
D)
Europe, where he lived until 1979. But the chronic privation of
his homeland haunted him. Rather than analyzing flow-charts or
official statistics for the answer, he began walking the streets
of Lima.
He found that the poor of Latin America -- who have never
read Jefferson or Adam Smith - - ran their affairs democratically,
outside the formal economy, organizing their private, parallel
economy in a free and unregulated manner.
P
de Soto's great contribution has been to point out what, in
1
retrospect, may seem obvious: People everywhere want the same
things. And when left alone by government, people everywhere
organize their lives in remarkably similar ways.
de Soto's prescription has been successful everywhere it's
been tried. Governments must bring the "informal" workers into
the regular economy -- and then get out of the way, and let
individual enterprise flourish.
The wider application of these principles within our
economies is critical to achieving the stronger, more prosperous,
global economy of tomorrow.
5
We each must do our part. The industrial countries have a
special responsibility. We must coordinate economic policies to
help provide sustained growth with low inflation and greater
stability in exchange markets.
We in the United States are working especially hard to
reduce the federal budget deficit, and to increase our national
savings rate.
All our nations have a responsibility to ensure a fair and
open trading system. We have a tremendous opportunity to advance
that cause now, by making a success of the Uruguay Round of trade
negotiations.
Making the political commitments necessary to ensure a
success will not be easy in any of our countries. But it must be
done. We must strengthen the GATT, and allow our markets to open
in a mutual, step-by-step fashion.
As we seek to extend and expand growth in the world economy,
the debt problems faced by developing countries are central to
the agendas of the IMF and the World Bank. Over the past year,
the international community's strengthened approach to these
problems has provided new hope for debtor nations.
America's Secretary of the Treasury, my good friend Nick
Brady, has helped direct the focus on debt relief, bringing
developing nations and commercial banks back to where they belong
-- the negotiating table.
Quick action by both the IMF and the World Bank has given
this new strategy vital support. By making clear the terms under
6
which they will support the reduction of debt burdens -- and by
working with countries to develop the necessary economic reform
programs -- these institutions have made it possible to reduce
debt burdens without eliminating growth.
Thanks to these initiatives, the United States was able to
broker an agreement in July between Mexico and its biggest
private lenders. The deal enabled Mexico to make enormous
progress against its debt burden -- some ten to twelve billion
dollars.
This agreement underscores the benefits other debtor
countries stand to realize from this approach. Mexico's savings
from this package will free resources for productive use in the
economy, leading to increased investment and improved growth.
What Mexico has done is not a miracle. It is a product of
hard work and sustained commitment.
My father, Prescott Bush, Sr., was a successful businessman,
a banker whose forte was reorganizing failing companies, turning
money losers into profit makers. Dad believed in the old Ben
Franklin almanac maxims when it came to earning, saving, and
spending. We grew up understanding that life isn't an open-ended
checking account.
The strengthened debt strategy is flexible enough to address
the unique needs of each country. But the strategy will not work
without sound economic policies in debtor countries.
Inefficient, unrealistic, and growth-stifling policies must
go. Benefits are available to a broad range of other countries
7
that pursue economic reforms. Several are now actively engaged
with the IMF and World Bank, and with the banking community --
Poland,
Costa Rica, Venezuela, and Morocco, to name a few.
Commercial banks have a special role in making this process
work. It is important that the banks follow through on efforts
made with Mexico and the Philippines, and sustain this momentum
with other countries.
We encourage these efforts not as self-sacrifice -- but as
self-interest. True, success not only will help the debtor
nations. But it will also strengthen the banks, by putting their
portfolios on a sounder footing.
One of the lessons of the 1980's, especially the debt
crisis, is that we're all in this together. And when we
cooperate, we all come out winners.
The IMF and the World Bank are at the crossroads of our
cooperative efforts. They are distinct institutions, even though
their work is complementary and their objectives often overlap.
The IMF must continue to foster the sound economic policies
necessary for sustained growth. As part of that responsibility,
the Fund has assumed an important and welcome role in the
strengthened debt strategy.
The United States believes that the IMF must have adequate
resources to fulfill its critical role. We will continue to work
with other members, in the hope of completing the current review
of quotas by the end of the year.
8
However, if we are to ask our taxpayers to put up additional
resources, they must be assured that the funds are truly needed,
and will be used prudently and effectively to achieve shared
objectives.
We all look to the World Bank to help build the foundation
for a future global prosperity that reaches all our citizens.
Its efforts to promote structural reform and development are
crucial to resolving debt problems. The Bank's decisions to take
on new responsibilities on the debt front are welcome.
To promote the Bank's objectives, the international
community established the International Development Agency within
the Bank as a means of providing concessional resources to the
poorest countries. We must all continue to support its
activities.
We have also learned, as I emphasized Monday at the U.N.,
and last summer at the Group of Seven, that environmental
destruction knows no borders.
The twin evils of crushing debt levels and a deteriorating
environment threaten not only the development, but even the
stability of our neighbors in Latin America, Africa, parts of
Asia and even Europe. And global warming and rapid deforestation
pose a threat to all humankind.
We face unprecedented problems. We need -- and we can find
-- unprecedented solutions.
To make growth truly sustainable, we must weigh
environmental considerations more heavily as we make economic
9
decisions. Let us charge those responsible for managing debt
reduction with finding ways and means to strengthen development
strategy through "debt for nature transactions" and other
innovative plans.
Because with leadership, problems can become opportunities.
Over the years -- as we've come to understand the crippling
effects environmental destruction can have on the long-term
growth of developing countries -- the World Bank has increased
the priority it assigns to environmental concerns. The Bank has
introduced such topics as reforestation, biological diversity,
air pollution, and waste disposal, into its country programming
and economic policy dialogue. We applaud these efforts. And we
will continue to support them.
In addressing the challenges of the 1980's, we have come to
a deeper understanding of the importance of cooperating as a
community of nations to address common problems.
This, too, is a matter of returning to basic truths. More
than thirty years ago, President Eisenhower spoke to this group
about his experiences in wartime. He recalled working with
groups that had to develop real cooperation among themselves --
or there could be no success.
Ike noted, as I do now, that there were people in the
audience who were our allies in that grand effort. He said:
"We early found one thing: without the heart, without the
enthusiasm for the cause in which we were working, no cooperation
10
was possible. With that enthusiasm, subordinating all else to
the advancement of the cause, cooperation was easy."
Today our mutual efforts to improve global growth, to ease
the burdens of developing country indebtedness, and to open up
markets for trade, have demonstrated anew that progress is best
achieved by facing pressing issues together.
This is a lesson we must carry with us into the 1990's if we
are to pass on to future generations a global economy that is
strong and resilient, and able to provide for the aspirations of
the citizens of all our countries.
Thank you for your hard work, your service, your commitment.
And thank you for coming to Washington. Godspeed you in your
efforts here, and God bless you and the nations you represent.
#
#
#
Document No.
WHITE HOUSE STAFFING MEMORANDUM
9/22/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY: MONDAY, SEPT. 25, 2:00 p.m
PRESIDENTIAL REMARKS: WORLD BANK/IMF ANNUAL MEETING
SHERATON WASHINGTON
SUBJECT:
WASHINGTON, DC
WEDNESDAY, SEPTEMBER 27, 1989
(9/22 - draft three)
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BOSKIN
BREEDEN
PINKERTON
CARD
ROGERS
CICCONI
WINSTON
DEMAREST
FITZWATER
GRAY
HAGIN 11
REMARKS:
Please provide comments/edits directly to Chris Winston,
Room 122, x2930 with a copy to my office by Monday, September 25
at 2:00 p.m. Thank you.
RESPONSE:
no
comment. 26 gm5 1368 9/25/89
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702