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Originally Processed With FOIA(s): FOIA Number: S 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: 13574 Folder ID Number: 13574-006 Folder Title: Enterprise for the Americas Initiative 6/27/91 [OA 6035] [2] Stack: Row: Section: Shelf: Position: G 26 17 2 3 From Ambassador Luigi Enaudi, US Rep to the OAS and head of the President's EAI Commission "Latin America is embracing the EAI -- you'd better believe it! They are clamoring on about it because it recognizes and includes them. This is its importance." His point runs deep -- US/L.A. relations have been fraught with the perception that the US is the older brother bossing the little one around, the "Big Whale" to the "Little Shrimp". They've now come around to democracy -- we're on par there. (( When the OAS General Assembly met in Santiago earlier this month, every single country represented had elected their own governments, except of course Cuba.) We need to stress that EAI recognizes and includes them as full/crucial/critical partners -- we have to do this together or it will fall. "Stand together or hang separately" or "the group is only as strong as its weakest link" type of thing. Because we are united by geography -- Because we share a common history -- Because our people are industrious/ resourceful/ freedom loving etc -- The future is ours -- We are the future -- The New Chosen People ((?!)) Snow/Cawley June 26, 1991 Draft Three POTUS. PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills. Minister Foxley of Chile, Minister DeFranco of Nicaragua, Minister Alfaro of Panama. I could not be more pleased to have you all join me up here today. And look at this audience! My good friend, Secretary Mosbacher; Secretary Madigan, Administrator Reilly -- it's good to see you here. Greetings also to Fred Zeder from OPIC, John Macomber of the EXIMBANK; members of Congress; and representatives of the private sector. This large and distinguished group of Americans illustrates vividly our commitment to building a better, more prosperous hemisphere. We're also pleased to have with us Enrique Iglesias of the Inter-American Development Bank; Ambassadors from Latin America and the Caribbean, from the Organization of American States, other members of the diplomatic corps. To everyone here: My warmest greetings to you on this historic day. I think you'll agree -- this counts as a warm greeting. // I'll bet you're glad I didn't try for anything warmer. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. I can't think of any 2 better example of the way in which powerful ideals can create surprising results. The Enterprise for the Americas Initiative grew out of talks between many of us gathered here. I heard many of my friends in Central and South America talk about the importance of building a prosperous hemisphere -- of throwing off the deadening weight of debt and economic stagnation. We agreed to forge strong ties of idealism and self-interest. With the Enterprise for the Americas Initiative, we vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that overwhelms so many of our neighbors and colleagues. This sounded wildly ambitious just last year. Today, however, we think of it as a good start. // We have made great progress toward the goal of hemispheric free trade. In just one year we have signed nine bilateral framework agreements for trade and investment: with Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Peru and Venezuela. Make that eleven agreements: Today, Amb. Hills will sign bilateral framework agreements with Minister DeFranco of Nicaragua and Minister Alfaro of Panama. We also are negotiating with Guatemala and the 13-nation, English speaking Caribbean Community. We hope to sign these agreements soon. Last week, Amb. Hills also joined representatives of Argentina, Brazil, Paraguay and Uruguay in signing the Rose Garden Agreement, the first regional framework accord under the 3 Enterprise for the Americas Initiative. Carla, you've been busy! // Amb. Hills and her counterparts will work together to pull down tariff and nontariff trade barriers, protect patents and intellectual property, strengthen investment and profit repatriation policies. In short, they will build a solid foundation for economic cooperation and prosperity. But these agreements represent only one facet of the initiative. On the investment front, our nations have begun making the entire hemisphere more hospitable to investment. The Inter-American Development Bank has approved its first so-called sector loan -- $150 million to Chile. Minister Foxley and President Iglesias completed arrangements for this loan just today. // President Iglesias, I want to thank you and congratulate everyone at the IDB for this important step, and we should congratulate Chile for the impressive free-market reforms it already has undertaken. Through these loans, the IDB will help Latin America and the Caribbean countries compete for capital. They will encourage reforms that foster economic growth. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they can manage the weather. Free markets reward people who have ideas -- not just those who have connections. They allow poor people to become rich. They make possible 4 unprecedented levels of social mobility. They teach people that good deeds can indeed pay off, and that the virtues of hard study, hard work, and commitment to others really do produce wealth. I'm also pleased to report that our proposal for a 1.5 billion dollar Multilateral Investment Fund has gotten off to a great start. Japan has pledged 100 million dollars for each of the next five years. Canada, France, Portugal and Spain have expressed interest in supporting the fund. This fund will provide targeted support for countries that undertake the difficult reforms necessary to encourage investment and stimulate free enterprise. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. We will do all we can to reduce the debt burden of Caribbean and Latin American neighbors who adopt substantial, permanent economic reforms. Four nations already have negotiated far-reaching reductions in commercial debt through the provisions of the Brady plan, and other nations will take advantage of the plan as their economic reforms take shape. Congress has agreed to reward economic reform and trade liberalization by reducing a portion nation's debt -- the food assistance loans contracted under Public Law 480. Congress also supported our recommendation that the interest on remaining debt go to fund grass-roots environmental projects. This ambitious, innovative plan already has produced results. 5 Today Secretary Brady and Minister Foxley will sign an agreement with Chile, slashing Chile's PL 480 debt 40 percent, to 23 million dollars. This is the first example of bilateral debt reduction under the EAI. We look forward to reaching an understanding soon on the environmental component of this agreement. Now, let's talk about what lies ahead. As you know, Congress recently voted not to terminate the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. Our goal is to create a free trade zone that will cover all of North America. But this trade zone --- 360 million consumers and markets that produce more than $6 trillion in annual output -- will set the stage for something even more dramatic -- a hemispheric zone of free trade. The Enterprise for the Americas initiative can link our nations, with their diverse cultures, workforces, creative forces. I know some have worried that the EAI might indicate a reduction in our commitment to the multilateral trading system. Not so: we remain fully determined to make that system work. Indeed, as part of the Uruguay Round, we have joined our Latin American and Caribbean allies in trying to pull down protectionist barriers in Europe and Asia. I want to stress the importance of reaching a successful conclusion to the round. It can establish a basis for worldwide free and fair trade. Without it, we will have great difficulty moving forward. 6 We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, ours has become the world's first fully democratic hemisphere. // This is no accident of history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their roots to all the nations of the world. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that deregulation, respect for private property, low tax rates and low trade barriers can produce vast economic returns. We can show the rest of the world how to compete in ways that build upon each other's strengths, rather than preying upon weaknesses. Today, I pledge my full effort to make the Enterprise for the Americas Initiative a reality. I urge Congress to pass promptly the remaining legislation necessary to enact EAI. This includes debt-reduction authority and authority for the United States to contribute its share to the Multilateral Investment Fund. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local 7 craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years, II he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in the spirit of enterprise buries the temptations of envy, we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony -- for all our lands. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now I would like to ask Secretary Brady and Minister Foxley to sign the debt reduction agreement for Chile -- and following that, Ambassador Hills to sign framework agreements for trade and investment with Minister DeFranco of Nicaragua and Minister Alfaro of Panama. # # # # Document No. 24982855 WHITE HOUSE STAFFING MEMORANDU 4772 DATE: June 259,1 19UN 27 A 14 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: June 26, 1991 TO: Tony Snow The NSC concurs with changes, as noted. This is considerably too young PHILLIP D. BRADY Assistant to the President Brent Scowcroft and Staff Secretary Ext. 2702 CC: Phillip Brady Marter Snow/Cawley June 25, 1991 91 JUN 25 Pif 7: 12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce overwhelms the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. the EAI was not developed in isolation in Washington It was born out of a dialogue with the leaders of Latin America and the Caribbean fromwhich I have benefitted greatly. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded bilateral nine separate which framework agreements [for trade and investment These agreements create councils charged with dismantling PROMOTING barriers to trade and investment. The United States already has signed [a series of) agreements with 5 large many group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank investment further has economic approved progress its first in so-called, sectoral loan -- $150 million to support [Lean to] Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace ideas old mercantilist or socialist economic systems with free market Chile has already done so and can point to hish levels of domestic and systems. ^ Our simple goal: We want to promote the economic foreign reforms that help foster economic growth and encourage investment to demonstrate environmental stewardship throughout the hemisptere. the success of For years the world experimented with the fantasy that its open market policies councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in investment supporting the fund. This fund, like the sectoral loans from the dinefficient tectionist A IDB, will help nations throw off the shackles of authoritarian-or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. food and Congress has agreed to reduce the debt burden of nations to llow them to use interest aside payments that liberalize their trade and investment rules, and [has-set local to finance environmental projects. This ambitious, innovative plan already has produced results he lping to restore investor con tidence in countries with high debt. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 Minister Foxley, your country's democratic and economic million dollars. achievements are admirable. I congratulate you and your countrymen. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. Uruguay Round We already have joined forces in the [GATT] talks, trying to want To pull down protectionist barriers in Europe and Asia. I [cannot] stress enough the importance of reaching a, a substantial GATT agreement that will provide the foundation for worldwide free and fair trade. a comprehensive hruguay Round Agreement, Without GATT we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of driverd Tiera del Fuego, we share common heritages Our people can trace ALL CONTINENTS in The world their heritages to Spain, Portugal, Germany Italy, Turkey, China, Japan, England, the Arab world 7 and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' WORK part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million annual share this year to the Multilateral AND I hope The MEMBSOS g-Congrass hare WILL Investment fund andothat we work hard to reach bilateral frainework agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. Insert A In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years,' he noted. "You do not mean to tell me that there will be any custom houses in 400 years. " Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside [to] for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a sl framework trade agreement with Nicaragua and a framework trade agreement with Panama. 1 # # # # Insert A on page 5 A growing, prosperous Latin America and Caribbean is a natural market for American exports of manufactured goods and agricultural products. Thus, the Enterprise for the Americas Initiative also means new jobs and rising incomes for the citizens of the United States. NSC & 4/26 THE WHITE sew marked 06/26 B, When JG check these remarks we hadn't rec'd INFORMATION NSC comments yet and Christina said theydid this version with a bootleg copy of NSC comments. MEMORANDUM FOR THE FROM: TONY SNOW There seems to be quite a bit of changes from NSC that were not taken (we now have NSC comments) SUBJECT: ENTERPRIS] Also, Cabinet Affairs had quite a bit of comments. I. SUMMARY PLS MAKE SURE PHIL WANT THIS DRAFT TO GO PRESIDENT On Thursday, Ju al 4:00 p.m. you will make remarks honoring the first anniversary of your Enterprise for the Americas Initiative. The event will be held in the Rose Garden, with an audience of 200. Your remarks are approximately twelve minutes in length and will be on speechcards. You will be joined on stage by Secretary Brady, Ambassador Hills, Minister Foxley of Chile, Minister DeFranco of Nicaragua and Minister Alfaro of Panama. Secretaries Baker, Mosbacher and Madigan will be in the front row of the audience along with Administrator Reilly, Fred Zeder, John Macomber, Enrique Iglesias and a large contingent of foreign and OAS ambassadors. II. DISCUSSION Attached for your review are draft remarks to be delivered at the Enterprise for the Americas event. They highlight the advances already being made with the E.A.I. initiative -- in trade, investment and debt reduction. In promising to fight for free and fair trade everywhere, you also urge Congress to pass the remaining legislation for the Initiative. At the conclusion of your remarks, Secretary Brady and Ambassador Hills will sign new agreements with the Ministers of Chile, Nicaragua and Panama. Snow/Cawley June 26, 1991 Draft Two EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills. Minister Foxley of Chile, Minister DeFranco of Nicaragua, Minister Alfaro of Panama. I could not be more pleased to have you all join me up here today. And look at this audience! My good friend, Secretary Mosbacher; Secretary Madigan, Administrator Reilly -- it's good to see you here. Greetings also to Fred Zeder from OPIC, John Macomber of the EXIMBANK; members of Congress. This large and distinguished group of Americans illustrates vividly our commitment to building a better, more prosperous hemisphere. We're also pleased to have with us Enrique Iglesias of the Inter-American Development Bank; Ambassadors from Latin America and the Caribbean, from the Organization of American States, other members of the diplomatic corps. To everyone here: My warmest greetings to you on this historic day. I think you'll agree -- this counts as a warm greeting. // I'll bet you're glad I didn't try for anything warmer. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. I can't think of any 2 better example of the way in which powerful ideals can create reworded surprising results. The Enterprise for the Americas Initiative grew out of talks between many of us gathered here. I heard many of my friends in Central and South America talk about the importance of building a prosperous hemisphere -- of throwing off the deadening weight of debt and economic stagnation. We agreed to forge strong ties of idealism and self-interest. With the Enterprise for the Americas Initiative, we vowed to encourage free trade, stimulate investment throughout the changed this hemisphere, and reduce the debt burden that threatens so many of P overwhelms" our neighbors and colleagues. This sounded wildly ambitious just last year. Today, however, we think of it as a good start. // We have made great progress toward the goal of hemispheric free trade. In just one year we have signed nine bilateral framework agreements for trade and investment: with Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Peru and Venezuela. Make that eleven agreements: Today, Amb. Hills will sign bilateral framework agreements with Minister DeFranco of Nicaragua and Minister Alfaro of Panama. We also are negotiating with Guatemala and the 13-nation, English speaking Caribbean Community. We hope to sign these agreements soon. Last week, Amb. Hills also joined representatives of Argentina, Brazil, Paraguay and Uruguay in signing the Rose Garden Agreement, the first regional framework accord under the 3 Enterprise for the Americas Initiative. Carla, you've been busy! // Amb. Hills and her counterparts will work together to pull down tariff and nontariff trade barriers, protect patents and intellectual property, strengthen investment and profit repatriation policies. In short, they will build a solid foundation for economic cooperation and prosperity. But these agreements represent only one facet of the initiative. On the investment front, our nations have begun making the entire hemisphere more hospitable to investment. The 12x Inter-American Development Bank has approved its first so-called INJEST ment tosuppat further economic progress the sectoral loan -- $150 million loan to Chile. Minister Foxley and President Iglesias completed arrangements for this loan just today. // President Iglesias, I want to thank you and congratulate everyone at the IDB for this important step. Through these loans, the IDB will help Latin America and the Caribbean NSC wantestent have -Din take countries compete for capital. They will encourage reforms that foster economic growth. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they can manage the weather. Free markets reward people who have ideas -- not just those who have connections. They allow poor people to become rich. They make possible unprecedented levels of social mobility. They teach people that 4 good deeds can indeed pay off, and that the virtues of hard study, hard work, and commitment to others really do produce wealth. I'm also pleased to report that our proposal for a 1.5 billion dollar Multilateral Investment Fund has gotten off to a great start. Japan has pledged 100 million dollars for each of the next five years. Canada, France, Portugal and Spain have expressed interest in supporting the fund. This fund will provide targeted support for countries that undertake the difficult reforms necessary to encourage investment and stimulate free enterprise. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. We will do all we can to reduce the debt burden of Caribbean and Latin American neighbors who adopt substantial, permanent economic reforms. Four nations already have negotiated far-reaching reductions in commercial debt through the provisions of the Brady plan, and other nations will take advantage of the plan as their economic reforms take shape. Congress has agreed to reward economic reform and trade liberalization by reducing a portion nation's debt -- the food assistance loans contracted under Public Law 480. Congress also supported our recommendation that the interest on remaining debt go to fund grass-roots environmental projects. This ambitious, innovative plan already has produced results. NSC added sent here Did Not take 5 Today the United States will sign an agreement with Chile, slashing Chile's PL 480 debt 40 percent, to 23 million dollars. We look forward to reaching an understanding soon on the environmental component of this agreement. Now, let's talk about what lies ahead. As you know, Congress recently voted not to terminate the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. Our goal is to create a free trade zone that will cover all of North America. But this trade zone -- 360 million consumers and markets that produce more than $6 trillion in annual output -- will set the stage for something even more dramatic -- a hemispheric zone of free trade. The Enterprise for the Americas initiative can link our nations, with their diverse cultures, workforces, creative forces. I know some have worried that the EAI might indicate a reduction in our commitment to the multilateral trading system. Not so: we remain fully determined to make that system work. Indeed, as part of the Uruguay Round, we have joined our Latin American and Caribbean allies in trying to pull down WANTTO rusc change protectionist barriers in Europe and Asia. I cannot stress NOT enough the importance of reaching a successful conclusion to the round. It can establish a basis for worldwide free and fair TAKAN NSC wanted phrase here- DIDNOT trade. Without it, we will have great difficulty moving forward. TAKE We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, ours has become the world's first fully democratic hemisphere. // NSC wants out This is no accident of history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their roots to all the nations of the world. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that deregulation, respect for private property, low tax rates and low trade barriers can produce vast economic returns. We can show the rest of the world how to compete in ways that build upon each other's strengths, rather than preying upon weaknesses. Today, I pledge my full effort to make the Enterprise for the Americas Initiative a reality. I urge Congress to pass promptly the remaining legislation necessary to enact EAI. This includes debt-reduction authority and authority for the United States to contribute its share to the Multilateral Investment Fund. We will spare no effort in trying to reach an acceptable GATT conclusion. We will fight for free and fair trade -- everywhere. NSC INSAT here DiDNat In 1876, the Brazilian Emperor Dom Pedro II visited the TAKe United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a 7 customs house. The emperor was stunned. "But an iron building would last 400 years, " he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in the spirit of enterprise buries the temptations of envy, we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony -- for all our lands. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now I would like to ask Secretary Brady and Minister Foxley to sign the debt reduction agreement for Chile -- and following that, Ambassador Hills to sign a framework agreement for trade and investment with Minister DeFranco of Nicaragua and Minister Alfaro of Panama. # # # # SENT BY: ; 6-24-91 ; 4:50PM ; hrNl=:a- 2024566218:# 1 United States Department of State 91 JUN 24 P5: 11 Washington, D.C. 20520 DATE June 24 FACSIMILE TRANSMITTAL SHEET PLEASE DELIVER TO: NAME Tony Snow OFFICE ROOM NO. TELEPHONE NO. 456-6218 NUMBER OF PAGES ATTACHED 3 FROM: NAME Drocers Bernie Monson OFFICE TELEPHONE NO. 647-5780 COMMENTS: SENT BY: ; 6-24-91 ; 4:50PM ; hrNl=:a- 2024566218:# 2 One year ago today, I announced my Enterprise for the Americas Initiative. The EAI was not developed in isolation in Washington. It was born out of an authentic and a continuing dialogue from which I have benefited enormously as President with the leaders of Latin America and the Carribbean. At the hemispheric summit I attended in San Jose in October 1989, at the Cartejena summit the following February, and at the countless meetings I have participated in with leaders of the Americas I heard both a common hope expresed and a common concern. My fellow heads of state told me that they want to replace the "lost decade" of the 1980's with a decade of renewed hope and economic growth in the 1990's in which all of the citizens of the hemisphere, particularly the poor, can share. They said they are committed to strip away the barriers to trade and investment and growth that have shackled the energies of their citizens for too long and open their economies to new opportunities. They urged the United States to help build this more hopeful future--not with massive assistance programs--but with renewed support for trade, investment, and debt reduction. But they also expressed the fear that the United States might somehow turn its attention and energies elsewhere in the world and ignore the Americas at this moment of maximum challenge and opportunity. My friends as long as I am President, the United States will never make that historic mistake. Just the opposite. As a nation, we are re-engaging with our friends and partners in the Americas as never before. For this generation of leaders in the Americas, north and south, share a common vision. Together, we are building something the world has never seen before: the first completely democratic hemisphere. At the General Assembly of the OAS held earlier this month in Santiago, for the first time in history, every nation chose its government through free and fair elections. Cuba, alone, stands isolated against the democratic tide. But our common vision is broader still. For we are also building a new relationship among the developed and developing nations throughout the Americas, an authentic SENT BY: ; 6-24-91 ; 4:51PM ; hrNl=:a- 2024566218;# 3 partnership in which trade is free from Alaska to Tierra del Fuego--a partnership in which new prosperity, growth, and rising incomes, --can help all our citizens share in the fullness of life to the best of their abilities. My Enterprise for the Americas Initiative was a concrete response to the hopes and dreams I heard during my first year as President from the leaders of this hemisphere. One year after its announcement, I am pleased to say we are well on the way to making this vision a reality. We have embarked, with the support of Congress, on historic negotiations to create a North American Free Trading zone uniting the 360 citizens of Canada, Mexico, and the United States. This vision of free trade has re-energized the age-old dream of economic integration throughout the Americas. One week after my EAI announcement, the leaders of the southern cone announced they would cut in half their deadline for negotiating a common market uniting Brazil, Artengina, Paraguay, and Uruguay, now scheduled for 199. Just last week, during President Collor de Mello's State Visit, Ambassador Carla Hills and the foreign ministers of the four southern cone nations signed " The Rose Garden Agreement" the first regional Framework Agreement on Trade and Investment under the EAI. Since last June, we have negotiated bilateral Framework Agreements on Trade and Investment with: Chile, Ecuardo, Peru, Venezuela, Colombia, Honduras, Costa Rica, and El Salvador. Today, we will sign agreements with . A regional agreement with Caricom--the Carribbean Community--: is well on its way as well. And the nations of the Andean Pact have pledged to Para Nica establish a common external tariff by 1992. On the investment front, we are making major progress Chile also. Under EAI, We proposed to create a new, $1.5 billion Multi-Lateral Investment Fund in the Inter-American 1st Inv.sector Development Bank to assist nations in the Americas streamline and reform their investment regimes. I am proud to report today that we are well on our way to meeting that Sapanase, commitment. Japan has pledged to contribute $500 million over the next five years. Canada, France, (check with Landa Treasury for full list) have also pledged to participate. And the Congress has agreed to my request for full funding in fiscal 1992. Today, we witness the first investment loan under IDB to Chile whose economic reforms and performance offer hemisphere. a model of hope and achievement to all nations in the SENT BY: ; 6-24-91 ; 4:52PM ; hrNl=:a- 2024566218:# 4 We are moving as well on the third pillar of the EAI--reduction of official debt. Under the Brady Plan, four nations--Mexico, Venezuela, Costa Rica, and Uruguay have already negotiated far-reaching reductions in their debt burdens with their commercial creditors. As other nations in the region make progress on economic reform, we expect they too will benefit under the Brady Plan. Now under EAI, the nations of the hemisphere can also reduce their burden of official debt and turn their interest payment into local resources to restore their natural environment. Today, we sign the first debt reduction agreement under the EAI. It (describe details, including environmental project, if known). We are now moving forward on all three pillars of the EAI--trade, investment, and debt reduction. But I want that pace to accelerate. I hope the leaders of the Congress give this initiative their full support. A growing prosperous Latin American and the Carribbean is a natural market for American exports of manufactured goods and agricultural products. Thus, the Enterprise for the Americas Initiative also means new jobs and rising incomes for the citizens of the United States. It merits and needs the full support of the Congress, particularly my proposals for reducing debt. For those who believe in both political and economic freedom this is a moment of historic opportunity and new hope in the Americas. I am determined to seize that opportunity and to see those hopes fulfilled, and on this first anniversary of the Enterprise for the Americas Initiative, I believe we are on our way. Thank you. action. Dob & larger Document No. 24982895 CC: J THING WHITE HOUSE STAFFING MEMORANDUM 91 JUN 26 P3:56 DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7:12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. These agreements create councils charged with dismantling barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank has approved its first so-called sectoral loan -- $150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic off reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. ok Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. Congress has agreed to reduce the debt burden of nations that liberalize their trade and investment rules, and has set aside a fund to finance environmental projects. This ambitious, innovative plan already has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its Chilean debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. We already have joined forces in the GATT talks, trying to pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral Investment fund, and that we work hard to reach bilateral agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach ping an acceptable GATT conclusion. I assure you that we will fight for free and fair trade --- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years," he noted. "You do not mean to tell me that there will be any custom houses in 400 years. " Unfortunately, no one understood his point. // We meet today to pursue Dom filled Pedro's vision of a hemisphere shorn of customs houses and ammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing P it we Can build a honisphore in which envy will stop enterprise; aside for the bonefits that como with on urling 6 A enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. #### NATIONAL SECURITY COUNCIL 6/20/91 To: Tony Snow From: My Lundsager Here is a bootly upg of our comments on the EAI rewarks for tomorrow. You did a good job a such short notice ! Snow/Cawley June 25, 1991 91JUV25 9; Plf 7: 12 PM 12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment overwhelms throughout the hemisphere, and reduce the debt burden that threatens] so many of our neighbors and colleagues. But we may actually have set our sights too low. The EAI was not developed in isolation in Washington It wor born out of a dialogue with the leader, of Latin America and the Caribbean fromwhich I have benefitted greatly 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate bilateral rahich framework agreements [for trade and Investment. These agreements create councils charged with dismantling PROMOTING barriers to] trade and investment. The United States already has signed [a] series of agreements with large many group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank investment further has economic approved prejess its first in so-called sector loan -- $150 million to support [lean to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems ideas with free market systems. ^ Our simple goal: We want to promote the economic foreign Chile has already done so and can point to hish levels of domatic and reforms that help foster economic growth and encourage investment to demonstrate environmental stewardship throughout the hemisplere. the success of For years the world experimented with the fantasy that its oper market policies councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the investment sectoral loans from the inefficier + protectionist A IDB, will help nations throw off the shackles of authoritarian or totalitarian] economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. food and Congress has agreed to reduce the debt burden of nations to a llow them to use interest payments that liberalize their trade and investment rules, and [has set asido/a fund to finance, local environmental projects. This ambitious, innovative plan already has produced results, results he lping to restore investor confidence in countries with high debt. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. achievements are admirable. I congratulate you and Minister Foxley, your country's democratic and economic your countrymen. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. Uruguay Round We already have joined forces in the [GATT] talks, trying to pull down protectionist barriers in Europe and Asia. I cannot substantial stress enough the importance of reaching a, a GATT agreement that will provide the foundation for worldwide free and fair trade. a comprehensive uruguay Round trant, Without [GATT] we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to [spain, Portugal, Germany, Italy, Turkey ALL Continuents i TW world China, Japan, England, the Arab world and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' WORK part of the EAI bargain. I will baby hard to ensure that we contribute our $100 million annual share Tenio year] to the Multilateral AND I hope The memoses of congress hare WILL dothesame Investment fund we work hard to reach bilateral afrainework agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. Insert A In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years," he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside [to] for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Signist Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a is framework trade agreement with Nicaragua and a framework trade agreement with Panama. ] .... Document No. 24982855 WHITE HOUSE STAFFING MEMORANDUM DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: cheys Mc Clure's PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7:12 Draft One EAI. TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. These agreements create councils charged with dismantling barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank has approved its first so-called sectoral loan -- $150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 our I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. Congress has agreed to reduce the debt burden of nations We continue to work with Congress on a that liberalize their trade and investment rules, and set has set plan aside a fund to finance environmental projects. This ambitious, innovative plan already has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. We already have joined forces in the GATT talks, trying to pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' work part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral Investment fund, and that we work hard to reach bilateral agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years," he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. # # # # 6218 THE WHITE HOUSE WASHINGTON 91 JUN26 P3:24 June 26, 1991 MEMORANDUM FOR TONY SNOW FROM: ROGER B. PORTER RBP SUBJECT: Presidential Remarks: Enterprise for the Americas Initiative We have reviewed the attached presidential remarks and have noted several suggested changes on the draft. A suggested insert for page four of the draft is also attached. Please let us know if you have any questions or if we may help in any other way. CC: Phillip D. Brady Suggested Speech Insert for Page 4 I know there is concern in some quarters that our vision for this hemisphere will mean a drop in our commitment to the multilateral trading system. Let me assure you that this will not happen. Document No. 24982855 WHITE HOUSE STAFFING MEMORANDUM DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7: 12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. FiNDiNa WAYS TO These agreements create councils charged with^dismantling-l e barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank has approved its first so-called sectoral loan -- $150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. We Are WORKING with The Congress on our plan Congress has agreed to reduce the debt burden of nations that liberalize their trade and investment rules, and to set aside a fund to is finance environmental projects. Partol This ambitious, in place ano innovative planAalready has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 more than markets that produce ^$6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. [INSERT] We already have joined forces in the GATT talks, trying to [ pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral Investment fund, and that we work hard to reach bilateral agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years,' he noted. "You do not mean to tell me that there will be any custom houses in 400 years.' Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. # # # # Document No. 24982855 WHITE HOUSE STAFFING MEMORANDUM 91 JUN 26 P3:24 P DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: See comment PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7:12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. These agreements create councils charged with dismantling barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank has approved its first so-called sectoral loan -- $150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. Congress has agreed to reduce the debt burden of nations that liberalize their trade and investment rules, and has set aside a fund to finance environmental projects. This ambitious, innovative plan already has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. We already have joined forces in the GATT talks, trying to pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that I will WORK to gain the necessary Congressional authorization and appropriation to reduce delet 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral 3192 X4657 Investment fund, and that we work hard to reach bilateral together will agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years," he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. # # # # Document No. 24982855 WHITE 59 HOUSE STAFFING MEMORANDUM gl JUN26 DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. . RESPONSE: OK.S.R. PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7: 12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. These agreements create councils charged with dismantling barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank has approved its first so-called sectoral loan -- $150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. Congress has agreed to reduce the debt burden of nations that liberalize their trade and investment rules, and has set aside a fund to finance environmental projects. This ambitious, innovative plan already has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. We already have joined forces in the GATT talks, trying to pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral Investment fund, and that we work hard to reach bilateral agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years,' he noted. "You do not mean to tell me that there will be any custom houses in 400 years. Unfortunately, no one understood his point. // We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. # # # # THE WHITE HOUSE WASHINGTON 91 JUN 26 P2: 28 June 26, 1991 MEMORANDUM FOR TONY SNOW FROM: STEPHEN G. RADEMAKER SR ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Presidential Remarks: Enterprise for the Americas Initiative Pursuant to Phillip Brady's request, Counsel's Office has reviewed the above-referenced matter and has no objection, subject to the changes indicated on the attached. Thank you for bringing this matter to our attention. Attachment CC: Phillip D. Brady Document No. 24982855 COUNSEL'S OFFICE WHITE HOUSE STAFFING MEMORANDUM RECEIVED JUN 26 1991 DATE: June 25, 1991 ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. 06/26 SUBJECT: PRESIDENTIAL REMARKS: ENTERPRISE FOR THE AMERICAS INITIATIVE (06/25 Draft one) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU PETERSMEYER SCOWCROFT PORTER DARMAN ROGICH BRADY SMITH BROMLEY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, X2930, no later than 2:00 p.m., Wednesday, June 26, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Snow/Cawley June 25, 1991 91 JUN 25 PM 7:12 Draft One EAI.TS PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE THURSDAY, JUNE 27, 1991 4:00 P.M. ROSE GARDEN Secretary Brady, Ambassador Hills, Minister Foxley of Chile; Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I could not be more pleased to have you all join me up here today. Look at this distinguished audience! Secretary Baker, welcome back -- for now. My good friend, Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias of the Inter-American Development Bank. Ambassadors from the Organization of American States, other members of the diplomatic corps. Members of Congress -- my warmest greetings to all of you on this historic day. I know most of you are happy that I can't muster even warmer greetings. 90 degrees ought to be enough for anyone. // We've come here today to celebrate the first anniversary of our Enterprise for the Americas Initiative. Frankly, the best way to celebrate is to push the initiative even further. We thought we had set some pretty ambitious goals last year, when we announced the three-part EAI. We vowed to encourage free trade, stimulate investment throughout the hemisphere, and reduce the debt burden that threatens so many of our neighbors and colleagues. But we may actually have set our sights too low. 2 In just one year, we have signed a dozen agreements under EAI -- and we will announce three more today. We have concluded nine separate framework agreements for trade and investment. These agreements create councils charged with dismantling barriers to trade and investment. The United States already has signed a series of agreements with a large group of our hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and the "southern cone" countries of Argentina, Brazil, Paraguay and Uruguay. On the investment front, our nations have begun inviting investors to support new business throughout the hemisphere. Today, we can announce that the Inter-American Development Bank a has approved its first so-called sectoral loan --^$150 million loan to Chile. President Iglesias, I want to thank you and congratulate everyone at the IDB for this very important move. Under these agreements, the IDB will support efforts to replace old mercantilist or socialist economic systems with free market systems. Our simple goal: We want to promote the economic reforms that help foster economic growth and encourage environmental stewardship. For years the world experimented with the fantasy that councils of experts could "manage" economies. The utter failure of communism demonstrated that expert cadres can no more manage growth than they could manage the weather. Free markets reward people who have ideas -- not just those who have connections. 3 I'm also pleased to report that my proposal for a Multilateral Investment Fund has gotten off to a great start. Japan has pledged $100 million for each of the next five years. France, Spain and Canada also have expressed interest in supporting the fund. This fund, like the sectoral loans from IDB, will help nations throw off the shackles of authoritarian or totalitarian economic systems, and let people throughout our hemisphere enjoy the thrills and the blessings of open economic competition. Pillar three of our proposal, debt reduction, also has gotten off to a rousing start. Our idea is simple: We will do all we can to reduce the debt burden of nations that adopt substantial, permanent economic reform. Congress has agreed to reduce the debt burden of nations that liberalize their trade and investment rules, and has set aside a fund to finance environmental projects. This ambitious, innovative plan already has produced results. Today the United States will sign a debt-reduction agreement with Chile, slashing its debt under Public Law 480 by 40 percent, to 23 million dollars. Now, let's talk about what lies ahead. As you know, voted not to terminate Congress recently extended the fast-track trade procedures that enable us to deal in good faith with you -- and with Congress -- in trade negotiations. We hope to create a free trade zone that will cover all of North America within the next few years. But this trade zone -- which will embrace 360 million consumers and 4 markets that produce $6 trillion in annual output -- simply will set the stage for something even more dramatic. The Enterprise for the Americas initiative can link our entire hemisphere, with its diverse cultures, workforces, creative forces. We already have joined forces in the GATT talks, trying to pull down protectionist barriers in Europe and Asia. I cannot stress enough the importance of reaching a GATT agreement that will provide the foundation for worldwide free and fair trade. Without GATT, we will have great difficulty moving forward. We live in an extraordinary place at an extraordinary time. With the sad exception of Cuba, our hemisphere stands poised to become the first fully democratic hemisphere in human history. From the Northern tip of Alaska to the southernmost point of Tiera del Fuego, we share common heritages. Our people can trace their heritages to Spain, Portugal, Germany, Italy, Turkey, China, Japan, England, the Arab world -- and of course, to this continent itself. Many of your leaders have taken college degrees here, and many of our finest experts have studied on your soil. We share ties of culture, of blood, of common interest. And now, as democracy sweeps the world, we share the challenge of leadership through example. We can lead the way to a world freed from suspicion, from mercantilist barriers, from socialist inefficiencies by building our own commonwealth of freedom. We can show the world just how prosperity preserves the social order -- and the land, air, and water as well. We can show the rest of the world that 5 deregulation, private property, low tax rates and low trade barriers can produce vast economic returns. And we can show the rest of the world how neighbors can compete in ways that build upon each other's strengths, rather than preying upon their weaknesses. Today, I pledge my full effort to uphold the United States' part of the EAI bargain. I will lobby hard to ensure that we contribute our $100 million share this year to the Multilateral Investment fund, and that we work hard to reach bilateral agreements with all the nations of this hemisphere. I also assure you that we will spare no effort in trying to reach an acceptable GATT conclusion. I assure you that we will fight for free and fair trade -- everywhere. In 1876, the Brazilian Emperor Dom Pedro II visited the United States. During a stop in St. Louis, he noticed that local craftsmen were using only the sturdiest materials in building a customs house. The emperor was stunned. "But an iron building would last 400 years, he noted. "You do not mean to tell me that there will be any custom houses in 400 years." Unfortunately, no one understood his point. We meet today to pursue Dom Pedro's vision of a hemisphere shorn of customs houses and jammed with shops and trade zones. If we can build a hemisphere devoted to freedom, one that encourages men and women of genius to turn their great ideas into products, deeds, services and industries; if we can build a hemisphere in which envy must step aside to for onrushing 6 enterprise; we can create our own New World order. We can build a legacy of real prosperity, stability, and harmony. We have worked miracles in one year; let us shape a revolution in the next. Together, we can make our hemisphere freedom's first and best home. Thank you, and God bless you. Now, I would like to ask Minister Foxley, Minister DeFranco, Minister Alfaro; Secretary Brady and Ambassador Hills to step forward as they sign a debt reduction agreement with Chile; a framework trade agreement with Nicaragua and a framework trade agreement with Panama. # # # #