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POTUS Visit to Mexico 11/26/90 [OA 7563]
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POTUS Visit to Mexico 11/26/90 [OA 7563]
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S
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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 Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13739
Folder ID Number:
13739-005
Folder Title:
POTUS Visit to Mexico 11/26/90 [OA 7563]
Stack:
Row:
Section:
Shelf:
Position:
G
26
21
1
6
(Smith/Gamey)
November 15, 1990
2 P.M.
MEX
PRESIDENTIAL REMARKS:
BARBECUE
AGUALEGUAS, MEXICO
MONDAY, NOVEMBER 26, 1990
1:45 P.M.
President and Mrs. Salinas, Secretary Mosbacher, Secretary
Brady, Ambassador Hills, Ambassador Negroponte [NEG-ro-ponti].
Let me say how pleased Barbara and I are to be in your home town
of Agualeguas [AG-WA-LAY-GWAS]. We are delighted to spend the
kind of informal time together we shared at Camp David last year.
//
To Mayor Reynaldo Canales Vela [VAY-la], and the people of
this wonderful village: We are thrilled to join you, and thank
you for your hospitality. You have shown anew the kindness for
which Mexico is so famous. //
((Barbara and I loved the barbecue. That goes double for
the rodeo. It's amazing to me how a cowboy can chase down a
steer, throw a rope around his neck, wrestle him to the ground,
and tie his legs. // I have a tough time just catching a fish.)
I first met President Salinas two years ago in Houston --
and was moved by how he understood the needs and feelings of the
people of Mexico. Since then, we've come to know each other
better -- and at no time more than today. //
Being here in President Salinas's hometown allows me to
appreciate your values of community and hard work, love of
country and of God. / I am told Agualeguas means "Far Waters." "
2
President Salinas has traveled far to advance peace and
prosperity. Yet never has he forgotten the roots and the values
of his youth. //
Octavio Paz, your beloved Nobel Prize winner for Literature,
has spoken of mankind's "unity of purpose." II Today shows the
unity that links our two Nations as allies, and neighbors.
Again, our thanks to all of you. And, Mr. President, thank you
for having us here among your among your family and friends.
# # # #
(Smith/Garmey)
November 16, 1990
7 A.M.
CASINO
PRESIDENTIAL REMARKS:
CASINO MEETING
MONTERREY, MEXICO
TUESDAY, NOVEMBER 27, 1990
11:45 A.M.
Secretary Serra, Secretary Brady, Secretary Mosbacher,
Ambassador Hills, Ambassador Negroponte [NEG-ro-ponti], friends.
Thank you, Mr. President, for that kind introduction.
Already, this has been a memorable visit. Yesterday, I was
President Salinas' guest in his home town of Agualeguas [AG-WA-
LAY-GWAS]. I'll never forget the great barbecue we had -- nor
the rodeo which preceded it. //
((I hadn't been to a rodeo since I hosted the seven-Nation
Economic Summit last June in Houston. Of course, I'm not
counting the times my opposition in Washington has tried to
lassoo me since then. )) //
This morning I got to thinking what a great 16th Century
writer, Bernal Diaz, once said of Mexico: "I stood looking at it
and thought that never in the world would there be discovered
other lands such as these. " //
Over the last day I've learned anew the meaning of those
words. I've seen a Nation proud of yesterday -- and buoyant
about tomorrow. And thought of how our two countries are both
friends, and allies -- enhancing what is already one of the
world's broadest and most complex bilateral relationships. //
2
Think about it: Today, more people cross the border than
ever before. / Today, more illegal drugs are being seized than
ever before. / Today, more universities are developing exchange
programs than ever before. / And more is being done between us
to protect our environment -- up here along the Rio Grande to as
far south as the tropical forests of Lacondon [La-KOAN-Doan]. //
You can see why Mexico is so strong -- and why the
relationship between our Nations has never been more special.
Yet it is difficult to imagine any theme more vital than the one
you are discussing this morning -- how the private sector can
create and, yes, expand the economic resources that sustain our
relationship as a whole. //
In my travels here I've seen a symbol in all your government
buildings. It's an eagle landing on a cactus -- the Aztec symbol
for the founding of Mexico. // Well, this meeting can help
create another historic founding -- the passage of a Free Trade
Agreement between America and Mexico. //
Free trade means more jobs and productivity. Consider that
Mexico is now America's third-largest trading partner -- $52
billion in trade last year, and 1990's numbers should be even
higher. / Mexico has long understood the economic importance of
America. Finally, America realizes the economic importance of
Mexico. / Since every billion dollars of exports creates
roughly 25,000 jobs, more cooperation means more ways to make
progress a reality. //
3
Let me say: I know there is no blue-print, no one-size-
fits-all approach, to progress and reform. Each Nation in this
region must decide how best to achieve economic growth. // Yet
let me also add: Prosperity in this hemisphere depends on trade,
not aid. Our new economic partnership can spur it through the
increased investment that furthers commercial ties. //
Forty-seven years ago, the last American President to visit
Monterrey spoke of these bonds. In the days to come, Franklin
Roosevelt hoped, every Mexican and American President would feel
at "liberty to visit each other just as neighbors visit each
other" -- just, he said, as neighbors "talk things over and get
to know each other. " // It was this that President Salinas
referred to in his recent State of the Union Address. Mexico, he
said, doesn't want to be a third world Nation -- it wants to be a
first world Nation.
Already, your automotive, electronic, tourism, and other
industries have shown world-class productive capability. That's
good for both countries -- a Mexico that wants to get out and
compete, with purchasing power and selling power. // When hard
times hit Mexico in the early 1980s, our southwest border
suffered. Fortunately, the same principle works in reverse.
When you grow, we grow. I pledge to you: We will continue the
policy of the offered hand and the open heart. //
Negotiating a Free Trade Agreement won't be easy. We will
hear criticism -- just as we did when we negotiated the Free
Trade Agreement with Canada. But let us not imagine what cannot
4
be done. Let's remember what trade liberalization can and has
already done. //
Mexico enters GATT -- and bilateral trade soars by $17
billion from the $35 billion of 1987. / The bond industry takes
hold -- and reaches growth rates of 20 percent a year, creating
half a million jobs. // Virtually everyone favors free trade --
but not everyone has the vision to make it a reality. I believe
Mexico and America do -- and I ask you not only to make it
happen, but to make it succeed. //
We are two Nations -- but one family. Sharing the same
values of hard work, belief in private enteprise, and love of
God. // Thank you for what you have and will do to strengthen
them. And let me leave you with these words of the great Mexican
philosopher, Alfonso Reyes [RAYS], born 101 years ago: "Let us
go forward together," he said. "Together in our efforts --
together in friendship and affection -- ever together. " //
Thanks to my good friend President Salinas -- and to all of
you. And God bless the great Nation of Mexico.
#
#
#
#
(Smith/Garmey)
November 16, 1990
2 P.M.
DEDICATE
PRESIDENTIAL REMARKS: STUDIES DEDICATION
MONTERREY, MEXICO
TUESDAY, NOVEMBER 27, 1990
12:30 P.M.
Secretary Brady, Secretary Mosbacher, Ambassador Hills,
Ambassador Negroponte [NEG-ro-pon-ti], Rector Farias [fa-REE-
as], Rector Rangel [RAN-hel], friends and neighbors. I want to
thank my good friend, President Salinas, for that kind
introduction. It is a delight to be with all of you. //
As I have mentioned over the past two days, we are working
to produce major advances in the U.S.-Mexico relationship -- and
we are making progress. But that progress will continue only if
we remember that education is our most enduring legacy -- vital
to everything we are, and can become. //
Today we can enrich that legacy -- making an invaluable
contribution to bilateral understanding. It will encourage our
young leaders and scholars, and link our two Nations -- helping
education create a better, more decent world. //
Education shows how dreams realized can make possible even
bigger dreams. Dreams that will keep our Nations competitive,
raise our standard of living, and improve our quality of life.
Our dreams can presage a new Golden Age of understanding,
technology, and prosperity. Showing how creativity comes from
the human heart and mind. //
2
Education can fulfill the words of Octavio Paz, the beloved
Nobel Prize winner for Literature, who writes that for the first
time in Mexico's history, you are the contemporaries of all
mankind. / I applaud this Studies Institute, and pledge
America's help in ensuring its success. And let me close with
what Franklin Roosevelt said right here in Monterrey -- a message
as relevant today as in 1943. //
Nothing is more important, he observed, than "
the
exchange of those ideas and of those moral values which give life
and significance to the tremendous effort of the free peoples of
the world. " // In that spirit, and with love for education and
the Mexican people, thank you very much. And God bless the great
nation of Mexico.
#
#
#
#
(Smith/Garmey)
November 20, 1990
6 P.M.
EMBASSY
PRESIDENTIAL REMARKS: EMBASSY REMARKS
BUENOS AIRES, ARGENTINA
THURSDAY, DECEMBER 6, 1990
Ambassador Todman, Doris, friends. Thank you for that
kind introduction. It is indeed a pleasure for Barbara and I to
return to Argentina.
o
I was last here in December 1983, when I was among
those privileged to welcome Argentina back to the community of
democratic Nations. I have hosted President Menem in the United
States on two occasions. It is an honor to now be "en su casa"
(in your home) " 11
After just a few hours here, I know why many refer to
Buenos Aires as "the intellectual capital of the continent." I
only wish we had more time to explore its many wonders. I also
wanted to get in a set of tennis with Ambassador Rodman. The
winner gets taken over to the Rio Alpa for steaks and beer. 11
Maybe next time. 11
From our experience in China, I realize what a burden
a Presidential visit can be. I know, too, that no one can
further ties between the host and visiting countries more than
the men and women -- American and foreign -- who staff our
embassies. Both Barbara and I extend to you our heart-felt
thanks. 11
2
When you look at a map, Washington and Buenos Aires
seem at opposite ends of the globe. // Of course, many Americans
say that regarding any city and Washington, D.C. // Yet during
the last two days, we've sampled a touch of America many miles
from home. The reason is the kindness of both Argentines and
Americans. //
O
For that, we thank you -- and for helping to affirm the
values which link our Nations. Think of freedom and democracy.
Both countries believe in them. // Think of economic reform.
Like America, Argentina has undertaken it. 11 Think of the work
ethic, belief in country, and love of God. Never have our two
countries been better allies, or friends. //
We are two Nations -- but one family. You have helped
further the ties that bind. Barbara and I salute you, and look
forward to again meeting the men and women who embody America at
her finest. Thank you all, and God bless the United States of
America.
#
#
#
#
(Smith/Garmey)
November 20, 1990
8 A.M.
DINNER
PRESIDENTIAL REMARKS:
STATE DINNER
BUENOS AIRES
THURSDAY, DECEMBER 6, 1990
Thank you for those very kind words. It is a very great
honor for us to be received in this magnificent room, and to be
received so warmly by our friend -- the President of Argentina.
( (President Menem and I are tennis enthusiasts. He told me
that since I brought my secret weapon -- Barbara -- to Argentina,
he should be allowed a secret weapon of his own. His choice was
a doubles partner: Gabriella Sabatini. // Unfortunately, Mr.
President, I forgot to bring my racket. )) //
As you know, it has been thirty years since a man noted
more for golf than tennis -- and most of all, for peace --
visited this capital. I will not soon forget how President
Eisenhower spoke of the friendship between our peoples captured
by a lyric phrase -- en su casa. //
Today -- like then -- we have marveled at the kindness of
your people. // Our Nations were friends thirty years ago --and -
are more so now. Above all, we know -- like beloved Ike -- how
democracy eclipses boundary. Democracy built on what your
National Anthem refers to as the "sacred cry" of freedom. //
Mr. President, you know that freedom must be economic and
cultural, scientific and political. So you have helped
reestablish Argentina's democratic tradition -- and I salute your
reform of the economy // your inviting American companies to
2
participate in privatization // and the reduction of Argentina's
foreign debt resulting from your overtures. //
We share your belief that the individual -- not State -- can
bring economic recovery to this Hemisphere. Accordingly, last
June we proposed the creation of a free-trade zone from Alaska to
Tierra del Fuego called Enterprise for the Americas. / Our
initiative realizes that prosperity can beget liberty. And that
foreign investment, free trade, and a realistic approach to debt
relief can beget prospersity for Argentina and its neighbors. //
Today, President Menem and I talked at length about these
issues. We discussed the need for clear rules about doing
business here -- and how American investments here once again
enjoy OPIC insurance coverage. // We talked of cuts in
agricultural subsidies in the Uruguay Round of GATT -- and your
efforts to construct a regional common market. // And we spoke
of the need to lift tariff and non-tarrif barriers.
We recalled progress already made -- the signing of the
Tourism Agreement, a Mutual Legal Assistance Treaty, and Mutual
Customs Assistance Agreement. And of how progress yet to come
will affirm Teddy Roosevelt's words on visiting Argentina in
1913. "Our likenesses, " he said, "are more important than our
differences
both young, both vast of physical area, both
growing by leaps and bounds. " //
Think of our Nations' beauty. One of our patriotic songs -
- "purple mountains' majesty" and "amber waves of grain" -- would
define Argentina. As would the words of Jose Luis Borges,
3
describing this city's "silent magic that captures newcomers
almost totally." // Think of the splendor of the Andes, the
jungles of Misiones, or the valleys of Patagonia. They match the
sweep of the continent that is America. //
Think, also, of other likenesses. We both were founded on
what Esteban Echeverria called "equality and liberty -- the two
poles of democracy." // We know, as Juan Alberdi added, that
"Public freedom is no more than the sum of the freedoms of all."
// Each of us reveres the individual -- you, the gaucho; we, the
cowboy. Above all, we honor what surpasses even these concerns -
- values like work, family, belief in country, and in God. //
These likenesses have helped Argentina create a world where,
as President Menem said last year, "More and more every day, we
all depend upon one another. " I agree. And I wish to thank you
and your people for standing as allies in the Persian Gulf
against the curse of tyranny. Together, we will do what is right
and good -- for both God and man. //
Apart, we can not succeed. Together, we cannot fail. And
in that spirit, I ask our guests to stand and raise their
glasses:
-- To the Nation of Argentina -- an example to this
hemisphere, and the world;
-- To an alliance that has never been more strong;
-- And to the health of my friend and colleague, the
President of Argentina.
#
#
#
#
Zprezt unines
En Su Casa
Traika
Amb Negropoute
Amb.
(Smith/Gamey) Amb.
November 15, 1990
2 P.M. Petriciali
FC
And Hills
-Thannhmigh MEX PET 7RE-A-
PRESIDENTIAL REMARKS:
BARBECUE
Reilly
CHOLi
gee. Brady
AGUALEGUAS, MEXICO
MONDAY, NOVEMBER 26, 1990
See. Markasher
5
[AG-UA-LAY-GAS] 1:45 P.M.
with all of our tanos
SCREAL
ITANOS-)
President and Mrs. Salinas: Let me say how pleased Barbara
Embowy.
and I are to be in your home town of Agualeguas. We are
friends.
delighted to spend the kind of informal time together we shared
at Camp David last year. 11
To Mayor Reynaldo Canales Vela, and the people of this
wonderful village: We are thrilled to join you, and thank you
for your hospitality. You have shown anew the kindness for which
Mexico is so famous. //
( (Barbara and I loved the barbecue. That goes double for
the rodeo. It's amazing to me how a cowboy can chase down a
steer, throw a rope around his neck, wrestle him to the ground,
and tie his legs. // I have a tough time just catching a fish. )) 1988
as Presents elect
I first met President Salinas last November in Houston --
?
and was moved by how he understood the needs and feelings of the
people of Mexico. Since then, we've come to know ROBLEM each other
better -- and at no time more than today. //
Being here makes me understand what President Salinas
II
learned as a boy, growing up half a block away -- things like
?
community and hard work, love of country and of God. / I am told
Agualeguas means "Far Waters." President Salinas has traveled
Counilate
2
far to advance peace and prosperity. Yet never has he forgotten
the roots and the values of his youth. //
Octavio Paz, your beloved Nobel Prize winner for Literature,
has spoken of mankind's "unity of purpose." Today shows the
unity that links our two Nations as allies, and neighbors.
Again, our thanks to all of you. And, Mr. President, thank you
for having us here among your among your family and friends.
# # # #
Aub. Hills
Agualeguas
gee. See. Brady.
120
(Smith/Garmey)
November 16, 1990
FC
2 P.M.
Mga poute
DEDICATE
83
PRESIDENTIAL REMARKS: STUDIES DEDICATION
MONTERREY, MEXICO
Amb
1990 Minutes
TUESDAY, NOVEMBER 27,
12:30 P.M.
(RAN-hel)
Forsolana
Rector Farias, Rector Rangel, friends and neighbors. I want
to thank my good friend, President Salinas, for that kind
introduction. It is a delight to be with all of you. //
As I have mentioned over the past two days, we are working
to produce major advances in the U.S.-Mexico relationship -- and
we are making progress. But that progress will continue only if
we remember that education is our most enduring legacy -- vital
Q
to everything we are, and can become.
//
2
Embassy
Met
The Mexican-American Studies Institute that we inaugurate
today can enrich that legacy -- making an invaluable contribution
to bilateral understanding. It will encourage our young leaders
and scholars, and link our two Nations -- helping education
create a better, more decent world. //
Education shows how dreams realized can make possible even
bigger dreams. Dreams that will keep our Nations competitive,
raise our standard of living, and improve our quality of life.
Our dreams can presage a new Golden Age of understanding,
technology, and prosperity. Showing how creativity comes from
the human heart and mind. //
Education can fulfill the words of Octavio Paz, the beloved
Nobel Prize winner for Literature, who writes that for the first
2
time in Mexico's history, you are the contemporaries of all
mankind. / I applaud this Studies Institute, and pledge
America's help in ensuring its success. And let me close with
what Franklin Roosevelt said right here in Monterrey -- a message
as relevant today as in 1943. //
Nothing is more important, he observed, than "
the
FOR
exchange of those ideas and of those moral values which give life
and significance to the tremendous effort of the free peoples of
the world." // In that spirit, and with love for education and
sheat
of
the Mexican people, thank you very much God bless the Mexico.
#
#
#
#
Bob Platkin monterey
Control Room /
52 83 450448 450388
(Smith/Garmey)
November 16, 1990
FC
Anb PRESIDENTIAL Negrapoute
7 A.M.
CASINO
REMARKS:
CASINO MEETING
MONTERREY, MEXICO
TUESDAY, NOVEMBER 27, 1990
Salana
11:45 A.M.
Amb.
Bradey
Secretary Serra, Secretary Mosbacher, Mrs. Hills, friends.
Thank you, Mr. President, for that kind introduction.
Already, this has been a memorable visit. Yesterday, I was
GUAS
President Salinas' guest in his home town of Agualeguas [
].
I'll never forget the great barbecue we had -- nor the rodeo
which preceded it. //
((I hadn't been to a rodeo since I hosted the seven-Nation
Economic Summit last June in Houston. Of course, I'm not
counting the times my opposition in Washington has tried to
lassoo me since then. )) //
This morning I got to thinking what a great 16th Century
writer, Bernal Diaz, once said of Mexico: "I stood looking at it
and thought that never in the world would there be discovered
other lands such as these." //
Over the last day I've learned anew the meaning of those
words. I've seen a Nation proud of yesterday -- and buoyant
about tomorrow. And thought of how our two countries are both
friends, and allies -- enhancing what is already one of the
world's broadest and most complex bilateral relationships. //
Vinn
peex.
Think about it: Today, more people cross the border than
gate "Hulf.
ever before. / Today, more illegal drugs are being seized than
2
ever before. / Today, more universities are developing exchange
programs than ever before. / And more is being done between us
to protect our environment -- up here along the Rio border and as far
Grande to
south as the Lacondon [
] tropical forest.
X
You can see why Mexico is so strong -- and why the
relationship between our Nations has never been more special.
Yet it is difficult to imagine any theme more vital than the one
you are discussing this morning -- how the private sector can
create and, yes, expand the economic resources that sustain our
relationship as a whole. //
In my travels here I've seen a symbol in all your government
buildings. It's an eagle landing on a cactus -- the Aztec symbol
for the founding of Mexico. // Well, this meeting can help
create another historic founding -- the passage of a Free Trade
Agreement between America and Mexico. //
Free trade means more jobs and productivity. Consider that
Mex.
Mexico is now America's third-largest trading partner -- $52
billion in trade last year, and 1990's numbers should be even
higher. / Mexico has long understood the economic importance of
America. Finally, America realizes the economic importance of
Mexico. / Since every billion dollars of exports creates
roughly 25,000 jobs, more cooperation means more ways to make
progress a reality. //
Let me say: I know there is no blue-print, no one-size-
fits-all approach, to progress and reform. Each Nation in this
region must decide how best to achieve economic growth. // Yet
3
let me also add: Prosperity in this hemisphere depends on trade,
not aid. Our new economic partnership can spur it through the
increased investment that furthers commercial ties. //
Forty-seven years ago, the last American President to visit
Monterrey spoke of these bonds. In the days to come, Franklin
Roosevelt hoped, every Mexican and American President would feel
at "liberty to visit each other just as neighbors visit each
other" -- just, he said, as neighbors "talk things over and get
to know each other." 11 It was this that President Salinas
referred to in his recent State of the Union Address. Mexico, he
said, doesn't want to be a third world Nation -- it wants to be a
first world Nation. / /
Already, your automotive, electronic, tourism, and other
industries have shown world-class productive capability. That's
good for both countries -- a Mexico that wants to get out and
compete, with purchasing power and selling power. 11 When hard
times hit Mexico in the early 1980s our southwest border
suffered. Fortunately, the same principle works in reverse.
When you grow, we grow. I pledge to you: We will continue the
policy of the offered hand and the open heart. //
Negotiating a Free Trade Agreement won't be easy. We will
hear criticism -- just as we did when we negotiated the Free
Trade Agreement with Canada. But let us not imagine what cannot
be done. Let's remember what trade liberalization can and has
already done. //
4
Mexico enters GATT and bilateral trade soars by $17
Mex
billion from the $35 billion of 1987. / The bond industry takes
X
hold -- and reaches growth rates of 20 percent a year, creating
half a million jobs // Virtually everyone favors free trade --
but not everyone has the vision to make it a reality. I believe
Mexico and America do -- and I ask you not only to make it
happen, but to make it succeed. //
We are two Nations -- but one family. Sharing the same
values of hard work, belief in private enteprise, and love of
God. 11 Thank you for what you have and will do to strengthen
them. And let me leave you with these words of the great Mexican
philosopher, Alfonso Reyes [RAY]es] born 101 years ago: "Let
us
(PHON)
go forward together," he said. Together in our efforts --
together in friendship and affection -- ever together. " 11
Thanks to my good friend President Salinas -- and to all of
you. And God bless the great Nation of Mexico.
#
#
#
#
Amb.
John Negros ponte
City Theatre
Mariachis-nat
being played.
Sauders of
"N outhern music"
in my cas
THE WHITE HOUSE
WASHINGTON
October 28, 1990
MEMORANDUM
TO:
DAVID DEMAREST
CHRISS WINSTON
SPEECHWRITER/RESEARCHER TO BE ASSIGNED
FROM:
CAROLYN CAWLEY
SUBJECT: PREADVANCE TO MONTERREY, MEXICO
President Bush will be traveling to Monterrey, Mexico
November 26 -27, 1990. Mrs. Bush and Secretary Baker will
accompany him.
The proposed schedule is as follows:
November 26, 1990
11:45 a.m.
Arrive Monterrey, Mexico.
Welcomed by Foreign Minister Solano
12:00:p.m.
Helicopter departure to Agua Leguas, hometown of
President Salinas
12:30 p.m.
Meet President and Mrs. Salinas at an
informal arrival
12:50 p.m.
Rodeo demonstration at the local corral
1:45 p.m.
Barbecue for the townspeople hosted by
President Salinas. 5000 attendees expected.
/
Very brief remarks -- Hello, thank you for
the hospitality, etc.
3:15 -
Downtime and private meetings
5:00 p.m.
5:00 p.m.
Depart for Monterrey
5:30 p.m.
POTUS and President Salinas arrive Monterrey
for official arrival ceremony with full
honors
5:40 -
Government Palace --- they 'll be received by
6:30 p.m.
thousands of citizens in the Plaza. Firework
displays and brief remarks by both Presidents.
6:30 p.m.
End of official day
November 27, 1990
9:00 a.m.
Private One on One Meetings between the two
Presidents. Photo opportunities.
9:20 a.m.
Expanded bilateral meetings
10:40 a.m.
City Theatre -- 15 minutes of remarks by each
President. 1400 attendeees representing a cross
section of the citizens of Monterrey.
11:45 a.m.
Casino Monterrey - join the end of a meeting
between Mexican business leaders hosted by Secretary
Mosbacher and Trade Representative Hills.
250 attendees. Very brief remarks.
12:30 -
Palacio Gobierno - Dedication Ceremony for a
12:45 p.m.
new Mexican - American Studies Institute. Very
brief remarks.
1:00 -
Palacio Gobierno -- Official Luncheon. 150
2:05 p.m.
attendees. Toasts.
2:30 p.m.
Arrive Airport
2:45 p.m.
Depart Monterrey, Mexico for Andrews AFB
Mexican
Embasty
2 Accords- Agriculture. 1nst.
Tech
728-1600 1600
S24- Tom Fitzpatrick 211 -0042
-PA. afficer: Bobert Sarle
PREADVANCE NOTES -- MONTERREY, MEXICO
ARA
Mexico
Contacts:
**
Bob Earle, Embassy PAO (Mexico City) **
Bob Gibbons, US Consulate in Monterrey
Dich
On economics: Paul Trivelli, US Embassy in Mexico City Howard
Don McConnell, US Embassy in Mexico City
Notes of Interest:
The Agua Leguas Rodeo and Barbecue:
Agua Leguas means "Far Waters". It is President Salinas'
ancestral home. It's located about 1 1/2 hours from
Monterrey by car. Extremely rural small town. The town
square is about all there is.
The BBQ is expected to draw 5,000 people, many of whom
will be Mexican children. This is really down home
entertainment by President Salinas -- any remarks should
acknowledge POTUS' pleasure at having been invited to this
small town, the wonderful hospitality, etc. Draw on the
years he spent in Texas etc.
The BBQ plaza is down the street one half block from the
Salinas home.
-- Benito Juarez is known as the Father of Mexico. The
dedication ceremony room at the Palace is named for him.
- -- You may also want to check up on Octavio Paz, recent
Nobel Prize winner for literature. I was told he
is very popular with the Mexican people and also
very quotable for POTUS.
-- A major landmark in Monterrey is Saddle Mountain.
It does resemble a saddle and is visible from
virtually everywhere. See photos.
-- Note that Monterrey is a very small city that is
far from everything else in Mexico. It's flat, but
surrounded by hills. The countryside around it
is almost desert-like, strewn with sagebrush and tumble
weed. The land between Monterrey and Agua Leguas
is virtually unpopulated, except for shack once in
a great while.
Monterrey is located in "Estado de Nuevo Leon"
the state of the new lion. (check this translation!)
Though it's far from everything else, Monterrey
is Mexico's #2 industrial center. It's the home
of a group of 10 conglomerates in steel, glass,
and beer. The story says two guys decided to
produce beer and decided they should also produce
the bottles, then the caps, etc. All of Mexico's
major brands of beer are made here.
It's boom came in the 1890's with the railroad,
though it has been a trading center since the
16th century.
-- The national symbol, seen in all the government buildings
including the facade above the podium for the Palace/
firework speeches is: an eagle landing on a cactus.
It is an Aztec symbol for the founding of Mexico.
-- I was told that FDR was the last US President to
visit Monterrey, in April 1943. Reagan visited
Mexico, though not Monterrey. Check on Bush's
visits as VP.
-- You may want to look into Lincoln quotes for these
speeches. I saw several quotations of his displayed
in various buildings, though they were in Spanish and
I didn't have time to write them down.
The City Theatre is a very modern structure. The main
auditorium, site of the speeches, is gray and black and
fairly nondescript. It's mainly used for performing
arts. There are two tiers of seats, just like any
performance hall.
Palacio Gobierno is a huge and magnificent structure at
one end of a major plaza. The plaza has a big fountain
in the center and has 4 statues of historical figures.
See photos. The mountains in the distance appear larger
than life. The two Presidents will appear on the front
steps of the Palace and will make brief remarks there
following a fireworks display.
Palacio Gobierno Luncheon. Luncheon for 100-150
guests. It will be held either in an open courtyard
or an enclosed one topped with stained glass.
Salon de Benito Juarez. Room for the dedication ceremony
for the Mexican-American Studies Institute. The program
is a joint venture between the University of Nuevo Leon/
the Monterrey Technical Institute and US Universities.
I couldn't find anyone to tell me more. Best to check
with Bob Earle, PAO at the Embassy in Mexico city!
TELEFAX MESSAGE
DATE: November 21, 1990
TO: THE WHITE HOUSE
90.OCT 23 A8:23
NAME: TED GARMEY
OFFICE: SPEECH WRITING
COUNTRY: USA
FAX NUMBER: 202-456-4218
SUBJECT: INSTITUTES BEING DEDICATED IN MONTERREY, MEXICO
MESSAGE:
THE OFFICIAL TITLES OF THE TWO INSTITUTES BEING DEDICATED IN MONTERREY
ARE AS FOLLOWS:
AT THE AUTONOMOUS UNIVERSITY OF NUEVO LEON, THE INSTITUTE IS CALLED
"INSTITUTO DE ESTUDIOS INTERNACIONALES" WHICH TRANSLATES "INSTITUTE
OF INTERNATIONAL STUDIES."
AT THE MONTERREY TECHNOLOGICAL UNIVERSITY, THE INSTITUTE IS CALLED
"CENTRO DE ESTUDIOS ESTRATÉGICOS MEXICO-ESTADOS UNIDOS" WHICH TRANSLATES
"CENTER FOR MEXICO-U.S. STRATEGIC STUDIES."
FROM:
NAME: ROBERT EARLE
OFFICE: USIS MEXICO
PAGES TRANSMITTED
1
CLEARANCE:
(Including Cover
usic Movin City Fax Number: (905) 208-4178
MONTERREY
TELEFAX TRANSMISSION
90 OCT 23 A8: 24
Consulate Telephone: 45-21-20
From Mexico: 91-83-45-21-20
From U.S.A.: 011-52-83-45-21-20-
Consulate Fax: 42-36-90
Mexican Mailing Address:
U.S. Mailing Address:
American Consulate General
(Name and Agency)
Apdo. Postal 152
P.O. BOX 3098
64000 Monterrey, N.L.
Laredo, TX. 78044-3098
DATE: Nov. 21, 1990
Ted Garmey
TO:
FROM: American Consulate General
The White House
Monterrey - DJRoginski/USIS
202-456-6218
Exact names of American Studies Programs at
SUBJECT 6 FILE:
Universities in Monterrey
NUMBER OF PAGES INCLUDING THIS PAGE: 2
If this transmission was not received in its entirety, please
notify us immediately. Thank you.
Sender's Name
November 21, 1990
Dear Mr. Garmey,
Kathleen Fairfax of USIS Mexico City advised us that you needed the
exact names in English and Spanish of the two Mexican universities that
will make special presentations to President Bush during his visit
to Mexico. I talked to our Branch Public Affairs Officer here in Mon-
terrey (Robert Gibbons) and he gave me the information following.
The two universities are:
The Autonomous University of Nuevo Leon, which has an "Institute of
International Studies." In Spanish - Universidad Autónoma de Nuevo
Leon/Instituto de Estudios Internacionales.
and
Technological Institute for Higher Studies of Monterrey, which has a
"Center for Strategic Studies: Mexico-United States. In Spanish --
Instituto Tecnológico y de Estudios Superiors de Monterrey/Centro de
Estudios Estratégicos Mexico - Estados Unidos.
If you have any questions, please fax them to the Embassy's Control
Room at the Hotel Holiday Inn Crowne Plaza here in Monterrey. There
will be people receiving faxes there throughout Thanksgiving Day.
Sincerely,
Donna J. Roginski
USIS Monterrey
The fax number is, from the United States, 011-52-85-403947
40 Address at Monterrey, Mexico.
FDR
April 20, 1943
Señor Presidente de La Republica Mexicana, my friends and good
neighbors:
YOUR Excellency's friendly and cordial expressions add to the
very great pleasure that I feel at being here on Mexican soil.
It is an amazing thing to have to realize that nearly 34 years
have passed since Chief Executives of our two countries have met
face to face. I hope that in the days to come every Mexican and
every American President will feel at liberty to visit each other
just as neighbors visit each other - just as neighbors talk things
over and get to know each other better.
Our two countries owe their independence to the fact that your
ancestors and mine held the same truths to be worth fighting for
and dying for. Hidalgo and Juarez were men of the same stamp
as Washington and Jefferson. It was, therefore, inevitable that
our two countries should find themselves aligned together in
the great struggle which is being fought today to determine
whether this world shall be free or slave.
The attacks of the Axis powers during the past few years
against our common heritage as free men culminated in the un-
speakable and unprovoked aggressions of December 7, 1941, and
of May 14, 1942, and the shedding of blood on those dates of
citizens of the United States and of Mexico alike.
Those attacks did not find the Western Hemisphere unpre-
pared. The 21 free Republics of the Americas during the past
ten years have devised a system of international cooperation
which has become a great bulwark in the defense of our heritage
and the defense of our future. That system, whose strength is
now evident even to the most skeptical, is based primarily upon
a renunciation of the use of force, and is based on the enshrining
of international justice and mutual respect as the governing rule
of conduct by all Nations everywhere.
In the forging of that new international policy the role of
Mexico has been outstanding. Mexican Presidents and Foreign
175
40. Address at Monterrey, Mexico
Ministers have appreciated the nature of the struggle with which
we are now confronted at a time when many other Nations much
closer to the focus of infection were blind.
The wisdom of the measures which the statesment of Mexico
and the United States and of the other American Republics have
adopted at inter-American gatherings during recent years has
been amply demonstrated. They have succeeded because they
have been placed in effect, not only by Mexico and the United
States, but by all except one of the other American Republics.
You and I, Mr. President, as Commanders in Chief of our
respective armed forces, have been able to concert measures for
common defense. The harmony and the mutual confidence which
have prevailed between our armies and navies is beyond praise.
Brotherhood in arms has been established.
The determination of the Mexican people and of their leaders
has led to production on an all-out basis of strategic and vital_
materials so necessary to the forging of the weapons destined to
compass the final overthrow of our common foes. In this great
city of Monterrey, I have been most impressed with the single-
minded purpose with which all the forces of production are
joined together in the war effort.
And too, Mexican farm workers, brought to the United States
in accordance with the agreement between our two Governments,
the terms of which are fully consonant with the social objectives
that we cherish together, are contributing their skill and their
toil to the production of vitally needed food.
But not less important than the military cooperation and the
production of supplies needed for the maintenance of our respec-
tive economies has been the exchange of those ideas and of those
moral values which give life and significance to the tremendous
effort of the free peoples of the world. We in the United States
have listened with admiration and with profit to your statements
and addresses, Mr. President, and to those of your distinguished
Foreign Minister. We have gained inspiration and strength from
your words.
In the shaping of a common victory our peoples are finding
176
40. Address at Monterrey, Mexico
that they have common aspirations. They can work together for
a common objective. Let us never lose our hold upon that truth.
It contains within it the secret of future happiness and pros-
perity for all of us on both sides of our unfortified borders. Let
us make sure that when our victory is won, when the forces of
evil surrender - and that surrender shall be unconditional -
then we, with the same spirit and with the same united courage,
will face the task of the building of a better world.
There is much work still to be done by men of good will on
both sides of the border. The great Mexican people have their
feet set upon a path of ever greater progress so that each Nation
may enjoy and each citizen may enjoy the greatest possible meas-
ure of security and opportunity. The Government of the United
States and my countrymen are ready to contribute to that
progress.
We recognize a mutual interdependence of our joint resources.
We know that Mexico's resources will be developed for the com-
mon good of humanity. We know that the day of the exploitation
of the resources and the people of one country for the benefit of
any group in another country is definitely over.
It is time that every citizen in every one of the American Re-
publics recognizes that the- Good Neighbor policy means that
harm to one Republic means harm to each and every one of the
other Republics. We have all of us recognized the principle of
independence. It is time that we recognize also the privilege of
interdependence - one upon another.
Mr. President, it is my hope that in the expansion of our com-
mon effort in this war and in the peace to follow we will again
have occasion for friendly consultation, in order further to pro-
mote the closest understanding and continued unity of purpose
between our two peoples.
We have achieved close understanding and unity of purpose,
and I am grateful to you, Mr. President, and to the Mexican peo-
ple, for this opportunity to meet you on Mexican soil, and - to
call you friends.
You and I are breaking another precedent. Let these meetings
177
4I. Execution of Tokyo Raiders by Japanese
between Presidents of Mexico and the United States recur again
and again and again.
NOTE: When the President visited
15, Fort Benning, Ga.; April 15-16,
President Avila Camacho in Mex-
Warm Springs, Ga. (see Item 38
ico, it was the first meeting between
and note, this volume); April 17,
the Presidents of the two countries
Fort Oglethorpe, Ga. (WAAC train-
since 1909. In 1941, they had made
ing center); April 17, Camp Forrest,
plans for a joint fishing trip in the
Tenn.; April 18, Camp Joseph T.
Gulf of Mexico, but the Japanese
Robinson, Ark.; April 18, Camp
attack at Pearl Harbor had caused
Gruber, Okla.; April 19, Douglas
the abandonment of these plans.
Aircraft assembly plant, Tulsa,
President Camacho also accom-
Okla.; April 20, Monterrey, Mex-
panied President Roosevelt on his
ico; April 21, Naval Training Cen-
visit to the Naval Training Center
ter, Corpus Christi, Texas (see Item
at Corpus Christi, -Texas, where
42, this volume); April 22, Fort
many Mexican air cadets in addi-
Worth, Texas; April 23, en route
tion to- those of other countries
to Colorado Springs, and Denver,
were being trained (see Item 42,
Col.; April 24, Camp Carson at
this volume, for the President's ex-
Colorado Springs, and Remington
temporaneous remarks at Corpus
Cartridge plant, Lowry Field, and
Christi, Texas).
Fitzsimons General Hospital at
En route and returning from his
Denver, Col.; April 25, Fort Riley,
trip to Mexico, the President vis-
Kans.; April 26, Martin Bomber
ited a number of war plants and
plant, Omaha, Neb.; April 27, Jef-
training camps. His itinerary for
ferson Barracks, Mo., and Republic
the trip was as follows: April 13,
fighter plane plant at Evansville,
departed from Washington, D. C.;
Ind.; April 28, Fort Knox, Ky.;
April 14, Marine Corps "boot camp"
April 29, return to Washington,
for recruit training at Parris Island,
D. C.
S. C.; April 15, Maxwell Field, Ala.
During the trip, the President
(Air Forces training center); April
covered approximately 7,600 miles.
41
Statement on the Execution of the Tokyo
Raiders by the Japanese. April 21, 1943
IT IS WITH a feeling of deepest horror, which I know will be
shared by all civilized peoples, that I have to announce the bar-
barous execution by the Japanese Government of some of the
178
POTUS VISIT TO MEXICO: FACT SHEET
-POTUS notified the Congress on Sept. 25 that the U.S. and Canada
intended to negotiate a free trade agreement (FTA) (gradual
elimination of trade barriers)
-U.S. and Mexico share a 2000 mile border, one of the longest bi-
lateral borders in the world.
-Trade between our two nations is expected to swell to an all-
time high of 60 billion this year.
-Mexico is our third largest trading partner and third largest
export market- behind only Canada and Japan.
-Total U.S. direct investment totals over 5.5 billion, and total
Mexico investment over 1 billion.
-Increased U.S. exports means more jobs: every 1 billion of
exports generates roughly 22,000 U.S. jobs.
-A GATT agreement is near completion.
-the trend towards greater trade cooperation between our nations
has been spurred in recent years by a General Agreement on
Tariffs and Trade in 1986, the U.S./Mexico Framework Agreement in
1987, and the Trade and Investment Facilitation Agreement in
1989.
-Recently, Secretary Mosbacher and Mexican Secretary of Commerce
and Industrial Development Serra established the Joint Committee
for Investment and Trade (JCIT)
-U.S. exports to Mexico were up 20% in 1989 to $25 billion.
Imports grew by 17% to $27 billion.
-In '89, 82% of U.S. exports to Mexico and 72% of imports were
manufactured good.
-total trade between the two nations has risen by 75% since 1986.
-Mexico recently concluded a new debt agreement with
international creditors; this will free resources for continued
economic modernization and increased imports.
-Mexico's economy has continued to improve throughout 1989 and
'90, with the Gross Domestic Product growing by 3% over this
time. Employment has been rising. Furthermore, since the
signing of the Economic Solidarity Pact ("the Pact") was
announced in December of 1987, public sector deficit has been
declining, and the annual inflation rate has fallen from 160% in
1987, to 52% in 1988, to 20% in 1989. The 1990 figure is
expected to be something like 25-27%.
-Mexico has been helping alleviate the oil crisis in the past few
weeks, increasing its exports by 100,000 barrels/day over this
time.
Ref.
PN41
41
.B4
1987
WH
Benét's
READERS THIRD EDITION
ENCYCLOPEDIA
1817
HARPER & ROW, PUBLISHERS, New York
Cambridge, Philadelphia, San Francisco, Washington
London, Mexico City, São Paulo, Singapore, Sydney
ISBN 0-06-181068-6
>$35.00
Diana
256
was cleared of any duplicity; Mme de La Motte was pub-
ticians, landowners, and foreign capitalists prospered,
licly branded, whipped, and sentenced to life imprison-
while the rural masses lived in virtual servitude. Díaz was
ment. She later escaped to England, where she wrote her
ousted in 1911 and died in exile in Paris.
memoirs, accusing the queen.
Díaz del Castillo, Bernal (1496-1584) Spanish
Diana An ancient Italian and Roman divinity.
soldier and historian. Díaz was one of the four hundred
Diana was later identified with the Olympian goddess
soldiers who took part in the Spanish conquest of Mexico;
ARTEMIS.
he later settled down on an estate in Guatemala. Piqued by
Diane de Poitiers (1499-1566) Mistress of Henry
an official history of the conquest, which he felt unduly
II of France. Diane wielded immense power over Henry,
glorified the achievements of Cortez, Díaz, then an octoge-
who was ten years her junior, until his death in 1559. She
narian, attempted to tell what really happened in his His-
spent her last years at her château at Anet, which had been
toria verdadera de la conquista de la Nueva España (True
designed for her by Philibert Delorme, a celebrated archi-
History of the Conquest of New Spain, 1632), perhaps the
tect.
best popular history in the Spanish language. With a pleth-
Diary of a Country Priest, The (Journal d'un curé
ora of minute yet vivid detail, Díaz celebrates the exploits
de campagne, 1936; tr 1937) A novel by Georges BERNA-
of the common soldiers who accompanied Cortez, in a
NOS. It movingly depicts the saintly struggles of a young
style remarkable for its homely vigor. An intensely personal
priest with his failing health and his greedy and ungrateful
document, in which Díaz does not minimize his own
parish. Tormented by his search for true service to God,
achievements and depicts Cortez as a very fallible human
the priest sees his parish projects fail, and he dies, defeated
being, the work gives an excellent picture of the individual-
but absolved.
ity and tenacity that characterized the 16th-century con-
Diary of Anne Frank See FRANK, ANNE.
quistadors. The book was the source for Archibald Mac-
Diary of a Provincial Lady (1930) A novel, in
Leish's CONQUISTADOR.
diary form, by E. M. DELAFIELD. A phlegmatic husband,
dibrach See PYRRHIC.
disconcerting children, temperamental servants, and
Dichtung und Wahrheit (Poetry and Truth, 1811-
dreadful neighbors are the problems of ordinary upper-
33) An autobiography by GOETHE. It is not so much a
middle-class domestic life of the period.
simple recounting of the events of his life as an attempt to
Diary of a Writer, A (Dnevnik pisatelya, 1873,
explain the major strains of his inner development and set
1876-77, 1880-81) A series of collected articles and
forth the essential principles on which his poetic activity
short sketches, published in the form of a journal, by Dos-
was based.
TOYEVSKY. He began the project as a section in Grazhdanin
Dickens, Charles (1812-1870) English novelist,
(The Citizen), a weekly newspaper he edited (1873-74).
the most popular and considered by many the greatest of
The so-called diary was concerned mostly with political
his country. Like that of the children in many of his
and social questions, although Dostoyevsky did publish in
novels, Dickens's childhood was a difficult and unhappy
it a few of his short stories, including "Krotkaya" ("The
one; his father, a navy clerk, was constantly in debt and was
Meek One," 1876) and "Son smeshnogo cheloveka" ("The
thrown into debtors' prison, and Dickens was sent to work
Dream of a Ridiculous Man," 1877). In 1880 the diary
in a blacking factory at the age of twelve. Most bitter for
contained Dostoyevsky's famous speech at the Pushkin cel-
him was his parents' failure to educate him. He reacted to
ebration in Moscow.
this indifference by working hard, a lifelong characteristic.
Diaspora Exile or dispersion, used almost invaria-
He became, an office boy in a law firm, then a county
bly with reference to the exile of the Jewish people from the
reporter, and finally a reporter of debates in Parliament for
land of Israel. Diaspora may be used to refer not only to the
the Morning Chronicle in 1835. His Sketches by Boz, sat-
state of being in exile, but also to the place of exile-any
ires on daily life, were serialized in the Old Monthly Mag-
place outside of Israel where Jews are living-to the com-
azine (1833-35). Immediately asked to do another series,
munities in exile, and to a state of mind that results from
he wrote The Posthumous Papers of the Pickwick Club, bet-
living in exile. The Hebrew term galut (also golus, galuth)
ter known simply as the PICKWICK PAPERS; these were illus-
expresses the Jew's feeling of living as a member of a rela-
trated by Phiz (H. K. Browne) and made Dickens success-
tively defenseless minority, subject to injustice if not to
ful at twenty-four. With OLIVER TWIST, Dickens began his
outright persecution, of an unfulfilled life and destiny as a
indictment of the society of his place and time, a society
Jew, and of living in an unredeemed-though not
that grossly mistreated and abused the poor, especially chil-
unredeemable-world.
dren, driving them to crime. While he was working on
Díaz, Porfirio (1830-1915) Mexican dictator. An
Twist, his wife Catherine's sister died; his deep grief and
erstwhile supporter of JUÁREZ, Díaz seized power in 1876
lifelong utterances of love for this sister-in-law underline
and ruled Mexico for thirty-five years. Although his regime
his less profound relationship with his wife, from whom he
brought political and fiscal stability, only a handful of poli-
was separated in 1858. They had ten children.
For the first time in our history, we are contemporaries of all
mankind.
Octavio Paz
(LOS: 194)
(Octavio Paz is correct when he writes that for the first time in
Mexico's history, you are the contemporaries of all mankind.)
111.5
United States
Information
Service
Embassy of the United States of America
Mexico, D.F.
90 OCT 9 P2: 41
November 9, 1990
USIS
MEMORANDUM TO: To: ARA - Dick Howard
FROM:
USIS Mexico - Robert Earle RE
SUBJECT:
Inauguration of U.S. Studies Programs
Ted Garmey of The White House speechwriting office called
me yesterday to ask for background information on the
planned inauguration of U.S. Studies programs during the
President's visit to Monterrey. He also requested draft
remarks.
I agreed to provide him with this information today and
noted that you and I are working closely together on
drafts of all the President's public remarks, including
the speech, during his visit. I therefore suggested he
contact you for material we at the Embassy have provided
to the Department. In the interest of speed, I'm
simultaneously transmitting this particular information to
you and Ted, but Ted appreciates the fact that we send
everything to you at the Department and the Department
then provides support to The White House.
CC: White House Speechwriting - Mr. Ted Garmey
DRAFT PRESIDENTIAL REMARKS AT INAUGURATION
OF U.S. STUDIES PROGRAMS
AT
AUTONOMOUS UNIVERSITY OF NUEVO LEON
AND TECHNOLOGICAL INSTITUTE OF MONTERREY
November 27, 1990
Presient Salinas, Rector Farias, Rector Rangel, friends
and neighbors:
We are working hard to bring about major advances in the
U.S. - Mexico relationship, and I think we are making
great progress, But we can only sustain that progress if
we develop the young leaders and scholars necessary to
carry on our efforts in the future.
Like the new U.S. - Mexico Commission on Educational and
Cultural Exchange, these exciting university programs will
make an involuable contribution to bilateral understanding.
I applaud your initiative and pledge our best efforts in
supporting your success, Franklin Roosevelt's words,
spoken right here in Monterrey, remain Just as relevant
today as they were in 1943, Nothing is more important
than
"
the exchange of those ideas and of those moral
values which give life and significance to the tremendous
effort of the free peoples of the world."
Thank you very much.
BACKGROUND INFORMATION AND DRAFT REMARKS
FOR INAUGURATION OF U.S. STUDIES PROGRAMS
DURING PRESIDENT'S VISIT TO MEXICO
November 27, 1990
Background
The GOM has proposed to us that two Nuevo Leon universities be
permitted to inaugurate their new U.S./international studies
programs in the presence of the Presidents during President
Bush's visit to Mexico.
This ceremony would take place in the Governor's palace on
November 27, around 12:30 p.m.
We have not had a full explanation from the GOM on how they
want to handle this part of the schedule, but we endorse the
idea of giving high profile to U.S. and international Studies
programs in Mexican universities. Far too few such programs
exist, and Mexico needs substantially more analytic capability
if it is to relate well to a very dynamic bilateral
relationship.
The Technological Institute of Monterrey (ITESM) has a fully
developed plan to launch what they call the Mexico-United
States Center for Strategic Studies. They see this Center as
devoted to supporting Mexican economic integration with the
U.S. through an array of research and teaching programs as well
as conferences and linkages with U.S. universities such as UCLA
and Texas-Austin. Areas for consideration will be technology
transfer, productivity, business strategy, financial
interaction, social impact of trade, tourism, political and
legal issues, etc.
Local businesses and the Hewlett Foundation are supporting this
new program. This reflects the Technological Institute's high
standing with the private sector. We at the Embassy endorse
this evaluation. With some 46,000 students a network of 26
campuses linked by satellite television, the "Tech" is the most
advanced private university in Mexico. In other words, it's
the best, and its pro-U.S. stance is dynamic and influential,
The Autonomous University of Nuevo Leon (UANL) is Nuevo Leon's
largest public university with well over 40,000 students. It
has substantial research capabilities in all disciplines
ranging from the social sciences and humanities to the exact
sciences. UANL is certainly one of the most U.S.-oriented
institutions among Mexico's large public universities. It is
in constant contact with our consulate in Monterrey and Embassy
in Mexico City, and the Rector eagerly co-funds projects with
us as a way of building up the university's U.S. connection.
- 2 -
In some measure it appears that DANL is being "hurried" to put
the final touches on a new International Studies Center so that
it, too, can participate in the Presidential summit. This
reflects a GOM desire to counter-balance the private sector
"Tech" with a public sector institution. From what we
understand from the rector and contacts at the Foreign
Ministry, the new center will coordinate U.S. - oriented
research and teaching at UANL. This will give sharp focus to
the importance of the U.S. (especially Texas) to Nuevo Leon's
present and future.
Our guess is that the "inaguration" ceremony will consist of
each Rector describing their respective programs to the
Presidents. Possibly they will be flanked by their senior
academic colleagues or members of the board. They might also
hand the Presidents descriptive documentation. We do not
anticipate that there will be anything for either President to
sign.
At this point we do not know that either President will be
requested to say anything in response. Rather, they might
simply bear witness, shake hands, etc. Should President Bush
be asked to speak, his remarks can be a general endorsement of
academic exchange as a good and necessary thing in the context
of a dynamic bilateral relationship. In so doing, he should
definitely mention the previously-signed agreement on the new
U.S. - Mexico Commission on Educational and Cultural Exchange
since it is a far more important initiative. But he can pledge
his support to these new programs because we already are
working closely with both universities.
Attached please find draft Presidential remarks.
Social Disease
WHITE HOUSE
That Afflicts
Us All
This issue of Wilson
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Quarterly examines one of our
problems.
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nation's most severe, yet
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Ideas
NOTES ON
THE UNITED STATES
Latin America's intellectuals and artists have long been known
for their leftist, even Marxist, sympathies. Few today emulate the
late Chilean poet Pablo Neruda, who remained loyal to Moscow
even after the horrors of the Stalin era. But Colombia's Gabriel
García Márquez, Argentina's Julio Cortazar, and others have ritu-
ally denounced Washington's imperialismo while singing the
praises of Fidel Castro. Mexico's Octavio Paz is one of the ex-
ceptions. The widely read poet-essayist and former diplomat
first learned to distrust communism when he supported the anti-
Franco cause in the Spanish Civil War. And it was not long after
Cuba's 1959 revolution that Paz voiced disenchantment with
Castro's new workers' state. Paz, a self-described democratic so-
cialist, is no cheerleader for the Yanquis. Here, however, he
offers them an unusual view of their place in history.
Peaceable Kingdom (1834) by Edward Hicks
reduces it to uniform series, and the Virgin, the natural and
spiritual energy that irrigates and illuminates the human soul
and thus produces the range and variety of our works. Tocque-
by Octavio Paz
ville and Adams saw, clearly and sharply, what was going to
happen; we, today, see what is happening.
Faced with the concrete reality of the United States, the first,
When I speak of America's originality, I am not referring to
the familiar contrasts-great wealth and extreme privation, the
natural reaction of any visitor is utter amazement.
Few have gone beyond that initial shock of surprise-ad-
cheapest vulgarity and the purest beauty, greed and altruism,
miration mingled at times with revulsion-to realize the im-
active pursuit of goals and the passivity of the drug addict or the
mense originality of that country. One of those few, and the first
frenetic violence of the drunkard, proud freedom and the docil-
of them, was Alexis de Tocqueville. His reflections, set down in
ity of the herd, intellectual exactitude and the fuzzy delirium of
the nut case, prudishness and license-but, rather, to the histori-
Democracy in America (1835), are still as pertinent as ever. He
foresaw the future greatness of the American Union and the
cal novelty that the United States represents.
nature of the conflict that has lain at its heart ever since its birth,
Nothing in our human past has been comparable to this
a conflict to which it owes, at one and the same time, both its
reality that is made up of violent clashes and glaring contrasts,
and is, if I may use the expression, full of itself. Full and empty.
great successes and its great setbacks: the opposition between
freedom and equality, the individual and democracy, local free-
What lies behind this tremendous variety of products and goods
flaunted before the eyes of the world with a sort of shameless-
doms and federal centralism.
ness born of generosity?
Henry Adams's vision, though less broad, was perhaps
A wealth that is fascinating-that is to say, deceptive.
more profound: Deep within American society he saw an oppo-
sition between the Dynamo, which transforms the world but
I am not thinking of the injustices and inequalities of Amer-
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81
80
NOTES ON 1111: UNITED STATES
NOTES ON THE UNITED STATES
ican society. Though they are many, they are fewer and less
ished and justified by a metahistory; in other words, by a com-
than our own, than those of most nations. I say "decep-
mon end that lay above individuals and had to do with values
tive" grave wealth not because it is unreal but because I ask myself
that were, or were presumed to be, transcendent. Americans
whether a society can live trapped within the confines of the
naturally share beliefs, values, and ideas: freedom, democracy,
circle of production and consumption, work and pleasure.
justice, work, and so on. But all such concepts are a means.
There are those who will say that this situation is not
something for this or that. The ultimate ends of their acts and
unique, but common, rather, to all industrial countries. That is
thoughts lie not in the public domain but in the private. The
true, but in the United States, since it is the nation that has gone
American Union was the very first historical attempt to give back
the farthest along this path and is thus the perfect expression of
to the individual what the State had stolen from the person in
modernity, the situation has reached its extreme limit.
the beginning.
I do not mean by that that the American State is the only
liberal State: Its founding was inspired by the examples of Hol-
I repeat my question: What lies behind this wealth? I can-
land, England, and the philosophy of the 18th century. But the
not answer; I find nothing, there is nothing. I explain myself: All
American nation, and not only the State, is different from others
institutions in America-its technology, its science, its energy,
precisely because it was founded on these ideas and principles.
Unlike what happened elsewhere, the United States Constitu-
its education-are a means, a way toward. Freedom, democ-
racy, work, inventive genius, perseverance, fulfillment of prom-
tion does not modify or change a prior situation (in its case, the
ises and obligations: Everything is useful, everything a means to
monarchical regime with its hereditary classes, estates, and spe-
attain-what? Happiness in this life, salvation in the life beyond,
cial jurisdictions); it institutes, rather, a new society. It marks an
absolute beginning.
the good, the truth, wisdom, love? Ultimate ends, those that
It has frequently been said that in liberal democratic soci-
really count because they give meaning to our lives, are not
visible on the horizon of the United States. They exist, that is
eties, especially in the United States, the power of individuals
and groups, above all of capitalist enterprises but also of work-
certain, but they appertain to the private domain.
Questions and answers as to life and its meaning, death and
ers' bureaucracies and other sectors, has grown without re-
the life beyond, traditionally taken over by Church and State,
straint, to the point where State domination has been replaced
by that of special interests. The criticism is a fair one. It must be
have heretofore always been matters in the public domain. The
added, however, that while this reality seriously distorts the orig-
great historical novelty of the United States lies in its attempt to
return them to the private domain, the private life of each and
inal design, it does not nullify it altogether. The founding princi-
ple is still alive. Proof of that can be found in the fact that it
every citizen. What the Protestant Reformation achieved in the
continues to inspire the movements of self-criticism and reform
sphere of beliefs, the American Union has achieved in the secu-
that periodically shake the United States. All of these have repre-
lar sphere.
American society, unlike all other societies we know of,
sented themselves as a return to the country's origins.
was founded in order that its citizens might realize their private
ends in peace and freedom, on the theory that the common
good lies not in a collective or metahistorical end but in the
The great historical originality of the American nation, and
harmonious coexistence of individual ends. Can nations live
also the root of its contradiction, lies in the very act by which it
without common beliefs and without a metahistorical ideology?
was founded. The United States was founded in order that its
In the past, the acts and deeds of each people were nour-
citizens might live, among themselves and by themselves, free
at last of the weight of history. It was a construct aimed against
Octavio Paz,72, is a poet, essayist, and former diplomat. Born in Mexico
City, be attended the National University of Mexico. He is the author of
history and its disasters, oriented toward the future, that terra
numerous books of poetry and prose, including The Labyrinth of Solitude
incognita with which it has identified itself.
(1950). This essay is excerpted from One Earth, Four or Five Worlds
The cult of the future fits naturally within the American
(1985). English translation copyright © 1985 and published by Harcourt
design and is, so to speak, its condition and its result. American
Brace Jovanovich, Inc. Copyright 1983 by Octavio Paz. Copyright © 1983
society was founded by an act of abolition of the past. Its citi-
by Editorial Seix Barral, S.A., Barcelona.
zens, unlike Englishmen or Japanese, Germans or Chinese,
The Wilson Quarterly/Spring 1986
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82
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
Mexicans or Portuguese, are not the offspring of but the begin-
mocracy and an empire. The contemporary situation is very dif-
ning of a tradition. Instead of carrying on a past, they inaugurate
ferent, however: Great Britain's imperial rule was exclusively
a new time. The act (and the document) of foundation-a can-
colonial and exercised overseas; moreover, in its European and
celing-out of the past and a beginning of something different-
American policy it sought not hegemony but a balance of
has been repeated throughout its history.
power. But the policy of the balance of powers belongs to an-
But the United States is not in the future, a region that does
other stage in history; neither Great Britain nor any other great
not exist; it is here and now, among all the rest of us, in the
European power was forced to confront a State such as the So-
midst of history. It is an empire, and its slightest movements
viet Union, whose imperialist expansion is inextricably linked to
shake the whole world. It would like to be outside the world
a universal orthodoxy. The Russian Bureaucratic State not only
but it is in the world-it is the world. Hence the contradiction
aspires to world domination but is a militant orthodoxy that
of contemporary American society: Being at once an empire and
does not tolerate other ideologies or systems of government.
a democracy is the result of another, deeper contradiction, hav-
If, instead of comparing the international situation that con-
ing been founded against history yet being itself history.
fronts the United States today with that prevailing in Europe
during the second half of the last century, we think of Rome in
the last days of the Republic, the comparison shows American
The United States has undergone a period of doubt and
democracy to be in an even more unfavorable position.
disorientation. If it has not lost faith in its institutions-Water-
The political difficulties of the Romans of the first century
gate was an admirable proof of this-it no longer believes as
B.C. were primarily internal in nature, and this partially explains
fervently as it once did in the destiny of the nation. The present
the ferocity of the struggles among the various factions: Rome
state of mind of the American people is in all likelihood the
had already achieved domination over all the known world, and
consequence of two phenomena that used to be opposites but,
its only rival-the Parthian Empire-was a power on the defen-
as frequently happens in history, have now become conjoined.
sive. Moreover, and most important, none of the powers that
The first is the sense of guilt that the Vietnam War aroused in
had fought the Romans sought to further a universalist ideology.
many minds; the second is the waning of the puritan ethic and
the waxing of the hedonism of abundance.
The sense of guilt, coupled with the humiliation of defeat,
By contrast, the contradictions of American foreign pol-
has reinforced the traditional isolationism, which has always re-
icy-a result of the controversies among groups and parties as
garded American democracy as an island of virtue in the sea of
well as of the inability of the nation's leaders to formulate a
perversities that is world history. Hedonism, for its part, takes no
long-term overall plan-exist side by side with an aggressive
notice of the outside world or, along with it, of history. Isola-
empire that embraces a universalist ideology. To make matters
tionism and hedonism coincide in one respect: They are both
still worse, the Western alliance is made up of countries whose
antihistorical. Both are expressions of a conflict present in
interests and politics are not always identical with those of the
American society since the war with Mexico in 1847, but not
United States.
fully apparent until this century: The United States is a democ-
The expansion of the American republic has been the natu-
racy and at the same time an empire.
ral, and in some ways fatal, consequence-if I may SO put it-of
A peculiar empire, I must add, for it does not wholly fit the
its economic and social development; Roman expansion grew
classic definition of one. It is something quite distinct from the
out of the deliberate action of the senatorial oligarchy and its
Roman, Spanish, Portuguese, and British empires.
generals over a period of more than two centuries. The foreign
Standing bewildered in the face of its dual historical nature,
policy of Rome is an outstanding example of coherence, single-
the United States does not know which way to turn today. The
ness of purpose, perseverance, skill, tenacity, and prudence-
dilemma is a fateful one. If it chooses a truly imperial destiny, it
precisely the virtues that we find lacking in Americans. Tocque-
will cease to be a democracy and will thereby lose its reason for
ville was the first to see where the fault lay:
being a nation. But how to renounce power without being im-
mediately destroyed by its rival, the Russian Empire?
With regard to the conduct of the external affairs of soci-
It will be objected that Great Britain, too, was both a de-
ety, democratic governments appear to me to be decid-
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85
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
edly inferior to the others
Foreign policy requires
America is the opposite of Russia, another religious country
the use of almost none of the qualities that characterize
but one that identifies religion with the Church and finds the
democracy, and on the other hand calls for the develop-
confusion between ideology and party legitimate. The commu-
ment of almost all those which democracy lacks by its
nist State-as was quite evident during the last war-is not only
Democracy would find it most difficult to
the successor of the tsarist State but its continuer. The notion of
very coordinate all the details of a great undertaking, draw up
nature
a social contract or "covenant" has never held an important
a plan in advance, and stubbornly follow it to the end
place within the political history of Russia, or within the tsarist
despite all obstacles. It has little aptitude for preparing
or Bolshevik tradition. Nor has the idea of religion as something
its means in secret and patiently awaiting the results.
belonging to the sphere of heartfelt individual belief; to the
Russians, religion and politics appertain not to the sphere of
American democracy is religious in origin and extends back
private conscience but to the public sphere. Americans have
to the communities of Protestant dissenters who settled in the
endeavored, and are endeavoring, to construct a world of their
country during the 17th century. Religious preoccupations were
very own, a world outside of this world; the Russians have en-
later transformed into political ideas steeped in republicanism,
deavored, and are endeavoring, to dominate this world in order
democracy, and individualism, but the original religious tone
to convert it.
never disappeared from the public conscience.
The basic contradiction of the United States has an effect on
In the United States, religion, morality, and politics have
the very foundations of the nation. Hence our reflections on the
been inseparable. This is the major difference between Euro-
United States and its present predicament lead to the question:
pean liberalism, which is almost always secular and anticlerical,
Will it be able to resolve the contradiction between empire and
and the American variety. Among Americans, democratic ideas
democracy? At stake are its life and its identity.
have a religious foundation, in some instances implicit and in
others (the majority) explicit. These ideas served to justify the
attempt, unique in history, to constitute a nation as a covenant
in the face of, and even against, historical necessity or history as
Though it is impossible to answer this question, it is possi-
ble to venture a comment.
fate. In the United States the social contract was not a fiction but
The sense of guilt can be transformed, can lead directly to
a reality, and it was entered into in order not to repeat European
the beginnings of political salvation. Hedonism, on the other
history. This is the origin of American isolationism: the attempt
to establish a society that would escape the vicissitudes that Eu-
hand, leads only to surrender, ruin, defeat. It is, admittedly, true
ropean peoples had suffered. American expansion, up until the
that after Vietnam and Watergate we have been witness to a sort
war with Mexico, was aimed at colonizing empty spaces (Indian
of masochistic orgy and seen many intellectuals, clergymen, and
journalists rend their garments and beat their breasts as signs of
peoples were always regarded as nature) and that space more
contrition. These self-accusations, as a general rule, were not
empty still, the future.
and are not false, but their tone was and is frequently hysterical
(as when a journalist, writing in the New York Times, held
American policy in Indochina responsible for the subsequent
If they could, Americans would lock themselves up inside
atrocities committed by the Khmer Rouge and the Vietnamese).
their country and turn away from the world, except to trade with
Yet this sense of guilt, besides being a compensation that
it and visit it. The American utopia-in which, as in all utopias,
maintains a psychic equilibrium, carries moral weight: It stems
monstrous features abound-is an interweaving of three
from a searching conscience and the recognition that a wrong
dreams: those of the ascetic, the merchant, and the explorer.
has been committed. Hence it can become a sense of respon-
Three individualists. Hence three American traits: Their reluc-
sibility, the one and only antidote against the intoxication of
tance to confront the outside world; their inability to understand
hubris, for individuals as for empires. On the other hand, it is
it; and their lack of skill in manipulating it. Americans are citi-
more difficult to transform the hedonism of modern masses into
zens of an empire, surrounded by some nations that are allies
a moral force. It is not blind illusion, however, to place our trust
and by others out to destroy it, yet Americans would rather be
in the ethical and religious foundations of America: They are a
left alone: The outside world is evil, history is perdition.
living source whose flow has been obstructed but not yet en-
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86
NOTES
ON
THE
SLAN
NOTES ON THE UNITED STATES
tion; they have also lost control of themselves. What the United
tirely dammed.
The foreign policy of the United States has followed a zig-
States has lacked is not power but wisdom.
zag, erratic course, frequently contradictory and at times beyond
Above all, the American people and its leaders lack that
all understanding. Its principal defect, its basic inconsistency, is
sixth sense that almost all great nations have had: prudence.
attributable not to the failings of American leaders, which are
Since Aristotle, this word designates the highest political virtue.
many, but to its being a policy more sensitive to domestic reac-
Prudence is made up of wisdom and integrity, boldness and
tions than to foreign ones.
moderation, discernment and persistence in undertakings. The
The United States' objectives are to contain the Soviet
best and most succinct definition of prudentia was given re-
Union and its shock troops (Cuba, Vietnam), to consolidate its
cently by Cornelio Castoriadis: the ability to find one's bearings
own alliance with Japan and the European democracies, to con-
in history. This is the ability that many of us find lacking in the
United States.
solidate its ties with China, to bring about an agreement in the
Middle East that will preserve the independence of Israel and at
the same time strengthen friendship with Egypt, to gain friends
in the Arab countries and in those of Latin America, Africa, and
To Montesquieu, the decadence of the Romans had a two-
Asia.
fold cause: the power of the army and the corruption of luxury.
These are its avowed ends, but its real ones are to win the
The first was the origin of the empire, the second its ruin. The
votes and satisfy the aspirations and ambitions of this or that
army gave Rome dominion over the world but, along with it,
group at home, whether Jews or blacks, industrial workers or
irresponsible sybaritism and extravagance. Will the Americans
farmers, the "establishment" of the East or Texans. It is evident
be wiser and more temperate than the Romans; will they show
that the policy of a great power cannot be subordinated to the
greater moral fortitude? It seems most unlikely. However, there
shifting and divergent pressures of various groups within the
is one aspect of the situation that would have raised Montes-
nation: The cause of the downfall of Athens was not so much
quieu's spirits: The Americans have succeeded in defending
Spartan arms as the struggles between internal parties.
their democratic institutions and have even broadened and per-
fected them.
In Rome, the army backed the despotism of the Caesars;
Any list of the errors of American policy must end with the
the United States suffers from the ills and vices of freedom, not
following reservation: These errors, magnified by the mass me-
those of tyranny. Though deformed, the moral tradition of criti-
dia and by political passions, are revealing of vices and faults
cism that has accompanied the nation all through its history is
still alive.
inherent in plutocratic democracies, but they do not indicate an
intrinsic weakness. The United States has suffered defeats and
In the past, the United States was able to use self-criticism
setbacks, but its economic, scientific, and technological power
to resolve other conflicts. It continues to give proof of its capaci-
is still superior to that of the Soviet Union.
ties for self-renewal. During the last 20 years it has taken great
So is its political and social system. American institutions
strides in the direction of resolving the other great contradiction
were designed for a society in perpetual motion, whereas Soviet
that tears it apart, the racial question. It is not beyond the
institutions correspond to a static caste society. Hence any
bounds of possibility that by the end of this century the United
change in the Soviet Union endangers the very foundations of
States will have become the first multiracial democracy in his-
tory. Despite its grave imperfections and its vices, the American
the regime.
There is much talk of the inferiority of the Americans in the
democratic system bears out the opinion of antiquity: If democ-
military sphere, especially in the area of traditional weapons.
racy is not the ideal government, it is the least bad.
This is a temporary inferiority. The United States has the mate-
One of the great achievements of the American people has
rial and human resources to re-establish the balance of power.
been to preserve democracy in the face of the two great threats
And the political will? It is difficult to give an unequivocal
of our day: the powerful capitalist oligarchies and the bureau-
answer to that question. In recent years, Americans have suf-
cratic State of the 20th century. Another positive sign: Americans
fered from a psychic instability that has taken them from one
have made great advances in the art of human cohabitation, not
extreme to another. Not only have they lost their sense of direc-
only in terms of different ethnic groups that live peacefully to-
The Wilson Quarterly/Spring 198
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88
NOTES
ON
THE
1111. STATES
gether but also in domains heretofore ruled by the taboos of
traditional morality, such as sexuality. Some critics lament that
Another defect of American democracy, already noted by
Tocqueville in his day: egalitarian tendencies, which do not sup-
permissiveness and the relaxation of morals; I confess that the
press individual selfishness but merely deform it. These tenden-
other extreme strikes me as worse-the cruel puritanism of
cies have not prevented the birth and spread of social and eco-
communists and the bloody prudery of Khomeini. Finally, the
nomic inequalities, while at the same time they: have held the
development of the sciences and technology is a direct conse-
best back and hampered their participation in public life.
quence of the freedom of investigation and criticism predomi-
A major example is the situation of the intellectual class: Its
nant in the universities and cultural institutions of the United
first-rate achievements in the sciences, technology, the arts, and
States. American superiority in these fields is no accident.
education stand in sharp contrast to its scant influence in poli-
How and why, in a democracy that has proved itself to be
tics. It is true that many intellectuals serve and have served in
so endlessly fertile and creative in science, technology, and the
government, but this has almost always been as technicians and
arts, should its politics be so overwhelmingly mediocre? Can the
experts-that is, in order to do this or that, not in order to help
critics of democracy be right? We must grant that the will of the
define ends and goals. A few intellectuals have been counselors
majority is not a synonym for wisdom: The Germans voted for
of presidents and have thus contributed to planning and execut-
Hitler, and Chamberlain was elected democratically. The demo-
ing American foreign policy. But they are isolated cases. The
cratic system is exposed to the same risk as hereditary monar-
American intellectual class, as a social entity, does not have the
chy; the popular will is no more unerring than the genes, and
influence that its counterparts in European and Latin American
elections that turn out badly are as unpredictable as the birth of
countries enjoy. For one thing, society is not inclined to grant
defective royal heirs.
this class such a role.
American intellectuals, in turn, have shown little interest in
the great philosophical and political abstractions that have
The remedy lies in the svstem of checks and balances: the
roused deep passions in our era. This indifference has had a
independence of judicial and legislative power, the weight of
positive aspect: It has kept them from going as badly astray as
public opinion in governmental decisions through the healthy
many European and Latin American intellectuals. It has also
and sensible exercise of their critical function by the communi-
kept them from the despicable moral lapses and relapses of SO
cations media. Unfortunately, neither the U.S. Senate nor the
many writers who, without so much as blinking an eve, have
media nor public opinion has given signs of political prudence
accepted public honors and international prizes as they hymned
in the years just past.
paeans of praise to the Stalins, the Maos, and the Castros.
The inconsistencies in American foreign policy are attribut-
able not just to officeholders and politicians but to the entire
nation. Not only do the interests of groups and parties come
American intellectuals' mistrust of ideological passions is
before collective ends, but American opinion has shown itself
understandable; what is not understandable is their ignoring the
incapable of understanding what is happening beyond its bor-
fact that these passions have moved several generations of Euro-
ders. This criticism is as applicable to liberals as to conserva-
pean and Latin American intellectuals, among them some of the
tives, to clergymen as to labor leaders. There is no country bet-
best and most generous. In order to understand these others
ter informed than the United States; its journalists are excellent
and to understand contemporary history as well, it is necessary
and they are everywhere, its specialists have all the data and
to understand these passions.
background facts needed for each case-yet what comes forth
When the subject under discussion is the American charac-
from this gigantic mountain of information and news is, almost
ter, the word naiveté almost invariably crops up. Americans
always, the mouse of the fable.
themselves value innocence very highly. Naiveté is not a charac-
An intellectual failure? No: a failure of historical vision. Be-
ter trait that fits well with the pessimistic introspection of the
cause of the very nature of the endeavor that founded the na-
puritan. Yet the two coexist within the American character. Per-
tion-sheltering it from history and its horrors-Americans suf-
haps introspection allows Americans to see themselves and dis-
fer from a congenital difficulty in understanding the outside
cover, within their heart of hearts, the traces of God or of the
world and orienting themselves in its labyrinths.
devil; naiveté, in turn, is their mode of presentation of self to
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NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
others and their manner of relating to them.
almost exclusively on moral grounds, generally neglected to ex-
Naiveté is an appearance of innocence. Or, rather, it is pro-
amine the nature of the conflict. Critics were more interested in
tective gear. Thus the apparent defenselessness of one who is
condemning President Lyndon B. Johnson than in understanding
naive is a psychological weapon; it preserves that person from the
how and why there were American troops in Indochina. Many
contamination of the other and, by isolating him or her, makes it
said that this conflict "was no concern of America's," as though
possible to escape and launch a counterattack. The ingenuous-
the United States were not a world power and the war in Indo-
ness of American intellectuals in the face of the great ideological
china were a local episode.
debates of our century has fulfilled that double function. It has
Morality is no substitute for historical understanding. That is
kept them from falling into the moral errors and perversions into
precisely why many liberals were so surprised at the outcome of
which certain Europeans and Latin Americans have fallen; and it
the conflict: the installation of a military-bureaucratic dictatorship
has permitted them to judge and condemn those who have
in Vietnam, the mass murders under Pol Pot, the occupation of
strayed from virtue-without understanding them. Both Ameri-
Cambodia and Laos by Vietnamese troops, the punitive expe-
can conservatives and liberals have substituted moral judgment
dition by the Chinese, and, in recent days, the hostilities between
for historical vision. Admittedly, it is not possible to have a view
Vietnam and Thailand. And today, confronted by the situation in
of the other, that is to say a vision of history, without moral
Central America, liberals mouth the same simplistic nonsense.
principles. But a moral perspective cannot replace true historical
Apart from the fact that it is not always sincere, the moraliz-
vision, above all if this moral perspective is that of a provincial
ing attitude does not help us to understand the reality that lies
puritanism combined with variable but strong doses of pragma-
outside ourselves. Morality, in the sphere of politics, must be
tism, empiricism, and positivism.
accompanied by other virtues. Central to all of them is historical
The two missions of the modern intellectual are, first, to
imagination. This intellectual faculty has a counterpart in the
investigate, create, and transmit knowledge, values, and experi-
realm of sensibility: sympathy for the other, for others.
ences; and, second, to criticize society and its usages, institutions,
and politics. Since the 18th century, this second function, inher-
ited from the medieval clerics, has assumed greater and greater
The image presented by the United States is not reassuring.
importance. We are all familiar with the work of Americans in the
The country is disunited, repeatedly torn apart by dissensions that
fields of the sciences, literature, the arts, and education; they have
do not have the least element of grandeur, eaten away by doubt,
also been honest and courageous in their criticism of their society
undermined by a suicidal hedonism, dazed by the ranting of
and of its defects. America's intellectuals have been faithful to the
demagogues. It is a society divided, not SO much vertically as
tradition upon which their country was founded and in which the
horizontally, by the clash of tremendous selfish interests: great
scrutiny of conscience occupies a central place.
corporations, labor unions, "the farm bloc," bankers, ethnic
groups, the powerful communications industry.
The remedy is to regain unity of purpose, without which
This puritan tradition, however, by emphasizing and encour-
there is no possibility for action-but how? The malady of de-
aging separation, is antihistorical and isolationist. When the
mocracies is disunity, mother of demagogism. The other road,
United States abandons its isolation and participates in the affairs
that of political health, leads by way of soul-searching and self-
of the world, it does so in the manner of a believer in a land of
criticism: a return to origins, to the foundations of the nation. In
infidels.
the case of the United States, this means to the vision of its
American writers and journalists have an insatiable curiosity
founders-not to copy them, but to begin again. Not to do exactly
and are extremely well informed about what goes on in today's
as they did but, rather, like them, to make a new beginning. Such
world, but instead of understanding, they pass judgment. It must
beginnings are at once purifications and mutations: With them
be said, in all truth, that they reserve their severest judgments for
something different always begins as well.
their compatriots and those in public office. That is admirable;
yet at the same time it is not enough. In the days of their country's
intervention in Indochina, they denounced, with good reason,
the policy emanating from Washington; yet their criticism, based
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
92
93
MEXICO QUOTES
-Octavio Paz has spoken of a "unity of purpose" in his writings
on democracy.
-Bernal Diaz said of Mexico that "I stood looking at it and
thought that never in the world would there be discovered other
lands such as these. (1519)
For more suggestions, contact
Becky Pestana X 6266
I'm delighted
Encantado de volver agui.
(to return here)
Encantado de regresar.
( to be back)
Encantado de estar de nuevo
(to be here anew)
Encantado de estar can ustesdes
(to be with you all)
I celebrate
Celebro estar agui.
( being here)
Celebro estar can ustedes
( being with you all)
Celebro estar en Mexico
( being in Mexico)
Es un placer volver.
It's a pleasure to return
United States
Information
Service
Embass) of the United States of Anilyne
647-8386
Mexico. "
USIS
November 8, 1990
MEMORANDUM TO:
ARA - Ms. Salley Grooms cowal
ARA - Mr. Richard Howard
FROM:
CPAO - Robert L. Earle R-
SUBJECT:
Draft Presidential Public Remarks and
State Luncheon Toast
I have prepared drafts for all the President's public
remarks during the State visit, including "contingent"
remarks for various sites where he may or may not be asked
to speak. All these texts have been cleared by the
Ambassador and Country Team.
The attached drafts are presented in the order in which I
expect they will be delivered. They are:
CONTINGENT PRESIDENTIAL REMARKS SHOULD ARRIVAL STATEMENT
BE NECESSARY AT MONTERREY AIRPORT
CONTINGENT PRESIDENTIAL REMARKS IF ARRIVAL CEREMONY IS
HELD AT AGUALEGUAS
DRAFT PRESIDENTIAL REMARKS AT FIESTA FOLLOWING CHARREADA
IN AGUALEGUAS
DRAFT PRESIDENTIAL REMARKS ON STEPS OF GOVERNOR'S PALACE
DRAFT PRESIDENTIAL REMARKS ON RECEIVING KEYS TO MONTERREY
DRAFT PRESIDENTIAL REMARKS ON CREATION OF U.S. - MEXICO
COMMISSION ON EDUCATIONAL AND CULTURAL EXCHANGE
DRAFT PRESIDENTIAL REMARKS FOR USE AT MEETING WITH
BUSINESSMEN IN MONTERREY CASINO
DRAFT PRESIDENTIAL TOAST AT STATE LUNCHEON
DRAFT PRESIDENTIAL STATEMENT FOR USE, IF NECESSARY AT
MONTERREY AIRPORT DEPARTURE CEREMONIES
Attachments
DRAFT PRESIDENTIAL STATEMENT FOR USE, IF NECESSARY AT
MONTERREY AIRPORT DEPARTURE CEREMONIES
NOVEMBER 27, 1990
President Salinas, Governor Trevino, friends and neighbors:
1 leave Monterrey more firmly convinced than ever before
that Mexico and the United States are seizing every
opportunity to prepare our bilateral relationship for the
global competition of the 1990s.
In my talks with President Salinas, we agreed on the need
to advance both the Uruguay Round of GATT and our
biloterol Free Trade Agreement as expeditiously as
possible.
There's no time to lose in modernizing our economic
cooperation and putting it to work in creating Jobs,
raising productivity, and facilitating cost-effective
-
investments.
A strong Mexico is good for the United States, a strong
United States is good for Mexico, and free trade is a sure
path to greater prosperity for us both.
2
At the same time, we discussed ways to ensure that our
societies are as healthy as our economies are dynamic.
The war against drugs, educational and environmental
cooperation, and close coordination all along our 2,000
mile border are ways to reach this gool.
President Salinas, your leadership has done $0 much to
make a strengthened partnership between Mexico and the
United States possible. Your for-sighted commitment to
modernization, eloquently expressed in your recent State
of the Nation address, points the way to biloterol
cooperation that simply is better than ever,
My impression these lost two days persuade me that a new
Mexico is in the making. Monterrey's industrial
resilience, Agualeguas' heart, and Nuevo Leon's energy
give Mexico's future unique promise. Our relationship,
our hemisphere, and our world are sure to be the
benficiaries of your success.
Barbara and I thank you and Cecelio for your wonderful
hospitality, and we look forward to receiving you both
when we next meet In the United States.
Thank you very much.
DRAFT PRESIDENTIAL TOAST AT STATE LUNCHEON
NOVEMBER 27, 1990
President Solinas, if 1 may, I would like to raise my
glass to you In thanks for your friendship, your counsel
and your commitment to a stronger relationship between our
two countries.
When we first met in Houston in 1988, neither of us had
assumed office, but both of us were fully aware of the
challenges we would face in giving this relationship
leadership and direction.
Speaking for the United States, no country is more
important to us than Mexico. Our southwest bears the
imprint of your culture. You are our third largest
trading partner. Twelve million Americans call Mexico
their madre patrio, and challenges such as conflict in
Central America and powerful narco-traffickers in the
Andes test our will and our wisdom.
Yet in Houston and in our five meetings since then, you
olways have brought Mexico's perspective into positive
focus, pointing the way to the kind of communication and
cooperation that has benefitted us both so much.
- 2 -
Perhaps no gesture of Mexico's goodwill and interest has
been more expressive than the magnificent exhibition,
"Mexico: Thirty Centuries of Splendour," now on display at
the Metropolitan Museum of Art in New York,
Now we are on the verge of negotiating an historic Free
Trade Agreement which will be the symbol of how for our
two countries have come in learning to understand, trust,
and work with one another,
This agreement will unleash powerful energies In both our
economies. Countless new ventures will emerge. Jobs,
higher-standards of living, and greater productivity will
make us both more competitive on the global scene,
Mr. President, a relationship between two countries that
are $0 different will olways be a challenge, but your
penetrating insight into our common interests and losting
friendship has radically altered its terms for the better.
- 3 -
In your second State of the Nation address, you emphasized
Mexico's determination to reach out to global change and
seek to embrace it. Without minimizing uncertainty, you
saw fresh hope. Without ignoring risks, you celebrated
new freedoms,
Mr. President, I share you views and celebrate them
myself. We are not on on easy path, but I firmly believe
we are on the right one, and there is no one with whom I
would rather travel it than with you and the Mexican
people.
I raise my glass to the great leader of o great nation,
President Carlos Solinas de Gortari,
DRAFT PRESIDENTIAL REMARKS ON STEPS OF GOVERNOR'S PALACE
November 26, 1990
President Salinas, Governor Trevino, Mayor Rizzo, friends
and neighbors:
Thank you for your worm words of welcome. It's wonderful to
be in Mexico, and it's wonderful to be in Monterrey.
As 1 look out at this beautiful MacΓo Plazo, 1 realize that
I stand before Mexico's greatest heroes.
Hidalgo and Morelos, who set this greot nation on the road
to independence,
Juarez and Escobedo, who defined and defended the principles
of Justice and freedom that guide the Mexican state even to
this day.
President Carlos Salinas de Gortori, who is modernizing
Mexico within its own cherished framework of volues and
beliefs.
And the Mexican people themselves, oll of you here tonight,
who have helped create this great city of Monterrey, this
great state of Nuevo Leon, and this great country of Mexico.
- 2 -
I come here myself to show the enormous respect the people
of the United States have for your dynamism and vigor,
We are all
As you know, I am a Texan, 0 neighbor near at hand. And I
Westerners who came to these once barren lands to seek our
think the time I've spent under the big sky down here
fortunes, to develop our wilderness ad to shape on values.
gives me all the more reason to admire your vision and
your accomplishments.
When Franklin Delano Roosevel come to Monterrey In 1943
to meet with President Avila Camacho, Texas and Mexico
were quiet parts of the globe, for away from the center
stage of a world at war.
West to Texas
Ae When my wife Barbara and I come south after the war was
over, we never imagined that forty years later we would be
visiting 0 border that might well be colled the frontier
of the future.
Yet that is the splendid course history has taken. Mexico
and the United States ore on the move. And in our
consultations President Salinas and I are discussing how
we con go even further in building a stronger relationship.
full of exciting new Ideas and oppor tunities
- 3 -
We want to see if we can advance the idea of free trode,
so vital to det creating Jobs and prosperity in your
economy and our own, We want to consult on how we can put
on end to the scourge of drugs, $0 threatening to our
youth, We have a precious environment to protect and
Subjects
future generations to educate--these are themes we must
address as well.
And of course there is a changing and in some cases
troubled world beyond our borders. What can each of us do
to make peace and prosperity the foundations of a new
world order? The reconstruction of Centrol America, the
peaceful restoration of the legitimote government of
Kuwoit, and the successful conclusion of world trade talks
topics
under GATT are 0 few of the themes we olreody have begun
to discuss.
What we seek, to put it simply, is a world that looks like
the U.S.-Mexico relationship itself--oriented towards
cooperation, communication, and respectful partnership in
seizing the many opportunities that lie before us,
Looking out at you and the statues of your great men, it's
clear to me that history is on our side. Abundant moral
reserves give US direction and give US courage.
4
And in President Salinas, I know I have the kind of friend
who will answer any challenge with the same ideals that
move me and the people of the United States. Hard work,
total candor and full respect will be our guides as we
Join together in building a stronger Mexico, a stronger
United States, and a better world.
Thank you for your warm reception, God bless you oll, and
vivo Mexico:
DRAFT PRESIDENTIAL REMARKS AT FIESTA FOLLOWING CHARREADA
IN AGUALEGUAS
November 26, 1990
President and Mrs. Salinas:
Let me Just say how delighted Barbara and I are to be here
in your home town of Agualeguas and to be oble to spend
the kind of informal time together we shared at Camp David
last year.
To Mayor Reynaldo Canales Vela, and the people of
Agualeguas:
Let me Just say how thrilled we are to Join you, and how
deeply groteful we are for your wonderful hospitality.
It's obvious to me where your President gets his special
touch and why he is so close to the needs and feelings of
the people of Mexico.
He comes from the people right here in Agualeguas, and he
has never lost his roots in the small town family values
of community and family.
There trust heres and wormth, and some of the best
horsemanship I've seen in years.
- 2 -
As I look around this pretty plaza, I realize this is 0
glimpse of Mexico I'll never forget.
Mr. President, thank you so much for having us here among
your family and friends.
CONTINGENT PRESIDENTIAL REMARKS
IF FORMAL ARRIVAL CEREMONY IS HELD AT AGUALEGUAS
November 26, 1990
President and Mrs. Salinas, Mayor Reynaldo Canales Vela,
friends, and neighbors:
I come here today to carry on a tradition established by
many presidents before us. Mexico and the United States
are neighbors, close neighbors, and we have things to talk
about. Like two sides of those beautiful mountains we see
in the distance, we have risen up on the same continent
and come together to build 0 vast relationship -- broad
and solid at the base, weathered in places but
strengthened by time, and arching upwards.
geographics
Our people, our cultures, our difficulties and our
accomplishments all have brought us together. Managing so
much Interaction effectively always has been 0 chollenge,
and It has never been more important to meet that
challenge than today
our
In monymond frequent talks with President Sulinos since
Per Soleran +5
we both were elected, I think we have established a new
uno
clority In this relationship -- about the problems we wont
to see solved, and the opportunities we think ought to be
CONTINGENT PRESIDENTIAL REMARKS SHOULD ARRIVAL STATEMENT
BE NECESSARY AT MONTERREY AIRPORT
November 26, 1990
Foreign Minister Solana, friends and neighbors:
I wont to say first of all how pleased I am to be here in
Mexico to consult with President Salinas and to hear the
views of his closest advisors.
This regular exchange of visits reflects the permonent
importance Mexico has for the people of the United States,
There's so much we con do together to ensure the health,
welfare and prosperity of our societies and economies. At
the top of the agenda rank issues like free trode, the war
against drugs, education and the environment. They oll
moni toring
require coreful assessment to sustain the kind of exciting
progress we have seen in the U.S. -Mexico relationship over
the last two years.
attention
And I know that's the kind of assessment they'll get, I'm
proud to say that President Salinas and I have come to
share a frank and open dialogue on the full range of
bilaterol and International issues.
- 2 -
In the next two days I look forward to spending time with
him here in the part of the country he and his family call
home. In the process, I'm sure that 1 will get to know
Mexico and the Mexican people better, too, and that, most
assuredly, is all to the good.
Communication is the key to facing the many challenges
that lie chead of us, It's the surest way I know of to
strengthen an overwhelmingly positive bilateral
partnership--a partnership based not Just on common
interests but also on the friendship, candor and mutual
respect that bind our two great nations so closely
together,
Thank you very much.
DRAFT PRESIDENTIAL REMARKS FOR USE AT MEETING
WITH BUSINESSMEN IN MONTERREY CASINO
November 27, 1990
Secretary Serra, Secretary Mosbacher, friends and
neighbors,
We're making important progress In every dimension of our
relationship with Mexico. More people cross the border
than ever before, More illegal drugs are being seized
than ever before. More universities are developing
exchange programs than ever before. And more is being
done between us to protect our precious environment -- up
here along the border and as for south as the Lacondon
tropical forest.
But it is difficult to imagine any theme more important
than the one you are discussing here this morning.
You in the private sector create the economic resources
that sustain our relationship as a whole, and that's why
the negotiotion of a Free Trade Agreement between Mexico
and the United States is so vital.
- 2 -
Free trade means Jobs, investments, productivity and
prosperity. I know you in Mexico have long understood the
economic importance of the United States. Now we see Just
as clearly the economic importance of Mexico. For us you
are our number three trading partner in all the world.
$52 billion dollars last year, and the numbers are rising
this year towards a total that is even higher.
Since we calculate that every billion dollars of exports
creates 25,000 Jobs, we are talking about major
contributions to the welfare of many, many Mexicons and
Americans.
In his recent State of the Notion address, President
Salinas said Mexico doesn't want to be a third world
notions it wants to be a first world nation.
Well, that's what we wont for Mexico, too, and that's what
we see happening.
In your automotive, electronic tourism and other
industries, you have world-class productive capabilities,
More than that, you've got youth, drive, and dreams on
your side, And we think that's good for us both -- a
Mexico that wonts to get out and compete, a Mexico with
purchasing power and a Mexico with selling power,
- 3 -
When the economic crisis hit Mexico hard in the early
1980s, our southwest border suffered. Fortunately, the
principle works the same way in reverse. You grow, we grow.
As we enter into the process of negotiating a Free Trade
Agreement, I know that many of you will be as burdened by
worries as you are buoyed up by plans. And we'll hear
criticisms, Just as we did when we negotiated the Free
Trade Agreement with Canada.
But let's look at what trade liberalization already has
done for us, Mexico enters GATT, and bilateral trade
soars from $35 billion in 1987 to the $52 billion 1 Just
cited in 1989. The in-bond industry takes hold and
reaches growth rates of 20% a year, creating a half a
million Jobs,
There's a worldwide consensus in favor of free trade, but
not everyone has the vision to make it happen. I think
Mexico and the United States do have that vision, and we
will be looking to you, for-sighted businesspeople, not
only to make it happen, but to make it succeed.
Thank you very much.
DRAFT PRESIDENTIAL REMARKS ON CREATION
OF U.S. - MEXICO COMMISSION
ON EDUCATIONAL AND CULTURAL EXCHANGE
November 27, 1990
President Salinas:
This agreement, creating the U.S. - Mexico Commission on
Educational and Cultural Exchange, is 0 major step forward
for us oll. It will help us develop the future leaders we
need to sustain the policy advances our two governments
are working so hard to achieve.
Further, it will bring our two societies closer together
in new and creative ways, generating fresh approaches to
our evolving cultural and intellectual realities.
I cannot think of a better symbol of our friendship than a
binational commission that is directed by a board drawn
from the private and public sectors alike. This
guarantees that the right questions olways will be asked,
and the best answers always will be given.
Thank you very much.
DRAFT PRESIDENTIAL REMARKS ON RECEIVING KEYS
TO MONTERREY
November 26, 1990
Mayor Rizzo:
It is an honor to accept the keys to the City of
Monterrey, a great capital of industry, technology,
scholarship and culture.
Monterrey's spirit and energy are the essence of Mexican
modernization and creativity.
For you and your fellow citizens, what can be dreamed can
be accomplished, and whot can be imagined can be forged.
With that approach to the future, you are the best friends
I and the people of the United Stotes could ever have,
-
Thank you very much.
& MEXICO
\Parthership Growth
A Message to U.S. Exporters
From Secretary of Commerce Robert Mosbacher
An exciting new era in U.S.-Mexico relations is beginning as President Bush
formally notified Congress on Sept. 25 of his intent to enter free trade nego-
tiations with Mexico.
This issue of Business America is devoted to the evolving commercial cli-
mate in Mexico. I strongly encourage you to take a close look at the
magazine-and at the Mexican market. Economic reforms in Mexico are
rapidly translating into growth for Mexico and business opportunities for
U.S. exporters and investors. President Bush has said of our relations with
Mexico, "Together we've improved opportunities for bilateral trade and
investment and nurtured our environment." A free trade agreement would
continue to improve our economic relations and foster substantial rewards
for the United States and Mexico.
The U.S. Department of Commerce, with its Mexico division, 67 domestic
field offices, and three commercial offices in Mexico, stands ready to help
you take advantage of this new U.S.-Mexico partnership.
2 Business America, October 8, 1990
U.S.-Mexico Free Trade Agreement
Means Greater Mutual Prosperity
By Ingrid Mohn
Office of Mexico and the Caribbean Basin
International Trade Administration
resident Bush notified the U.S. Congress
ment is expected to have on the Mexican econ-
P
on Sept. 25 that the United States and
omy will directly benefit the United States.
Mexico intend to initiate negotiations for a
Economic growth in Mexico means a larger
free trade agreement (FTA). Both President
market for U.S. goods, and growth of our
Bush and Mexican President Salinas are con-
border industries and services. The FTA would
vinced that the expansion of trade and invest-
reduce or eliminate remaining barriers to U.S.
ment resulting from a free trade agreement
goods and services. Coupled with our Canadian
would lead to greater economic prosperity for
free trade agreement, it would place the United
the citizens of our two countries.
States in the middle of a North American mar-
ket with a combined output 25 percent larger
than the European Community's.
By creating jobs and improving the economy
Why Free Trade With Mexico?
of our southern neighbor, a free trade agreement
A free trade
could also alleviate some of the problems along
There are three answers to this question-
agreement
our border, such as drugs, immigration, and
location, location, location. The Rio Grande
will lead to
forms part of the 2,000-mile border we share
pollution.
greater pros-
with Mexico, which is one of the longest bilat-
perity for
eral borders in the world. Such a situation natu-
both
rally encourages the flow of goods. Trade
Why Now?
countries.
between the two countries has taken place for
decades-and is predicted to swell to an all-
This is a much more complex question,
time high of $60 billion this year. Mexico is our
which involves global, political, and historical
third largest trading partner and our third largest
answers. The global trade picture of today is
export market-behind only Canada and Japan.,
one which includes many unknown quantities,
Investment is also a natural between the
including the results of the struggle to conclude
United States and Mexico. Total U.S. direct
a meaningful multilateral agreement in the
investment totals more than $5.5 billion, and
GATT, the final formation of the European
estimated Mexican investment is around $1 bil-
Community, and the effect of the emergence of
lion.
the former Soviet bloc countries into the world
of capitalism. These unknown quantities around
the globe have made focus on the known quan-
What Are The Benefits?
tities a natural-our neighbors to the south, who
are our third largest trading partners, and our
The most basic benefit of a free trade agree-
neighbors to the north, who are our largest trad-
ment for the United States would be increased
ing partners. It is in these two countries that
exports resulting from the reduction or removal
reduction of borders and expansion of trade
of Mexican barriers to U.S. products. Exports
seems easiest, least costly, and most mutually
are key to U.S. economic growth, and an
beneficial.
export-driven boost to the U.S. economy trans-
Political factors are pushing us in this direc-
lates into thousands of new jobs for U.S.
tion as well. The extensive economic reforms
workers. It is estimated that each $1 billion of
undertaken in a short period of time by Presi-
exports generates about 22,000 U.S. jobs.
dent Salinas have made this agreement possible
U.S. goals in free trade negotiations,
much sooner than anyone expected. The fact
however, go well beyond reducing tariffs.
that Salinas' term expires in 1994, and that the
Although specific goals have not yet been set,
"fast track". provision (a provision that
we will seek better access for U.S. services and
provides for the completion of a negotiated
investment, and continued improvement in
package in two years) expires in 1993, are also
intellectual property rights protection.
expediting factors. Success with the U.S.-Can-
The positive impact that a free trade agree-
ada FTA has made President Reagan's vision of
Business America, October 8, 1990
3
Mexico
continued
free trade on the continent seem feasible. Fur-
What is Commerce's Role?
thermore, President Bush and his administration
have succeeded in heightening our awareness of
The U.S.-Mexico Free Trade Agreement, and
Mexico and its importance to the United States,
Mexico's economic reforms, mean increased
and in improving relations markedly between
opportunities for U.S. business. To promote
our two countries.
these new business opportunities, Secretary of
Recent historical factors are strong ones in
Commerce Mosbacher and Mexican Secretary
our bilateral relationship, too. Since the
of Commerce and Industrial Development Serra
mid-1980s, our two countries have been build-
established the Joint Committee for Investment
ing on previous accomplishments, step-by-step
and Trade (JCIT). The JCIT has organized sev-
improving our relationship. Highlights include
eral business development missions and semi-
Mexico's accession to the General Agreement
nars to educate U.S. business on what these
on Tariffs and Trade in August 1986, Mexico's
changes mean, and how to take advantage of
dramatic reduction in tariff rates in 1987, the
them.
signing of the U.S.-Mexico Framework Agree-
The FTA's
ment in 1987, and the signing of the Trade and
spirit of
Investment Facilitation Agreement in 1989.
Does the Private Sector Play a Role?
cooperation
Between these milestones were hundreds of
will lay the
bilateral meetings at all levels, and years of
The Department will also consult with the
groundwork
consultations with industry, making this strong,
private sector through organizations such as the
for trade
steady betterment possible. Our two countries
Industry Sector Advisory Committees, and the
agreements
have worked very hard to be in this history-
Industry Policy Advisory Committee. Informa-
with the rest
making position now.
tion collected from these sources, coupled with
of Latin
This accomplishment is an example to be
the analysis in the required ITC study and Trade
America.
upheld for all Latin nations in President Bush's
Policy Staff Committee hearings, will guide us
Enterprise of the Americas initiative. The spirit
in forming goals for the FTA.
of cooperation, the willingness to make neces-
The Department of Commerce fully supports
sary economic reforms, and the strength to
the free trade agreement and Mexico's trade
ensure success will lay the groundwork for trade
regime improvements. Overall, an FTA will
agreements with the rest of Latin America.
benefit both the United States and Mexico by
boosting output, incomes, and employment.
Now is the time for U.S. businesses to learn
What is the Timetable?
how this history-making agreement can translate
into increased exports.
President Bush notified the U.S. Congress of
the intent to negotiate an FTA after President
Salinas formally requested an FTA in a letter
dated Aug. 21. U.S. trade law requires that
Congress be given 60 legislative days to
U.S.-Mexico-Canada FTA:
approve the use of the "fast track" process.
Trilateral Agreement Possible
"Fast track" means that if Congress approves
the use of this provision, the Administration
Canada has expressed a desire to par-
must return with a negotiated package within
ticipate in the free trade negotiations,
two years, at which point Congress can either
with a view to negotiating an agreement
accept or reject the treaty, without amendments.
or agreements involving our three coun-
tries. President Bush has said that he
Mexico received approval from the Mexican
senate earlier this year to open trade talks with
welcomes the opportunity to work with
the United States.
our two neighbors towards this end.
The overall timetable, therefore, means nego-
The three trade ministers are already
tiations will probably begin sometime next
planning to consult actively in the com-
spring, with possible conclusion of a successful
ing months to discuss the feasibility of a
agreement in 1993. President Salinas' term
broader agreement.
expires in 1994
4
Business America, October 8, 1990
Frequently Asked Questions About
The Free Trade Agreement
ommerce's Mexico Desk has received
political and economic national sovereignty by
C
many questions on U.S.-Mexican issues
including consolidation of governing bodies,
since the announcement June 10, 1990,
policies, and procedures under a single unified
of the President's interest in negotiating a Free
system, such as the European Economic Com-
Trade Agreement. Here are the answers to some
munity.
of the most frequently asked questions.
A free trade agreement would mean unim-
peded exchange and flow of goods and services
What is the level of trade between Mexico and
between trading partners regardless of interna-
the United States?
tional boundaries.
Mexico is our third largest trading partner,
after Canada and Japan, and our third largest
What are the legislative requirements to for-
export market. U.S. exports to Mexico were up
mally enter into FTA negotiations with Mex-
20 percent in 1989 to $25 billion, while imports
ico?
Mexico is our
grew by 17 percent to $27 billion. Total bilat-
eral trade was a record $52 billion.
"Fast track" consideration of trade agree-
third largest
ments is provided for by the Omnibus Trade
trading part-
The United States has run a merchandise
and Competitiveness Act of 1988. Key provi-
ner and third
trade deficit with Mexico since 1982. The U.S.
sions of the authority include that the foreign
largest
deficit has declined from a peak of $7.7 billion
country request negotiation of an FTA; and that
export
in 1983, to $2.2 billion in 1989.
the President give the Congress a 60-legislative-
market.
day notice of intent to negotiate an FTA. (Presi-
In the first half of 1990, the U.S. deficit was
dent Bush notified Congress on Sept. 25, 1990,
$0.9 billion (down from $1.1 billion in first-half
of the intent to negotiate an FTA with Mexico.)
1989).
During the 60-legislative-day period, either
committee can disapprove fast track authority
What is the composition of trade between the
by a majority vote. Disapproval would all but
United States and Mexico in manufactured
end the possibility of FTA negotiations.
goods?
The 60-legislative-days can translate into five
In 1989, 82 percent of U.S. exports to Mex-
to ten months of calendar time, depending on
ico, and 72 percent of U.S. imports from Mex-
the Congressional schedule. Formal negotia-
ico, were manufactured goods.
tions would begin following this 60-day Con-
Leading U.S. exports were motor vehicle
gressional consideration period.
parts, processed food, electronic components,
telecommunications equipment, electrical
switchgear, and aircraft. Mexican tariffs on
What are the areas of greatest U.S. interest in
these goods ranged from 10 to 20 percent.
an FTA with Mexico?
Fastest growing imports were motor vehicles,
Presidents Bush and Salinas defined the pro-
automotive parts, telecommunications equip-
posed FTA as a process of gradual and com-
ment, and, electrical distribution and switching
prehensive elimination of trade barriers between
gear. U.S. tariffs on these goods ranged from 0
the United States and Mexico.
to 8.5 percent.
@ The United States is likely to seek a com-
prehensive agreement covering goods and serv-
What is the difference between a free trade
ices, intellectual. property rights, and
agreement and a common market?
investment. We would seek to eliminate, or
reduce substantially, all distortions or barriers to
A common market involves questions of
goods, services, and investment, and discuss
Business America, October 8, 1990 5
Mexico
continued
changes that would improve and expand their
for both countries. Increasing growth and com-
flow.
petitiveness in both economies will translate
into more jobs, products that are more globally
Before negotiations are begun, the Admin-
competitive, and increased exports for both
istration will seek views and advice from the
countries.
Congress and the private sector on the shape
and scope of an agreement.
Although a U.S.-Mexico FTA would not be
as comprehensive as the European Com-
munity's 1992 program, the growth generated
What are some of the non-tariff barriers to the
by the FTA could have some of the same results
export of U.S. goods to Mexico?
as the EC's efforts to eliminate trade barriers.
The United States has gone, in three years,
An FTA
Import permits and licenses are still required
from a $23 billion trade deficit with the EC to a
could stimu-
in Mexico for products such as wood and wood
surplus of just over $1 billion. One of the prin-
late the same
products and auto parts and are required on
cipal reasons for this is growing demand in the
kind of
more than 200 other products.
EC for U.S. products, especially capital goods.
growth the
The source of this demand is new growth gener-
U.S. has
Procurement: Mexico encourages "buy
ated in Europe by the elimination of internal
experienced
national" policies in sectors such as telecom-
barriers to trade. We may see a similar develop-
with the EC.
munications and construction products (wood
ment with Mexico. Growth in Mexico caused
and flat glass).
by an FTA may generate an increased demand
for U.S. manufactured products, especially cap-
Standards, testing, and certification, as well
ital goods.
as registration and certificate-of-origin require-
ments, are problems in processed food, alco-
holic beverages, and telecommunications.
What is the status of U.S.-Mexican automotive
trade, including any talks that have been held
Exclusive sales and/or distribution contracts
recently?
are used by Mexican brewers to tie up local
retail outlets, limiting imports of alcoholic bev-
erages.
Automotive trade is the largest component of
U.S.-Mexican bilateral trade. In 1989, the
There are quantitative restrictions on auto-
United States exported $3.9 billion in automo-
mobiles.
tive products to Mexico and imported $5.8 bil-
lion from Mexico-a $1.9 billion surplus for
Mexico.
Intellectual property rights protection remains
a problem for U.S. companies, especially in the
pharmaceutical sector.
In December 1989, the Mexican government
liberalized trade in this sector by allowing more
Investment regulations in Mexico have been
imports of new vehicles (through established
liberalized considerably since 1988; however,
Mexican producers) and by reducing local con-
there are still significant limitations on domestic
tent requirements.
and foreign investment. Direct foreign invest-
ment is still sharply restricted in auto parts,
The decree permits a rationalization of the
petrochemicals industries, utilities, and some
Mexican automotive industry as it encourages
service sectors, particularly the financial serv-
the production of only those products in which
ices and land transportation areas.
Mexican companies are competitive.
How would an FTA affect the growth of the
Although liberalization has taken place in the
U.S. capital goods sectors?
investment arena, foreign investment in the auto
parts sector continues to be limited to 40 per-
cent and must have prior approval by the For-
An FTA should result in increased prosperity
eign Investment Commission.
6
Business America, October 8, 1990
U.S.-Mexico Committee Translates
Economic Opening Into Opportunities
By Andrea Curaca Malito
Office of Mexico and the Caribbean Basin
International Trade Administration
he Joint Committee for Investment and
The Secretaries, along with a panel of key
T
Trade (JCIT) was established by U.S.
experts from both countries, will examine topics
Secretary of Commerce Robert A.
of importance to U.S.-Mexican interests, spe-
Mosbacher and Mexican Secretary of Com-
cifically commercial and economic develop-
merce and Industrial Development Jaime Serra
ments, Mexico's foreign investment laws and
Puche last October to identify and promote
regulations, major trade opportunities and
commercial opportunities on both sides of the
investment projects, and the significance of
border.
U.S.-Mexico free trade for U.S. business.
JCIT events have generated a great deal of
Numerous activities have been conducted
interest among U.S. business in trade and
under the JCIT. The first was the highly suc-
Secretaries
investment opportunities with Mexico and are
cessful Secretarial-led Business Development
Mosbacher
increasing awareness of the positive economic
Trade and Investment Mission to Mexico in
and Serra are
changes taking place in Mexico. As a direct
November 1989. CEOs from various sectors
highlighting
result of JCIT activities, several companies
accompanied the Secretary on the mission. Two
trade oppor-
have identified specific investment projects and
additional high-level trade and investment mis-
tunities with
made investments-contributing to a 12 percent
sions have been conducted this year in
Mexico in
increase in approvals of U.S. investment in
petrochemicals and insurance, and another will
four semi-
Mexico during 1990.
take place in mid-October for pollution control.
A travel and tourism mission is planned for the
nars across
There will be a major JCIT event Oct. 22-26.
the nation.
Secretaries Mosbacher and Serra will lead a
fall.
series of conferences across the nation to alert
The JCIT also includes a program of techni-
U.S. business to Mexican market opportunities
cal support and information exchange, under
and to help U.S. firms gain the information nec-
which we held the Joint Legal Exchange in
essary for successful business dealings with
Mexico last June, which served as a forum for
Mexico. The seminars will highlight Mexico's
the exchange of ideas on Mexican commercial
changing trade and investment climate and
legal reforms and the legal foundations of the
detail how U.S. firms can profit from doing
U.S. market economy. We expect to have
business with this growing economy.
another full agenda of JCIT events for 1991.
Secretary of Com-
merce Robert
Mosbacher (right)
and Mexican Sec-
retary of
Commerce and
Industrial
Development
Jaime Serra Puche
(left) will lead a
series of con-
ferences across
the nation this
month to discuss
U.S.-Mexican
business
opportunities.
Business America, October 8, 1990
7
Mexico
continued
A Message to American Business
From U.S. Ambassador to Mexico John D. Negroponte
The Mexican market continues to offer U.S. business people exciting export
and investment opportunities. In the last two and a half years the regulations
Regulations
governing imports into Mexico and foreign investment have been substan-
tially revamped and streamlined to encourage greater foreign participation in
governing
the economic recovery and industrial expansion of the country. In addition to
imports have
making these changes to foster greater entrepreneurship in Mexico and par-
been
ticipation by Mexico in the international marketplace, the Mexican govern-
revamped
ment, in collaboration with the labor unions and the private sector, has been
and stream-
following a consistent economic program based on strict monetary and fiscal
lined to
restraints, along with wage and price controls, that has created favorable
encourage
conditions for doing business in Mexico. Mexico increasingly is an excellent
foreign
place to do business that no U.S. firm should overlook.
participation.
The United States Embassy in Mexico places a high priority on assisting
U.S. firms to take advantage of the opportunities awaiting them here. The U.S.
Department of Commerce maintains a large staff of U.S. and Mexican profes-
sionals at its offices at the U.S. Embassy and U.S. Trade Center in Mexico
City and at the U.S. Consulates in Guadalajara and Monterrey to monitor the
commercial environment, to counsel U.S. companies on doing business in
Mexico, and to organize trade promotion events featuring U.S. products.
These services are open to all U.S. investors and exporters of U.S. products
and we invite you to visit us.
Key Mexico Contacts
U.S. Government Agencies
Agency
Name
Responsibility
Telephone
Agriculture
Max Bowser
West. Hemis/Mexico (202) 447-3221
Commerce
Walter Bastian
Mexico Division
377-4464
Defense
Raymond Jorgenson
Mexico Desk
697-9301
Energy
Kathleen Reese
Mexico Desk
586-6777
EPA
Sylvia Correa
Mexico Desk
382-4890
Eximbank
Marion Hinchman
Loan Officer-Mexico
566-8234
Vince Fragnito
Loan Officer-Mexico
566-8931
Interior
Jeff MacHamer
Mexico Specialist
632-9352
Labor
Peter Accola
Latin America
523-8538
OPIC
John Gurr
Mexico
457-7054
State
Robin Ritterhof
Mexico Desk
647-9292
Mary Garrison
Economics
647-7677
TDP
Dan Stein
Latin America
875-4357
Transportation
Duane Lougee
Mexico
366-9516
Treasury
Chris McCoy
Mexico Desk
566-8521
Nancy Lee
Trade-Mexico
566-5261
Nancy Katz
Invest-Mexico
566-2386
USIA
Bill Lowry
Mexico Desk
619-6835
USTR
Don Abelson
Mexico
395-5663
8 Business America, October 8, 1990
U.S.-Mexico Commercial Relations
Continue to Expand and Improve
By Brian C. Brisson
Assistant Commercial Attache
U.S. Embassy, Mexico City
he prospects for U.S. trade with Mexico
automobiles for sale in Mexico; this is par-
T
for the rest of 1990 and the decade ahead
ticularly good news for the United States given
are excellent, especially in view of the
that three of the five automakers in Mexico are
commitment the U.S. and Mexican govern-
American companies.
ments have made to conclude a free trade agree-
Mexico's import liberalization has been
ment in the early 1990s. During 1989, U.S.-
undertaken at a much more rapid pace than was
Mexico two-way trade increased by 18 percent
required under the terms of its accession to the
from $44 billion in 1988 to $52 billion. This
General Agreement on Tariffs and Trade
expansion was driven by a 21 percent increase
(GATT) in August 1986 and has been part of an
in U.S. exports to Mexico and a 17 percent
overall government strategy of economic
Mexico's
increase in U.S. imports from Mexico.
restructuring emphasizing outward oriented pol-
trade liberal-
Since 1986, U.S.-Mexico two-way trade has
icies and international competitiveness. This
ization has
risen by 75 percent and the level of U.S.
emphasis was clearly demonstrated this summer
led to explo-
exports to Mexico has more than doubled from
by President Salinas' letter to President Bush
sive new
a level of $12.4 billion in 1986 to $25.0 billion
requesting that our two nations initiate talks
levels of
last year. This dramatic expansion of the last
aimed at creating a free trade agreement like the
U.S.-Mexico
four years has resulted in Mexico surpassing
one the United States currently has with Can-
trade.
West Germany to become our third largest trad-
ada.
ing partner after only Canada and Japan. The
Mexico's policies have not only benefited
level of trade between the United States and
U.S. exporters who enjoy nearly a 68 percent
Mexico is expected to continue growing for the
share of the Mexican import market, but have
rest of the year at a rate of 8 percent and exceed
also benefited Mexican business people as well
$56.0 billion.
by encouraging them to look beyond their coun-
The explosive growth in U.S.-Mexico two-
try's borders to sell their products.
way trade over the last four years has been led
U.S. imports from Mexico during 1989 rose
by a 108 percent increase in U.S. exports to
by approximately 17 percent to a record level of
Mexico and is primarily the result of Mexico's
$27.2 billion, and have continued to rise this
substantial liberalization of trade regulations
year at an impressive rate of 7.2 percent. At this
and a growing awareness on the part of U.S.
rate, U.S. imports from Mexico would reach
firms of the opportunities in the Mexican mar-
$29 billion in 1990. Due to the unexpected rise
ketplace.
in the price of oil since August, however, Mexi-
In December of 1987, the Mexican govern-
can exports will probably exceed $30 billion.
ment cut tariffs from 40 percent to a maximum
Oil is still Mexico's leading foreign exchange
of 20 percent; eliminated a 5 percent surtax on
earner. Given that the export growth of the past
imports; reduced the number of products subject
four years occurred during a period of relatively
to prior import permits to less than 300 out of
low oil prices, however, the government's
the approximately 12,000 items in the tariff
economic policies have clearly succeeded in
schedule; and discontinued the use of official
diversifying the country's exports and in reduc-
prices for customs valuation purposes. The
ing its reliance on oil as a source of export earn-
Mexican government has continued to liberalize
ings.
the regulations governing imports. In the spring
Mexico is the third-largest market for U.S.
of 1988 the Mexican government removed the
exports in the world. Intermediate goods, such
prior import permit requirement from most tex-
as automotive and electronics parts, account for
tile and apparel products and in the spring of
much of the United States' exports to Mexico.
1989, it eliminated the import permit require-
However, U.S. exports of primary products,
ment for new computer hardware. Beginning
such as synthetic resins and chemicals; agri-
with the new model year, the U.S. and other
cultural products, such as corn, soybeans and
foreign firms manufacturing automobiles in
meat; and increasingly, even consumer goods
Mexico will be allowed to also import certain
perform very well.
Business America, October 8, 1990 '9
Mexico
continued
Mexico's conclusion of a new debt agreement
The United States and Mexico have agreed
this year with its international creditors has
that increased commercial links would yield
reduced the debt burden and freed resources for
positive benefits for both countries. In order to
continued economic modernization and
encourage this expansion, Secretary Mosbacher
increased imports, the majority of which will be
and Mexican Secretary of Commerce and Indus-
purchased from U.S. suppliers. The increased
trial Development Jaime Serra Puche have cre-
resources for economic modernization will
ated the Joint Committee for Investment and
enable Mexican industry to become more inter-
Trade, a binational committee which has, for
Commercial
nationally competitive and position them well to
the last year, been promoting greater awareness
relations
contribute to increased exports of Mexican
on both sides of the border of trade and invest-
between the
goods.
ment opportunities in both countries.
U.S. and
Mexico's economy improved during 1989
The program began in earnest in November
Mexico have
and has continued to do so this year. The
1990, when Secretary Mosbacher led a group of
never been
improvements have resulted from the country's
16 CEOs of major U.S. corporations to Mexico
better.
strict adherence to an economic program, which
to meet with Mexican government officials and
combines austerity measures of tight monetary
private sector representatives and learn firsthand
and fiscal policies with wage and price controls.
about the new business opportunities. Since
This program was instituted by the government,
then, senior U.S. Department of Commerce
in cooperation with the business community and
officials have led two trade and investment
labor unions, and has yielded very positive
business development missions to Mexico to
results. The gross domestic product grew by
investigate opportunities in insurance and
nearly 3 percent last year and is projected to
petrochemicals, and will lead another for
grow at the same rate this year, employment has
environmental firms in mid-October. There has
been rising, the public sector deficit has been
also been a mission to exchange information on
declining, and the annual inflation rate has
corporate law. Another business development
fallen from 160 percent in 1987 to 52 percent in
mission to Mexico is currently planned for
1988 to 20 percent in 1989. Inflation during
November of 1990 and will focus on oppor-
1990 is expected to be approximately 25-27
tunities in the tourism industry.
percent.
Another event that has been planned for
The Mexican government has continued to
October of 1990 under the auspices of the Joint
demonstrate its strong commitment to economic
Committee for Investment and Trade is a series
reform by extending these successful economic
of conferences that will be held in five cities in
policies through January of 1991. As the
the United States: Houston, Dallas, New York,
economic recovery continues, so will the expan-
Chicago and Los Angeles. These conferences
sion of the Mexican market for U.S. products
will feature Secretaries Mosbacher and Serra,
and services.
along with senior U.S. and Mexican govern-
Mexico's policies of trade liberalization and
ment officials and private sector representatives,
economic restructuring have also resulted in
and will focus on generating greater awareness
substantial changes in its foreign investment
and interest in the trade and investment oppor-
policies. In May of 1989, the Mexican govern-
tunities awaiting U.S. business people in Mex-
ment issued a new foreign investment regula-
ico's market.
tory regime that greatly expanded the number of
Commercial relations between the United
industrial sectors where majority foreign owner-
States and Mexico have never been better, and
ship is welcome, streamlined the procedure and
both governments remain committed to working
made more transparent the conditions for for-
together to achieve our shared goal of promot-
eign investment, created mechanisms through
ing mutually beneficial economic growth. Now
which foreigners can invest in Mexico without
is the time for U.S. firms to begin doing busi-
prior government approval, and initiated a
ness in Mexico. The U.S. and Foreign Com-
worldwide campaign to encourage foreign
mercial Service has offices in three cities in
investment in Mexico and greater foreign par-
Mexico-Mexico City, Monterrey, and
ticipation in the country's economic recovery
Guadalajara-to help U.S. firms enter the Mex-
and industrial expansion.
ican market successfully.
10
Business America, October 8, 1990
Mexico's Economic Growth is
Achieved Through Reform, Privatization
By Paul Dacher
Office of Mexico and the Caribbean Basin
International Trade Administration
T
he Mexican economy in the fall of 1990
ated nominally at a rate of 80 centavos per day.
shows economic growth and increased
However, due to differences in U.S. and Mexi-
business confidence. Interest rates are
can inflation rates, the peso appreciated, in real
declining, foreign reserves are increasing, and
terms, by 4.9 percent against the dollar during
progress continues on the fiscal front. In real
the first half of this year. This has had the effect
terms, the peso continues to increase in value in
of reducing the costs of U.S. products to Mexi-
relation to the U.S. dollar. Economic growth in
cans.
Mexico has been achieved through a program of
A favorable exchange rate, combined with
economic reform that is reducing the govern-
the reduction of trade barriers and economic
ment's role in the economy as well as opening
growth, has increased demand in Mexico for
the economy to international competition.
approximately two-thirds of its imports.
Since 1987, when consumer price inflation
Mexico's efforts to diversify its exports away
Conclusion
reached nearly 160 percent, the top priority for
from reliance on petroleum has been a success.
of a debt
the Mexican government has been reducing
Non-petroleum goods now account for 65 per-
inflation. In December of that year, the
agreement
cent of Mexico's exports. In contrast, in 1983
has freed
Economic Solidarity Pact (the "Pact") was
petroleum products accounted for the same per-
announced. The Pact combined strict fiscal and
resources for
centage of Mexico's exports. Thus, Mexico has
monetary policies, wage and price controls, and
been able to counter declining petroleum reve-
continued
an exchange rate policy that allowed the peso to
nues with a successful effort to promote its
moderni-
significantly appreciate in real terms against the
exports of other products.
zation.
dollar.
Another successful area in Mexico has been
The Pact and its successor, the Pact for Sta-
the "maquiladora" or "in-bond" industry. The
bility and Economic Growth, have succeeded in
program allows foreign manufacturers to ship
reducing inflation. Consumer price inflation
components into Mexico duty-free for assembly
was brought down to 52 percent in 1988, and
and subsequent reexport. This sector employs
reduced to 20 percent in 1989.
more than 440,000 people in nearly 1,800
Progress on the inflation front has had certain
plants, and is Mexico's second largest source of
costs. Price controls are pressuring profit mar-
foreign earnings.
gins. Limits on wage increases have affected
In early 1990, Mexico restructured $48 bil-
labor negatively and cutbacks in discretionary
lion in public sector debt owed to commercial
government spending have seriously affected
banks. The restructuring will take three forms:
the country's infrastructure. High real rates of
principal reductions, interest rate reductions,
interest, needed to support the exchange rate of
and new money. The World Bank and Interna-
the peso, are limiting domestic investment and
tional Monetary Fund have also committed new
hence constraining economic growth.
funds to Mexico. The restructuring is expected
To manage these problems, the government
to reduce Mexico's foreign debt servicing by $4
of Mexico is allowing price increases in several
billion annually during the period 1990-1994.
sectors, primarily in government-controlled
Mexico's total foreign debt was estimated to be
goods such as gasoline and electricity. Because
$94 billion at the end of March 1990.
of price adjustments, inflation in Mexico will
Mexico's current account for 1990 was fore-
increase this year, to an estimated 25-27 per-
cast to be $5.0 billion in deficit, before the
cent. The government is faced with the delicate
recent surge in oil prices. Mexico has
task of encouraging economic growth, adjusting
announced that it will increase its exports by
prices and keeping inflation down, all at one
100,000 barrels per day until October. During
time.
the first four months of this year, Mexico
The exchange rate of the peso has been an
exported an average of 1.2 million barrels of
important part of the government's anti-inflation
crude oil per day. Expansion of Mexico's
program. At present, the peso is being depreci-
petroleum exports is limited due to production
Business America, October 8, 1990 11
Mexico
continued
bottlenecks caused by the lack of investment in
New Maquiladora Rules
Pemex (the state-owned oil company) during
the last eight years.
Streamline Approval Process,
Interest rates in Mexico have declined from
Facilitate Foreign Investment
their levels at the beginning of the year. At the
end of 1989, 28-day Mexican Treasury bills
yielded a nominal rate of interest of 39.7 per-
On Dec. 22, 1989, the government of Mexico
cent (real rate of 17 percent, based on 20 per-
announced new regulations covering the
cent inflation). At the end of August 1990, the
maquiladora industry. This effort to liberalize
nominal yield was down to 29 percent, with a
the maquiladora program is expected to make it
real return of about 5.4 percent.
an even more attractive and dynamic sector of
The outlook for the Mexican economy
the economy. Industry established under the
Bank priva-
remains good, although unemployment will
maquiladora program is Mexico's second
tization will
remain high (it is currently estimated to be 18
largest source of foreign revenue, and provides
make
percent), and certain sectors, particularly agri-
economic benefits both to Mexico and the
financial
culture, will remain depressed. However, stable
United States. The program allows foreign man-
institutions
or higher petroleum prices and growth in the
ufacturers to ship components into Mexico
more
maquiladora sector will increase foreign trade
duty-free for assembly and subsequent reexport.
competitive.
revenues. Imports should increase as the econ-
The sector employs more than 440,000 people
omy continues its expansion. Economic growth
in nearly 1,800 plants.
was 2.9 percent during 1989, a real improve-
The new regulations have streamlined the
ment over 1988's 1.1 percent. Economic
approval process for establishing maquiladora
growth in 1990 should also be around 3 percent.
operations. The time period for approval will be
reduced to two to three weeks, from the pre-
Mexico Privatizes Banks In
vious period of several months. In addition, the
Government has set up a "one stop" procedure
Effort to Modernize Institutions
for potential investors, so that they do not have
to go from office to office in search of informa-
Last May, the government of Mexico an-
tion and project approval.
nounced that Mexico's commercial banking sec-
The regulations also allow companies to sell
tor, which was nationalized in 1982, would be
domestically, up to 50 percent of their produc-
re-privatized. This is the latest step in a major
tion, on a government-approved basis. Pre-
privatization program Mexico has been under-
viously, the limit had been 20 percent. The
taking, which has included the sale of state-
government has established local content
owned airlines, tourism facilities, and industrial
requirements for maquiladoras to sell in the
facilities.
Mexican market. Local content will be required
In July, new regulations governing banking
to be 2 percent the first year, 3 percent the sec-
were issued. Under these new regulations, for-
ond, and 4 percent in subsequent years. Positive
eigners will be allowed to participate in limited
foreign exchange balances will have to be main-
equity positions in newly privatized banks. For-
tained. When goods enter the Mexican market,
eign investment will be limited to 30 percent of
duties will only be assessed on their foreign
equity, although individual holdings will be
component.
limited to a maximum of 10 percent, with gov-
To encourage Mexican companies to sell to
ernment authorization, and 5 percent without.
maquiladoras, the government is waiving value-
Limits will also be placed on foreign participa-
added taxes on products sold to these opera-
tion on bank boards of directors.
tions. Currently, the industry uses minimal lev-
The new laws and decrees affecting banking
els of Mexican components in its production.
are intended to modernize and make more com-
Maquiladora operations may now be allowed
petitive Mexican financial, institutions. This is
to import, duty and import license free, prod-
in step with the general government policy of
ucts not directly involved in production. This
increasing competition and efficiencies in Mex-
includes computers and other administrative
ico's economy.
materials and transportation equipment.
12
Business America, October 8, 1990
U.S. Trade Center Is Effective Way
To Enter the Mexican Market
By David S. Yonker
Deputy Director, U.S. Trade Center
Mexico City
stablished to help U.S. businesses expand
products, resulting in 27,083 trade leads. The
E
their sales to Mexico, the U.S. Trade
shows produced more than $3.5 million in
Center in Mexico City regularly stages
immediate sales and estimated follow-up sales
trade shows for American products. Mexican
of $259.4 million in the 12 months after the
business people recognize the Trade Center as
shows.
one of the best means through which to stay
To accommodate this surge of U.S. business
The U.S.
aware of the latest developments in U.S. tech-
interest in the Mexican market, U.S. Trade
Trade Center
nology and equipment. Since it was created by
Center staff more than doubled the display area
the U.S. Department of Commerce in 1972,
is a good
to 18,700 square feet.
192 trade shows have been staged, along with
In addition to the U.S. Trade Center-
way to enter
more than 1,800 individual company-sponsored
organized trade shows, the Center is also avail-
the Mexican
seminars, product exhibits, and training pro-
able to U.S. businesses that want to sponsor
market.
grams. More than 370,000 Mexican buyers
seminars, exhibits, and training programs for
have attended product exhibits set up by 7,400
staff and customers. Companies are provided
U.S. companies and have purchased U.S. prod-
with simultaneous translation equipment and
ucts worth more than $3.7 billion.
audio/visual aids at the Center.
Fiscal year 1990 was a record breaker at the
The trade shows that attracted the most
Trade Center. The increase in the number of
buyers and produced the largest projected sales
U.S. companies that participated in events
in 1990 were Rep-Com, Petroavance, Maquinas
staged there and the larger volume of buyers
Herramientas, Computacion, and Hotel y Res-
followed closely the increase in trade between
taurant.
the United States and Mexico. Approximately
The next show will be Telecomunicaciones
21,860 buyers attended nine shows; seminars
'90, to be held Oct. 16-18; it will be followed
were attended by 2,060 Mexican business peo-
by Rep-Com on Dec. 4-6. The telecommunica-
ple; and 656 U.S. companies displayed their
tions show is very timely, in view of the Mexi-
U.S. Ambassador
to Mexico John D.
Negroponte and
Fernando Sanchez
Ugarte from the
Mexican Ministry
of Commerce and
Industrial
Development greet
Larry Johnson of
Herschel Corpora-
tion, an Iowa
firm, at REP-
COM, which gen-
erated 6,800 leads
last year. Photo
taken by David S.
Yonker.
Business America, October 8, 1990
13
Mexico
continued
can government's program to privatize the
panies interested in locating representatives,
national telephone company, TeleMex. The
distributors, licensees, or joint-venture partners.
Rep-Com trade event has traditionally been one
More than 6,800 trade leads were generated in
of the most popular and best-attended shows
Rep-Com 1989 and 12-month estimated sales
sponsored by the Trade Center. It is expected
were $89 million.
that 200 U.S. companies will participate in the
For information on events scheduled at the
show this year.
U.S. Trade Center, call (52) 591-0155; fax:
Rep-Com is designed for new-to-market com-
(52) (5) 566-1115.
The past
U.S. Trade Center Events
year's high
level of
The U.S. Trade Center has scheduled the following events for the re-
activity at the
mainder of this year and for 1991 to showcase some of the U.S.
Trade Center
products and services that it believes have the best prospects for sales.
has broken
all records.
TELECOMMUNICACIONES '90
Broadcasting, Telephone, Transmis-
October 16-18, 1990
sion Communication Equipment
Exhibition
Mexico City
REP-COM '90
Exhibition of Firms Seeking Mexican
December 4-6, 1990
Representatives, Agents, Distributors,
Licensees or Joint Ventures
Mexico City
PLASTICOS '91
Plastics Technology Equipment and
February 12-15, 1991
Supplies
Mexico City
AUTOMECANICA '91
Repair Equipment, Auto Parts and
March 12-14, 1991
Accessories
Mexico City
COMPUTACION '91
Computers, Software and Peripheral
April 9-12, 1991
Equipment
Mexico
HI-TECH USA '91
Telecommunications and Advanced
April 17-19, 1991
Technology Equipment Exhibition
Computación 91-Spin-off
Guadalajara, Jal.
CASA MODERNA '91
Home Fixtures, Furnishings
May 14-16, 1991
Decorations & Life Style
Mexico City
SEGURIDAD '91
Safety and Security Equipment
June 11-13, 1991
Exhibition
Mexico City
ARTES GRAFICAS '91
Graphic Arts Equipment and Materials
August 13-15, 1991
Exhibition
Mexico City
CONTROL DE PROCESOS '91
Process Control Instrumentation
September 23-25, 1991
Equipment Exhibition
Mexico City
HI-TECH USA '91
Telecommunications and Advanced
September 30-Oct. 2, 1991
Technology Equipment Exhibition
Monterrey,
Control de Procesos 91-Spin-off
N.L.
For information regarding the above exhibitions, contact the U.S. Trade Center, P.O. Box
3087, Laredo, Texas 78044-3087; tel. (52) (5) 591-0155, fax: (52) (5) 566-1115.
*Schedule subject to change.
-14
Business America, October 8, 1990
Environmental Mission Will Explore
Opportunities in Mexican Market
By Kathleen Hannegan
Capital Goods and International Construction
International Trade Administration
wenty leading U.S. suppliers of environ-
"One Day Without a Car" program. Motorists
T
mental equipment and services will travel
are required to leave their cars at home one
to Mexico on an environmental trade and
work day each week.
investment mission Oct. 15-19. Mission partici-
An obligatory vehicle inspection program
pants will go first to Mexico City and have the
has been instituted.
option to travel to either Monterrey or Guadala-
A new program of oxygenated fuel blends
jara at the end of the trip. While in Mexico,
has been initiated.
Environmen-
mission members will meet with high-level fed-
Thermoelectric plants are now required to
eral, municipal, and private sector officials to
burn natural gas instead of fuel oil.
tal and pollu-
Mexico City has undertaken an expansion
tion control
discuss how U.S. technologies can be applied to
Mexican environmental priorities. Roger Wal-
of the metro system.
is a top
lace, Commerce's Deputy Under Secretary for
The automotive industry has committed to
national
International Trade, will lead the mission.
installing two-way catalytic converters on all
priority for
Mexico's environmental and pollution control
new models starting in 1991, and three-way
Mexico.
sectors were identified as top priorities under
converters starting in 1993.
the U.S.- Mexico Joint Committee for Invest-
PEMEX has begun production of unleaded
ment and Trade (JCIT). The Committee was
gasoline.
established in October of 1989 to identify trade
President Salinas will announce on Oct. 15
and investment opportunities in each country,
a special program to fight air pollution in Mex-
support the promotion of these opportunities,
ico City.
and to cooperate in the organization of trade and
For information on this mission and environ-
investment promotion events. This mission is
mental opportunities in Mexico, contact Kath-
the third in a series of JCIT missions; it follows
leen Hannegan at (202) 377-5908.
two previous sector-specific missions, in the
petrochemical and insurance sectors.
The purpose of the mission is to help U.S.
companies take advantage of the tremendous
opportunities for sales of environmental equip-
ment and services in Mexico. Pollution control
Environmental and
and abatement in Mexico is a top priority. The
pollution control
Mexican government plans to spend at least
are top priorities
$100 million on its pollution control program in
for Mexico. Left,
Mexico City alone over the next three years. In
solar cell panels
1989, the total market for pollution control
power a water
equipment and services in Mexico City was
well pump at a
estimated to be $208 million with an expected
plant in Mexico
10 percent annual growth rate through 1991.
City. The plant is
Since 1989, the government of the Federal Dis-
part of research
trict has adopted a series of measures that suc-
designed to pro-
ceeded in reducing emissions in Mexico City by
mote the use of
12 to 15 percent during the winter months of
solar energy for
rural development.
1989-90. Private firms are also installing pollu-
tion control systems in order to comply with
new antipollution regulations and more strict
compliance requirements.
Below is a list of initiatives developed by the
government to counter the pollution problems in
Mexico City:
In November 1989, Mexico City began the
Business America, October 8, 1990
15
Mexico
continued
Japanese Assistance in Pollution
Control Opens Door for U.S. Business
By Andrea Curaca Malito
Office of Mexico and the Caribbean Basin
International Trade Administration
T
he Japanese government recently extended
ects. The team will work with Mexican officials
$805 million of untied credits to Mexico
to link qualified U.S. firms to specific Mexican
for environmental projects. This funding
needs, identify and develop projects, and secure
is a very important part of Mexico's environ-
feasibility study and project funding through the
ment and pollution control program. Moreover,
U.S. Trade and Development Program (TDP).
it presents a unique opportunity for U.S. sup-
Information on doing business with Mexico
pliers to develop a market in Mexico for their
and more specific details about these projects
Japanese
goods and services in environmental and pollu-
and the Mexican government agencies tracking
credit for
tion control-an area identified as a national
them is available from the Commerce Depart-
environmen-
priority by the Mexican government.
ment's Mexico Desk at (202) 377-4464 and
tal projects
Current opportunities under these credits are
commercial officers at the U.S. Embassy in
enhances
principally for producers of equipment and
Mexico City at (011) 525-211-0042.
this market
infrastructure used in producing lead-free gas-
Pollution control has been identified as a pri-
for U.S.
oline and sulphur free fuel and diesel oil. Japan
ority area under the U.S.-Mexico Joint Commit-
firms.
has initially focused its foreign aid to Mexico
tee for Investment and Trade. During the
on combatting air pollution including desulphur-
Environmental Trade and Investment Mission to
ization of fuel oil ($450 million), an unleaded
Mexico City in mid-October, Japanese trading
gasoline project ($315 million), and rehabilita-
houses will meet with our mission members to
tion of locomotives ($40 million).
foster cooperative efforts among U.S. suppliers,
There may also be future opportunities under
the Mexican government, and Japanese firms.
untied Japanese aid for engineering, con-
struction, and equipment in water and solid and
hazardous waste treatment. Effective project
formulation could serve as the driving force.
U.S.-Mexico Business Organizations
U.S. suppliers must "lock in" to the project
planning process at a very early stage to obtain
U.S.-Mexico Chamber of Commerce
business from Japan's untied official develop-
1900 L Street, N.W.
ment assistance (ODA) to Mexico. Interested
Suite No. 612
U.S. firms must begin their marketing efforts
Washington, D.C. 20036
now. U.S. suppliers need to identify environ-
tel. (202) 296-5198
mental projects as they are being developed
within the government of Mexico, assist the
American Chamber of Commerce of
Mexicans in elaborating these projects through
Mexico, A.C.
pre-feasibility and feasibility studies, and work
Lucerna No. 78
with the Mexican government to obtain financ-
Colonia Juarez
ing, perhaps from the United States, the World
06600 Mexico, D.F. Mexico
Bank, the Inter-American Development Bank,
tel. 011-525-705-0995
or the government of Japan. When using Jap-
anese ODA, it would be extremely beneficial
U.S. Council of the Mexico-U.S.
for U.S. suppliers to develop business relation-
Business Committee Council of the
ships with Japanese firms, including Japanese
Americas
trading, during project development.
1625 K Street, N.W., Suite No. 1200
The U.S. government has established a team
Washington, D.C. 2006
at the Embassy in Mexico City to help U.S.
tel. (202) 659-1547
business in pursuing these environmental proj-
16 Business America, October 8, 1990
OF OF GAZINE-OF TB $
TIC RNATIONA
WQ
SPRING 986
WILSON
QUAR
Social Disease
WHITE HOUSE
That Afflicts
Us All
This issue of Wilson
als for adults with reading
Quarterly examines one of our
problems.
nation's most severe, yet
Services-Increasing
underpublicized, problems:
numbers of G+W employees
illiteracy. Though an informed
are participating in Literacy Vol-
citizenry is a cornerstone of our
unteers of America programs.
democracy, more than 26 mil-
Grants-Simon &
lion American adults lack a ba-
Schuster strongly supports
sic means to learn. They are
literacy programs, including
functionally illiterate. The intan-
Literacy Volunteers of America
gible cost cannot be measured.
and Reading Is Fundamental,
The economic costi is an estimat-
with annual contributions,
THE WILSON QUARTERLY SPRING 1986 New Zealand Literacy
ed $100 billion a year, according
and the Gulf+Western Foun-
to the U.S. Department of Edu-
dation in June will announce
cation. We all pay the price.
the recipients of approximately
Gulf+Western is helping
$500,000 in special grants to
to combat the problem both
other nonprofit organizations
directly and indirectly through:
with exemplary literacy efforts.
Products-In our Pub-
A growing number of
lishing and Information Services
business and public organiza-
Group, Simon & Schuster's Cam-
tions are joining the campaign to
bridge Books unit is the leading
overcome illiteracy. They need
publisher of specially created
your help. Illiteracy is too much
books and other learning materi-
a waste of human minds.
GW
GULF+WESTERN
Publishing and Information Services,
Entertainment, Financial Services
China America Rilke VOL. x NO. 2
ONWARD
One Gulf+Western Plaza
New York, NY 10023
TAX ZEALA LITERACY à CHINA AMERICAN NOTES TRII
BOOKS PERIODICALS
NOTES ON THE UNITED STATES
Ideas
NOTES ON
THE UNITED STATES
Latin America's intellectuals and artists have long been known
for their leftist, even Marxist, sympathies. Few today emulate the
late Chilean poet Pablo Neruda, who remained loyal to Moscow
even after the horrors of the Stalin era. But Colombia's Gabriel
García Márquez, Argentina's Julio Cortazar, and others have ritu-
ally denounced Washington's imperialismo while singing the
praises of Fidel Castro. Mexico's Octavio Paz is one of the ex-
ceptions. The widely read poet-essayist and former diplomat
first learned to distrust communism when he supported the anti-
Franco cause in the Spanish Civil War. And it was not long after
Cuba's 1959 revolution that Paz voiced disenchantment with
Castro's new workers' state. Paz, a self-described democratic so-
cialist, is no cheerleader for the Yanquis. Here, however, he
offers them an unusual view of their place in history.
Peaceable Kingdom (1834) by Edward Hicks
reduces it to uniform series, and the Virgin, the natural and
spiritual energy that irrigates and illuminates the human soul
and thus produces the range and variety of our works. Tocque-
by Octavio Paz
ville and Adams saw, clearly and sharply, what was going to
happen; we, today, see what is happening.
Faced with the concrete reality of the United States, the first,
When I speak of America's originality, I am not referring to
natural reaction of any visitor is utter amazement.
the familiar contrasts-great wealth and extreme privation, the
Few have gone beyond that initial shock of surprise-ad-
cheapest vulgarity and the purest beauty, greed and altruism,
miration mingled at times with revulsion-to realize the im-
active pursuit of goals and the passivity of the drug addict or the
mense originality of that country. One of those few, and the first
frenetic violence of the drunkard, proud freedom and the docil-
of them, was Alexis de Tocqueville. His reflections, set down in
ity of the herd, intellectual exactitude and the fuzzy delirium of
Democracy in America (1835), are still as pertinent as ever. He
the nut case, prudishness and license-but, rather, to the histori-
foresaw the future greatness of the American Union and the
cal novelty that the United States represents.
nature of the conflict that has lain at its heart ever since its birth,
Nothing in our human past has been comparable to this
a conflict to which it owes, at one and the same time, both its
reality that is made up of violent clashes and glaring contrasts,
great successes and its great setbacks: the opposition between
and is, if I may use the expression, full of itself. Full and empty.
freedom and equality, the individual and democracy, local free-
What lies behind this tremendous variety of products and goods
flaunted before the eyes of the world with a sort of shameless-
doms and federal centralism.
Henry Adams's vision, though less broad, was perhaps
ness born of generosity?
more profound: Deep within American society he saw an oppo-
A wealth that is fascinating-that is to say, deceptive.
sition between the Dynamo, which transforms the world but
I am not thinking of the injustices and inequalities of Amer-
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
81
80
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
ican society. Though they are many, they are fewer and less
ished and justified by a metahistory; in other words, by a com-
than our own, than those of most nations. I say "decep-
mon end that lay above individuals and had to do with values
grave tive" wealth not because it is unreal but because I ask myself
that were, or were presumed to be, transcendent. Americans
whether a society can live trapped within the confines of the
naturally share beliefs, values, and ideas: freedom, democracy,
circle of production and consumption, work and pleasure.
justice, work, and SO on. But all such concepts are a means,
There are those who will say that this situation is not
something for this or that. The ultimate ends of their acts and
unique, but common, rather, to all industrial countries. That is
thoughts lie not in the public domain but in the private. The
true, but in the United States, since it is the nation that has gone
American Union was the very first historical attempt to give back
the farthest along this path and is thus the perfect expression of
to the individual what the State had stolen from the person in
modernity, the situation has reached its extreme limit.
the beginning.
I do not mean by that that the American State is the only
liberal State: Its founding was inspired by the examples of Hol-
I repeat my question: What lies behind this wealth? I can-
land, England, and the philosophy of the 18th century. But the
not answer; I find nothing, there is nothing. I explain myself: All
American nation, and not only the State, is different from others
institutions in America-its technology, its science, its energy,
precisely because it was founded on these ideas and principles.
its education-are a means, a way toward. Freedom, democ-
Unlike what happened elsewhere, the United States Constitu-
racy, work, inventive genius, perseverance, fulfillment of prom-
tion does not modify or change a prior situation (in its case, the
ises and obligations: Everything is useful, everything a means to
monarchical regime with its hereditary classes, estates, and spe-
attain-what? Happiness in this life, salvation in the life beyond,
cial jurisdictions); it institutes, rather, a new society. It marks an
absolute beginning.
the good, the truth, wisdom, love? Ultimate ends, those that
It has frequently been said that in liberal democratic soci-
really count because they give meaning to our lives, are not
visible on the horizon of the United States. They exist, that is
eties, especially in the United States, the power of individuals
and groups, above all of capitalist enterprises but also of work-
certain, but they appertain to the private domain.
Questions and answers as to life and its meaning, death and
ers' bureaucracies and other sectors, has grown without re-
the life beyond, traditionally taken over by Church and State,
straint, to the point where State domination has been replaced
have heretofore always been matters in the public domain. The
by that of special interests. The criticism is a fair one. It must be
great historical novelty of the United States lies in its attempt to
added, however, that while this reality seriously distorts the orig-
return them to the private domain, the private life of each and
inal design, it does not nullify it altogether. The founding princi-
every citizen. What the Protestant Reformation achieved in the
ple is still alive. Proof of that can be found in the fact that it
continues to inspire the movements of self-criticism and reform
sphere of beliefs, the American Union has achieved in the secu-
that periodically shake the United States. All of these have repre-
lar sphere.
American society, unlike all other societies we know of,
sented themselves as a return to the country's origins.
was founded in order that its citizens might realize their private
9
ends in peace and freedom, on the theory that the common
good lies not in a collective or metahistorical end but in the
The great historical originality of the American nation, and
harmonious coexistence of individual ends. Can nations live
also the root of its contradiction, lies in the very act by which it
without common beliefs and without a metahistorical ideology?
was founded. The United States was founded in order that its
In the past, the acts and deeds of each people were nour-
citizens might live, among themselves and by themselves, free
at last of the weight of history. It was a construct aimed against
Octavio Paz,72, is a poet, essayist, and former diplomat. Born in Mexico
City, be attended the National University of Mexico. He is the author of
history and its disasters, oriented toward the future, that terra
numerous books of poetry and prose, including The Labyrinth of Solitude
incognita with which it has identified itself.
(1950). This essay is excerpted from One Earth, Four or Five Worlds
The cult of the future fits naturally within the American
(1985). English translation copyright © 1985 and published by Harcourt
design and is, SO to speak, its condition and its result. American
Brace Jovanovich, Inc. Copyright 1983 by Octavio Paz. Copyright © 1983
society was founded by an act of abolition of the past. Its citi-
by Editorial Seix Barral, S.A., Barcelona.
zens, unlike Englishmen or Japanese, Germans or Chinese,
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
83
82
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
Mexicans or Portuguese, are not the offspring of but the begin-
ning of a tradition. Instead of carrying on a past, they inaugurate
mocracy and an empire. The contemporary situation is very dif-
a new time. The act (and the document) of foundation-a can-
ferent, however: Great Britain's imperial rule was exclusively
celing-out of the past and a beginning of something different-
colonial and exercised overseas; moreover, in its European and
has been repeated throughout its history.
American policy it sought not hegemony but a balance of
But the United States is not in the future, a region that does
power. But the policy of the balance of powers belongs to an-
not exist; it is here and now, among all the rest of us, in the
other stage in history; neither Great Britain nor any other great
midst of history. It is an empire, and its slightest movements
European power was forced to confront a State such as the So-
shake the whole world. It would like to be outside the world
viet Union, whose imperialist expansion is inextricably linked to
but it is in the world-it is the world. Hence the contradiction
a universal orthodoxy. The Russian Bureaucratic State not only
of contemporary American society: Being at once an empire and
aspires to world domination but is a militant orthodoxy that
a democracy is the result of another, deeper contradiction, hav-
does not tolerate other ideologies or systems of government.
ing been founded against history yet being itself history.
If, instead of comparing the international situation that con-
fronts the United States today with that prevailing in Europe
during the second half of the last century, we think of Rome in
the last days of the Republic, the comparison shows American
The United States has undergone a period of doubt and
democracy to be in an even more unfavorable position.
disorientation. If it has not lost faith in its institutions-Water-
The political difficulties of the Romans of the first century
gate was an admirable proof of this-it no longer believes as
B.C. were primarily internal in nature, and this partially explains
fervently as it once did in the destiny of the nation. The present
the ferocity of the struggles among the various factions: Rome
state of mind of the American people is in all likelihood the
had already achieved domination over all the known world, and
consequence of two phenomena that used to be opposites but,
its only rival-the Parthian Empire-was a power on the defen-
as frequently happens in history, have now become conjoined.
sive. Moreover, and most important, none of the powers that
The first is the sense of guilt that the Vietnam War aroused in
had fought the Romans sought to further a universalist ideology.
many minds; the second is the waning of the puritan ethic and
the waxing of the hedonism of abundance.
The sense of guilt, coupled with the humiliation of defeat,
has reinforced the traditional isolationism, which has always re-
By contrast, the contradictions of American foreign pol-
garded American democracy as an island of virtue in the sea of
icy-a result of the controversies among groups and parties as
perversities that is world history. Hedonism, for its part, takes no
well as of the inability of the nation's leaders to formulate a
notice of the outside world or, along with it, of history. Isola-
long-term overall plan-exist side by side with an aggressive
tionism and hedonism coincide in one respect: They are both
empire that embraces a universalist ideology. To make matters
antihistorical. Both are expressions of a conflict present in
still worse, the Western alliance is made up of countries whose
American society since the war with Mexico in 1847, but not
interests and politics are not always identical with those of the
United States.
fully apparent until this century: The United States is a democ-
racy and at the same time an empire.
The expansion of the American republic has been the natu-
A peculiar empire, I must add, for it does not wholly fit the
ral, and in some ways fatal, consequence-if I may SO put it-of
classic definition of one. It is something quite distinct from the
its economic and social development; Roman expansion grew
Roman, Spanish, Portuguese, and British empires.
out of the deliberate action of the senatorial oligarchy and its
Standing bewildered in the face of its dual historical nature,
generals over a period of more than two centuries. The foreign
the United States does not know which way to turn today. The
policy of Rome is an outstanding example of coherence, single-
dilemma is a fateful one. If it chooses a truly imperial destiny, it
ness of purpose, perseverance, skill, tenacity, and prudence-
will cease to be a democracy and will thereby lose its reason for
precisely the virtues that we find lacking in Americans. Tocque-
being a nation. But how to renounce power without being im-
ville was the first to see where the fault lay:
mediately destroyed by its rival, the Russian Empire?
It will be objected that Great Britain, too, was both a de-
With regard to the conduct of the external affairs of soci-
ety, democratic governments appear to me to be decid-
The Wilson Quarterly/Spring 1986
84
The Wilson Quarterly/Spring 1986
85
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
edly inferior to the others
Foreign policy requires
America is the opposite of Russia, another religious country
the use of almost none of the qualities that characterize
but one that identifies religion with the Church and finds the
democracy, and on the other hand calls for the develop-
confusion between ideology and party legitimate. The commu-
ment of almost all those which democracy lacks by its
nist State-as was quite evident during the last war-is not only
very nature
Democracy would find it most difficult to
the successor of the tsarist State but its continuer. The notion of
coordinate all the details of a great undertaking, draw up
a social contract or "covenant" has never held an important
a plan in advance, and stubbornly follow it to the end
place within the political history of Russia, or within the tsarist
despite all obstacles. It has little aptitude for preparing
or Bolshevik tradition. Nor has the idea of religion as something
its means in secret and patiently awaiting the results.
belonging to the sphere of heartfelt individual belief; to the
Russians, religion and politics appertain not to the sphere of
American democracy is religious in origin and extends back
private conscience but to the public sphere. Americans have
to the communities of Protestant dissenters who settled in the
endeavored, and are endeavoring, to construct a world of their
country during the 17th century. Religious preoccupations were
very own, a world outside of this world; the Russians have en-
later transformed into political ideas steeped in republicanism,
deavored, and are endeavoring, to dominate this world in order
democracy, and individualism, but the original religious tone
to convert it.
never disappeared from the public conscience.
The basic contradiction of the United States has an effect on
In the United States, religion, morality, and politics have
the very foundations of the nation. Hence our reflections on the
been inseparable. This is the major difference between Euro-
United States and its present predicament lead to the question:
pean liberalism, which is almost always secular and anticlerical,
Will it be able to resolve the contradiction between empire and
and the American variety. Among Americans, democratic ideas
democracy? At stake are its life and its identity.
have a religious foundation, in some instances implicit and in
others (the majority) explicit. These ideas served to justify the
attempt, unique in history, to constitute a nation as a covenant
in the face of, and even against, historical necessity or history as
Though it is impossible to answer this question, it is possi-
fate. In the United States the social contract was not a fiction but
ble to venture a comment.
a reality, and it was entered into in order not to repeat European
The sense of guilt can be transformed, can lead directly to
history. This is the origin of American isolationism: the attempt
the beginnings of political salvation. Hedonism, on the other
to establish a society that would escape the vicissitudes that Eu-
hand, leads only to surrender, ruin, defeat. It is, admittedly, true
ropean peoples had suffered. American expansion, up until the
that after Vietnam and Watergate we have been witness to a sort
war with Mexico, was aimed at colonizing empty spaces (Indian
of masochistic orgy and seen many intellectuals, clergymen, and
peoples were always regarded as nature) and that space more
journalists rend their garments and beat their breasts as signs of
contrition. These self-accusations, as a general rule, were not
empty still, the future.
and are not false, but their tone was and is frequently hysterical
(as when a journalist, writing in the New York Times, held
American policy in Indochina responsible for the subsequent
If they could, Americans would lock themselves up inside
atrocities committed by the Khmer Rouge and the Vietnamese).
their country and turn away from the world, except to trade with
Yet this sense of guilt, besides being a compensation that
it and visit it. The American utopia-in which, as in all utopias,
maintains a psychic equilibrium, carries moral weight: It stems
monstrous features abound-is an interweaving of three
from a searching conscience and the recognition that a wrong
dreams: those of the ascetic, the merchant, and the explorer.
has been committed. Hence it can become a sense of respon-
Three individualists. Hence three American traits: Their reluc-
sibility, the one and only antidote against the intoxication of
tance to confront the outside world; their inability to understand
hubris, for individuals as for empires. On the other hand, it is
it; and their lack of skill in manipulating it. Americans are citi-
more difficult to transform the hedonism of modern masses into
zens of an empire, surrounded by some nations that are allies
a moral force. It is not blind illusion, however, to place our trust
and by others out to destroy it, yet Americans would rather be
in the ethical and religious foundations of America: They are a
left alone: The outside world is evil, history is perdition.
living source whose flow has been obstructed but not yet en-
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
86
87
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATE
tirely dammed.
tion; they have also lost control of themselves. What the United
The foreign policy of the United States has followed a zig-
States has lacked is not power but wisdom.
zag, erratic course, frequently contradictory and at times beyond
Above all, the American people and its leaders lack that
all understanding. Its principal defect, its basic inconsistency, is
sixth sense that almost all great nations have had: prudence.
attributable not to the failings of American leaders, which are
Since Aristotle, this word designates the highest political virtue.
many, but to its being a policy more sensitive to domestic reac-
Prudence is made up of wisdom and integrity, boldness and
tions than to foreign ones.
moderation, discernment and persistence in undertakings. The
The United States' objectives are to contain the Soviet
best and most succinct definition of prudentia was given re-
Union and its shock troops (Cuba, Vietnam), to consolidate its
cently by Cornelio Castoriadis: the ability to find one's bearings
own alliance with Japan and the European democracies, to con-
in history. This is the ability that many of us find lacking in the
solidate its ties with China, to bring about an agreement in the
United States.
Middle East that will preserve the independence of Israel and at
the same time strengthen friendship with Egypt, to gain friends
in the Arab countries and in those of Latin America, Africa, and
To Montesquieu, the decadence of the Romans had a two-
Asia.
fold cause: the power of the army and the corruption of luxury.
These are its avowed ends, but its real ones are to win the
The first was the origin of the empire, the second its ruin. The
votes and satisfy the aspirations and ambitions of this or that
army gave Rome dominion over the world but, along with it,
group at home, whether Jews or blacks, industrial workers or
irresponsible sybaritism and extravagance. Will the Americans
farmers, the "establishment" of the East or Texans. It is evident
be wiser and more temperate than the Romans; will they show
that the policy of a great power cannot be subordinated to the
greater moral fortitude? It seems most unlikely. However, there
shifting and divergent pressures of various groups within the
is one aspect of the situation that would have raised Montes-
nation: The cause of the downfall of Athens was not so much
quieu's spirits: The Americans have succeeded in defending
Spartan arms as the struggles between internal parties.
their democratic institutions and have even broadened and per-
fected them.
In Rome, the army backed the despotism of the Caesars;
Any list of the errors of American policy must end with the
the United States suffers from the ills and vices of freedom, not
following reservation: These errors, magnified by the mass me-
those of tyranny. Though deformed, the moral tradition of criti-
dia and by political passions, are revealing of vices and faults
cism that has accompanied the nation all through its history is
inherent in plutocratic democracies, but they do not indicate an
still alive.
intrinsic weakness. The United States has suffered defeats and
In the past, the United States was able to use self-criticism
setbacks, but its economic, scientific, and technological power
to resolve other conflicts. It continues to give proof of its capaci-
is still superior to that of the Soviet Union.
ties for self-renewal. During the last 20 years it has taken great
So is its political and social system. American institutions
strides in the direction of resolving the other great contradiction
were designed for a society in perpetual motion, whereas Soviet
that tears it apart, the racial question. It is not beyond the
institutions correspond to a static caste society. Hence any
bounds of possibility that by the end of this century the United
change in the Soviet Union endangers the very foundations of
States will have become the first multiracial democracy in his-
the regime.
tory. Despite its grave imperfections and its vices, the American
There is much talk of the inferiority of the Americans in the
democratic system bears out the opinion of antiquity: If democ-
military sphere, especially in the area of traditional weapons.
racy is not the ideal government, it is the least bad.
This is a temporary inferiority. The United States has the mate-
One of the great achievements of the American people has
rial and human resources to re-establish the balance of power.
been to preserve democracy in the face of the two great threats
And the political will? It is difficult to give an unequivocal
of our day: the powerful capitalist oligarchies and the bureau-
answer to that question. In recent years, Americans have suf-
cratic State of the 20th century. Another positive sign: Americans
fered from a psychic instability that has taken them from one
have made great advances in the art of human cohabitation, not
extreme to another. Not only have they lost their sense of direc-
only in terms of different ethnic groups that live peacefully to-
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
88
89
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
gether but also in domains heretofore ruled by the taboos of
traditional morality, such as sexuality. Some critics lament that
Another defect of American democracy, already noted by
permissiveness and the relaxation of morals; I confess that the
Tocqueville in his day: egalitarian tendencies, which do not sup-
other extreme strikes me as worse-the cruel puritanism of
press individual selfishness but merely deform it. These tenden-
communists and the bloody prudery of Khomeini. Finally, the
cies have not prevented the birth and spread of social and eco-
development of the sciences and technology is a direct conse-
nomic inequalities, while at the same time they have held the
quence of the freedom of investigation and criticism predomi-
best back and hampered their participation in public life.
nant in the universities and cultural institutions of the United
A major example is the situation of the intellectual class: Its
States. American superiority in these fields is no accident.
first-rate achievements in the sciences, technology, the arts, and
How and why, in a democracy that has proved itself to be
education stand in sharp contrast to its scant influence in poli-
so endlessly fertile and creative in science, technology, and the
tics. It is true that many intellectuals serve and have served in
arts, should its politics be so overwhelmingly mediocre? Can the
government, but this has almost always been as technicians and
critics of democracy be right? We must grant that the will of the
experts-that is, in order to do this or that, not in order to help
majority is not a synonym for wisdom: The Germans voted for
define ends and goals. A few intellectuals have been counselors
Hitler, and Chamberlain was elected democratically. The demo-
of presidents and have thus contributed to planning and execut-
cratic system is exposed to the same risk as hereditary monar-
ing American foreign policy. But they are isolated cases. The
chy; the popular will is no more unerring than the genes, and
American intellectual class, as a social entity, does not have the
elections that turn out badly are as unpredictable as the birth of
influence that its counterparts in European and Latin American
defective royal heirs.
countries enjoy. For one thing, society is not inclined to grant
this class such a role.
American intellectuals, in turn, have shown little interest in
the great philosophical and political abstractions that have
The remedy lies in the system of checks and balances: the
roused deep passions in our era. This indifference has had a
independence of judicial and legislative power, the weight of
positive aspect: It has kept them from going as badly astray as
public opinion in governmental decisions through the healthy
many European and Latin American intellectuals. It has also
and sensible exercise of their critical function by the communi-
kept them from the despicable moral lapses and relapses of so
cations media. Unfortunately, neither the U.S. Senate nor the
many writers who, without so much as blinking an eye, have
media nor public opinion has given signs of political prudence
accepted public honors and international prizes as they hymned
in the years just past.
paeans of praise to the Stalins, the Maos, and the Castros.
The inconsistencies in American foreign policy are attribut-
able not just to officeholders and politicians but to the entire
nation. Not only do the interests of groups and parties come
before collective ends, but American opinion has shown itself
American intellectuals' mistrust of ideological passions is
incapable of understanding what is happening beyond its bor-
understandable; what is not understandable is their ignoring the
ders. This criticism is as applicable to liberals as to conserva-
fact that these passions have moved several generations of Euro-
tives, to clergymen as to labor leaders. There is no country bet-
pean and Latin American intellectuals, among them some of the
ter informed than the United States; its journalists are excellent
best and most generous. In order to understand these others
and they are everywhere, its specialists have all the data and
and to understand contemporary history as well, it is necessary
to understand these passions.
background facts needed for each case-yet what comes forth
When the subject under discussion is the American charac-
from this gigantic mountain of information and news is, almost
always, the mouse of the fable.
ter, the word naiveté almost invariably crops up. Americans
An intellectual failure? No: a failure of historical vision. Be-
themselves value innocence very highly. Naiveté is not a charac-
cause of the very nature of the endeavor that founded the na-
ter trait that fits well with the pessimistic introspection of the
tion-sheltering it from history and its horrors-Americans suf-
puritan. Yet the two coexist within the American character. Per-
haps introspection allows Americans to see themselves and dis-
fer from a congenital difficulty in understanding the outside
cover, within their heart of hearts, the traces of God or of the
world and orienting themselves in its labyrinths.
devil; naiveté, in turn, is their mode of presentation of self to
The Wilson Quarterly/Spring 1986
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90
91
NOTES ON THE UNITED STATES
NOTES ON THE UNITED STATES
others and their manner of relating to them.
almost exclusively on moral grounds, generally neglected to ex-
Naiveté is an appearance of innocence. Or, rather, it is pro-
amine the nature of the conflict. Critics were more interested in
tective gear. Thus the apparent defenselessness of one who is
condemning President Lyndon B. Johnson than in understanding
naive is a psychological weapon; it preserves that person from the
how and why there were American troops in Indochina. Many
contamination of the other and, by isolating him or her, makes it
said that this conflict "was no concern of America's," as though
possible to escape and launch a counterattack. The ingenuous-
the United States were not a world power and the war in Indo-
ness of American intellectuals in the face of the great ideological
china were a local episode.
debates of our century has fulfilled that double function. It has
Morality is no substitute for historical understanding. That is
kept them from falling into the moral errors and perversions into
precisely why many liberals were so surprised at the outcome of
which certain Europeans and Latin Americans have fallen; and it
the conflict: the installation of a military-bureaucratic dictatorship
has permitted them to judge and condemn those who have
in Vietnam, the mass murders under Pol Pot, the occupation of
strayed from virtue-without understanding them. Both Ameri-
Cambodia and Laos by Vietnamese troops, the punitive expe-
can conservatives and liberals have substituted moral judgment
dition by the Chinese, and, in recent days, the hostilities between
for historical vision. Admittedly, it is not possible to have a view
Vietnam and Thailand. And today, confronted by the situation in
of the other, that is to say a vision of history, without moral
Central America, liberals mouth the same simplistic nonsense.
principles. But a moral perspective cannot replace true historical
Apart from the fact that it is not always sincere, the moraliz-
vision, above all if this moral perspective is that of a provincial
ing attitude does not help us to understand the reality that lies
puritanism combined with variable but strong doses of pragma-
outside ourselves. Morality, in the sphere of politics, must be
tism, empiricism, and positivism.
accompanied by other virtues. Central to all of them is historical
The two missions of the modern intellectual are, first, to
imagination. This intellectual faculty has a counterpart in the
investigate, create, and transmit knowledge, values, and experi-
realm of sensibility: sympathy for the other, for others.
ences; and, second, to criticize society and its usages, institutions,
and politics. Since the 18th century, this second function, inher-
ited from the medieval clerics, has assumed greater and greater
The image presented by the United States is not reassuring.
importance. We are all familiar with the work of Americans in the
The country is disunited, repeatedly torn apart by dissensions that
fields of the sciences, literature, the arts, and education; they have
do not have the least element of grandeur, eaten away by doubt,
also been honest and courageous in their criticism of their society
undermined by a suicidal hedonism, dazed by the ranting of
and of its defects. America's intellectuals have been faithful to the
demagogues. It is a society divided, not so much vertically as
tradition upon which their country was founded and in which the
horizontally, by the clash of tremendous selfish interests: great
scrutiny of conscience occupies a central place.
corporations, labor unions, "the farm bloc," bankers, ethnic
groups, the powerful communications industry.
The remedy is to regain unity of purpose, without which
This puritan tradition, however, by emphasizing and encour-
there is no possibility for action-but how? The malady of de-
aging separation, is antihistorical and isolationist. When the
mocracies is disunity, mother of demagogism. The other road,
United States abandons its isolation and participates in the affairs
that of political health, leads by way of soul-searching and self-
of the world, it does SO in the manner of a believer in a land of
criticism: a return to origins, to the foundations of the nation. In
infidels.
the case of the United States, this means to the vision of its
American writers and journalists have an insatiable curiosity
founders-not to copy them, but to begin again. Not to do exactly
and are extremely well informed about what goes on in today's
as they did but, rather, like them, to make a new beginning. Such
world, but instead of understanding, they pass judgment. It must
beginnings are at once purifications and mutations: With them
be said, in all truth, that they reserve their severest judgments for
something different always begins as well.
their compatriots and those in public office. That is admirable;
yet at the same time it is not enough. In the days of their country's
intervention in Indochina, they denounced, with good reason,
the policy emanating from Washington; yet their criticism, based
The Wilson Quarterly/Spring 1986
The Wilson Quarterly/Spring 1986
92
93
NOVEMBER6, 1989-62.95
10H1B
REPUBLIC
WHITE
AND
RESEARCH CENTER
th
AGAINY
ANNIVERSARY
THE EDITORS FRED BARNES HENRY FAIRLIE
MAVIS GALLANT · AL GORE RICHARD HOWARD
IRVING HOWE 0 JOHN B. JUDIS STANLEY KAUFFMANN
MICKEY. KAUS 2 AI FRED'KAZIN MICHAEL KINSLEY
MORTON KONDRACKE CHARLES KRAUTHAMMER
ROBERT KUTTNER O OCTAVIO PAZ of RICHARD PIPES
ROGER ROSENBLATT RICHARD TARUSKIN
HELEN VENDLER OF MICHAEL WALZER D LEON WIESELTIER
C.VANN WOODWARD a ROBERT WRIGHT
DC 20503
SHINGTON
FACSIMILE OF TNR's FIRST ISSUE
41*BH
MN IS HILL 725
1990
ATTN EOPW RM G220
LIBRARY-INFO SRVS DIV
330020 072 51L22099 H458 FEB05
#729D #07251L22094* ****3-DIGIT 205
tion. Citizen Kane, The Searchers, L'Avven-
When I was a high school senior, I took
many of his philosophical and aesthetic
tura, Senso, Ikiru, Tokyo Story, Diary of a
a girl named (let's say) Jean Miller to a
ideas, but my admiration is still alive and
Country Priest, La Grande Illusion, The Pas-
party, a nice forthright girl who all eve-
intact: in his writings, as in his life, liberty
sion of Anna-even young Steven Soder-
ning long was nice, forthright Jean
and poetry have the same fiery face, at
bergh's sex, lies, and videotape-show
Miller. I took her home after the party,
once seductive and tempestuous. Like
something of the range of tempera-
and at her front door I kissed her good
Chateaubriand at the other end of the
ments and aspirations that realism can
night; and as our faces moved together,
spectrum, he never mistook the tyrant
accommodate.
I saw Jean Miller become Joan Craw-
for the liberator.
Another benefit-enforced, perhaps,
ford. It was at that moment, I suppose,
Liberty is not a philosophy and it is not
but still a benefit-has been the refine-
that I first became clear about what had
even an idea. It is a movement of con-
ment of film acting. The realism of film
been happening in my own daydreams
sciousness that leads us, at certain mo-
is much more intense than that of the
(in which I was usually Richard Dix) and
ments, to utter one of two monosylla-
theater because of the audience-not the
in those of many others. Within every
bles: Yes or No. In that instantaneous
audience as a group, but one individual
sentient being on the face of the earth-
brevity, which is similar to a flash of light-
viewer. The camera eye is vicar for one
or at any rate so many of them that the
ning, the contradictory sign of human
person. This has produced a kind of act-
claim is tenable-films are part of his or
nature is vividly limned.
ing that often sulks in slurring vernacu-
her dreams and daydreams. This is of-
lars of speech and movement but that at
ten true of other arts; it is always true of
hroughout history, and
its best can range from theatrical large-
films.
President or pope, farmer or financier,
T
under the most diverse cir-
ness as it fits film's needs (Vittorio De
cumstances, poets have
Sica in General della Rovere) across to
saleswoman or soprano, somewhere in
participated in political
sheer interiority (again, Vittorio De Sica
each of us there is a privacy that only
life. I do not refer to poetry as an art in
in General della Rovere). In this country,
films have reached. This is an ecume-
the service of a state, of a church, of an
even when a film as a whole has left an
nism more universal than most religions.
ideology. We already know that this con-
aching lot to be desired, performances
No one would maintain that this power
cept of poetry, as old as political and
within it have sometimes attained a beau-
of film is entirely good; still, whatever
ideological power, has invariably pro-
ty of their own. A few examples: Paul
our other allegiances, we are all citizens
duced the same results: states fall,
Newman in The Verdict, Dustin Hoffman
of that secret kingdom.
churches break apart or petrify, ideolo-
and Jon Voight in Midnight Cowboy, Meryl
It is awesome to remember that virtu-
gies vanish, but poetry remains.
Streep in Sophie's Choice, Jane Fonda in
ally all of the events and achievements
No, I refer to the free participation of
Comes a Horseman. Perceiving the limits
mentioned above-and mountains more
the poet in civic life. Even in societies
and methods of film, these and other ac-
that are omitted-came about within
that did not know political liberty, such
tors have turned intimate realism into a
75 years. This is an impressively long
as ancient China, not a few poets contrib-
kind of liberation.
time for a vigorously opinionated jour-
uted to the administration of public af-
Films have greatly amplified a power
nal but an impressively brief time for an
fairs. Many among them did not hesitate
that the theater had and, in lesser de-
art that, one way or another, has affected
to censure the abuses of the Son of Heav-
gree, still has. A personal instance.
most of the human race.
en, and many suffered imprisonment,
exile, and other penalties for their opin-
ions. In the West, this tradition has been
intense; I need hardly recall the poets of
Greece and Rome. Two of the greatest
poets of our tradition, the Florentine
Poetry, myth, and revolution.
Dante and the Englishman Milton, were
notable political thinkers; to the first we
owe the treatise On Monarchy, and to the
Time's Voice
second the daring arguments in favor of
freedom of conscience-his celebrated
defense of the right to divorce, his criti-
cism of the censorship decreed by Parlia-
By OCTAVIO PAZ
ment, which he had the courage to ex-
pound before Parliament itself.
t the dawn of the modern
know of nothing more servile, more cow-
Still, these historical precedents
A
age, confronted by a spec-
ardly, more obtuse than a terrorist. And
should not hide from us the fact that
tacle that has been re-
later, did I not find that entire race of Bru-
there is an essential difference between
peated many times since
tuses in the service of Caesar and his
these attitudes and the situation of mod-
then-by the spectacle of the tyrant dis-
police?
ern poets. The Chinese poets censured
guised as the liberator-Chateaubriand
Ever since my adolescence I have writ-
the throne, but they belonged to the im-
wrote these prophetic words:
ten poems, and I still write them. I want-
perial bureaucracy. Almost all of them
The Revolution would have carried me
ed to be a poet and nothing but a poet. In
were high officials, and their censure
along
but I saw the first head on the
my books of prose I meant to serve poet-
formed part of the moral and intellectual
end of a 'pike, and I recoiled. I will never
ry, to justify and to defend it, to explain it
tradition of Confucianism. Dante and
see an argument for liberty in murder; I
to others and to myself. I soon discov-
Milton found themselves engaged in
ered that the defense of poetry, scorned
controversies in which politics could not
OCTAVIO PAZ is the author most recently
in our century, was inseparable from the
be distinguished from religion. For both
of Sor Juana: Or, the Traps of Faith (Har-
defense of liberty. That is the source of
of them, the foundation for their opin-
vard University Press). A version of this
my interest in the political and social
ions lay in theology. They fought in this
essay was given as a lecture in June in
questions that have shaken our time. Af-
world with their eyes fixed on the next,
Paris, where the author was awarded the
ter the Second World War, I met André
with reasoning that came from eternity.
Tocqueville Prize.
Breton and his friends; I do not share
Dante placed Brutus and Cassius, two
90 THE 75TH ANNIVERSARY ISSUE OF THE NEW REPUBLIC NOVEMBER 6, 1989
enemies of the empire, in the last circle
marked out the limits of a piece of land
of Hell, at the side of the archtraitor Ju-
and said, "This is mine." On that day
das Iscariot; for him, this world was a
inequality began; and with it discord and
copy of the more real, transmundane re-
oppression, which is to say, history.
"A bracing, wide-ran
ality, and political crimes were to be
In short, revolution is an eminently
economic vicissitud
judged by the divine tribunal.
historical act that negates history. The
In the Greek city-states, by contrast,
new time that it initiates is a restoration
and in the Roman Republic, the influ-
of original time. As the child of history
ence of religion was not so great. The
and reason, revolution is the offspring of
questions that divided citizens were
linear, successive, and unrepeatable
time. As the child of myth, revolution is a
The
clearly political, untinged by theology.
And yet our similarity to Greco-Roman
moment in cyclical time, like the move-
antiquity is also deceptive. It lacks a cen-
ment of the stars and the round of sea-
Resurg
tral element, the distinctive sign that
sons. The nature of revolution, then, is
marks the birth of the modern age: the
dual. We cannot think it except by sepa-
idea of revolution. That is an idea that
rating its two elements and discarding
Liber
could not emerge except in our time, for
the mythic as a foreign body, and we can-
it is the heir of both Greece and Chris-
not live it except by uniting them. We
tianity-that is, of philosophy and the
think it as a phenomenon that responds
nington officials.
longing for redemption.
to the prognostications of reason; we live
Eleanor Clift,
it as a mystery. The fascination of revolu-
n no other historical period
tion lies in this enigma.
the most up-to-
I
has the idea of revolution pos-
sessed that power of magnetic
he modern age broke the
ous and
attraction. Other civilizations
and other societies experienced im-
T
ancient link that joined
poetry and myth-only to
Robert B.R
mense changes-uprisings, the fall of dy-
immediately join poetry
nasties, fratricidal wars-but only their
to revolution, to the idea that pro-
great religious upheavals can be com-
claimed the end of myth and thus be-
pared to our fascination with revolution.
came the central myth of modernity.
It is an idea that has hypnotized many
The history of modern poetry, from ro-
minds and several generations for over
manticism until our day, has been noth-
od things to life.
two centuries. The North Star that guid-
ing but the history of its relations with
ed our pilgrimages, the secret sun that
that myth, which is as clear and coher-
illumined and warmed the sleepless
ent as a proof in geometry, as turbulent
nights of many solitary people, in it the
as the revelations of ancient chaos. In-
certainties of reason and the hopes of re-
flamed, extreme relations, ranging from
ACK
ligious movements have been conjoined.
seduction to horror, from devotion to
A fres
From the moment it appeared on the
anathema, from idolatry to abjuration-
with leading Soviet
LER
horizon of history, revolution had a dual
the entire gamut of the two great pas-
understand the archi
nature: it was reason made act and it was
sions, love and religion.
an act of providence-rational determi-
Holderlin's enthusiasm for the young
nation and miraculous action, history
Bonaparte and his disillusion at seeing
rich collect
PRIZE
and myth. Criticism, the child of reason
him converted into the Emperor Napo-
of incisive interviews
Essential
in its most rigorous and lucid form, is its
leon, Wordsworth's Girondist sympa-
those wishing to understand the
AWARD
image-at once creative and destructive,
thies and the horror that Robespierre in-
change now taking place in the So
or rather, it creates as it destroys. Revo-
spired in him, are only two examples of
-Dav
lution is that moment when criticism is
the drastic fluctuations in the response
transformed into utopia and utopia is in-
of German and English romantics to the
Fascinating,
carnated in a few men and in an action.
French Revolution. These violent os-
The descent of reason to earth was a true
cillations are repeated throughout the
epiphany. It was lived as such by its pro-
19th century, in response to each revolu-
tagonists, and later by its interpreters:
tionary movement; they culminate in the
Not only the most valuable
lived, and not thought.
20th century with immense, successive
book about glasnost yet
published, but the most in-
For almost all of them, revolution was
waves of contradictory feelings-again,
teresting. - Norman Mailer
a consequence of certain rational postu-
from fanaticism to repulsion-that the
lates, or reason, and of the general evo-
prolonged influence of the Bolshevik
lution of society. Almost none of them
Revolution inspired all over the world.
suspected that they were present at a res-
The movements of adherence awak-
urrection. The newness of revolution
ened by all revolutions can be explained,
Now at your bookstore
LIE
seems absolute; it breaks with the past
in the first place, by the need we humans
feel to correct, and to put an end to, our
NORTON
and establishes a rational and just regime
that is radically different from the old
unfortunate condition. There are peri-
W.W. Norton, 500 Fifth Ave.,
NY, NY 10110
one. And yet this absolute newness is
ods when this need for redemption be-
seen and experienced as a return to first
comes more intense and more urgent,
beginnings.
because of the disappearance of tradi-
Revolution is the return to the time of
tional beliefs. The old gods crumble, rot-
origins, before injustice, before that mo-
ted by superstition, debased by fanati-
ment when, as Rousseau says, a man
cism, corroded by criticism. The tribe of
NOVEMB
phantoms begins to emerge among the
tion of personal mythologies.
serious
ruins: they appear first as radiant ideas,
This is another difference between
Sartre's Flau
but soon they are deified and converted
modern poetry and poetry of the past.
into dreadful idols.
For Dante, the key to his poem was sa-
THE FAMILY ID
itics
Although there are other explanations
cred scripture, the axis of universal anal-
of the revolutionary phenomenon-eco-
ogy; but Blake invents a mythology out
Volume 3 JEAN-PA
nomic, psychological, political-all of
of scraps of gnosticism and the hermetic
Translated by Carol Cos:
them, without being false, essentially de-
tradition. Many poets turned to the same
here shares
pend on this basic fact. A faith that is
recourse, and I hardly need recall the
The third volume in the
omise and
born in the void left by old beliefs, that
beliefs of Nerval or Hugo, or, in the
caused so much critical c
feeds on the consciousness of our misery
20th century, the theosophy of Yeats or
itics?" asked Renee Wir
as well as on the geometries of reason, is
the occultism of Breton. The reason for
fiction?" asked Victor Bro
a tough, resistant faith. It obstinately
this apparent paradox is that the public
Barnes
closes its eyes to the incoherences of its
religion of modernity has been revolu-
"ma
doctrine and the atrocities of its leaders.
tion, but its private religion has been
to
In this respect, revolutionary faith re-
poetry.
I
sembles religious faith: neither the
slaughter of September 1791, nor the
he criticism of revolutions
butchery of Saint-Barthélemy, nor Sta-
T
has been made by those
lin's concentration camps could shake
nostalgic for the old order,
the convictions of the faithful.
and by liberals (in the
broad sense of the word, which denotes
till, there is a difference.
not so much a doctrine as a philosophical
S
Revolutionary beliefs are
and political disposition). As opposed to
subject to the proof of time,
the reactionary criticism of revolutions,
while religious beliefs are in-
the liberal criticism of revolutions has
scribed in the next life, untouched by
been effective: it has dismantled the
time and its changes. Revolutions are
ideological constructs, pulled away their
historical, temporal phenomena. And
religious mask, revealed their historic,
time's criticism is irrefutable, because it
profane nakedness. Liberalism did not
is reality's criticism: it shows without
propose to replace those constructs with
needing to demonstrate. And what it
others. It is the very nature of this intel-
shows is that revolution begins as a
Edited }
lectual tradition to be critical-and this
promise, is squandered in violent agita-
has prevented it, unlike other great polit-
In 1958 John Huston as
tion, and freezes into bloody dictator-
ical philosophies, from proposing a
nario for a film about F
Newsweek
ships that are the negation of the fiery
metahistory. This is a domain that once
impulse that brought it into being. In all
his discovery of psycl
belonged to religion, but liberalism of-
revolutionary movements the sacred
fered nothing in exchange, and limited
prisingly, Huston and Si
time of myth is transformed inexorably
religion to the private sphere. It based
and the overlong scrip
into the profane time of history.
liberty on the only foundation that can
among Sartre's papers L
Hope is reborn after each failure. Shel-
as an acclaimed book.
sustain it: on autonomy of conscience,
ley's enthusiasm refutes Coleridge's dis-
and on the recognition of the autonomy
Freud's therapeutic me
enchantment; Heine writes Concerning
of conscience in others.
dramatized so theatrical
Germany in response to Mme de Staël, to
It was admirable, and it was terrible,
as here by Sartre. "-Johr
ridicule the poets of the previous gen-
too: for it locked us into a solipsism,
Times Book Review Now
eration who had initially shown sympa-
broke the bridge that connected I to thou
thy for the French Revolution but who
and both of them to the third person-to
had become its enemies. The cycle of
the other, to the others. Between liberty
adherence-denial-adherence was repeat-
and fraternity there is no contradiction,
Gerassi's Sar
ed for more than two centuries, first in
but there is a distance. It is a distance that
Europe, then throughout the world. And
liberalism has not been able to abolish.
the poetic word has simultaneously been
Robespierre and Saint-Just wanted to
JEAN-PAUL SAR
prophecy of, anathema to, and elegy for,
base solidarity among citizens on virtue.
Volume 1: Protestant or I
modern revolutions.
But what is the foundation of virtue? The
Although the differences and con-
Jacobins, like their descendants the Bol-
"Da:
trasts between the two great revolu-
sheviks, did not ask themselves this ques-
thate
tionary prototypes (the French Revo-
tion. Or rather: their answer was virtue
th
ccount
lution of 1789 and the Russian Revolu-
by decree, which is terror. And terror can
po
stacles
tion of 1917) are greater and more pro-
engender only two irreconcilable frater-
It
Review
found than their similarities, the senti-
nities: the executioners and the victims.
ments they inspired obeyed the same
Democratic liberalism is a civilized
inc
ng
affective rhythm of attraction and re-
mode of living together. In my opinion it
a
his
pulsion. Despite the fact that the reli-
is the best of all that political philosophy
New
omist
gious function of modern revolutions
has conceived: But it leaves unanswered
has invariably been crushed by the emi-
half of the questions that we humans ask
nently historic nature of these move-
Y PRESS
ourselves about fraternity, about origins
ments, the result has been the rebirth
and final ends, about the meaning and
The
CA, NY 14850
of similar aspirations and chimeras in
the value of existence. The modern age
At
the following generation, or the adop-
has exalted individualism, and has been,
NOVEMBER 6,
therefore, the period of dispersed con-
ternity arches over the void.
sciousness.
After a long period of political stagna-
Poets have been particularly sensitive
tion, always at the edge of the preci-
to this void. Baudelaire wrote in his jour-
pice, always facing the specter of a total
nal, around 1851:
war and the threat of annihilation of
CONC
the human race, we have been witness
The world will end
I'm not saying it
in the last 20 years to a series of
will be reduced to the buffoonish disorder
changes, to portents of a new era that
of the South American republics or that
perhaps we will return to savagery
No:
may be dawning. First, the myth of rev-
THE
machinery will have so Americanized us
olution has declined in the very place
to my
and progress will have so completely atro-
of its birth, in Western Europe; today it
phied our spiritual faculties that nothing,
is recovered from the war and prosper-
ood friend
not even the bloody chimeras of the uto-
ous, with a liberal democratic regime
for your co
pians, could possibly compare to those ex-
secure in each of the countries in the
arty Peretz
cellent results
But universal ruin (or
Community. Then there has been a re-
universal progress: the name doesn't in-
turn to democracy in Latin America, al-
terest me) will not manifest itself in politi-
though it still totters between the
cal institutions, but rather in the debase-
We value 01
ment of our souls
ghosts of populist demagoguery and
militarism, its two endemic afflictions,
pag
Ninety years later, as if he were con-
and the iron shackles of debt are
tinuing Baudelaire's reflections, in one
around its neck. Finally, there have
of his Four Quartets, Eliot sees our world,
been changes in the Soviet Union, in
which we think is moved by progress, as
other totalitarian regimes. Whatever
the interminable fall of the void into the
the scope of those reforms, they clearly
void:
signify the end of the myth of authori-
tarian socialism.
O dark dark dark. They all go into the dark,
Rapoport
The vacant interstellar spaces, the vacant
into the vacant,
hese changes are self-
The captains, merchants, bankers,
eminent men of letters,
T
critical, tantamount to a
confession. That is why I
The generous patrons of art, the
have spoken of the end of
The puł
statesmen and the rulers,
an era: we are witnessing the twilight of
Distinguished civil servants, chairmen of
the idea of revolution in its last, unfortu-
many committees,
nate incarnation, the Bolshevik version.
Industrial lords and petty contractors, all
It is an idea that survives only in some
go into the dark,
And dark the Sun and Moon, and the
regions on the periphery, and among
Almanach de Gotha
crazed sects like the Peruvian terrorists.
And the Stock Exchange Gazette, the
We do not know what the future holds
Directory of Directors,
for us: virulent nationalisms, ecological
D
And cold the sense and lost the motive of
catastrophes, the rebirth of buried my-
action.
thologies, new fanaticisms, but also dis-
And we all go with them, into the silent
coveries and creations-history and its
funeral,
entourage of horrors and marvels. And
Nobody's funeral, for there is no one to
we do not know if the peoples of the
D
bury.
Soviet Union will experience new forms
I could adduce more texts, but the
of oppression or an original, Slavic ver-
two I have cited are enough to illustrate
sion of democracy. In any case, the revo-
the spiritual state of poets when con-
lutionary myth is dying. Will it revive? I
fronted with the disasters of modernity.
don't think so. A Holy Alliance is not
Baudelaire's reflections and Eliot's
killing it: it is dying a natural death.
NordicTrack is the Best
verses are a funereal counterpoint to
Joyce said that history is a nightmare.
the enthusiastic hymns of Whitman and
He was mistaken; nightmares vanish with
Here's the evidence
bokstores,
Hugo. All of them are examples of the
the light of day, while history will not be
A major university laboratory CO
cluded NordicTrack users burned
splitting, or the rending, of modern po-
over until our species ends. We are hu-
calories and obtained significant
more cardiovascular exercise tha
/sstands,
etry, the mark that distinguishes it from
man through history and in it; if it ceased
from any other machine tested.
the poetry of other times and other civi-
to exist, we would cease to be human.
More complete workout than &
lizations. Suspended between the two
But the end of the revolutionary myth
exercise bike.
r send
hands of time-between myth and his-
will perhaps permit us to think again
NordicTrack provides upper-bod
tory-modern poetry consecrates a fra-
about the principles that have founded
exercise missing when sitting or
a stationary bike.
to billing)
ternity that is different and older than
our society, about their deficiencies and
Safer, more thorough exercise
that of religions and philosophies. It is a
lacunae. Relieved at last of the struggle
than a rowing machine.
fraternity born of the same sense of soli-
against totalitarian superstition, we can
Unlike rowing machines, Nordic
Track's arm and leg resistance
to
tude in primitive man surrounded by a
now reflect more freely on our tradition.
can be adjusted independently
strange and hostile nature. The differ-
And so the theme of the virtue of citizens
so you can set the tension ideall
for your arms and legs. No lowe
ence is that now we live that solitude
makes its reappearance.
back pain with NordicTrack.
not only as we confront the cosmos, but
It is a theme that comes from classical
as we confront our neighbors as well.
antiquity; it concerned Machiavelli as
NordicTrac
Y. 10017
Still, we know, each of us in our own
well as Montesquieu, and today it has a
room, that we are not really alone: fra-
painful actuality in many countries, in-
© 1989 NordicTrack A CML COMPA
NOVEM
LETTERS OF
cluding the Anglo-American democracy
something more precious and fragile:
founded by the Puritan ethic. Kant
LEONARD
memory. In each generation, the poets
taught that morality cannot be based on
rediscover the terrible antiquity, and
history, since history flows unceasingly,
the no less terrible youth, of passions.
WOOLF
and we do not know if any law or design
In the schools and the universities,
rules its capricious passing. We also
where the so-called political sciences
know that metahistorical constructs-re-
are taught, the reading of Aeschylus and
ligious or metaphysical, conservative
Shakespeare should be obligatory. Po-
or revolutionary-strangle liberty and
ets nourished the thought of Hobbes
eventually corrupt fraternity.
and Locke, Marx and Tocqueville.
The thought of the era that is begin-
Through the mouth of the poet there
ning-if, in fact, an era is beginning-
speaks-I emphasize speaks, not writes—
will have to find a point of convergence
the other voice, the voice of the tragic
between liberty and fraternity. We must
poet and the buffoon, the voice of soli-
rethink our tradition, renovate it, and
tary melancholy and of joy, of laughter
search for the reconciliation of the two
and of sighs, the voice of the lovers' em-
great political traditions of modernity,
brace and of Hamlet contemplating the
liberalism and socialism. I will go so far
skull, the voice of silence and of tumult,
as to say, paraphrasing Ortega y Gasset,
mad wisdom and wise madness, the inti-
that this is "the theme of our time." In
mate murmur in the bedroom and the
some contemporary work-for example,
surging crowd in the square. To hear
in the work of Cornelius Castoriadis-I
that voice is to hear time itself, the time
detect the beginning of a response.
that passes and comes back still, trans-
EDITED B Y
What can be the contribution of poet-
formed into a few crystalline syllables.
FREDERIC SPOTTS
ry in the reconstitution of a new po-
litical thought? Not new ideas, but
-Translated by Edith Grossman
656 pages
16 pages of photographs
"Leonard Woolf's letters are
arevelation-engaged, hard-
hitting, full of the crispest in-
Who Is Sylvia?
telligence. They make you
see why. Virginia loved this
man."
By HELEN VENDLER
-Phyllis Rose
"The letters of Leonard Woolf
Bitter Fame: A Life of Sylvia Plath
form a deeply absorbing rec-
by Anne Stevenson
ord of a brilliant moment in
(Houghton Mifflin, 384 pp., $19.95)
English literary and intelli-
gent life.
1 is really a pity that Anne Ste-
I
one by Linda Wagner-Martin. The at-
-Irving Howe
venson, a poet, put her name
traction of a biography of a poet by a.
to this book. Many readers will
poet-who might enter into Plath's intel-
recall that the American poet
"The letters in their great
lect, into her psyche, into her reading
Sylvia Plath (1932-63), after an initially
and writing, more deeply than the rest of
number and their extraordi-
brilliant start as a student and poet, at-
us-made me look forward to Steven-
nary variety of subject hold
tempted suicide while an undergraduate
son's book.
in common the vigor, pene-
at Smith, was rescued, hospitalized, and
In the event, however, it seems not to
tration and charity of his
given electroshock treatments, recov-
be Stevenson's book. She has lent her
ered, went on a Fulbright to England,
thinking, the sensitivity of his
name to it, but a very curious "Author's
married the British poet Ted Hughes,
Note" suggests that she did not write it
feelings, the endurance of his
bore two children, and published ever
with full authority. Ted Hughes's sister,
feelings."
more compelling poetry. The marriage
Olwyn Hughes, is the shadow author, at
-Eudora Welty
broke up after Plath discovered her hus-
least of the last four chapters, which cov-
band's infidelity, and Plath committed
er the bulk of Plath's married years, from
"Fast-paced and delightful,
suicide in her London flat.
1959 to 1963. And the "Author's Note,"
The curious dissonances in Plath's
these letters will please ev-
strange enough in itself, is accompanied
life-her often desperate journals and
by a footnote that no self-respecting
eryone interested in modern
poems bearing witness to states of in-
poet, it seems to me, could have allowed.
literature and history."
tense anguish, her public manner and
I reprint the entire "Author's Note" and
-Library Journal
her letters home keeping up an impreg-
its bizarre footnote:
nably cheerful and "successful" tone-
have made readers wonder about the life
In writing this biography, I have received a
HBJ
that lay behind the writing. There have
great deal of help from Olwyn Hughes,
already been two full-length biogra-
literary agent to the Estate of Sylvia Plath.
Harcourt Brace Jovanovich
Ms. Hughes's contributions to the text
phies, a wretched one by Edward
have made it almost a work of dual author-
Butscher and a responsible but cursory
ship. I am particularly grateful for the work
Que gusto meda
estár agui (de regreso).
What pleasure it gives
me to be here (again)
Mexico
PN 6081
.B24
WH
t: VOICES
OF AMERICA
The Nation's Story in
Slogans, Sayings, and Songs
Thomas A. Bailey
WITH THE ASSISTANCE OF
STEPHEN M. DOBBS
Fp
THE FREE PRESS
A Division of Macmillan Publishing Co., Inc.
NEW YORK
Collier Macmillan Publishers
LONDON
Little Van, Tyler, and Texas
105
American newspaper, recalling the famous Australian penal colony, re-
ferred to the vast area in the Southwest as the "Botany Bay" of the
United States. Other newcomers were foot-loose adventurers, including
frontiersmen Sam Houston and Davy Crockett, (the fabulous Tennessee
bear shooter and wit). Also present was James Bowie, (the reputed in-
ventor of the murderous eighteen-inch knife popularly known as the
"genuine Arkansas toothpick"). Men of this stamp would never bow their
necks to what they called the "greaser [Mexican] yoke." In 1835 the rest-
less Texan-Americans rose in revolt.
General Santa Anna, the Mexican dictator, swarmed into Texas with
an overwhelming force. A band of nearly 200 Texans, determined to
delay the invaders and exact a heavy toll, permitted themselves to be
trapped in the Alamo, a former church converted into a fort. Their com-
mander, Colonel William B. Travis, when called upon to yield, replied,
"I shall never surrender nor retreat.
Victory or death!" The embat-
tled Texas-Americans repelled some 5,000 attackers for twelve days, and
then were slain to a man, including Jim Bowie and the wounded Davy
Crockett. The proud Texans had reportedly written on the inner walls
of their battered tomb, "Thermopylae had its messenger of defeat. The
Alamo had none." (The reference was to the wiping out of the Greeks
by. the invading Persians, 480 B.C.) Later that month the Mexicans mas-
sacred as "pirates" about 400 Anglo-Americans who, expecting quarter,
had laid down their arms at Goliad, Texas.
Pushing northeast to crush General Sam Houston's tiny Texan army,
the overconfident Mexicans reportedly cried, "Exterminate to the Sabine
to
[River]." But at San Jacinto, caught napping during their siesta hour, the
of
invaders suffered a surprise attack by Houston's men, who shouted, "Re-
member the Alamo," "Remember Goliad," and "Death to Santa Anna."
ne
The invading Mexicans were completely dispersed or wiped out, and
ed
Santa Anna fell into the clutches of the vengeful Texans. He finally won
release after signing, under duress, documents designed to establish an
of
independent Texas Republic.
Cries of "Remember the Alamo," "Remember Goliad," and "Victory or
ire
death" swept up across the border. Aroused brothers, nephews, cousins,
he
and other red-blooded Americans responded. Many of them rushed to
Texas under the banner "Texas and Liberty" to serve with General Sam
Houston. Without such belated assistance independence might not have
been won. Popular songs in the United States were "The Death of
Crockett" and "Remember the Alamo," which was to be sung, according
)us
to the printed instructions, "freely, with strong emotion." Two stanzas
stood out:
ns,
ost
the
Heed not the Spanish battle yell,
Let every stroke we give them tell,
ant
And let them fall as Crockett fell.
One
Remember the Alamo!
114
Voices of America
until 1846, was attributed to Senator William Allen of Ohio, whose boom-
"Polk the Purposeful" W
ing voice caused him to be known as "The Ohio Gong," "Earthquake
any cost. Mexico would no
Allen," and "Foghorn Allen." Covered wagons headed west. flaunted on
prize was to provoke a was
their canvas sides the boastful words "Oregon, 54°40', all or none." The
collapsed, an impatient P
craze went so far that babies were reputedly named, "Fifty-Four Forty,"
army to proceed from the
and the letters "P.P.P.P." stood for "Phifty-Phour Phorty or Phight."
Grande. There he built a fc
Tough-talking Polk, with his tiny navy, was plainly trying to bluff the
war. Mexican authorities, r
mighty "Mistress of the Seas," but he held a few high cards. Among them
sion of their soil, fell upon
were the on-rolling covered wagons, plus "the American multiplication
or wounding sixteen men. I
table," and the arrival in Oregon of "border ruffians" armed with the
welcomed this border incio
new-fangled "revolving pistol." All these factors made clear that in time
gress. In it he flatly declare
the Americans would take possession of Oregon-and possession was still
shed American blood upo
nine points of the law, especially in the West. The London government,
exists, and notwithstanding
faced with problems and pressures at home, was in a mood to compro-
Mexico herself.
mise, and in 1846 Polk rather reluctantly accepted a rough split-the-
"Old Glory" had suffer
difference adjustment along the present boundary of 49°.
whelmingly passed the war
Finally America got neither 54°40' nor a fight, but something better, a
temporarily, lent support t
reasonable compromise without bloodshed. Yet die-hard "manifest desti-
inspired a popular soldier St
narians" voiced discontent as protesting Congressmen raised the cry
"Fifty-four forty forever." Senator Benton of Missouri assailed Polk on
The Mexican ban
the floor of the Senate: "And this is the end of that great line! All gone-
Our soil has bee
vanished-evaporated into thin air-and the place where it was, not to be
The murderers' tr
found. Oh! mountain that was delivered of a mouse, thy name shall
Our triumph is cc
henceforth be fifty-four forty!"
Yet Whig voices of pro
Congressman, suspecting a
POLK PROVOKES MEXICO
the conflict as "unholy, u:
Luck was with Polk when a formal settlement of the Oregon boundary
Corwin, the gifted orator
came about six weeks after fighting had broken out with Mexico. The
declared in a shocking sp
President thus escaped the dilemma of waging a two-front, two-ocean
Mexican, I would tell you
war.
country to bury your dead
Roots of conflict between the two neighbors were complex. The Mexi-
with bloody hands and wel
cans bitterly resented the Yankee annexation of Texas in 1845; they had
Homespun Abraham Lii
failed to pay claims for damages to American property incurred during
sentatives as a Whig some
Mexico's internal struggles; and they had flatly refused to sell California,
pating his own future Presi
which Polk was eager to acquire by paying $25 million. The smouldering
by introducing his "spot re
Texas issue was doubly sensitive. Resentful Mexicans not only refused
spot "upon the American SC
to acknowledge the loss of Texas to the United States but flatly rejected
The young Illinoisan pushe
an ill-founded territorial claim of Texas. Texans continued to insist that
he came to be known as "th
their southwest boundary was not the Sabine River but the Rio Grande,
Arnold." Whigs like Lincol
about 100 miles farther south. "Uncle Sam and Mexico," a song popular
to be "Mexican Whigs" wh
in the United States, breathed defiance:
Lowell wrote in his Biglow
They're kickin' up gunpowderation,
Ez fer
About the Texas annexation.
Ther
Since Mexico makes such ado,
I don't
We'll flog her, and annex her too!
Than
Polk and the Fruits of Expansion
115
om-
"Polk the Purposeful" was evidently determined to have California at
rake
any cost. Mexico would not sell, and so the only way to gain the golden
1 on
prize was to provoke a war and seize it. As soon as the last negotiations
The
collapsed, an impatient Polk ordered General Zachary Taylor's small
rty,"
army to proceed from the Sabine River (at Corpus Christi) to the Rio
Grande. There he built a fort that blockaded the river-in itself an act of
E the
war. Mexican authorities, regarding this incursion as an intolerable inva-
them
sion of their soil, fell upon one of General Taylor's detachments, killing
ation
or wounding sixteen men. Polk, eager to fight for other reasons, evidently
1 the
welcomed this border incident and sent a rousing war message to Con-
time
gress. In it he flatly declared that Mexico "has invaded our territory and
S still
shed American blood upon the American soil." He added that "war
ment,
exists, and notwithstanding all our efforts to avoid it, exists by the act of
npro-
Mexico herself.
t-the-
"Old Glory" had suffered insult, and a Democratic Congress over-
whelmingly passed the war resolution. Even the Whig opposition, at least
iter, a
temporarily, lent support to Polk. The patriotic spirit infusing the land
desti-
inspired a popular soldier song:
e cry
olk on
The Mexican bandits have crossed to our shore,
gone-
Our soil has been dyed with our countrymen's gore.
to be
The murderers' triumph was theirs for a day,
shall
Our triumph is coming, so fire, fire away!
Yet Whig voices of protest gradually grew shriller. One abolitionist
Congressman, suspecting a plot to annex more slave territory, denounced
the conflict as "unholy, unrighteous, and damnable." Senator Thomas
undary
Corwin, the gifted orator from Ohio, hurt his political career when he
O. The
declared in a shocking speech on the eve of hostilities, "If I were a
)-ocean
Mexican, I would tell you, 'Have you not enough room in your own
country to bury your dead men? If you come into mine I will greet you
Mexi-
with bloody hands and welcome you to hospitable graves.'
ey had
Homespun Abraham Lincoln of Illinois entered the House of Repre-
during
sentatives as a Whig some ten months after the war erupted. Not antici-
ifornia,
pating his own future Presidency, he embarrassed the Polk administration
dering
by introducing his "spot resolutions." They probingly sought the precise
refused
spot "upon the American soil" where American blood had first been shed.
rejected
The young Illinoisan pushed these resolutions with such persistence that
sist that
he came to be known as "the spotty Mr. Lincoln" and "a second Benedict
Grande,
Arnold." Whigs like Lincoln who opposed the war were commonly said
popular
to be "Mexican Whigs" who would die of "spotted fever." James Russell
Lowell wrote in his Biglow Papers, in Yankee dialect:
Ez fer war, I call it murder,-
There you hev it plain an' flat;
I don't want to go no furder
Than my Testyment fer that.
116
Voices of America
During the war antislavery men in Congress tried to pass the "Wilmot
Proviso," designed to ban slavery from any territory that should be
acquired from Mexico. They failed, but the Proviso did point up the
issue, and it did inspire such watchwords as "No Compromise: No More
Slave Territory."
MUTILATED MEXICO
Despite formidable obstacles, Polk prosecuted the war with remarkable
success. Untrained volunteers sprang to the colors in response to such
calls as "On to the halls of the Montezumas" and "Ho! for the halls of
the Montezumas." General Zachary Taylor, affectionately known as "Old
Rough and Ready" because of his informal attire, pushed across the Rio
Grande into northern Mexico, capturing Monterrey on the way. At Buena
Vista his force of nearly 5,000 men clashed with about 15,000 Mexicans,
many of them exhausted from prolonged marching, and a bloody battle
ensued.
When the foe called upon General Taylor to hoist the white flag, an
aide responded, "General Taylor never surrenders"-a defiant response
THE MEXICAN
that soon became a campaign slogan. Possibly the less elegant response
was "Tell him to go to hell." As the battle waxed hotter, "Old Zack"
Yankee
Taylor is supposed to have coolly remarked to an artillerist, "A little more
grape [shot], Captain Bragg." When the Second Kentucky Regiment
the vast Mexica
rallied, he is said to have cried, "Hurrah for Old Kentuck! That's the way
added about one
to do it. Give 'em hell, damn 'em."
Badly bloodied, the Mexicans finally withdrew at Buena Vista, taking
Under the sp
can opinion vair
with them some captured flags and the claim that they had beaten the
York newspaper
"gringoes." But "Old Rough and Ready's" bruised army had stood its
the custody of
ground, and Buena Vista became the most heralded battle of the war. It
ruled it for the
made two Presidents: Zachary Taylor of the U.S.A. and Jefferson Davis
ratification of tl
of the C.S.A. (Confederate States of America). Davis, a West Pointer
irresponsible agi
commanding the Tennessee Rifles, had brilliantly checked the onrushing
Mexicans by marshaling his men in a "V" formation. From that day on-
ward he seems to have suffered a fixation about the "V" and his own
GEN
military genius. During the Civil War the cynical remark was heard in
the South that if the Confederacy collapsed, it would "die of the V."
Hostilities with
The most decisive campaign of the Mexican War, as well as the most
claimed on the
brilliant, was that conducted by General Winfield Scott from Vera Cruz
about to bow 0
to Mexico City. Probably the best military mind produced in America
The Whigs had
from the Revolution to the Civil War (he served in three major wars), he
exciting hero of
at Buena Vista j
proved to be a man of statesmanlike talents whose nickname imposed a
to remark that 1
severe handicap. A strict disciplinarian and conventionally uniformed,
combustion."
he became known as "Old Fuss and Feathers," quite in contrast to in-
formally dressed "Old Rough and Ready" Zachary Taylor. Scott's con-
"Old Rough
ing an old stra
quest of the heart of Mexico opened the door for peace terms that ceded
when he could
Polk and the Fruits of Expansion
117
ilmot
d be
) the
More
kable
such
Ils of
"Old
Rio
uena
cans,
attle
PLUCKED :
;, an
THE MEXICAN EAGLE BEFORE THE WAR!
THE MEXICAN EAGLE AFTER THE WAR!
onse
onse
Yankee bumptiousness in the forties. Yankee Doodle, 1847.
ack"
nore
nent
the vast Mexican cession territory to the United States. The acquisition
way
added about one-third again to the nation's expanse.
Under the spell of "Manifest Destiny," a considerable body of Ameri-
king
can opinion vainly supported the "All of Mexico Movement." One New
the
York newspaper cried out against turning over "this beautiful country to
1 its
the custody of the ignorant cowards and profligate ruffians who have
r. It
ruled it for the last twenty-five years." As events turned out, speedy
avis
ratification of the peace treaty as submitted to the Senate ended such
nter
irresponsible agitation.
ing
on-
GENERAL TAYLOR'S ELECTORAL TRIUMPH
own
1 in
Hostilities with Mexico formally ended when the peace treaty was pro-
claimed on the Fourth of July, 1848. By this time, with President Polk
nost
about to bow out, the electoral campaign had officially got under way.
ruz
The Whigs had a ready-made candidate in General Taylor, the most
rica
exciting hero of the recent conflict. After the news of his glorious victory
he
at Buena Vista in 1847, a boom started for him that caused one enthusiast
d a
to remark that this man on horseback would be elected by "spontaneous
ed,
combustion."
in-
"Old Rough and Ready" further caught the public eye by often wear-
on-
ing an old straw hat and sitting sideways on his horse, "Old Whitey,"
led
when he could have appeared in proper uniform. He was "rough" if not
Polk and the Fruits of Expansion
123
their prey more effectively. Many of the escaped slaves living in the
to
North became frantic. A mass meeting of blacks in New York City posted
his
handbills proclaiming, "The Fugitive Slave Bill! The Panting Slave! Free-
men to be Made Slaves."
ar-
Antislaveryites in general reacted angrily to the new statute, which
they branded "The Bloodhound Law." "Disobedience to the act is obedi-
a
ence to God" was the cry arising from one Ohio mass meeting. Various
Northern states passed "Personal Liberty Laws," some of which denied
their jails to the "manstealers," and these restrictions greatly impeded the
ugly work of the bloodhound men.
Distasteful though the epochal Compromise of 1850 was to both North
and South, it definitely strengthened the ideal of union and possibly post-
poned the armed clash for a decade. Delay meant greater support for
soil,
the concept of unity, and to this end the popular poet Longfellow con-
tributed immeasurably with his poem "The Building of the Ship" (1849):
Sail on, O Ship of State!
nor
Sail on, O Union, strong and great!
Humanity with all its fears,
an
With all the hopes of future years,
and
Is hanging breathless on thy fate!
GENERAL SCOTT VERSUS GENERAL PIERCE
President Taylor, still the obedience-demanding old general, disapproved
of truckling to the South in the Compromise of 1850 and was fully pre-
pared to wield the Presidential veto and to string up Southern disunion-
ists. Fortunately for conciliation, he died unexpectedly, and Millard
Fillmore, "The Accidental President" or "His Accidency," stepped into
an
his military boots. A rather inconspicuous New York lawyer, Fillmore had
in
come up from humble beginnings ("The Wool-Carder President"), and
he carried on as a moderate Whig ("The Last of the Whigs"). In this
capacity he backed the union-saving Compromise of 1850, which proved
to be the outstanding domestic achievement of his curtailed administra-
tion.
The Whig nominating convention of 1852 at Baltimore, unable to agree
in-
on either Millard Fillmore or Daniel Webster, turned to "Old Fuss and
Feathers," General Winfield Scott. He was venerated as a hero of the
War of 1812, notably for the battles at Chippewa and Lundy's Lane on
bar
the Canadian frontier, where he was severely wounded. Voters more
vividly remembered his role in the Mexican War, especially the succes-
of
sive and successful engagements at Vera Cruz, Cerro Gordo, Contreras,
Churubusco, and Chapultepec. The Whigs had won the Presidency only
with war heroes "Old Tippecanoe" Harrison and "Zack" Taylor, so they
not illogically chose the remaining top-drawer military hero. Their plat-
form frankly supported the "finality" of the controversial Compromise of
1850, including the slave-catching Fugitive Slave Act. Angered anti-
124
Voices of America
slavery Whigs in the North breathed defiance: "We accept the candidate
American political pa
but we spit upon the platform." The proslavery Whigs in the South-
Congress, "The Forg
sometimes called "Finality Men"-doubted Scott's loyalty to this slave-
native state, and the \
catching commitment. In effect they accepted the platform but spat on
with the query "Who
the candidate. After Scott's seemingly inevitable defeat, the saying was
crats formed "Granit
circulated that the Whig party "died of an attempt to swallow the Fugi-
their new "Young Hi
tive Slave Law."
well under Polk. Pun:
General Scott, though a brilliant military man and a skilled diploma-
Pierce 'em in '52."
tist, lacked an appealing public image. "Old Fuss and Feathers," his
Pierce could boast
sobriquet, conjured up the true image of a man who was overweight,
rank of brigadier gen
haughty, pompous, vain, and quarrelsome. Democrats made merry with
martial laurels came
some of his offhand but innocent remarks. Early during the Mexican
Pierce, to his regret,
War he had explained a brief absence from his office in Washington by
had suffered an excr
saying that he had stepped out to take "a hasty plate of soup." As a Whig
fall off his horse. WI
general who feared sabotage by the Democratic Polk administration,
as the hero of "many
Scott reluctantly took the command at Vera Cruz, for, as he observed,
Brigadier General
"soldiers had a far greater dread of fire upon the rear than of the most
College, routing his
formidable enemy in front." Democratic critics jeered at "a hasty plate
some Frank" receive
of soup" and "fire upon the rear," which ran counter to the saying that "a
who backed the Cor
good soldier never looks behind." Despite Scott's well-known anti-for-
and also from the ex]
eignism, he went out on the stump and stooped so low as to tell heckling
The nation could ant
crowds of Germans and Irish how much he loved "the sweet German
accent" and "the rich Irish brogue."
Whigs countered sneers at the fussy general with such songs as "Old
Chippewa," "The Battle of Niagara," and "The Men of Churubusco."
Scott's supporters also strove to make an asset of his liabilities, especially
in the song "Fuss and Feathers,"
Since Fuss and Feathers is the cry,
Let us the fuss begin,
And we will show them, by and by,
How fuss and feathers win.
Ingenious Whigs even tried to make a virtue of "hasty soup" in a tune by
that name and in "Scott Soup for the Millions," the chorus of which con-
cluded, "Our new Scott soup is just the thing." The soup bowl, like the
log cabin of 1840, became a symbol of the campaign.
"Hasty soup" aside, various Whig medals advertised such solid senti-
ments as "Gen. Winfield Scott-First in War, First in Peace," "Scott &
Graham [for Vice President], Union & Constitution," and the shopworn
"United We Stand, Divided We Fall." Beneath all the personal sneers,
jeers, and soupy silliness of the campaign, the nation clearly felt a deep
concern for the preservation of the union.
As for their own nominee, the Democrats at Baltimore turned away
from "Old Fogies" such as General Cass and finally stampeded to Frank-
lin ("Handsome Frank") Pierce of New Hampshire, "The Young Hickory
of the Granite Hills." He was the second dark-horse candidate of a major
Polk and the Fruits of Expansion
125
American political party. A lawyer who had served in both houses of
Congress, "The Forgotten President" was not well known outside his
native state, and the Whigs tried to jeer him back into relative obscurity
with the query "Who is Frank Pierce?" Undaunted by taunts, the Demo-
crats formed "Granite Clubs" and raised "Hickory Poles" in honor of
their new "Young Hickory," the same nickname that had served them
well under Polk. Punsters clumsily exulted, "We Polked 'em in '44; we'll
Pierce 'em in '52."
Pierce could boast a creditable military record, for he had risen to the
rank of brigadier general of the volunteers in the Mexican War. But his
martial laurels came nowhere near matching those of General Scott.
Pierce, to his regret, had a well-known fondness for the bottle, and he
had suffered an excruciating groin injury in Mexico that caused him to
fall off his horse. Whigs sneered at him as "The Fainting General" and
as the hero of "many a well-fought bottle."
Brigadier General Pierce won by a handsome margin in the Electoral
College, routing his former chief, Major General Winfield Scott. "Hand-
some Frank" received especially strong support from the "Finality Men,"
who backed the Compromise of 1850, especially its Fugitive Slave Act,
and also from the expansionist zealots of the "Young America" movement.
The nation could anticipate an aggressive proslavery foreign policy.
The Ordeal of Reconstruction
205
out infinitely better in furs, gold, fish, and oil than expected. The one-
out several
sided transaction might better be branded "Czar Alexander's folly."
for role in
By an odd coincidence, the flag of French monarchy left Mexico (and
North America) the same year (1867) as the flag of Russian monarchy
on armies
left Alaska (and North America). Behind the smoke screen of the Civil
ize British
War, the Emperor Napoleon III had forcibly established his "archdupe,"
overlord-
Archduke Maximilian of Austria, on the throne of Mexico in violation of
odle" and
the Monroe Doctrine. Two popular songs, "Maxy!" and "Get Out of
Mexico," expressed American resentment in music. The latter announced:
Uncle Sam has thirty million
Loyal hearts, who want to know
If the vagrant, Maximilian,
Won't get out of Mexico.
The chorus concluded with
f Fenians,
For the Universal Nation says,
"Get out of Mexico!"
So it was that Secretary of State Seward, backed by hundreds of thou-
sands of veteran bayonets, gradually applied the diplomatic heat. In 1867
do.
Napoleon III took "French leave" of his disillusioned puppet, who per-
dred men
ished before a Mexican firing squad.
reland re-
!" did not
CLOSING THE BLOODY CHASM
in part to
troops in
"Waving the Bloody Shirt" continued to be a commonplace phase of the
al govern-
"outrage business" for several decades after the war, despite substantial
progress in reconciling North and South. This stratagem was used by
sed John-
Republicans to combat the struggling efforts of the Democrats, especially
rchase of
the Southern Democrats, to regain political power. The origins of the ex-
Secretary
pression are obscure, but one explanation is that a member of Congress,
Czar was
incensed by the murderous forays of the Ku Klux Klan, waved the bloody
m Russia,
shirt of a badly beaten carpetbagger victim to highlight his harangue.
eed more
Reactionary Republicans fought "Bourbons," as "unreconstructed" Demo-
The press
crats were called, especially those in the South. They were named after
off by the
the famed royal family of France that allegedly could "learn nothing and
tions and
forget nothing" when restored to power after the head-chopping French
"a hyper-
Revolution.
'S sneered
Southern "Redeemers" of the Democratic Party gradually regained
National
control of their own state governments. The ex-Confederacy rapidly
"Seward's
solidified as the "Solid South," and for about a half century could be
confidently counted on to vote the Democratic ticket in presidential
attached
elections. Many of the diehards evidently believed that the South would
n Alaska.
"rise again," but most level-headed Southerners were persuaded that, on
-panned
a military basis at least, "The Old Cause" was indeed "The Lost Cause."
324
Voices of America
tween the Bible and the dictionary and never got away from either. Fol-
of conciliation pacts,
lowing up his long training in theoretical government, he turned out to
treaties. They embod
be an eminently successful practical politician. In 1908 he had written
when very angry cou
in a book, "The President is at liberty, both in law and conscience, to be
have done substantial
as big a man as he can. His capacity will set the limit; and if Congress
in 1914.
be overborne by him, it will be no fault of the Constitution."
Bryan also worked
Indisputably an intellectual, "The Professor in Politics" developed a
rel between California
degree of arrogance toward lesser intellects, particularly stupid Senators,
to bar Japanese from
whose "bungalow minds" made him "sick." For his own part, his powers
regarded as a wage-de
of concentration were SO highly developed, so he remarked in 1912, that
nese Ambassador in V
"I have a single-track mind." Earlier he had written privately that his
tary's diplomatic reply
mind was "a one-track road and can run only one train of thought at a
friends." Headstrong (
time." His sense of duty was so strong as to lead him into the paths of
anyhow, but did so b
"moral imperialism" or "the imperialism of righteousness," notably in
barred only "aliens ii
neighboring Mexico, where his interference seemed like "meddling and
cluding those from Jap
muddling."
Honoring his "New
Wilson's Cabinet presented a collection of mostly unknowns. Josephus
dom for the masses, P
Daniels, a North Carolina newspaper man, was chosen as Secretary of
the "triple wall of pri
the Navy, or "managing editor of the navy," as he was called. He banned
his message urging ta
alcohol from American warships, thus earning in thirsty naval circles an
peared before Congres
unflattering sobriquet, "Joe Syphilis" Daniels. William Jennings Bryan,
Thomas Jefferson in 1
the uncrowned king of the party, was by tradition entitled to the premier
remarked to a compa
position in the Cabinet, Secretary of State, and hence received the ap-
think we put one over
pointment. Wilson was not enthusiastic about the choice; he recognized
Tariff reform-ultim
Bryan's goodness of heart but thought less well of his head, which he
rough sledding in Co
thought lacked "a mental rudder." "The man has no brains," he had
contained many "tool:
written to a friend privately in 1904: But as "Mr. Dooley" humorously
earlier branded as wat
remarked, Wilson would rather have Bryan "in his bosom than on his
of lobbyists descended
back."
mined to block or at
Clean-living Bryan proved something of an embarrassment to Wilson.
Wilson, reverting to hi
A prohibitionist, the new Secretary of State barred alcohol from official
tors to the sovereign pe
functions, and "grape-juice diplomacy" was a derisive phrase frequently
to what he had earlier
heard. Some of the diplomats fortified themselves too well in advance of
Wilson next tackled
what they knew would be an arid affair. More bitterly criticized was an
Congress the Federal
unfortunate phrase that Bryan used when he wrote to a Democratic
more flexible currency
official in 1913, "Can you let me know what positions you have at your
of the federal governm
disposal with which to reward deserving Democrats?" More than 6 mil-
Carter Glass, a Demc
lion Democrats had voted for Bryan in three presidential elections, and
burst out, "Damn it, do
"The Peerless Leader" had many debts to pay off. But the opposition
Bloated trusts provi
party, which had been filling offices for many years with "resolute Re-
lege." In 1914 Congre
publicans," jeered at this blatant exhibition of spoilsmanship by the
the Federal Trade Con
"Prince of Job Hunters."
sales practices by using
As an ardent champion of world peace, Bryan supplemented his in-
Anti-Trust Act of 1914,
come by lecturing on the Chautauqua circuit with an address entitled
spicuous success, to th
"Prince of Peace." Republican newspaper editors lambasted his "peace
1890. Among other ch
piffle" and "grape-juice guff." Yet Bryan persisted in negotiating a series
commodity or article of
326
Voices of America
can Federation of Labor, hailed the act with unwarranted enthusiasm
plotting the murder
as the "Magna Carta of Labor."
ment by murder," S
finally succeeded in
George Harvey, dei
WATCHFUL WAITING SOUTH OF THE BORDER
of the United Stat
In the tricky arena of foreign affairs, Wilson shocked diplomats by a sud-
Mexico?"
den and spectacular attempt to reverse the "dollar diplomacy" of Taft.
Plainly alluding
He bluntly announced at the outset that he was not interested in sup-
Mobile, Alabama, i
porting any "special group of interests." This abrupt warning in the
perilous thing to de
press-a classic example of "shirt sleeves" diplomacy-served notice on
material interest."
Americans who invested dollars abroad. The reluctant bankers, whom
United States will
Taft had induced to enter a six-power financial consortium in China,
conquest."
concluded that they had better withdraw-and they did.
After the Mobil
Wilson's efforts to disentangle the nation from dollar diplomacy in
called "watchful wa
Latin America proved less successful, in part because the "insurrection-
as "deadly drifting.
ary habit" brought the Marines to Haiti and Santo Domingo in 1915 and
the Mexican turmoi
1916 respectively. During these years Franklin D. Roosevelt was Assistant
blood-stained hand
Secretary of the Navy, and he later boasted in a campaign speech in
was called "the W
1920, "The facts are that I wrote Haiti's constitution myself, and, if I do
backward, a side st
say it, I think it a pretty good constitution."
determined to allo
An imminent wedding of the waters, scheduled at Panama in 1914,
dominated by "a
caused much agitation in the United States to exempt American ships
Mexico." The king
engaged in coastwise trade from paying tolls. Competing maritime na-
ranch in Mexico tha
tions, notably Great Britain, cried "unfair" but most Americans evidently
Examiner jeered:
did not agree. As the Progressive platform of 1912 made clear, "The
Panama Canal, built and paid for by the American people, must be
Oh, say, ca
used primarily for their benefit." Wilson's Democratic platform took the
Any possib
same position, but an embarrassing treaty with Great Britain prohibited
The Star-S]
While we'r
the United States from discriminating in its own favor. National honor
was involved, and Wilson took the honorable course when he told Con-
An armed clash
gress that the nation was "too big, too powerful, too self-respecting" to
finally grew out of
reread treaties in its own favor "just because we have power enough to
landing several me
give us leave to read them as we please." By appealing to honor and
porary arrest. The
idealism alike, he induced a balky Congress, after a bitter debate, to
issued a twenty-f
repeal the act discriminating in favor of American shipping.
and punishment, ii
Wilson's early months were bedeviled by the revolution in Mexico,
with twenty-one g
which gravely endangered American lives and investments. For dreary
ington then refuse
decades the Mexican masses had endured exploitation by the upper
humble themselves
classes, who worked hand in glove with foreign exploiters of oil and
felt compelled by 1
other natural resources. As Wilson confessed in 1914, "My ideal is an
He ordered the se
orderly and righteous government in Mexico; but my passion is for the
about 125 Mexican
submerged eighty-five percent of the people of that republic who are
on both sides.
now struggling toward liberty."
As a full-fledge
Such idealism in the White House was challenged by the emergence
the hook by a m
of a dictatorial strongman in Mexico, President Victoriano Huerta. He
Brazil, and Chile
would play ball with foreign exploiters, but he had attained power by
birth to a plan th
From the Square Deal to the New Freedom
327
inted enthusiasm
plotting the murder of his predecessor. Wilson, who deplored "govern-
ment by murder," stubbornly refused to grant Huerta recognition, and
finally succeeded in driving him into exile. A fiery Republican journalist,
George Harvey, demanded, "What legal or moral right has a President
BORDER
of the United States to say who shall or shall not be President of
Mexico?"
lomats by a sud-
lomacy" of Taft.
Plainly alluding to Mexico, Wilson delivered a memorable address at
nterested in sup-
Mobile, Alabama, in the autumn of 1913. "It is," he declared, "a very
warning in the
perilous thing to determine the foreign policy of a nation in the terms of
served notice on
material interest." As evidence of his good faith, he pledged that "the
bankers, whom
United States will never again seek one additional foot of territory by
ortium in China,
conquest."
After the Mobile assurances, Wilson pursued a policy of what he
ar diplomacy in
called "watchful waiting," which interventionist Republicans condemned
the "insurrection-
as "deadly drifting." As American citizens continued to be killed during
ingo in 1915 and
the Mexican turmoil, bellicose Theodore Roosevelt cried, "He kissed the
velt was Assistant
blood-stained hand that slapped his face." A dance step then popular
ipaign speech in
was called "the Wilson tango." It consisted of one step forward, two
self, and, if I do
backward, a side step, and then a moment of hesitation. Yet Wilson was
determined to allow the Mexicans to have their revolution and not be
Panama in 1914,
dominated by "a small group of Americans with vested interests in
: American ships
Mexico." The. king of yellow journalism, William R. Hearst, owned a
ing maritime na-
ranch in Mexico that was larger than Rhode Island, and his San Francisco
ericans evidently
Examiner jeered:
hade clear, "The
Oh, say, can you see by the dawn's early light
people, must be
Any possible way of avoiding a fight?
latform took the
The Star-Spangled Banner, oh, long may it flap,
Gritain prohibited
While we're kicked by the Greaser and slapped by the Jap.
National honor
nen he told Con-
An armed clash between Mexico and "The Colossus of the North"
elf-respecting" to
finally grew out of a trivial incident at Tampico. A U.S. Navy boat, after
power enough to
landing several men routinely, was seized, and the crew suffered tem-
ng to honor and
porary arrest. The commanding American admiral, Henry T. Mayo,
bitter debate, to
issued a twenty-four-hour ultimatum demanding disavowal, apology,
ng.
and punishment, in addition to hoisting an American flag and saluting it
ution in Mexico,
with twenty-one guns. All this he required of a government that Wash-
ents. For dreary
ington then refused to recognize. When the Mexican officials refused to
n by the upper
humble themselves to this degree over a slight misunderstanding, Wilson
biters of oil and
felt compelled by national honor to back the admiral's arbitrary demands.
"My ideal is an
He ordered the seizure of Vera Cruz, at the cost of 19 Americans and
bassion is for the
about 125 Mexicans, not counting the wounded combatants and civilians
epublic who are
on both sides.
As a full-fledged war with Mexico threatened, Wilson was taken off
y the emergence
the hook by a mediation offer from the "A.B.C." powers, Argentina,
iano Huerta. He
Brazil, and Chile. The subsequent conference at Niagara Falls gave
tained power by
birth to a plan that the Mexican regime rejected, but in the aftermath
328
Voices of America
the "unspeakable" Huerta, bending to Wilsonian pressures, went into
voluntary exile in the summer of 1914. Wilson's "watchful waiting" was
successful at least to the extent of avoiding a full-scale war. A contempo-
rary campaign button read, "Watchful Waiting Wins."
Chaos unhappily continued under Huerta's successor, Venustiano Car-
ranza. A foremost rival for his power was Pancho Villa, a combination of
bandit and Robin Hood. Showing his contempt for both the Mexican
government and Wilson, he invaded and shot up the town of Columbus,
New Mexico, killing eighteen citizens of the United States. At last
C
"American blood," to use President Polk's language of 1846, had been
shed on indisputably "American soil."
Neither "watchful waiting" nor even "wrathful waiting" could endure
longer in the face of the outburst of American indignation. Wilson
America can
ordered General John J. ("Black Jack") Pershing to pursue and break
sand.
up the bandit band. President Carranza of Mexico acquiesced with great
reluctance after receiving face-saving assurances of reciprocal privileges.
The "perishing expedition," as it was dubbed, penetrated deep into
Mexico with surprising speed, but failed to catch Villa. A frustrated
Wilson withdrew the invading force early in 1917, on the eve of a vastly
larger war with Germany. The Mexicans were left free to complete their
revolution without hindrance from Wilson's "imperialism of righteous-
ness."
THE
Europe burst into flames
predicted world war had
Edward Grey, himself g
going out all over Europ
time."
Like a string of explo
clared war on its foes. T
assassinated the heir to t
had presented an intolera
its turn caused Russia, a n
Germany. The Germans in
France out before the Rus:
Germany was bound to
ancient treaty of 1839, also
But "necessity knows no
its solemn obligation, there
a burning issue of the wa
presence opposite their CO:
o Earlier known as "Nigger Jack," Pershing had served as an officer with the
Belgium, Serbia, and Russi
crack Negro Tenth U.S. Cavalry.
to the neutrality treaty O:
The Roaring Twenties
373
prove
cted of
In the mid-1920s the fear of another world-shattering conflict caused
a tide of public opinion to well up in America in favor of a scheme
ears.
known as "the outlawry of war"-that is, declaring war illegal by "out-
lawing" it. An international treaty, known as the Pact of Paris or the
Kellogg-Briand Pact (after the American and French negotiators),
emerged in 1928. Ultimately it won ratification by sixty-two nations, in-
in get-
cluding all the major powers. As might have been anticipated, the out-
Ameri-
lawry of war proved to be about as ineffective as the concurrent outlawry
such
of alcohol. One Senator scoffed at this "international kiss." The gaping
ization
loophole was that a nation could always legally fight in self-defense;
to the
and what scheming dictator was there who could not claim that he was
to the
in danger of attack?
lemoc-
Elsewhere in the global theater, Coolidge achieved a modest success.
y in a
ed the
To protect American lives and property, Yankee troops had landed on
the shores of the banana republics of the Caribbean under Democratic
truth
e bor-
and Republican Presidents alike. In 1927, reacting to disorders spawned
for its
by civil disturbances, Coolidge was waging a "private war" in Nicaragua
deal-
against the rebel "bandits (patriots?) with some 5,000 U.S. troops. Re-
on the
acting to harsh criticism, he insisted, "We are not making war on Nica-
d one
ragua any more than a policeman on the street is making war on pas-
sersby." Tension eased after Coolidge sent Colonel Henry L. Stimson
t-plan
(later Secretary of State and Secretary of War) to arrange for a special
1 can-
election under American supervision.
Strained relations with Mexico were nearing the breaking point in
ns re-
allies
1927 over the seizure of American-owned properties, chiefly in oil. Cool-
idge had the happy inspiration to send to this troubled land as Ambas-
, Shy-
urer";
sador an Amherst College classmate, Dwight Morrow. He in turn invited
n't Be
"Lucky Lindy" Lindbergh and his airplane for a goodwill tour. This
new "Ambassador of the Air" combined with the Ambassador of the
ession
tions,
United States to elevate relations with Mexico to a more favorable pla-
small
teau. The episode received acclaim as one of the earliest phases of "Good
Uncle
Neighborism" or the so-called "Good Neighbor Policy" so widely ac-
claimed in the days of Franklin D. Roosevelt.
under
ers of
:erted
door,
ed to
now
n the
States
but
frap."
from
Administration of George Bush, 1990 / June 27
t for the important
Nomination of George F. Murphy, Jr.,
querque to ensure the protection of serious-
an work of UNHCR.
To Be Inspector General of the United
ly threatened ancient Pueblo Indian and
High Commissioner
States Information Agency
Spanish rock art. Cost sharing will be an
he issue of Vietnam-
June 27, 1990
important component of the success of this
e overall issue of po-
joint effort, and I look forward to a success-
novements in the
The President today announced his inten-
ful partnership.
esident restated the
tion to nominate George F. Murphy, Jr., to
S. 286 also will expand the existing 365-
rt of first asylum in
be Inspector General of the U.S. Informa-
acre Pecos National Monument into the
nst involuntary repa-
tion Agency. He would succeed Anthony J.
5,865-acre Pecos National Historical Park.
nder current condi-
Gabriel.
This will allow for expanded protection and
eed that the United
Since 1988 Mr. Murphy has served as
recreation programs in an area rich in cul-
to be in touch with
Deputy Director for the U.S. Arms Control
tural resources.
on the issue of pre-
and Disarmament Agency in Washington,
I wholeheartedly support the measures
outheast Asia.
DC. Prior to this, he served as a consultant
contained in S. 286 because they will
to the nuclear industry, 1986-1987; director
ensure the protection of rich natural and
of the Senate National Security Office,
cultural resources within the State of New
1977-1986; executive director of the Joint
Mexico that are now seriously threatened.
Committee on Atomic Energy, 1975-1977;
essional Barbecue
deputy director of the Joint Committee on
George Bush
Atomic Energy, 1968-1975; and a profes-
The White House,
sional staff member on the Joint Committee
thank you. Thank
on Atomic Energy, 1958-1968. In addition,
June 27, 1990.
really turned it on
Mr. Murphy worked for the Central Intelli-
gence Agency, 1950-1958.
Note: S. 286, approved June 27, was as-
Mr. Murphy graduated from Harvard
signed Public Law No. 101-313.
o everybody how
: for all of you-we
College (A.B., 1949). He was born May 1,
-40 albums, 4 gold
1924, in Boston, MA. Mr. Murphy served in
awards, one of the
the U.S. Army Air Corps, 1942-1946. He is
our country and a
married, has two children, and resides in
Remarks Announcing the Enterprise for
here. And we are
Bethesda, MD.
the Americas Initiative
en. Thank you for
June 27, 1990
rformance.
re quite welcome,
Thank you all very much for coming to
y.
Statement on Signing a Bill Protecting
the White House, and it is my pleasure to
Natural and Cultural Resources in
welcome so many distinguished guests with
all this wonderful
New Mexico
such strong interests in the vital Latin
ighted to have you
June 27, 1990
American and Caribbean region. Let me
to the Members of
recognize the many members of the diplo-
a and I are delight-
I take great pleasure in signing into law
matic corps that are here and extend to you
here-a good, re-
S. 286, an Act to establish the Petroglyph
a warm welcome-from Latin America,
utiful night at the
National Monument and the Pecos National
particularly, and the Caribbean, Europe,
ot a lot of work
Historical Park in New Mexico, and to re-
Japan. Members of our Cabinet-Nick
ast as far as we're
solve various New Mexico land issues.
Brady and Secretary Baker, Carla Hills, Sec-
d of Pennsylvania
West of Albuquerque, New Mexico, the
retary Mosbacher-delighted you're here.
'e're delighted you
major landscape feature is the West Mesa,
Chairman of the Council of Economic Ad-
ourselves at home,
marked by a 17-mile long basalt escarpment
visers, Mike Boskin, is here. Bill Webster,
n, Glen Campbell.
and five volcanic cones. Within the area are
welcome. And of course, we're delighted to
an estimated 15,000 to 17,000 petroglyphs,
see Alan Greenspan, Chairman of the Fed-
'ou, Mr. President.
which are designs carved or pecked into
eral Reserve Board, here and then an old
:he rock. Establishment of the Petroglyph
friend, Barber Conable, of the World Bank,
National Monument will provide an excel-
and Richard Erb, from the IMF. And Ricky
lent opportunity to form a strong partner-
Iglesias, an old friend of the Bushes, and we
at 8 p.m. on the
ship among the Federal Government, the
welcome him, of the IDB, and so many
House.
State of New Mexico, and the City of Albu-
leading lights in the business and financial
1009
June 27 / Administration of George Bush, 1990
communities. To all of you, then, a wel-
ing convinced that the U.S. must review it
come.
approach not only to that region but to
In the past 12 months, every one of us,
Latin America and the Caribbean as a
from the man in the White House to the
whole. And I asked Treasury Secretary
man on the street, has been fascinated by
Brady to lead a review of U.S. economic
the tremendous changes, the positive
policy towards this vital region, to make a
changes, taking place around the world.
fresh assessment, if you will, of the prob-
Freedom has made great gains not just in
lems and opportunities we'll encounter in
Eastern Europe but right here in the Amer-
the decade ahead. And that review is now
icas; and we've seen a resurgence of demo-
complete, and the results are in, and the
cratic rule, a rising tide of democracy,
need for new economic initiatives is clear
never before witnessed in the history of this
and compelling.
beloved hemisphere. And with one excep-
All signs point to the fact that we must
tion, Cuba, the transition to democracy is
shift the focus of our economic interaction
moving towards completion, and we can all
towards a new economic partnership be-
sense the excitement that the day is not far
cause prosperity in our hemisphere de-
off when Cuba joins the ranks of world de-
pends on trade, not aid. And I've asked you
mocracies and makes the Americas fully
free.
here today to share with you some of the
With one exception, that's the case. But
ideas, some of the ways we can build a
the political transformation sweeping the
broad-based partnership for the nineties-to
rest of Latin America and the Caribbean
announce the new Enterprise for the Amer-
icas Initiative that creates incentives to re-
has its parallel in the economic sphere.
Throughout the region, nations are turning
inforce Latin America's growing recogni-
away from the statist economic policies that
tion that free-market reform is the key to
stifle growth and are now looking to the
sustained growth and political stability.
power of the free market to help this hemi-
The three pillars of our new initiative are
sphere realize its untapped potential for
trade, investment, and debt. To expand
progress. A new leadership has emerged,
trade, I propose that we begin the process
backed by the strength of the people's man-
of creating a hemispherewide free trade
date, leadership that understands that the
zone; to increase investment, that we adopt
future of Latin America lies with free gov-
measures to create a new flow of capital
ernment and free markets. In the words of
into the region; and to further ease the
Colombia's courageous leader, Virgilio
burden of debt, a new approach to debt in
Barco-President Barco: "The long-running
the region with important benefits for our
match between Karl Marx and Adam Smith
environment.
is finally coming to an end" with the "rec-
Let's begin with trade. In the 1980's,
ognition that open economies with access to
trade within our hemisphere trailed the
markets can lead to social progress."
overall pace of growth in world trade. One
For the United States, these are welcome
principal reason for that: overrestrictive
developments, developments that we're
trade barriers that wall off the economies of
eager to support. But we recognize that
our region from each other and from the
each nation in the region must make its
United States at great cost to us all. These
own choices. There is no blueprint, no one-
barriers are the legacy of the misguided
size-fits-all approach, to reform. The pri-
notion that a nation's economy needs pro-
mary responsibility for achieving economic
tection in order to thrive. The great eco-
growth lies with each individual country.
nomic lesson of this century is that protec-
Our challenge in this country is to respond
tionism still stifles progress and free mar-
in ways that support the positive changes
kets breed prosperity. To this end, we've
now taking place in the hemisphere. We
formulated a three-point trade plan to en-
must forge a genuine partnership for free-
courage the emerging trend toward free
market reform.
market reform that are now gathering
Back in February, I met in Cartagena
forces in the Americas.
[Colombia] with heads of the three Andean
First, as we enter the final months of the
nations, and I came away from that meet-
current Uruguay round of the world trade
1010
Administration of George Bush, 1990 / June 27
U.S. must review it
talks, I pledge close cooperation with the
growth and a higher standard of living in
that region but to
nations of this hemisphere. The successful
Latin America and, right here at home,
he Caribbean as a
completion of the Uruguay round remains
new markets for American products and
Treasury Secretary
the most effective way of promoting long-
more jobs for American workers.
W of U.S. economic
term trade growth in Latin America and
Promoting free trade is just one of three
al region, to make a
the increased integration of Latin nations
key elements in our new Enterprise for the
u will, of the prob-
into the overall global trading system. Our
Americas Initiative. And our second pillar is
$ we'll encounter in
aim in the Uruguay round is free and fair
increased investment.
1 that review is now
trade, and through these talks we are seek-
The competition for capital today is
ults are in, and the
ing to strengthen existing trade rules and to
fierce, and the key to increased investment
ic initiatives is clear
expand them to areas that do not now have
is to be competitive, to turn around the
agreed rules of fairplay. And to show our
conditions that have discouraged both for-
e fact that we must
commitment to our neighbors in Latin
eign and domestic investment-reduce the
economic interaction
America and the Caribbean, we will seek
regulatory burden, clear away the thicket of
mic partnership be-
deeper tariff reductions in this round on
bureaucratic barriers that choke off Latin
our hemisphere de-
products of special interest to them.
America's aspiring entrepreneurs.
And I've asked you
Second, we must build on the trend we
In one large Latin city, for instance, it
ith you some of the
see toward free markets and make our ulti-
takes almost 300 days to cut through the
ays we can build a
mate aim a free trade system that links all
redtape to open a small garment shop. In
) for the nineties-to
of the Americas: North, Central, and South.
another country, the average overseas caller
erprise for the Amer-
And we look forward to the day when not
has to make five phone calls to get through,
ites incentives to re-
only are the Americas the first fully free,
and the wait for a new telephone line can
's growing recogni-
democratic hemisphere but when all are
be as long as 5 years. And that's got to
eform is the key to
equal partners in a free trade zone stretch-
change.
olitical stability.
ing from the port of Anchorage to the
Investment reform is essential to make it
ur new initiative are
Tierra del Fuego.
easier to start new business ventures and
d debt. To expand
I'm announcing today that the U.S. stands
make it possible for international investors
e begin the process
ready to enter into free trade agreements
with other markets in Latin America and
to participate and profit in Latin American
herewide free trade
markets. In order to create incentives for
ment, that we adopt
the Caribbean, particularly with groups of
investment reform, the United States is pre-
countries that have associated for purposes
new flow of capital
of trade liberalization. And the first step in
pared to take the following steps:
to further ease the
this process is the now-announced free
First, the United States will work with
approach to debt in
trade agreement with Mexico. We must all
the Inter-American Development Bank to
ant benefits for our
recognize that we won't bring down bar-
create a new lending program for nations
riers to free trade overnight; changes so far-
that take significant steps to remove im-
ade. In the 1980's,
reaching may take years of preparation and
pediments to international investment. The
hisphere trailed the
World Bank could also contribute to this
tough negotiations. But the payoff in terms
in world trade. One
of prosperity is worth every effort, and now
effort.
that: overrestrictive
is the time to make a comprehensive free
And second, we propose the creation of a
off the economies of
trade zone for the Americas our long-term
new investment fund for the Americas. This
other and from the
goal.
fund, administered by the IDB, could pro-
cost to us all. These
And third, I understand that some coun-
vide up to $300 million a year in grants in
y of the misguided
tries aren't yet ready to take that dramatic
response to market-oriented investment re-
economy needs pro-
step to a full free trade agreement. And
forms in progress in privatization. The U.S.
rive. The great eco-
that's why we're prepared to negotiate with
intends to contribute $100 million to the
ntury is that protec-
any interested nation in the region bilateral
fund, and we will seek matching contribu-
gress and free mar-
framework agreements to open markets
tions from Europe and Japan.
To this end, we've
and develop closer trade ties. Such agree-
But in order to create an attractive cli-
at trade plan to en-
ments already exist with Mexico and Boliv-
mate for new investment, we must build on
trend toward free
a. Framework agreements will enable us to
our successful efforts to ease the debt
are now gathering
move forward on a step-by-step basis to
burden. That's the third pillar of this new
eliminate counterproductive barriers to
Enterprise for the Americas Initiative.
final months of the
trade and towards our ultimate goal of free
Many nations have already undertaken
of the world trade
trade. And that's a prescription for greater
painful economic reforms for the sake of
1011
June 27 / Administration of George Bush, 1990
future growth, but the investment climate
nature swaps in countries that have set up
remains clouded, weighted down by the
such programs. These actions will be taken
heavy debt burden. Under the Brady plan,
on a case-by-case basis.
we are making significant progress. The
One measure of prosperity and the most
agreements reached with Mexico and Costa
important long-term investment any nation
Rica and Venezuela are already having a
can make is environmental well-being. As
positive impact on investment in those
part of our Enterprise for the Americas Ini-
countries. Mexico, to take just one example,
tiative, we will take action to strengthen
has already seen a reversal of the destruc-
environmental policies in this hemisphere.
tive capital flight that drained so many
Debt-for-nature swaps are one example,
Latin American nations of precious invest-
patterned after the innovative agreements
ment resources. That's critical. If we restore
reached by some Latin American nations
confidence, capital will follow.
and their commercial creditors. We will also
As one means of expanding our debt
call for the creation of environmental trusts,
strategy, we propose that the IDB add its
where interest payments owed on restruc-
efforts and resources to those of the Inter-
tured U.S. debt will be paid in local curren-
national Monetary Fund and the World
cy and set aside to fund environmental
Bank to support commercial bank debt re-
projects in the debtor countries.
duction in Latin America and the Caribbe-
These innovative agreements offer a pow-
an, and as in the case of World Bank and
erful new tool for preserving the natural
IMF, IDB funds should be directly linked to
wonders of this hemisphere that we share.
economic reform.
From the vistas of the unspoiled Arctic to
While the Brady plan has helped nations
the beauties of the barrier reef off Belize to
reduce commercial bank debt, for nations
the rich rain forests of the Amazon, we
with high levels of official debt-debt owed
must protect this living legacy that we hold
to governments rather than private finan-
in trust. For an increasing number of our
cial institutions-the burden remains heavy.
neighbors, the need for free-market reform
And today, across Latin America, official
is clear. These nations need economic
debt owed to the U.S. Government amounts
breathing room to enact bold reforms, and
to nearly $12 billion, with $7 billion of that
this official debt initiative is one answer, a
amount in concessional loans. And in many
way out from under the crushing burden of
cases, the heaviest official debt burdens fall
debt that slows the process of reform.
on some of the region's smallest nations,
I know there is some concern that the
countries like Honduras and El Salvador
revolutionary changes we've witnessed this
and Jamaica.
past year in Eastern Europe will shift our
That's a problem we must address today.
attention away from Latin America; but I
As the key component in addressing the
want to assure all of you here today, as I've
region's debt problem, I am proposing a
assured many democratic leaders in Central
major new initiative to reduce Latin Amer-
and South America and the Caribbean and
ica and the Caribbean's official debt to the
Mexico, the United States will not lose sight
United States for countries that adopt
of the tremendous challenges and opportu-
strong economic and investment reform
nities right here in our own hemisphere.
programs with the support of international
And indeed, as we talk with the leaders of
institutions.
the G-24 about the emerging democracies
Our debt reduction program will deal
in Europe-I've been talking to them also
separately with concessional and commer-
about their supporting democracy and éco-
cial types of loans. On the concessional
nomic freedom in Central America. Our
debt, loans made from AID or Food for
aim is a closer partnership between the
Peace accounts, we will propose substantial
Americas and our friends in Europe and in
debt reductions for the most heavily bur-
Asia.
dened countries. And we will also sell a
Two years from now, our hemisphere will
portion of outstanding commercial loans to
celebrate the 500th anniversary of an epic
facilitate these debt-for-equity and debt-for-
event: Columbus' discovery of America, our
1012
Administration of George Bush, 1990 / June 28
:ries that have set up
New World. And we trace our origins, our
of the proposed rescissions are contained in
actions will be taken
shared history, to the time of Columbus'
the attached report.
voyage and the courageous quest for the
osperity and the most
advancement of man. Today the bonds of
George Bush
nvestment any nation
our common heritage are strengthened by
nental well-being. As
the love of freedom and a common commit-
The White House,
for the Americas Ini-
ment to democracy. Our challenge, the
June 28, 1990.
action to strengthen
challenge in this new era of the Americas, is
$ in this hemisphere.
to secure this shared dream and all its fruits
Note: The attachment detailing the pro-
for all the people of the Americas-North,
posed rescissions was printed in the "Feder-
$ are one example,
Central, and South.
al Register" of July 6.
movative agreements
in American nations
The comprehensive plan that I've just
creditors. We will also
outlined is proof positive the United States
environmental trusts,
is serious about forging a new partnership
nts owed on restruc-
with our Latin American and Caribbean
Statement on the Japan-United States
paid in local curren-
neighbors. We're ready to play a construc-
Trade Negotiations
fund environmental
tive role at this critical time to make ours
countries.
the first fully free hemisphere in all of histo-
June 28, 1990
ry. Thank you all for coming and God bless
eements offer a pow-
Last year the United States and Japan
the peoples of the Americas. Thank you
eserving the natural
launched a new cooperative endeavor in
very, very much, indeed.
phere that we share.
economic policy called the Structural Im-
unspoiled Arctic to
pediments Initiative. This initiative is de-
rier reef off Belize to
signed to address underlying structural
Note: The President spoke at 2:48 p.m. in
of the Amazon, we
problems in both of our economies with the
the East Room at the White House. In his
: legacy that we hold
goal of contributing to more open and com-
opening remarks, he referred to Secretary of
sing number of our
petitive markets and to the reduction of
the Treasury Nicholas F. Brady; U.S. Trade
: free-market reform
Representative Carla A. Hills; Secretary of
payments imbalances. A joint working
ns need economic
Commerce Robert A. Mosbacher; William
group was formed to identify and solve
et bold reforms, and
H. Webster, Director of Central Intelligence;
these problems. Over the past year, these
discussions have demonstrated the construc-
ive is one answer, a
Barber B. Conable, Jr., President of the
e crushing burden of
World Bank, which is also known as the
tive and cooperative spirit which character-
ess of reform.
International Bank for Reconstruction and
izes the relationship between our two coun-
tries.
e concern that the
Development; and Richard D. Erb, Deputy
we've witnessed this
Managing Director of the International
The joint report of the SII working group
urope will shift our
Monetary Fund. The President also referred
has just been issued in Tokyo, following up
atin America; but I
to the Group of 24, the industrialized de-
an interim report issued in April. I welcome
1 here today, as I've
mocracies that have pledged support for eco-
and endorse this joint report. Both coun-
ic leaders in Central
nomic and political reform in Poland and
tries have identified structural impedi-
the Caribbean and
Hungary.
ments, taken initial corrective actions, and
made commitments to take further steps to
es will not lose sight
lenges and opportu-
resolve a wide range of structural problems.
We expect that the structural policy actions
r own hemisphere.
with the leaders of
to be taken will have a positive effect on
Message to the Congress Reporting
erging democracies
our economies, encouraging open and com-
Budget Rescissions
alking to them also
petitive markets, promoting sustained world
June 28, 1990
lemocracy and eco-
economic growth, contributing to a reduc-
itral America. Our
tion in global payments imbalances, and en-
To the Congress of the United States:
rship between the
hancing the quality of life in both Japan and
In accordance with the Impoundment
the United States. Although our efforts on
Is in Europe and in
Control Act of 1974, I herewith report
SII are bilateral, the effects will be benefi-
eight proposed rescissions totalling
cial for the entire world.
our hemisphere will
$327,375,000.
I particularly welcome the clear commit-
iversary of an epic
The proposed rescissions affect programs
ment by Japan to reduce further its current
ery of America, our
of the Department of Defense. The details
account surplus and view the SII process as
1013
McGroarty/Dooley
May 16, 1990
1390 MAY 16 PM 6: 43
6:15 pm
[AMER]
PRESIDENTIAL REMARKS: COUNCIL OF THE AMERICAS
THE STATE DEPARTMENT
MAY 22, 1990
11:00 A.M.
Thank you, Mr. Secretary [Baker]. [Introductory
acknowledgements. President and Chairman of Council of the
DAVID Rochefelle ambassador Landen. Prs
BERNARD Amorson our very able A.Sec For Inder
Americas.] [Admin. Members, State officials.]
affairs.
I am pleased once again to speak to this influential group -
- pioneers in the private-sector effort to expand trade and
investment between the U.S. and Latin America. And I'm delighted
to address this gathering after what has been a remarkable year
of change.
Over the past twelve months, it has sometimes seemed that
the eyes of the world rest solely on Eastern Europe -- on the
miraculous transformation that has taken place there. Our
friends in Latin America have watched these historic events
unfold, with inspiration and awe. But also, I know, with an
unmistakable sense of anxiety -- concern that our active
involvement in Europe will mean a decline in U.S. interest in
Latin America.
I am here today to assure you -- just as I've assured the
many Latin American leaders I've met with -- that the events of
the past year have increased U.S. interest in this region --
3
one free nation from another. The outstretched hand of
partnership, from the nation that will be, by the year 2000, home
of the world's second-largest Spanish-speaking culture -- the
United States. 11
I've worked to strengthen our ties. Just this year alone,
I've met with Presidents Barco, Paz and Garcia, at the Andean
Drug Summit in Cartagena. Here in Washington, I've hosted
Presidents Perez and Paz, Cristiani and Endara, Collor de Mello,
Calderon and Callejas, and Prime Minister Manley. In each case,
I've come away from our talks with a strong sense of optimism.
And I believe every one of those leaders left the White House
knowing that the U.S. is engaged as never before in the future of
this hemisphere.
While from country to country conditions differ, we know now
that our challenge is to consolidate democracy -- and accelerate
development.
That means advancing the intellectual revolution now
sweeping Latin America -- a movement away from stale, Statist
doctrines. Away from dictatorships of the Right and Left.
Toward democracy -- free government -- free enterprise. Toward
the true political and economic empowerment of the people.
That means encouraging, for the first time in many cases,
genuine free market reform. Even in countries that claimed no
kinship with communism, economies have been capitalist in name
only. In practice, they were rigged to favor the ruling elite -
- organized to ensure the prosperity of the people in power --
4
not to open an avenue toward upward mobility for anyone ready and
willing to work.
Peruvian economist Hernando de Soto describes the maze of
bureaucratic barriers that stood in the way of the entrepreneur
and stifled economic growth in his country. de Soto also shows
how much Lima, Peru's capital, owed its economic vitality to the
why what calls the informal server
illegal, shadow economy run=by enterprising individuals
business
thorsand of macpendent
thing
without the consent of the State.
de Soto's prescription -- and mine -- is to free this
economic force. Unleash the million sparks of energy and
enterprise. Let the incentive of reward inspire men and women to
work to better themselves and their families.
+
Already, Latin America is discovering this path. In Brazil
Cosia Kiris,
Argentina, Venezuela, Mexico and Jamaica, free market reforms are
going forward, creating space for private initiative to take hold
and flourish. As they succeed -- as they reap the rewards that
will follow what can be a painful transition -- there is hope
that these nations will bring others in their wake.
And there's no reason to stop there -- no reason not build
on this shift towards the free market philosophy, and make our
ultimate aim a free trade agreement that links all of the
Americas -- North and South. We look forward to the day when not
only are the Americas the first fully democratic hemisphere --
but when all are equal partners in a free trade zone stretching
from the Alaska's Port of Anchorage to Argentina's Tierra del
Fuego. //
5
And we in the U.S. must do all we can to ensure the future
of free markets in the Americas -- because our nation has a stake
in the economic health of this hemisphere. Last year, for the
first time ever, two-way trade between the U.S. and Latin America
topped $100 billion dollars. As that trade continues to grow --
so will the link between our prosperity and the prosperity of our
Latin American partners.
Let me provide a few statistics to drive home this point:
Dosein
Last year, the Columbian economy grew 3 percent. U.S. exports to
Columbia rose 9 percent. // Mexico's economy grew 3 percent --
and U.S. exports to that country climbed 21 percent. // In
Chile, with an overall growth rate of 10 percent, U.S. exports
increased by triple that rate -- more than 30 percentage points.
Now, let's take a fresh look at a familiar statistic. We
Poda
IS ABOUT
all know total Latin debt exceeds $400 billion dollars, and we've
all heard analyses of what that means for development in Latin
America. Well, I ask you today to consider what it means for the
U.S.: by one estimate, the debt burden has cost the United
States as much as $75 billion in lost exports over the past ten
years.
That's why I'm so pleased to report on the progress we've
made this past year under the Brady Plan. Mexico, Venezuela and
Costa Rica have all reached agreement with their creditors on
biter
ways to restructure their debt -- ways that complement their
efforts to restructure their economies along free-market lines.
6
Because in the long-term, the free market remains the only path
to sustained growth.
[[Of course, the private sector plays a crucial role. I
know Council of the Americas is committed to expanding
opportunities for trade and investment. And I'm pleased to hear
into realifer
Counsel
about the promising new ventures generated with by your own recently
you.
as
growt
completed Caribbean/Central American Action mission to
Nicaragua.
Taking advantage of new investment opportunities is good for
business -- but, at this critical moment, there's something
beyond the bottom line. Something that can't be measured in
simply in terms of GNP. The role the Council of the Americas can
play -- expanding trade and strengthening the private sector --
contributes not just to economic growth -- but to the growth of
democracy. //
Now, there is an important role for government to play as
well -- especially during the difficult days of transition from
dictatorship to democracy. That's why I've called on Congress to
provide more than $700 million dollars in emergency economic aid
to Panama and Nicaragua. This aid is critical. / A little over
6:00
a week ago, I received a note from President Chamorro -- just
three weeks into her term in office dealing with a crippling
strike staged- by pro Sandinista unions -- telling me that
Nicaragua was bankrupt. And yet, for more than 2 months now,
this emergency aid has been bogged down on Capitol Hill, as
Congressmen take advantage of these two nations' dire needs to
7
tack on unrelated amendments -- and load onto our aid request
funding for their pet projects.
Meanwhile, for the people of Nicaragua and Panama --
democracy hangs in the balance. //
So let me say to the Congress: not one more day of delay.
The fate of freedom rests in your hands. Rise above parochial
interests and the politics of pork barrel. Do the work of
democracy -- and pass this emergency aid package now. 111
Today, I began by speaking about the changes that have
riveted world attention on Europe. Part of the power of the
story is that it can be told in intensely personal terms -- as
the story of the dissident playwright who is now president. Of
the electrician who came to symbolize his people's hopes for
freedom. 11 Democracy's advance in Latin America has produced
its share of heroes -- and today I'll close with three from one
country alone -- Latin America's newest democracy: Nicaragua.
For four years -- beginning in 1979, the year the
Sandinistas took power -- Enrique Dreyfus was head of Nicaragua's
Supreme Council of Private Enterprise -- a private-sector group
in many ways similar to this one. His criticism of Sandinista
rule put him on the Sandinista black list, and landed him in
prison. Today, with the Sandinistas swept from power, Enrique
Dreyfus is not just free from persecution -- he is Nicaragua's
new Foreign Minister.
In 1985, members of the Sandinista internal security force
beat Sofonias Cisneros for criticizing the way the Sandinistas
8
had politicized the schools. Today, Ms. Cisneros is Minister of
Education. 11
And on July 10, 1988, opposition leader Myriam Arguello was
beaten, taken from her home in the middle of the night by
Sandinista police -- tried, and sentenced to six months in
prison. Today, Myriam Arguello is President of Nicaragua's
freely-elected National Assembly. 11
Three stories that underscore in personal terms the truly
revolutionary political change that's taken place not just in
Nicaragua -- but across the Americas. Change that proves beyond
doubt that the day of the dictator is over -- and democracy's day
has come. //
For our part, we in the United States must do all we can to
help secure for all the Americas the freedom, the peace and
prosperity we enjoy. // Once again, thank you -- and God bless
the United States of America.
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