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Originally Processed With FOIA(s): FOIA Number: S; 2004-0734-F; 2009-1186-F S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13741 Folder ID Number: 13741-001 Folder Title: Brazil/Background 12/01/90 [OA 8320] [3] Stack: Row: Section: Shelf: Position: G 26 21 2 1 SHOTS gamma glabulin tetanus polio (adult) yellow fever check passport -Aug.6 08/02/90 17:28 202 647 8098 AID/LAC/DR/RD 001 FAX TRANSMITTAL USDA/OICD - AID/LAC/DR/E UNITED STATES BF AMERICA FAX # (202) 647-8098 DATE: August 2, 1990 TO: Carolyn Cawley ORGANIZATION: White House - Speech writing Office TELEPHONE NUMBER OF RECIPIENT: 456-7750 FAX NUMBER SENT TO: 456-6218 FROM: LAC/DR/E, JAMES HESTER TELEPHONE: (202)-647-8093 NUMBER OF PAGES SENT INCLUDING THIS COVER SHEET: MESSAGE: Carolyn, As requested, here is an unofficial summary of the new A.I.D. global climate change program in in Brazil. Let me know if you need more info, please call. Jim Hester Chief Environment, Energy and Science Sta Bureau for Latin America and the Caribbean 08/02/90 17:29 202 647 8098 AID/LAC/DR/RD 002 AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON, D.C. 20523 FY 1990 Global Climate Change Activities in Brazil ($000) Latin America and Caribbean Bureau (LAC) Funded Activities: Environment/Global Climate Change Program (598-0784) funds: 1) U. of Florida grant: Agroforestry/Sustainable Forest promotion for Small Producers in the State of Acre 295 2) Energy Efficiency Institute development 200 3) Natural Resource Economics Workshop 100 4) Development of Program Monitoring & Evaluation Plan 25 5) World Wildlife Fund grant: 425 a. Environmental Impact Assessment process in Acre b. Amapa Extractive Reserve C. Fundacao Vitoria Amazonica: ecotourism/education d. Local NGO strengthening for influencing policy e. Federal Environment Secretariat planning and policy 6) Program Implementation Support for A.I.D./Brazil a. Planning Specialist (2 year contract) 100 b. Secretarial Support (1 year contract) 25 Project Development and Support (598-0000) funds: 7) Program design 30 Environmental Support Project (598-0780) funds: 8) Global Climate Change Advisor (stationed in Brazil) 110 LAC Subtotal $1,310 Science and Technology Bureau (S&T) Funded Activities: 9) Activities through World Wildlife Fund: 350 a. Policy analysis and action grants through the Center for Sustainable Development of the Amazon. b. Forestry Demonstration Projects with CPATU 10 Smithsonian/INPA: Biological Dynamics of Forest Fragment Project -- enhanced outreach and training 107 11) Woods Hole Research Center: Restoring Agricul- tural Productivity on Degraded Amazonian Lands 94 12) Energy Efficiency Institute development 250 S&T Subtotal* 801 A.I.D. Grand Total $2,111 *S&T is considering an additional $50-60 thousand worth of activities Economic Summits, 1981-89 United States Department of State Public Bureau of Public Affairs Information Washington, D.C. Series May 1990 Leaders of seven industrial countries- the United States, Japan, the Federal Republic of Germany, France, the United Kingdom, Italy, and Canada-plus the President of the European Community Commission have discussed and made decisions on a wide range of international economic and political issues at economic summit meetings that have been held annually since 1975. The following infor- mation provides background on each of the last nine summits. Paris, July 14-16, 1989 Summary The Paris summit marked the celebration of the 200th anniversary of the French Revolution and the Declaration of the Rights of Man. It also was the first economic summit meeting for President Participants in the July 1989 Paris economic summit from left to right: Jacques Delors, Bush, who had just returned from trips to President of the European Community Commission; Prime Minister Ciriaco De Mita (Italy); Poland and Hungary. These develop- Chancellor Helmut Kohl (FRG); President Bush; President Francois Mitterrand (France); ments reinforced for the summit leaders Prime Minister Margaret Thatcher (UK); Prime Minister Brian Mulroney (Canada); and the importance of supporting political and Prime Minister Sosuke Uno (Japan). (White House photo by Susan Biddle) economic reform in Eastern Europe. The leaders also expressed strong concern about environmental and narcotics issues; debt strategy that will rely, on a case-by- Commitment to limit the emissions at least one-third of the economic declara- case basis, on such actions as economic of carbon dioxide and other greenhouse tion dealt with the environment. reforms by developing countries, more gases as well as conclusion of an interna- resources by a financially stronger World tional framework convention on global Economic Accomplishments Bank and the International Monetary climate change. Fund (IMF), continued debt rescheduling Support for the preservation of Agreement on several multilateral by creditor governments, and more tropical forests and condemnation of the trade issues, including a pledge to make voluntary, market-based debt reductions practice of dumping waste in the oceans. effective use of the GATT (General by commercial banks. Agreement on Tariffs and Trade) dispute Continued cooperation in foreign settlement mechanism, to avoid new Political Accomplishments exchange markets. restrictive trade measures inconsistent Support for ending as soon as pos- Call for a meeting of all interested with the GATT, and to make further sub- sible and not later than the end of the parties to discuss concerted assistance to stantial progress in the Uruguay Round century the production and consumption Poland and Hungary and a request that in order to complete it by the end of 1990. of chlorofluorocarbons covered by the the European Community coordinate Commitment to a strengthened Montreal Protocol on Substances that these efforts. Deplete the Ozone Layer. Support for effective programs to indirect subsidies affecting agricultural signals to influence the orientation of stop illegal drug production and traffick- trade. production, and to work in concert to ing, including assistance to the antidrug Support for a $75 billion general adjust agricultural policies, both domesti- efforts of producing countries and the capital increase for the World Bank to cally and in the Uruguay Round. United Nations, increased international strengthen its capacity to promote Call for newly industrialized coun- cooperation to seize drug proceeds and adjustment in middle-income developing tries with rapid growth and large external prevent money laundering, and support countries. surpluses to reduce trade barriers and al- for a 1990 international conference on Agreement to relieve the debt bur- low their currencies more fully to reflect cocaine and drug demand reduction. dens of the poorest developing countries, underlying economic conditions. Continued strong condemnation of particularly in sub-Saharan Africa, by international terrorism by states, includ- urging creditors to grant partial debt for- Political Accomplishments ing hostage taking and attacks against giveness, reduced interest rates, and/or international civil aviation. lengthened debt maturities. Agreement affirming the principle Condemnation of political repres- Support for the ratification of the of freedom of navigation in the Persian sion in China and agreement to suspend Montreal agreement on the ozone layer Gulf and the importance of the free flow of the shipment of arms and the extension of and the completion of other ongoing nego- oil and other traffic through the water- loans to China. tiations on emissions and the transport of way, and supporting the adoption of just hazardous wastes. and effective measures by the UN Secu- rity Council to resolve the conflict. Toronto, June 19-21, 1988 Political Accomplishments Agreement on the need for more ef- fective national efforts and international Summary Confirmation of the policy of con- coordination to prevent the acquired im- structive dialogue and cooperation be- mune deficiency syndrome (AIDS) from The summit, one of the most harmonious tween East and West, particularly in the spreading further. of the 1980s, marked the end of the second light of greater freedom and openness in 7-year cycle of economic meetings. The the Soviet Union. leaders expressed satisfaction at their ac- Reaffirmation of previous summit Tokyo, May 4-6, 1986 complishments in bringing down inflation agreements to combat terrorism and sup- in the 1980s and laying the basis for port for the policy of no takeoffs for Summary sustained strong growth and improved hijacked aircraft once they have landed. productivity. Among still unresolved The Tokyo meeting, by achieving signifi- Support for US Government initia- problems they noted the emergence of cant economic and political declarations, tives to improve cooperation against nar- was hailed as one of the most successful large payments imbalances among major cotics trafficking. countries, greater exchange rate volatil- economic summits in recent memory. ity, and continuing debt service difficulty There was greater specificity about at- in developing countries. In response to Venice, June 8-10, 1987 tempts to increase policy coordination and these developments, the leaders made a decision to begin a new round of trade further refinements in the multilateral Summary talks. On the political side, the joint statement on terrorism was a landmark surveillance system to improve the coordination of their economic policies. The Venice summit took place against a achievement. One reason for the success They also committed themselves to backdrop of escalating tension in the Per- was that leaders at the Tokyo meeting further trade liberalization at the Uru- sian Gulf. On the economic front, the had considerable experience dealing with guay Round and offered new initiatives to summit leaders addressed the continuing each other at previous summits. issue of how to reconcile domestic eco- relieve the debt burden of the poorest de- nomic policies with the need for a more veloping countries. Economic Accomplishments stable international monetary, financial, Economic Accomplishments and trading system. Establishment of new arrange- ments to assess the consistency and Improvement of the multilateral Economic Accomplishments compatibility of their economic policies, surveillance system by adding a commod- based on economic indicators, and includ- Reaffirmation that further shifts in ity price indicator to the existing indica- ing enhanced surveillance over exchange tors monitored by the seven nations, and exchange rates could be counterproduc- rates. tive. by integrating national structural policies Formation of a new Group of 7 (fi- into the economic coordination process. Agreement on the need for effec- nance ministers of summit nations) to tive structural adjustment policies, espe- Support for efforts at the Uruguay achieve greater economic policy coordina- Round to achieve trade liberalization in all cially for creating jobs. tion. + Agreement to improve the multilat- areas including trade in services, intellec- Agreement to use the September eral trading system under the GATT and tual property rights (such as copyrights 1986 GATT ministerial meeting in Uru- to bring about wider coverage of world and trademarks); and trade-related in- guay as a platform for launching the new trade under agreed, effective, and vestment measures, to strengthen the round of multilateral trade negotiations GATT's surveillance and enforcement enforceable multilateral discipline. and to support an extension of GATT Agreement that the long-term ob- mechanism, and to reduce all direct and discipline to new areas such as services, jective in agriculture is to allow market 2 intellectual property, and investment. Agreement to give increased impe- in which the human spirit could develop in Recognition of the need to cooper- tus to preparations for the launching of freedom and diversity. ate to redirect agricultural policies and new multilateral trade negotiations under Determination to pursue the search adjust the structure of agricultural pro- the auspices of the GATT. for extended political dialogue and long- duction in light of world demand. term cooperation with the Soviet Union Endorsement of measures to assist Political Accomplishments and its allies and endorsement of US will- Third World development, including the US initiative to alleviate debtor country Support of the US negotiating posi- ingness to resume nuclear arms control tion in the arms control talks with the So- talks with the Soviet Union. problems, in order to encourage implem- viet Union, which was urged to act posi- Commitment to consult and cooper- entation of effective structural adjust- tively and constructively to reach agree- ate in expelling or excluding known ter- ment policies, and increased financial ment. rorists from their countries. support to the International Development Association and the IMF. Commitment to fighting the com- Hope for a peaceful and honorable mon threat posed by growing interna- settlement to the Iran-Iraq conflict. Political Accomplishments tional drug trafficking and abuse, includ- ing the coordination of legislation to Williamsburg, May 28-30, Agreement on a tough statement thwart international drug smuggling. denouncing international terrorism, vow- 1983 ing to fight it relentlessly and singling out Libya as a key target in the fight against London, June 7-9, 1984 Summary terrorism. The United States hosted a very success- Call for a new international conven- Summary ful summit as virtually all President tion requiring information exchanges on The meeting marked the passage from a Reagan's economic and political objectives nuclear accidents and emergencies, in the period of constructing firm domestic bases were fulfilled. As Western economies wake of the accident at the Chernobyl nu- for noninflationary growth to one of en- were beginning to recover, the allied clear power station. hancing the openness of international leaders accepted several US economic Commitment to continued East- trade and finance. As the previous Wil- policies (e.g., lower taxes, more emphasis West dialogue and negotiation, and sup- liamsburg summit signaled the beginning on private sector initiative). The allies port for a balanced, substantial, and veri- of recovery and offered an outline of acknowledged the need for united action fiable arms reduction agreement. future strategies in the international to bring about domestic and global economy, the London summit gave a economic growth. The joint statement on Bonn, May 2-4, 1985 clearer focus to future tasks and actions. intermediate-range nuclear forces (INF) There was a strong endorsement of the also was an important victory for the Summary basic anti-inflationary stance first United States because it specifically en- advocated by President Reagan at the dorsed the diplomatic and military The summit participants undertook to Ottawa summit in 1981. The political dec- strategy that the United States and its pursue, individually and cooperatively, larations were the cornerstone of the NATO allies were pursuing in relation to policies conducive to sustained growth London summit. the Soviet Union. The introduction of and higher employment. Building on more flexibility and informality into the common, agreed principles for achieving Economic Accomplishments proceedings (e.g., less previously pre- these goals, the leaders indicated specific Agreement to continue and pared texts) contributed to the successful priorities for their own national policies. strengthen policies to reduce inflation, meeting. The United States asked the Federal Republic of Germany and Japan to stimu- interest rates, and budget deficits and to late their economies. The leaders under- control monetary growth. Economic Accomplishments took to seek to make the functioning of Commitment to work toward Agreement on broad strategies to the world monetary system more stable making their economies more competitive consolidate domestic and international and more effective, and discussed ways to and flexible to reduce unemployment and economic recovery, including steps to reach more realistic exchange rate rela- develop new technologies. reverse the trend toward protectionism, tionships. Agreement to take steps to ease promote greater convergence of economic the repayment terms of Third World performance, and encourage the develop- Economic Accomplishments debtor countries working to improve their ment of new technologies. economic performance. Commitment to reduce structural Agreement to work to strengthen budget deficits by limiting the growth of their economies, halt protectionism, im- Political Accomplishments expenditures and to pursue appropriate prove international monetary stability, budgetary and monetary policies to lower increase employment, and reduce social In a 500-word Declaration on interest rates, inflation, and unemploy- inequities. Democratic Values, affirmation of their ment. Promise to follow prudent economic commitment to a rule of law which re- Decision to convene a meeting of fi- policies, including the exercise of firm con- spects and protects the rights and liber- nance ministers to review and improve trol over public spending to reduce ties of every citizen and provides a setting the operation of the international mone- budget deficits. tary system. 3 Commitment to energy conserva- primary vehicle for achieving stable ex- Economic Accomplishments tion and the development of alternative. change rates. energy sources. Agreement that the goals of reduc- Agreement to pursue prudent Reaffirmation that East-West eco- ing inflation and unemployment were monetary policies and achieve greater nomic relations should be compatible with highest priority and that low and stable control of budgetary deficits in order to the security interests of the allies. bring down high interest rates. monetary growth was essential to bring down inflation. Prudent use of government export Commitment to liberal interna- Political Accomplishments credits to the Soviet Union and its allies. tional trade policies and continued opposi- Agreement to achieve lower levels Efforts to improve the multilateral tion to protectionist pressures. of arms through serious arms control ne- system controlling the export of strategic Commitment to accelerated devel- gotiations with the Soviet Union, and a goods to the Soviet Union and its allies. opment and use of all energy sources and commitment to procèed with INF deploy- Approval of a preparatory process encouragement of greater public accep- ment if the negotiations failed to result in of negotiations on assistance to develop- tance of nuclear energy. an accord. ing countries and development of other Agreement to consult and coordi- forms of practical cooperation with them. nate economic policies relating to East- Versailles, June 4-6, 1982 West trade and to ensure that these poli- Political Accomplishments cies were compatible with political and Call for an immediate halt to vio- security objectives. Agreement on the Summary lence by all parties in Lebanon, in the need to upgrade existing controls on The summit was surrounded by contro- wake of the Israeli invasion there. exports of strategic goods to the Soviet versy over the issue (settled 6 months Union and its allies. later) of oil pipeline equipment sanctions Ottawa, July 19-21, 1981 against the Soviet Union, including the Political Accomplishments question of the applicability of US law to European companies: The leaders agreed Summary Condemnation of the continuing Soviet occupation of Afghanistan. to pursue greater coordination of their This summit was a "get-acquainted" ses- Condemnation of international ter- economic policies and to seek convergence of economic performance, at a time of sion between President Reagan and the rorism. other allied leaders. The President em- Disapproval of the escalation of ten- recession in the Western industrial countries. phasized his domestic economic policies to sion and the continuing acts of violence in promote sustainable, market-oriented, the Middle East. Economic Accomplishments and noninflationary growth. He also called attention to the potential for Public Information Series Published by Establishment of a multilateral sur- erosion of Western security resulting the United States Department of State veillance system to enable countries to from excessive dependence on Soviet Bureau of Public Affairs Office of Public consult on economic policies and seek con- energy resources (notably natural gas) Communication Editorial Division vergence of economic performance as the and the export of strategic goods to the Writers: Robert Coe/William Sanford Soviet Union. Editor: Juanita Adams Washington, DC May 1990 PA/PC, Mailing List United States Department of State BULK RATE Washington, DC 20520-6810 POSTAGE & FEES PAID US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested Secretary Baker Current Latin America and the Policy No. 1160 U.S. A New Partnership United States Department of State Bureau of Public Affairs Washington, D.C. defending human rights in the Helsinki Soon we will enter the 21st centu- Following is an address by Secretary Baker before the Carter Presidential Final Act. So I very much appreciate ry, and we face a choice between two Center's Consultation on a New the hospitality of each of these Presi- very different futures. Down one road Hemispheric Agenda, Atlanta, dents in inviting me to join you today. lies a vision of freedom and oppor- tunity and economic development. It's Georgia, March 30, 1989. a vision in which all our citizens can Historic Changes share as partners in a global economy I am truly delighted to have the oppor- I think we meet at a truly historic mo- and a true community of democratic na- tunity to be here today. It is a special privilege for me to join two American ment for Latin America and for the tions. Down the other road lies a failed leaders who together, I think, really United States. Across the Americas to- vision. A vision of dictatorship and symbolize the promise of bipartisan day, from Punta del Este to California, state control and missed opportunities. foreign policy, President Jimmy Carter an old order is dying and a new world is We know which road we must travel, and President Gerald Ford. Let me struggling to be born. and we know that we have got to make start, if I might, by saying a brief word Brazil is manufacturing communi- that journey together. To put it simply, cation satellites. Mexico has joined the we need each other now as we have about each of these two former GATT [General Agreement on Tariffs never before. Presidents. I think it is noteworthy that just 5 and Trade]. A new vision of regional days ago, we celebrated the 10th anni- trade and int egration is taking shape Common Challenges versary of the Camp David accords. All in the Caribbean Basin. And the winds of the bright promises of that historic of democracy are blowing across our The agenda of issues before this impor- hemisphere, from Chile to Paraguay to tant conference confirms that new treaty have, of course, not yet been re- alized, but we should take note of the Central America. reality-democracy; development; fact that for 10 years neither Israel's The United States does not stand drugs; debt; trade; migration; the envi- aloof from the historic changes which ronment; nuclear proliferation. These sons nor Egypt's sons have died in bat- tle with each other, and peace reigns are transforming our hemisphere-in are neither North American nor Latin today on the Šinai. That historic treaty fact, quite the opposite. We are proudly American responsibilities. They are rediscovering our shared heritage with the common challenges that we are will forever be a monument to the vi- sion and leadership of three men of Latin America. going to have to confront together to peace: Anwar Sadat, Menachem Begin, Stand in Miami today, or go as I do shape successfully our shared destiny. and President Jimmy Carter, occasionally to San Antonio. Close your In recent weeks and months, Presi- I was also struck on my recent tour eyes and listen. You could easily imag- dent Bush and I have heard that very of Europe by the new, historic stirrings ine yourself in Caracas or in San Jose. message. We have heard it from Presi- for greater freedom and democracy in The fifth largest Spanish-speaking dent Salinas [Mexico], President Al- Eastern Europe from Poland to Hun- community in the world now lives in the fonsin [Argentina], President Perez United States. Our culture and econ- [Venezuela], President Azcona [Hon- gary; indeed, to the Soviet Union it- omy are vastly enriched by the contri- duras], President Cerezo [Guatemala], self. There are many causes, of course, bution of these Americans. and President Duarte [El Salvador], for these profound changes, but surely and we have heard it from Prime Minis- history will record that one of those im- ters Eugenia Charles [Dominica] and portant reasons is the leadership that Michael Manley [Jamaica]-all of whom was shown by President Gerald Ford in were recently welcomed visitors to economy releases the energies of indi- Instead, it must create a climate for Washington. We have heard that mes- viduals and entrepreneurs, that it re- investment-a climate that will bring sage as well from many of those of you wards initiative, and that it offers flight capital back to the region and upward mobility. Economic liberty is that will attract new capital flows. in this room. I think that Latin America's demo- the surest way to fulfill the aspirations Debt is a problem, but it is really also a cratic leaders are reaching out to the of all of our citizens. Those Latin na- symptom of, sometimes, a greater United States to offer a new partner- tions which have turned to this model problem. If there were a magic solution ship. A partnership built on mutual re- have already begun to see a tangible that did not require structural econom- spect and a partnership built on shared reward. ic reform, then those nations which responsbility. I am here on behalf of a During earlier phases of our his- have declared a moratorium on debt new President of the United States and tory, we in the United States too often would be growing well today, but that a new Administration with our answer: sought rapid growth at the expense of simply is not the case. Instead, they We are reaching back to you. our nation's environment. We hope that are in deeper economic crisis. Today, The problems we face will not be here our experience can help Latin na- democratic governments must try to re- resolved through quick promises or tions learn from our mistakes, rather form bloated state economies, service through easy answers. Instead, we then repeat those mistakes. their debt and, at the same time, satis- have got to confront them together. We While we have much to learn from fy the real needs of their citizens. We have got to confront them with candor. each other, we also have much to expect understand that facing this challenge We have got to confront them with from each other. Together, we have got alone is a nearly impossible juggling courage. And we have got to confront to set aside the easy politics of blame act. them with commitment. Let us begin and the easy politics of mutual re- by recognizing a simple truth that we, crimination. Let us forge, instead, a The Need for a Cooperative Approach I think, have too often forgotten in the new bond of cooperation and a new past. We really do have a lot to learn bond of mutual responsibility. We do not expect Latin American na- from each other. Those mutual responsibilities are tions to face this challenge alone. As In recent years, the people of the subject of this conference, and we these nations move forward to take the North America have learned a lesson will discuss them also in our private necessary, but difficult, steps to re- from the people of Latin America. A dialogue. Let me, if I might, mention structure and reform their economies, lesson about personal courage and the a few of those subjects very briefly. we must be prepared to hear their passion of ordinary people to simply be calls for help. And we accept that free. Peasants and political leaders, responsibility. Democracy and Prosperity Within the first 5 weeks of our Ad- shopkeepers and market ladies have defied death threats and guerrilla The democratic wave sweeping Latin ministration, we have announced a new violence, colonels and comandantes, America today has been propelled by approach to help reduce Latin Ameri- the aspirations of ordinary people for ca's debt burden. In the weeks and to fight for democracy. I think we learned that lesson again 10 days ago in freedom and a better life. Now one months to come, we must negotiate El Salvador. question, above all others, confronts case by case the details of that policy to We have watched far-sighted demo- this hemisphere: Can democracy really ensure continued economic reform, to cratic leaders take the first vital, and deliver? ensure a real reduction in existing debt often politically difficult, steps to shed Can democratic governments begin burdens-and, very importantly, to en- layers of state regulation and special to satisfy their peoples' basic needs for sure new capital flows into the future. preference that for too long have held in jobs, for health care, for homes, and for If we ask Latin America to strip check the creative, productive energies schools? Can fragile new civilian re- away the layers of protection that of Latin America. And we have learned gimes construct and strengthen demo- shield their economies from the free a lesson from Latin America about po- cratic institutions, protect their flow of trade in goods and services, litical leadership. citizens against organized violence then we in the United States, too, must We continue to be reminded of from both the extreme right and left, confront protectionism and steadily the values that we hold dear by Latin and normalize succession of power reduce the barriers to products. America's special sense of family, through peaceful electoral processes? If we ask that you confront the new friendship, culture, and hospitality. The answer, of course, has got to menace of organized drug cartels, now And we hope that our experience in the be yes. often in league with guerrilla move- United States with democracy-our ex- Yet, hanging over every decision ments, then we must not only assist you perience with a free economy-may of- which the region's elected leaders con- in that effort but also confront the ter- fer useful lessons to our friends in template is the specter of deep econom- rible demand that exists in our country Latin America. ic and social crisis and the weight of for these drugs. Only by tackling both The United States enjoys political Latin America's foreign debt. "The supply and demand can we free our stability, peaceful succession of power, elected Presidents of the continent," hemisphere from this drug menace. unquestioned civilian authority, and The Economist wrote recently, "rule If we are together engaged in a the steady expansion of human rights. from capital cities ringed by shanty joint venture north and south to ad- We enjoy these blessings because for towns, swollen with refugees from the vance and defend democracy, then we 200 years we have struggled to ensure depressed countryside." each must do our part-collectively that every citizen can help shape our That is not our shared vision of where possible-to create new mecha- political destiny. We are committed to Latin America's future. Clearly, Latin nisms and strengthen existing ones to helping Latin America wage that suc- America must begin to grow again, and defend human rights, to guarantee the cessful democratic struggle as well. the fruits of that growth must be more integrity of elections, and to establish We have also learned that a free widely shared. sanctions against those who threaten To grow, Latin America cannot continue to be a net exporter of capital. 2 democratically elected governments announcing the accord, to support a have the courage and the will to seize through violence or through coups. process that guarantees democracy the opportunities before us, this is a If you ask the United States to for- in Central America. But the United time when we can dream great dreams go unilateral initiatives and to work, States will never support simply a pa- for all the people of the Americas. instead, in good faith with the demo- per agreement that sells out the Nicar- I believe the day will come when cratic nations of Latin America in a aguan people's right to be free, and Carlos Andres Perez and Raul Alfon- new cooperative diplomacy to support neither should any other democracy sin, Vinicio Cerezo, Jose Napoleon Du- democracy, then we ask you to join with in this hemisphere. arte, Carlos Salinas, Julio Sanguinetti us in good faith to turn the promise of Together we must send a clear [President of Uruguay], Jose Azcona, that diplomacy into a reality through- message to others outside this hemi- Oscar Arias [President of Costa Rica]- out this hemisphere. sphere: This is simply not a dumping and many others-will be seen as the Our Administration has negotiated ground for their arms or their failed pioneers who blazed the trail that will a new bipartisan accord with Congress ideologies. We are looking for tangible lead one day to the world's first com- on Central America [see Selected signs of the so-called new thinking. The pletely democratic hemisphere. I be- Documents No. 36, "U.S. Support for Soviet Union now has an opportunity lieve that our hemisphere can become Democracy and Peace in Central to demonstrate its new thinking in its the model for the rest of the planet for America"]. We are committed to work relationship to Central America. That a true partnership between the devel- with Latin and Central American dem- is what the Esquipulas agreement re- oped and the developing nations. A ocratic leaders to translate the bright quires, and that is what the democratic partnership where trade is free and promise of the Esquipulas agreement community demands. prosperity is shared and the benefits of into concrete realities on the ground. And finally, if we support dialogue technology are harnessed for all. That is a challenge, but at the same between the Government of El Salvador And I believe that ideas generated time it's an opportunity. All those who and the Marxist guerrillas to end the in meetings such as this can, in fact, advocate diplomacy and political solu- conflict there, then we should insist as lead us to the day when in all nations of tions to the region's conflicts, I think, well on dialogue between the Govern- the Americas the rule of law prevails, have a responsibility to prove that this ment of Nicaragua and the peasant human rights are respected, the strong is the best and the surest route to army of the Nicaraguan Resistance are just and the weak secure, and the achieve our common goals. We invite so the guns of war can stand silent people live in peace. Latin America's democratic leaders to throughout Central America. For only join us in this challenge. when democracy and peace reign Published by the United States Department Together, we must insist that the throughout Central America can we get of State Bureau of Public Affairs promises in that regional treaty for de- on with the urgent work of economic in- Office of Public Communication Editorial mocracy, for peace, and for security are tegration and development for which Division Washington, D.C. April 1989 not only kept but verified. We are pre- the people of that war-torn region Editor: Colleen Lutz This material is pared, as President Bush declared in deeply yearn. in the public domain and may be reprinted Some look at the crises and prob- without permission; citation of this source is appreciated. lems facing Latin America today, and they despair. I want you to know that I am not one of those. I believe that if we 3 - 1 - INTRODUCTION (SEARAPPC 8146, 5/16/90) Council of the Americas A time of great change in the world, symbolized by the fall of the Berlin Wall. -- "defeat of communism" -- lessening of E-W tension -- unification of the "two Germanies" Economically, -- Europe ' 92 -- the challenge of the Pacific Rim economies - -- the opening of markets, investment opportunities in E. Europe. Concerns about the Americas' place in the world, the U.S. stake in the Americas. One, Brazilian magazine speculated that while Brazil strggled to compete with "Asian Tigers" in the 1980s, the 1990s will belong to the "East European Tigers" and Western and Japanese investment will be diverted from 10w-growth LDCs such as Brazil to East European countries. Reflecting on the impact of Europe 92 on the Caribbean one leader said: L"Is the single European market a threat or an opportunity? It can be both for the Caribbean. It is an opportunity if we are wise and imaginative - a threat if we are not. Change in Central Europe has seized world attention, but there are signs of profound changes -- less visibly dramatic -- taking place in this hemisphere. O In Mexico, the Chamber of Deputies has passed by an overwhelming vote (339-54) the Government's privatization plan - privatize the banks - Sinte negatable a Argentine exports of soybeans have grown 28 times in the little over a decade to make the world's 3rd largest exporter. Tijuana's exports to California are roughly equal to total two way trade between the United States and both Poland and Hungary. The island country of Trinidad and Tobago is the world's second largest supplier of nitrogen fertiler -- after the Soviet Union. I. THE AMERICAS MATTER - 2 - We are re-thinking our relationships -- in this hemisphere and elsewhere. We are not retrenching. Our stake in future of the Americas is substantial and growing. Economic Our total merchandize trade with the region (1989) is just under 100 billion dollars, about 13% of the world total. The United States has major investments in the region, amounting in 1987 to 42.3 billion, or 59% of all U.S. direct investment in developing countries. When our Latin partners have prospered, we have prospered; when Latin American growth has lagged, so has our trade with the region. As the Mexican economy has opened up and turned around our two-way trade has mushroomed. The total of $52 billion is a 20% increase over 1988's figure and 50% above '87's level of $35 billion. -- In 1981, at the onset of the economic crisis, the region spent $42 billion on U.S. products, 18% of our total exports. As the crisis deepened, the region's purchases of U.S. goods fell sharply to $26 billion in 1983. Today, they are just above the earlier peak ($44 billion, with no adjustment for inflation); but the share is much less (12%). -- Venezuela is an example of both sides of the equation: In 1988, Venezuela grew by 4.2%; our exports advanced 28%. In 1989, Venezuela's econy receded by 8-10%; our exports declined by 34%. We share with our American partners as well a genuine interest in dealing successfully with the debt problem. Total Latin debt exceeds $400 billion of which a 1/3 is held by U.S. commercial banks. It has been estimated that the debt problem has cost the United States as much as $75 billion in lost exports over the past decade. Drugs All of the cocaine consumed in the United States originates in South America. Coca, the raw product used to produce cocaine is grown in the Andean countries of Peru, Bolivia, and Colombia. Gross illegal drug sales in the U.S. are estimated at $110 billion -- more than our gross agricultural income, more - 3 - than double the profits enjoyed by the Fortune 500 companies combined. Traffickers in Latin America are estimated to net some $8 billion/year. Three of the region's 7 billionaires are traffickers. Environment The Amazon represents nearly one-third of all the world's tropical forest. Estimates of de-forestation, based on LANDSAT satellite photography indicate that 5 - 12% of the Amazon has been deforested. Not just an Amazon issue: E.g. in Costa Rica in 1970 51% of the country was in forest; in 1980 only 30% was forest-covered. At present rate of deforestation, exploitable timber will be exhausted by 2000. Costa Rica will need to import. Not just de-forestation: air pollution (2/3 of region's inhabitants live in cities; 2 of world's largest cities, Mexico City and Sao Paulo, are in region), fishing practices, and Antarctic exploration. Remaining Security Issues Almost 1/2 of U.S. imports and exports and 55% of our crude oil imports pass through the Caribbean Basin. 2 of every 3 ships transiting the Panama Canal carry goods to or from the United States. Insurgencies persist in Peru and Colombia, Guatemala and El Salvador. Violence -- political, social, and criminal -- traditionally high, has escalated in recent years. Now murder is the leading cause of death for male adults (18-40) in Colombia (where the government estimates some 140 groups engage in extra-judicial killings). II. THE PROSPECTS FOR PROGRESS ARE GOOD The countries of the Americas have taken the right direction. One important lesson of global changes: economic and political freedom work hand-in-hand. -- Democracy is an economic asset. As one former Latin Latin finance Minister put it: Political centralism works against competition. Excessive statism must cease What is happening in Eastern Europe is an example. We are learning that democatic solutions are slow, that they often involve a difficult process of - 4 - negotiation. Democracy is less efficient in some ways from other systems but still is better because among other things, it is necessary to achieve a consensus and wide participation of all segments of society to implement change. In the Americas, political transformation -- the democratic revolution -- is well along; an economic revolution is underway. The Volta Rondada Steel plant in Brazil (once the symbol of modernization through state-supported industrialization) is slated for privatization. In Uruguay, the state mononopoly on insurance will end and private capital will be able to invest in the national airline and telephone company. In Mexico, the banks are being denationalized and the state telecommunications monopoly is ending. Tijuana, the second largest city on the West Coast of North America, has become known as "the world capital of television manufacturing." Unemployment is just 1% and the average wage is double the minimum. Chile has transferred twice the value of state assets to the private sector than Britain, and in half the time (according to an independent study and taking into account the relative sizes of both countries). The island states of the Eastern Caribbean are planning to create a regional stock exchange. ISSUE: But, will the Latin American and Caribbean nations follow through on their programs of economic reform? What are the prospects for full implementation? Answer: There is good reason to believe that they will follow through. o Success in carrying through reforms depends on leaders who are willing to stay the course, to make the hard decisions and then follow through to the end. Latin leaders, it is clear, know that they must follow through on their reforms. There is a real sense of urgency on this, a sense of now-or-never. Menem's Inaugural: "we are living a long, painful crisis the worst, deepest, most decisive and most terrible crisis we can imagine. This crisis is a challenge I am here to call you to the birth of a new era, of a new opportunity, perhaps the last one. - 5 - o Leaders must also set goals that make sense to citizens. Leaders are also accutely aware that economic growth is not an end in itself and are committed to growth that reaches all sectors of society. -- Menem on the Anniversary of the B.A. Stock Exchange: "I will lead the economic recovery of a prostrated nation, with a new and wide-reaching market system. When I say wide-reaching, I mean that the economic system should serve the welfare of the population. But I also mean that each and every citizen must become part of the economic system." CAP's Inaugural: "The readjustment of the economy cannot be separated from the obligation democracy has twards workers, towards the poor people living in the urban and rural areas, as well as towards the middle class." Collor's Labor Day Speech: one can't talk of a market economy in a society where the majority of workeers is not integrated into the economy in developed market countries progress is a process of negotiation. O The failure of protectionist, statist, and closed economic systems to produce genuine wealth is widely evident. It is understood that a reduced state role in the economy is not just compatible with but, is a pre-condition to realizing social goals. -- Menem on Anniverary of Stock Exchange: "Forty years ago, just as in maby post-War European countries, companies were nationalized while other State-owned companies were created. Today, those same companies are bleeding the country with their deficits and imbalances." Salinas' State of the Nation speech: "a State that does not attend to the demands of the people because it is too busy administering its entrprises is neither just nor revolutionary An over-extended, overworked State ends up as a weak State " Menem on the Anniversary of the B.A. Stock Exchange: "We want a socially effective government, a government able to take charge of strategic national policies rather than one that manages hotels, blocks private initiative and bureaucratizes pepole's lives." o Economic reform must have popular backing. The genuinely open economy has inherent popular appeal. It offers empowerment, mobility, and real participation in the economic life of the nation to all levels and sectors of society. In Lima the informal sector provides 43% of the housing, 83% of the markets, and 95% of urban transport. An - 6 - estimated 40% of the GDP is generated by the informal sector. Fernando De Soto's group estimates that the informal economy of Peru produces nearly 40% of the GDP and represents 60% of the man-hours worked in the country. Informals own land and housing valued at some $16 billion. There are similar estimates from other countries. + (Economists estimate that the Brazilian GDP would be 25% higher if the informal economy's contribution were counted. One research group estimates that some 7.3 million workers are employed in the informal economy.) + (An Argentine think-tank estimates that the informal economy there equals 60% of the official measured GNP -- 1 out of 3 goods manufactured is not officially counted.) -- Today the informals operate at the margins of society and in spite of state restriction and control. The closed economy discourages wide particpation by the people in the economic life of their country. + It took 4 researchers working full time 43 days and 15 times the minimum wage to open a small retail shop. + Less than 4% of the homes in Lima's informal sector are titled. + Getting title to a home in Peru, requires up to 48 months of hard work and more than a year's minimum wage in "fees." The open economy legitimates private ownership, the effect is to liberate productive economic activity. + Legal title to property makes it possible to leverage de facto assets (through mortgages, loans, etc.) to greatly expand activity. + When individuals acquire title to property the "own" the value increases 9 times over 10 years. + In the words of Hernando DeSoto: "tangible enfranchisement" creates an "enabling environment. " O Carried through, economic opening works. -- One small example on the micro-level: Mexico has increased its revenue from the sale of coffee by 40%, in spite of the collapse in the international coffee agreement. The - 7 - reason, according to the Mexicans: virtual elimination of the Mexican Coffee Institute as a regulator. Country Examples Mexico's GDP grew 3% in 1989 (exceeding population growth for the first time in 10 years). Inflation brought down from 51.7% in '88 to 20% in '89. Bolivia continued with modest inflation, steady growth. Costa Rica showed uninteruppted economic growth since 1983, with expanding non-traditional exports (now more than half of total exports). Venezuela (which suffered a decline of 8-10% in GDP) still expects nontraditional exports to increase 20% under last year's maxi-develuation, has reduced its fiscal deficit reduced to just 2% of GDP last year. In Colombia, tight money policy held inflation down to 27% last year. Growth at 3% remains high for the region. III. WE WILL CONTRIBUTE TO THE WELL-BEING OF THE AMERICAS IN WORKING PARTNERSHIP WITH OUR NEIGHBORS. Definition of Partnership: The President described our relationship this way: "a partnership built on mutual respect and mutual responsibility rooted in a common commitment to democratic rule. Our Contribution to the Partnership What is the U.S. doing to encourage Latin economic growth? What does it plan to do concretely? o First, let us not minimize the importance of asserting intellectual leadership. The way to solutions if often blocked by thinking that was out of synch with the times and global developments. The terms of reference needed to be clarified and discussion of issues channeled along pragmatic lines. -- E.g. Debt: while significant in its own right, needed to be seen as the symptom of a greater problem. Economic reform had to be recognized as an indispensable condition for any progress. Linkages needed to be strengthened between debt-packages and internal reforms. The Brady Proposals as much a vehicle for encouraging economic restructuring as simply a means of debt and debt-service reduction. - 8 - O Concretely on the issue of debt, 5 countries (4 in the region: Chile, Costa Rica, Mexico, Venezuela; and the Philippines) have concluded new debt arrangements under Brady proposals; these countries account for 44% of commercial debt owed by the 16 largest LDC debtors. -- Mexico's recent debt deal will allow it to reduce its net external transfers from 6% of GNP/yr. (1983-1988) to an annual average of 2% per yr. (1990-1994). (According to Jose Gurria, undersecretary for international finance, Finance Ministry). -- Costa Rica's debt buyback agreement with commercial banks will result in repurchase of 60% of the country's debt, leaving the debt at $3.9 billion for this year. Venezuela's agreement with leading foreign creditory banks allows them to slice 25% off debt value and accept bonds at fixed, below-market interest rates or provide new money. We are contributing to the strengthening of the International Financial Institutions (IFIs) which play a critical support role in debt arrangements. O The future will very much depend on what happens in the areas of trade, investment, and technology. This is neither the time or place for a Marshal Plan for the Americas. The U.S. cannot underwrite the costs of economic growth out of its foreign assistance budget. Nor should we. + Where U.S. assistance is critical and appropriate we do provide: bilaterally and multilaterally. + Last year our economic bilateral aid to the region was just under $1 billion. Adding in U.S. contributions to multilateral lending institutions, our assistance to the region roughly equals that during the Alliance for Progress. --- We are exploring ways of liberalizing trade with neighbors. e.g. Mexico. -- We have been working to enhance the CBI. -- The Cartagena approach wisely requires that we cooperate to liberalize trade with the Andean countries -- a step not only advantageous in its own right but also supportive of the effort to combat drugs. --- On bilateral trade and technology issues we are working hard at establishing a "positive agenda." We are not - 9 - looking to gain a short-sighted, unilateral advantage from our 301 actions. The issue is reciprocity. -- Consistent with our emphasis on a global approach to trade liberalization we are working hard at increasing access to markets around the world, principally at the GATT. + We have set a goal of eliminating agricultural subsidies world-wide by the year 2000. And, to date we have introduced over 100 proposals in the Uruguay Round. + + We encourage Latin participation in the GATT. Currently 12 countries have formal accession applications pending. Last year, work was completed on 3 (Bolivia, Costa Rica, and Tunisia). Six others, largely from Central and South America, are under active consideration. + We have a common interest with Latin GATT members in negotiating access for specific products (e.g. soybeans) and, more generally, in resisting the "protectionist temptation" in newly emerging trading groups. We invite Latin cooperation at the GATT. We welcome the opportunity to invest in Latin growth. Bilateral Investment Treaties (BITs) are one way to clarify the rules of the game and facilitate capital transfere. We are exploring others. And, we would welcome signals from capital-needy countries of receptivity to investment. The issue is one of clear, transparent, and consistent rules of the game. -- We encourage countries outside the hemisphere to trade and invest in the region: Japan, EC countries. The Consequences of Partnership -- If we support more open trade we need to confront protectionism in the United States. -- If we and our partners in the hemisphere support an outward looking approach to trade then we need to work together for a freer international trading system. And, if we admit to differences with our neighbors on some GATT issues, we should recognize our common interests in gaining access to markets outside this hemisphere. We can and should work together to advance those common interests. -- If everyone recognizes that technology is a driving force in the global economy, then we must encourage the commercial transfere of technology by discouraging the piracy of technology. - 10 - --- If our neighbors are looking for the capital to finance growth, then they must signal to investors -- their own as well as foreign investors -- that they welcome their participation, and that the rules of the game are transparent and coherent. --- And, if our neighbors are working hard to open up their economies we should recognize that their need of capital for growth can be our opportunity for investment. Partnership is not a zero-sum game in which my gain is your loss and vice-versa. North and South we have an interest in dealing with the debt problem. North and South we have good reason to expand two-way trade not just exports. North and South we have every reason to engage more broadly in global markets even as we deepen our own economic relationship. - 1 - 7883, 4/26/90 INTRODUCTION Latin America matters, and in the next 5 to 10 years it will require still greater attention. Latin America owes us more money, sells us more cocaine, and buys more of its imports from us than any other part of the world. As East-West tensions/competition around the world seems to diminish, threats close to home move to the fore. Drugs. All of the cocaine consumed in the United States originates in South America. Coca, the raw product used to produce cocaine is grown in the Andean countries of Peru, Bolivia, and Colombia. The largest foreign sources of marijuana are Colombia, Mexico, and Jamaica. Debt. Economic disarray in South America causes a decline in the value of loan assets in U.S. banks. It also reduces by tens of billions of dollars American exports to a once thriving market. Terrorism. U.S. interests remain the prime foreign target of Latin American terrorists -- accounting for 3/4 of the region's nearly 150 international terrorism incidents in 1988. Strategic/Security Concerns. Almost 1/2 of U.S. imports and exports and 55% of our crude oil imports pass through the Caribbean Basin. 2 of every 3 ships transiting the Panama Canal carry goods to or from the United States. Support for democracy is our best bet for realizing our interests and objectives in the region: from protection of human rights to security. Democratic states offer their citizens a say and a stake in their future and thus tend to be more resistant to subversion. (E.g. in El Salvador, in a period which has seen 6 nationwide elections, guerrilla strength has declined by 1/2; the November offensive was a last-ditch, desparation effort by an insurgency without popular support; it failed, as previous such offensives have, without that support.) - 2 - Where economic freedom works hand-in-hand with political freedom, the results are impressive: economic growth with opportunities and benefits for all. (E.g. Mexico, Costa Rica, Bolivia, Uruguay) Finally, democratic states offer an environment protective and supportive of human rights. The transition to democracy has brought a marked improved in human rights performance. (E.g. In Argentina and Uruguay, where disappearances, torture, and political killings were once commonplace they are virtually nonexistent.) Partnership describes the approach we intend to take in our dealings with the other countries of the hemisphere. The President described it this way: "a partnership built on mutual respect and mutual responsibility rooted in a common commitment to democratic rule." (Bush) Partnership is a 2-way street. (Following is drawn from Baker Atlanta speech.) If we ask countries to undertake economic reform, we must be ready to lend a helping hand (the U.S., the industrial democracies, the IFIs, and the banks). If we ask for trade liberalization, we must confront protectionism in the United States. If we ask Latins to confront drug cartels, we must confront the demand that exists here. If the Latin and Caribbean states ask us to forgo unilateral initiatives and to support democracy in a cooperative effort, they must show the resolve to turn commitments into reality (E.g. Esquipulas). CURRENT SITUATION AND TRENDS The 1980s saw both progress and deterioration in Latin America. On the positive side, a decade-long move to democracy has put all but 2 of the 33 countries of the region in the democratic column; elections in Paraguay this May gave that country a democratically-elected government after 35 years of military rule under General Stroessner. Conclusion of elections in Chile put all of South America under democratic goverment. Panama now finally on the road to recovery. On the down side, economic growth has barely kept up with population increases -- where once growth rates were 2 - 3 times our own and second only to the East Asian NICs'. - 3 - This stagnation imposes a human cost in underdevelopment, an "opportunity cost" in markets lost to American exports, and a political cost to elected leaders who attempt needed but difficult policy reforms. Across a wide front, the region has experienced regression. Drug traffickers net an estimated $8 billion annually. Area cultivated grows by some 10% a year. Three of the region's seven billionaires are drug traffickers. Debt has risen to over $400 billion, up from $330 billion in 1982. Insurgencies persist in Peru and Colombia, Guatemala and El Salvador. Violence -- political, social, and criminal -- traditionally high, has escalated in recent years. Now murder is the leading cause of death for male adults (18-40) in Colombia (where the government estimates some 140 groups engage in extra-judicial killings). Democratic gains are not absolutely fixed. In Peru, Guatemala and Argentina, coup rumors have surfaced from time to time even as elected leaders work to consolidate democratic government. In Argentina three barracks rebellions took place since April 1987. A perception that democratic leaders are unable to cope or that democracy is unable to "deliver the goods" puts democracy at risk and could produce an antidemocratic reaction. To be sure, the problems are not insurmountable. -- Mexico, Bolivia, Costa Rica, and Uruguay have done considerably better than average economically. Concerning drugs, debate over who's to blame is largely over and cooperation has begun. The Cartegena Summit laid out a comprehensive framework for cooperation. The Latins are beginning to take political risks (herbicide use, eradication campaigns) and deploy their best assets (the military in Colombia). Gaining momemtun in the late 80s, has been a trend to greater pragmatism and eagerness to dialogue. - 4 - CURRENT POLICY, OBJECTIVES Support for democracy is the keystone of our policy and offers an enduring basis for bipartisan policymaking in the U.S. To directly further democracy, the U.S. provides direct support for free and fair elections (e.g. Nicaragua), vigorously opposes coup attempts (Argentina, Guatemala, Peru), and is quick to encourage openings when they occur (Paraguay). Material support for democracy aims at long-range institution-building: Technical/legal assistance to judicial systems in Argentina, Bolivia, Chile, Colombia, Peru, and Uruguay are being initiated; administration of justice programs in Central America have shown the way (the investigative capacity of the Special Investigative Unit in El Salvador -- supported by U.S. assistance -- was critical to the progress on the Jesuits case. A legislative management program will start up in Chile. Our aim is strengthen the building blocks of a healthy pluralism -- courts, legislatures, a free press and trade unions. With some exceptions, these institutions tend to be weak thoughout the region. Democracy/Nicaragua. The elections of February 25th which ended 10 years of Sandinista rule mark the beginning of Nicaragua's transition to democracy. The democratically elected government of Violetta Chamorro faces major challenges in consolidating democracy in Nicaragua. -- The opposing sides in Nicaragua's civil conflict must work a reconciliation. -- The Nicaraguan Resistance must be re-integrated in the political, economic, and social of the country. 10 years of Sandinista economic mismanagement have left the economy in a shambles; economic reconstruction which lays the basis for long-term economic growth is in order. The United States supports the consolidation process and is endeavoring to assist the Nicarguan democracy bilaterally and multilaterally. - 5 - The United States is cooperating with the UN and the OAS in the demobilization and reintegration of the Nicaraguan Resistance. -- We have lifted the economic sanctions intended to pressure the Sandinistas to fulfill their promises to democratize and are working to provide economic assistance to Nicaragua. --- We are encouraging other countries -- in the hemisphere and outside -- to provide assistance to Nicaragua. Panama -- Years of mismanagement and corruption by the Noriega regime wreaked havoc on the Panamanian economy, shattered the public sector, and destroyed confidence in the country's justice system. Events finally led to a Panamanian declaration of a state of war, attacks on US personnel, and the U.S. military response in December, 1989. For Panama to recover significant U.S. aid will be required. Economic Aid By the start of FY 91 we expect to have assisted Panama in responding to the most immediate short-term needs for economic recovery and political stability -- including solving the political/humanitariar problem of re-housing residents made homeless by the fighting, repairing damage to infrastructure, and providing technical assistance to government ministries. Significant, but one-shot economic assistance (a FY 90 supplemental of $500 million has been requested) will be required to "jump-start" a fundemantally sound economy and assure that it returns to a sustainable growth pattern. The supplemental FY 90 assistance package will continue to be used in FY 91 to promote sustained economic recovery and to strengthen the administration of justice. Military Aid Panama had available some $6 million in prior-year military assistance grant funds as well as $3.8m in FMS Credit. Most of these funds have been spend to by nonmilitary basics for the public forces (uniforms, trucks, small arms, etc.) | There are no plans to implement military assistance (other than a modest International Military Education and Training (IMET) program to give a select group of - 6 - Coast Guard and public forces infrastructure-support training). -- Other kinds of military aid will be depend on GOP decisions on the organization and mission of the non-police components of the public forces -- including specialized units. The Endara Government has made clear that the new public forces will have primarily a police/public order mandate -- fully responsive to civilian authority, and with strictly limited military functions and equipment. It recognizes, however, need for the capability to combat terrorism and insurgency --- and Panama will consider formation of small "specialized units" to deal with these. U.S. aid to the public forces is currently limited to the development of a civilian law-enforcement assistance program, to be implemented immediately upon the removal of Congressional restrictions on aid to Panama. The National Drug Control Strategy lays out -- among other things -- our priorities in the international war against drugs. Disruption and dismantlement of drug-trafficking organizations. Reduced cocaine supply. -- Law enforcement, military, and economic assistance will be provided to the three Andean cocaine-producing countries to (a) isolate major growing areas, (b) block delivery of chemicals for processing, (c) destroy processing labs, (d) dismantle trafficking organizations. -- Efforts in transit areas will be improved -- And, Joint Intelligence Collection Centers have started to operate in the Caribbean Basin. Reduced heroin supply through efforts to convince other countries to exert influence on opium growers and reduce heroin processing and distribution. Reduced marijuana supply through strengthened foreign law enforcement and eradication, and through efforts to discourage minor producing nations from becoming major producers. - 7 - U.S. assistance and encouragement for multilateral efforts aimed at source country and transit country production and distribution. Other international objectives: -- Elevation of drugs as a bilateral foreign policy issue. -- U.S. ratification of the UN Convention Against the Illicit Traffic in Narcotic Drgus and Pyschtropic Sustances. -- Support for the foreign aid certification process. -- Bilateral and multilateral efforts against money-laundering. Some recent achievements By far the most notable, the Cartegena Drug Summit. Not just a photo-op or protocollary, the Summit ended the fruitless debate over supply and demand, who is to blame. It laid out a comprehensive framework for dealing with the problem -- to which the principal coca-producing countries and key consuming country agreed. In Colombia, the fifteenth extradition since August of last year took place March 28. CICAD (the OAS body on drugs) approved, due in part to the leadership of Chile and the U.S., model legislation on precursor and essential chemicals that is more restrictive than the 1988 UN Convention. CICAD's model legislation will be submitted to the hemisphere's drug ministers in Ixtapa. On March 24, Bolivian forces destroyed a large cocaine production complex not far from the Brazilian border. This is one of the largest labs destroyed to date in Bolivia and the biggest success yet for the riverine program. The Bahamas signed an Extradition Treaty Signed on March 9 which should remove some of the obstacles we have previously faced when attempting to prosecute drug traffickers arrested in the Bahamas. As of March 28, Bolivia's eradication efforts have have almost equalled last year's total. In 1988, Bolivia, which has adopted sweeping anti-narcotics legislation, exceeded its eradication targets. - 8 - Regarding debt and development, the Brady proposals incorporate key elements of the Baker Plan Economic growth through market-based economic reform; Voluntary action by creditor banks -- no "taxpayer bailout" for banks or debtors; and, Case-by-case negotiation of debt agreements. To this approach, the Brady proposals add Voluntary debt and debt-service reduction. The precise amount and terms of debt or debt-service reduction will depend on negotiations between the banks and debtors. The idea is that in return for a reduction of debt, banks will be guaranteed repayment on remaining debts. Here is where the international financial (i.e. lending) institutions (IFIs) come in. They can serve as quarantors in specific debt reduction arrangements. For its part, the United States has helped to enhance the resources of the IFIs to enable them to play a greater role. (We contributed to an increase in capitalization of the World Bank last year; this year we are working on an increase in our IMF quota.) Debt is a problem, but debt, quite frequently, is also the symptom of a larger problem: restructuring economies to support sustained growth, with benefits widely shared. QUOTE. Carlos Andres Perez (addressing international labor leaders in April) said, "If we say, for the sake of argument that the debt disappears and if we continue managing our economies as we have managed them in the past, inevitably we would continue in the same situation of unemployment and disaster." If debt relief, all by itself, were a magical solution to the problem then countries which have declared moratoriums would be growing today. They are not. (E.g. Peru; temporarily, Brazil) Leaders know that market-based economic reform is essential. In Argentina, the new government working to sell off state-owned monopolies, lower barriers to foreign investment, and end subsidies for sheltered private industries. Argentines realize that while others can be supportive, they must make the fundamental changes that will make the most difference. - 9 - Where such measures have been pursued vigorously the results have been impressive. E.g. Costa Rica. --- It has slashed deficit from 13.7% of GDP ('81) to 0.3% ('87) ; --- It has privatized state-owned companies, liberalized banking system, maintained realistic exchange rate; Inflation fell from 82% ('82) to 15% ('87) Unemployment down from 9.5% ('82) to 5.6% ('87). Nontraditional exports have increased 182% in 4 years to 1987. Similar efforts and results in Mexico prompt us to view favorably efforts by Mexico, the banks, and the IFIs to work out a debt reduction/payment scheme. When debt relief goes hand-in-hand with economic reform, everyone benefits. OPPORTUNITIES AND PROBLEMS Three developments, if managed well, promise a more active and successful relationship with South America. The first is the growing realization that state-directed, dependency-based theories of national economic management do not work in a competitive, interdependent world. o While the movement to privitization is still halting, Latins' own experience and news of change in the Soviet bloc are creating doubts about statist models. The second is a genuine and widely held commitment to democracy: people believe that they can govern themselves. O Election turnout is exceptionally high. And grassroots political activity is strong (Argentina, Brazil, and Venezuela). Lastly, Latins are eager for "dialogue" with Washington. They are also receptive and ready to listen. STRATEGY AND POLICY The continent is wealthy in resources and human capital and traditionally oriented to the U.S. As its major customer, richest and most populous neighbor, the U.S. has a position of influence. Careful use of this advantaged position is important, since the U.S. cannot buy away Latin problems; in the end solutions must be home-grown. U.S. strategy aimed at supporting the evolution of politically and economically secure partners will in the long run produce the best returns. Look @ European spucher Look @ Asian speecher get collore inauguration spuch ECONOMY wonder stories satellite? success in health sinnal/literacy more univ. gram ? return feight capital Latin America at the Threshold of a New Century Statement by Sally Grooms Cowal Deputy Assistant Secretary of State for Inter-American Affairs United States of America Ministerial Session Economic Commission for Latin America and the Caribbean Caracas, May 9-11, 1990 Mr. President, heads of delegation, ladies and gentlemen: It is a privilege and an honor to address the Ministerial Session of the 23rd meeting of the Economic Commission for Latin America and the Caribbean. As ECLAC embarks on its fifth decade, profound change is taking place in Latin America. At this very moment, the Latin American and Caribbean countries are undertaking an historic transition toward democracy and the establishment of economies based on principles of the market place and competition. Economic stagnation, unemployment, widening spreads in income distribution at the expense of the poor, and staggering inflation rates are the legacies of the discredited statist, inward-looking policies followed in the past. Rather than focus on the past, however, as we look to 1992, the next ECLAC meeting and the beginning of the sixth century of the New World, let us dare to look to the future. We stand at the threshold of a new century; fresh promise and possibility abound. For the first time in history, the two continents of our Hemisphere are developing a shared economic vision. For centuries, the notion of the New World as the world of liberty has been a common and unifying theme for the Hemisphere. Now, more and more, we find a common understanding of the importance of the individual being able to make economic choices, as well as political ones. The authoritarian state has long been discredited in political thought; its economic parallel, the command economy, has likewise suffered a philosophical demise. Leading theoreticians throughout Latin America, as well as practical businesspeople and government officals, increasingly recognize the market as the mechanism through which the individual's economic choices are most effectively turned into reality. This is a revolution as profound as that of the ballot box. Cawley grant Lange BRAZIL -2- These internal changes in Latin America have profoundly changed the U.S. relationship with the region. Leaders elected to office have the legitimacy and self-confidence to deal with their neighbors within the Hemisphere and elsewhere in the world as political equals. And countries which have freely committed themselves to a profound restructuring of their economic and social systems experience a justifiable sense of pride and self-reliance. We are therefore moving toward a relationship which for the first time in history is a natural and easy partnership. Theories of Latin America's economic dependency and marginalization -- so fashionable in the 1970s -- have been made irrelevant by the people of Latin America themselves deciding to take control over their history and responsibility for their future. We have long talked of partnership in the Americas. I believe we can give that term a new and concrete economic meaning as we enter the new century. As our economies grow and change, and as technology shrinks the distances between us, the economic barriers which separate us become ever less relevant. We are all more and more part of a world economy in which goods, services, know-how, ideas from all parts of the globe are combined to serve a universal market. To grow, and to prosper, each of our nations will have to become increasingly open to that world economy, and to accept the notion of the globe as a single enterprise in which each nation plays a significant and interdependent role. The next decade -- and the century beyond that -- will present us all with major challenges. Economic development means change, profound change, fundamental change. And history shows us that the rate of change is accelerating. To meet the ever more rapid changes that will occur in the next ten years, the economies of the region will need to be more flexible, efficient, and outward-looking. We need to encourage and cement in place the structures which have begun to emerge, for the world of the 21st Century will bring the most rapid and voracious change we have ever seen. Even more than in the past, the winners in the global competition will be those who have undertaken reform as a continuing process. This is a formidable, perhaps even a forbidding challenge. At the same time, I am convinced that the necessary assets to meet the challenges of the 1990s already exist in Latin America and the Caribbean. The continent has the means to effect its own economic transformation. -3- The region has always been rich in natural resources. A land that for so long only supported one-crop cultures of sugar and coffee and not much else has turned to new and varied crops such as winter vegetables, cutflowers, soybeans, and citrus fruit, and to new industries of satellites and supertankers. It is generally accepted that Latin American financial resources -- much of it flight capital in foreign banks -- are sufficient to pay off the region's external debt. This capital will return -- not in response to rhetoric, but when investment climates are healthy. The labor force in Latin America and the Caribbean is already urbanized, largely literate, mobile, and increasingly organized. And everywhere, there exist the energy and imagination which are the seeds of a dynamic, risk-taking private sector. Even in Nicaragua, which has suffered the ravages of a decade of civil war, there remain elements of an entrepreneurial private sector upon which to build. Increasingly, studies of the informal sector throughout Latin America show that the spirit of enterprise is strong, even under extraordinarily adverse conditions of poverty and stifling over-regulation. These are indeed impressive assets. And we must add to that some impressive evidence of a growing will to undertake fundamental economic reform. We now know, both from experience as well as economic theory, that growth and development flow from policies which inspire the confidence of investors and lenders, domestic and foreign. It is widely recognized that private initiative, and private savings and investment, are absolutely necessary. In fact, in recent years, many Latin American countries have begun to move away from excessive government control, market intervention, and import substitution strategies of the 1960s and 1970s. They have moved toward more market-determined exchange rates, increased export orientation and better macroeconomic management. Many of these policies have been outlined by delegations present, who have provided vivid examples of change. -4- These examples are heartening signs of major progress. But the process is not complete. Governments in the region must continue to move forward to complete the reform process. They must commit themselves to the task of building a lasting political consensus which supports the notion that a prosperous future can only be built on a bedrock of sound economic polices and open trade and investment regimes. Even with sound policies in place, it takes time to build credibility, and to restore the confidence of potential investors, whether large or small. We all know, of course, that implementation of economic policy reforms, while long overdue and absolutely necessary, is not painless. Change, even if ultimately beneficial, often brings with it temporary disruption and insecurity. Perhaps most importantly these policy reforms imply a fundamental change in the way people perceive their relationship with the state -- which has been an important point of discussion at these meetings. These reforms demand a change in basic attitudes whereby individual enterprise is encouraged, and the state seeks to promote a stable economic environment that rewards initiative and provides proper incentives to work, save and invest. Under this philosophy, government provides a stable fiscal, monetary, and legal environment and then lets markets operate freely to determine the most efficient allocation of resources. Equity and social justice come not from the state assuring each citizen an appropriate livelihood or stable employment, but rather by providing basic investments in human capital (education and health) and establishing a fair and open framework within which citizens can exercise their economic choices. This is a profound change in human psychology. It places the individual at the center of economic life, just as democracy places him at the center of political life. And as such it will release a new wave of entrepreneurial energy and economic dynamism. If the right economic institutions and incentives are in place and have proven their reliability, we know that people -- even the poorest -- will work and save and invest as a way of assuring themselves and their children a better future. Crucial to the success of this system is equality of opportunity. This means a whole host of difficult but indispensable structural changes -- changes which I increasingly see in Latin America. It means, for example: -5- -Appropriate social investment, such as access of the poor to basic education and health; -Dismantling the maze of regulation which keeps the informal sector out of the economic mainstream; and -Realistic pricing of capital so as to encourage more labor-intensive industry -- and more jobs. This economic philosophy also implies a fundamental change in how people look at external factors. No country is an economic island. What happens in the world economy inevitably changes what happens internally, even in large countries such as the U.S. But neither are countries merely passive victims of external circumstances. We have seen that wise economic management can make a major difference, even in the face of major international economic dislocations, and even for relatively small and less developed countries. I see a very healthy new sense of self-reliance in Latin America, a new appreciation of each country's ability to make its own way. There may be some who are still inclined to blame economic problems on external factors like debt. Debt, of course, remains a problem. It is, however, more a symptom of a greater problem. As President Carlos Andres Perez has said: "If debt disappears and we continue managing our economies as in the past, inevitably we would continue in the same situation of unemployment and disaster." Let me turn now to two major issues in the external economic environment faced by the region: debt and trade. In both these areas, I believe, we have made some important progress. Notable progress has been made in the past ten months in implementing the strengthened international debt strategy which was reaffirmed at the World Bank/IMF spring meetings this week in Washington. Just yesterday, a 50 percent increase in IMF resources was approved by IMF officials and is likely to be approved soon by IMF members. My country has been at the forefront of advocating the need to reduce debt and debt servicing for countries which are themselves active participants in economic reform. Named for Treasury Secretary Nicholas Brady, the so-called Brady initiative is really a set of proposals which can be flexibly applied. You are all aware of the key elements of this important initiative. -6- Recently, Venezuela and its creditor banks reached an agreement in principle on a comprehensive financing package which included both a significant new money feature as well as several debt and debt service reduction options. With this package, four countries in the region -- Mexico, Costa Rica, Chile, and Venezuela -- plus the Philippines have now taken advantage of the Brady initiative. In the trade area as well, there is considerable basis for optimism. The United States and other industrial democracies have achieved stable growth in their domestic economies and have promoted the continued expansion of world trade. This has contributed to enhanced export opportunities for Latin America and the Caribbean. In 1989, GDP in most of the G-7 grew in the range of 3 to 4 percent, which continues the strong trend of the past several years. Inflation has been kept in check at around the five-percent level in these countries. Further reductions have been achieved in many of the largest trade and current account imbalances. The U.S. economy has continued its record peacetime expansion for the seventh straight year. Real GNP increased by almost three percent in 1989 and is forecast to rise by about two and a half percent in 1990 and by more than three percent in 1991. U.S. inflation in 1989 was 4.4 percent. Reduction of the federal budget deficit continues, and we remain committed to making substantial progress. Despite many complaints and perceptions to the contrary, the U.S. market is remarkably open. Our tariffs, for example, average less than five percent. We take close to half of what Latin America exports world-wide. But our policy is to go further, and to seek even greater openness; to create an ever-expanding global trading system based on clear and enforceable rules. President Bush has designed, and we are vigorously executing, a three-pronged strategy to achieve these objectives: --First, we are committed to conclude successfully the Uruguay Round of trade talks by the December 1990 deadline. --Second, in a manner that is entirely consistent with our Uruguay Round aims, we will pursue bilateral and regional market-opening intiatives. -Finally, we will use the strength of our domestic market to further our objectives in the Round. -7- With respect to agricultural trade, the United States tabled the first comprehensive proposal on reform in this area. The U.S. proposal would allow farmers to grow what they want, when they want, and earn a decent income without government interference. Latin American and Caribbean countries would benefit considerably from our proposal. On market access, the United States has challenged its trading partners to envision a future "tariff-free" world. We are ready now to work aggressively with others to achieve this in key sectors of the Uruguay Round. Our new proposal on textiles would bring this sector within GATT discipline in a reasonable period of time. But we are not prepared unilaterally to liberalize our market. Other countries must participate. In the new areas of services, investment, and intellectual property, we all have a major stake in creating rules of international fair play. Services are an increasingly important sector in all our economies, whether construction services, financial services, or computer software services. And, while services are important in themselves, agriculture and manufacturing would grind to a halt without them. While seeking global trade liberalization, we are also committed to programs which recognize the special needs of developing countries. The Generalized System of Preferences (GSP) provides duty-free access on a wide range of products imported from developing countries. Further, the Caribbean Basin Initiative gives the small and particularly vulnerable countries of Central America and the Caribbean improved U.S. trade opportunities, which have helped create many new jobs in those countries that have adopted sound economic policies. To sum up, we see tangible near-term opportunities for a major liberalization of world trade. Latin America can play an increasingly important role in this new trading system. More Latin American countries are becoming members of GATT, more governments are committed to full participation in world trade, more countries are dedicated to an economic model which would make them dynamic actors in this new system. And yet, today some in Latin America and the Caribbean are questioning the place of the Americas on the world scene. There is concern about marginalization: being left out and left behind by change. Will they measure up, for example, to the challenge of Europe '92? There should be no reason to worry so long as the pace of economic reform continues unabated. European integration presents Latin America and the Caribbean -8- region with challenges and opportunities in terms of market access. Indeed, the EC single market, the most visible aspect of the integration process, may serve as a model for parts of the Latin American region. Similarly, there is concern that the attention of governments as well as international business is shifting away from traditional economic interests in Latin America toward the new trading and investment opportunities opening up in Eastern Europe. Here again, the issue is how Latin American governments and entrepreneurs will respond to the new challenge. If Latin America continues and deepens its commitments to market-oriented policies and to international competitiveness, then the new Eastern Europe will not be a threat but an opportunity, providing a new market for Latin goods and services. This is a time of great promise, but also -- let's face it -- of some confusion. There is a new consensus on the broad principles of development strategy, but governments have to translate these principles into specific, practical, cost-effective programs. As more countries in the region implement reforms aimed at promoting greater private sector involvement in development; at building strong, responsive capital markets; at legitimizing the informal sector, and at stimulating more competition in both the public and the private sector, ECLAC can serve as an important advisor, helping to sort out what works best, disseminating successful experiences, and extracting useful lessons from not-so-successful ones. Working closely with member states and drawing from their real-life experience, ECLAC can recommend comprehensive domestic economic policies, with the aim of generating domestic investment and attracting foreign equity and voluntary lending. Another important function for ECLAC is to tell the world the exciting story of change in Latin America and the Caribbean. The democratic revolution which the region has experienced is well known and justly well appreciated. But the parallel economic revolution, the seminal changes in economic philosophy which now underlie most governments' policies, this is less well known and less well understood. There is also a certain amount of doubt on the part of many business leaders -- understandable perhaps -- that this new economic philosophy will take hold and prove durable enough to to withstand political pressures. ECLAC thus has an important role in disseminating the track record of Latin American economic performance, in demonstrating the credibility of the new economic model. We need to aggressively market the attractiveness of Latin American and Caribbean countries as trading partners and as offering investment possibilities. -9- If the domestic and external challenges and opportunities are faced with perseverance, we can look forward to the 1990s as a new beginning. With commitment to the exercise of both economic and political freedoms, the new decade can be one of renewed prosperity in our hemisphere and full participation of Latin America and the Caribbean in the global economy. In closing, I would like to repeat what World Bank President Barber Conable recently said about economic progress and prospects in Latin America and the Caribbean: There are those who see only problems and crises in Latin America. I see instead a region blessed with abundant natural resources, and populated by peoples of energy, imagination and courage. I see a region where, since World War II, remarkable economic and social changes have taken place; where average income has more than doubled, and where average life expectancy has risen by one-quarter. I see a region where, even in a time of severe economic stress and painful but necessary reform, the transition to democracy has been successful. I share this vision. In the turmoil of great change, it is easy to see only the strife and the confusion. But we need to remember where we are going and what we have already achieved. The United States and Latin America have a long history of mutual endeavor and mutual support. Today, we have a renewed partnership, based on a newly shared economic vision of open societies and open economies. With our traditions of friendship and mutual support, and with a new guiding vision, we can move into the new decade with confidence and hope. Thank you. Luigi R. Einaudi Current Policy The United States No. 1279 and the OAS United States Department of State Bureau of Public Affairs Washington, DC Following is a statement by Luigi R. on a basis of democracy and national Finally, [Western Hemisphere Einaudi, US Permanent Representa- reconciliation. In the Caribbean, Affairs Subcommittee] Chairman tive to the Organization of American Haiti has fresh hope for democracy; [George W.] Crockett last July noted States, before the Subcommittee on only [Fidel] Castro's Cuba remains one problem central to this hearing. Western Hemisphere Affairs and the stubbornly resistant to the winds of The OAS is financially broke, its rele- Subcommittee on Human Rights and freedom. In South America, Brazil vance undermined by a generation of International Organizations of the and Chile this year completed demo- misuse and disuse by member House Foreign Affairs Committee, cratic transitions with new presidents governments. Washington, DC, May 1, 1990. elected directly by the people. In This year marks the centennial of January, Canada joined the OAS as a the first International Conference of full member. This June, the annual American States (1889-90) in Wash- Potential and Uncertainty OAS General Assembly will meet in ington, presided over by US Secre- Paraguay, whose government is a tary of State James Blaine. The Speaking last November to an Or- symbol of political and generational International Union of American ganization of American States (OAS) change. Republics, staffed by the Commercial General Assembly filled with repre- Uncertainties abound, however. Bureau of the American Republics, sentatives of the elected govern- The hemisphere has largely rid itself became the Pan American Union in ments of Latin America and the of dictatorships, but even elected 1910. The modern Organization of Caribbean, Secretary Baker said that leaders still face ominous clouds of American States is based on the 1947 he and President Bush believe that poverty and frustrated development. Inter-American Treaty of Reciprocal we and they "have it in our power to The momentous changes sweeping Assistance (the "Rio Treaty") and the create, here in the Americas, the Eastern Europe are altering the Organic Pact adopted in 1948 in world's first completely democratic structure of international politics as Bogota and most recently updated at hemisphere-a hemisphere, as the we have known it since the end of Cartagena in 1985. charter of the OAS envisions, where World War II, but the nature of the Today, the OAS has 32 members. human rights are respected and the new order remains unclear. Where Its activities are consistent with rule of law prevails, where all nations will the Americas fit? Many observ- Article 52 of the United Nations live in peace and none lives in fear of ers are pessimistic, both about Latin Charter, which recognizes "regional aggression." America after a decade of lost growth arrangements or agencies for dealing This is not a utopian vision. The and about the outside world's con- with such matters relating to the bitter troubles of Central America tinuing interest in the region's maintenance of international peace are not over, but there is clearly development. and security as are appropriate for movement toward conflict resolution regional action." A Renewal Has Begun The meeting was organized by the gaged in a joint venture north and OAS Drug Abuse Control Commis- south to advance and defend democ- Few observers thought a year ago that the OAS would be deeply sion (CICAD), which had earlier racy, then we must each do our negotiated the model legislation on part-collectively where possible-to involved in such weighty matters as chemicals and will now develop the create new mechanisms and Nicaraguan elections, [Manuel] Noriega, or effective peacekeeping legislation on money laundering. strengthen existing ones to defend and antidrug activities. Take just On November 9, 1989, just as human rights, to guarantee the public attention focused on the integrity of elections, and to establish four examples: On April 18, 1990, the Sandinista opening of the Berlin Wall, the Inter- sanctions against those who threaten American Commission on Human democratically elected governments government of Nicaragua and the Rights (IACHR) issued a devastating through violence or through coups." Nicaraguan Resistance agreed to a Report on the Situation of Human "If you ask the United States," cease-fire with the full participation Rights in Panama. The OAS report the Secretary said to his fellow and support of the incoming systematically documented the members of the OAS, "to forego Chamorro government and witnessed Noriega regime's abuses of human unilateral initiatives and to work, by Cardinal Miguel Obando y Bravo. rights after it suspended rights instead, in good faith with the demo- The cease-fire was negotiated and cratic nations of Latin America in a established in the Panamanian signed in the OAS offices in Managua. constitution on June 10, 1987. The new cooperative diplomacy to sup- The cease-fire calls for UN forces IACHR'S conclusion: The puppet port democracy, then we ask you to (the UN Observor Group in Central government installed by Noriega on join us in good faith to turn the America-ONUCA-with Venezuela September 1, 1989, was "devoid of promise of that diplomacy into a in a key role) to collect weapons. constitutional legitimacy." reality throughout this hemisphere." Meanwhile, OAS teams are to pro- On March 22, 1990, Assistant Sec- vide humanitarian assistance to the On October 6, 1989, a citizen of retary of State Bernard Aronson told demobilizing resistance forces. Trinidad and Tobago died in a the Committee on Appropriations of Earlier, OAS election observers shooting incident between a Trinidad the House of Representatives that were decisive in ensuring the free- and Tobago fishing trawler and a the United States perceived four dom of the February 25 elections. patrol boat of the Venezuelan na- tasks in its relations with Latin Two Members of the US House of tional guard. At the request of the America and the Caribbean: "Con- Representatives Subcommittee on two governments, OAS Secretary solidating and building on democratic Western Hemisphere Affairs, Repre- General Joao Clemente Baena Soares gains, advancing economic develop- sentatives Porter Goss and Harry appointed three experts, two from ment, promoting peace, and ridding Johnston, were among the 434 the OAS Secretariat and one from the our region of the scourge of drugs." international observers and experts Royal Canadian Mounted Police, to The OAS is contributing in all four mobilized by the OAS to create the undertake an impartial investigation. areas. But the OAS also serves as a climate of confidence that enabled the By January, the recommendations of critical "environmental" factor. A will of the Nicaraguan people to be the OAS team had led to the conflict's climate of effective regional commu- respected. resolution to the satisfaction of all nication can only start with a clear concerned. statement of national interests. The Last February, the summit Trinidad and Tobago's minister of between President Bush and the precedent was established at the external affairs wrote that the OAS United Nations by Senator Moynihan Presidents of Colombia, Bolivia, and had again demonstrated its value as and Ambassador Kirkpatrick. Peru marked a powerful new an- "the ideal forum of the Americas for [Daniel Patrick Moynihan and Jeane tidrug consensus. the peaceful resolution of conflicts." Jordan Kirkpatrick, former US On April 17-20, 1990, Attorneys Permanent Representatives to the General and Ministers of Justice from throughout the hemisphere gave US Policy and the OAS United Nations.] Silence is often not golden. There are cases to make, concrete impetus to the war on drugs. From the start of his Administration, interests to defend. Words count. They agreed to complete ratification President Bush and his Secretary of Resolutions matter. of the 1988 UN antinarcotics treaty State have articulated a new empha- By making clear our interests, we by year's end. They approved sis on multilateral diplomacy. make them understood and position specific legislation controlling essen- On March 30, 1989, having just ourselves to seek as much common tial and precursor chemicals and concluded a bipartisan accord be- machines used in the manufacture of ground as possible with others to tween the executive [branch] and the advance them. The OAS is an cocaine and urged individual coun- leaders of the United States Con- association of sovereign states. No tries to adopt it as soon as possible. gress, Secretary of State Baker told a matter what extraordinary changes And they established an experts distinguished assemblage of demo- are wrought in the world, this will group to develop model common leg- cratic leaders from Latin America still be a hemisphere of nation states. islation against money laundering and and the Caribbean that "we need The OAS makes possible consulta- illegal assets. each other now as we have never tions and harmonization of interests before If we are together en- 2 and instruments among the countries unwillingness of OAS member gov- the trust extended it by the people of of this hemisphere on a basis of ernments to make the admittedly Nicaragua, to the high standards of respect for sovereignty. tough decisions involved. The lowest- the technical infrastructure the OAS common-denominator approach that put in place with support from the The OAS Fumble on Panama ensued made clear the hemisphere's Pan American Health Organization distaste for Noriega and his brand of (PAHO) and the Inter-American On December 20, 1989, US military government, but failed to provide any Institute for Cooperation on Agricul- forces went into action to defend US visible consequences for his defiance ture (IICA), and to the support of citizens in Panama. The action was a of hemispheric opinion. OAS member states who provided sharp reminder that multilateralism Our prolonged and patient effort observers, technical experts, and ad- does not always work. The OAS, to to deal with the crisis in the OAS visers. which the United States and other helped mitigate adverse reaction to The United States contributed countries had turned after the brutal the use of military force when it was key financing ($3.5 million) and annulment of the May 7, 1989, elec- finally required to defend the lives of technical advice. (Danny McDonald tions, failed. Its actions did not begin US citizens. The OAS resolution of of the Federal Elections Commission to match the agony of the Panama- December 23 criticized the US action was among the Secretary General's nian people, their initial faith in the unequivocally, but "deeply regretted" personal advisors, along with election OAS, or the hopes of the interna- rather than condemned. Conscious tribunal members from Brazil, Costa tional community. that responsibilities were shared, Rica, and Venezuela). Last but not A mission of foreign ministers Venezuela and five other Caribbean least, as noted earlier, Members of expended much effort but was unable Basin nations abstained. Congress joined legislators from to negotiate Noriega's departure other hemisphere countries as from power. The result left the people of Panama-and the US The OAS Recovery on Nicaragua observers. In response to requests from both citizens fulfilling treaty obligations to OAS election monitoring in Nicara- incoming President [Violeta] operate and defend the Panama gua contributed decisively to the fair Chamorro and outgoing President Canal-subject to abuse and, for outcome of the February 25 elections. [Daniel] Ortega, Secretary General some, death at the hands of the The presence of observers from the Baena Soares kept OAS observers in Noriega dictatorship. Disguised UN and the OAS as well as those Nicaragua after the election. Mean- initially by appeals to the doctrine of organized by [former] President while, he and UN Secretary General nonintervention, this failure of [Jimmy] Carter, the Center for [Javier] Perez de Cuellar negotiated diplomacy became evident to all when Democracy, and other activist terms of reference for the joint Veri- the United States was ultimately groups, permitted the voters to fication and Support Commission forced to military action. express their will without fear and (CIAV) called for by the Central The Noriega case did show that made it impossible for the results to American presidents to verify com- the OAS could be used by member be ignored. pliance with the Tela and subsequent governments to communicate their The OAS observation system was agreements. To assist with the vol- concerns to a broader public. On both the largest and the most perva- untary demobilization, repatriation, August 31, 1989, the eve of the sive of the various international and resettlement of the Nicaraguan September 1 deadline established in efforts. It was supervised personally Resistance, OAS-CIAV assumed the Panamanian constitution and by Secretary General Baena Soares, responsibility for Nicaragua, UN- recognized by the OAS meeting of who did not delegate his authority, CIAV for Honduras and Costa Rica. foreign ministers for the transfer of but instead traveled repeatedly to Participation in electoral observa- power, the United States called for a Nicaragua to keep in touch with the tion and in the post-election transi- special session of the Permanent many leaders involved. tion subjected OAS staff members to Council. Acting Secretary [of State] The OAS established offices in all numerous hardships, particularly in Lawrence Eagleburger delivered a nine electoral Nicaraguan districts. rural areas, but their common reac- powerful, detailed statement, "The This basic OAS infrastructure tion was that in the wake of the Case Against Panama's Noriega." provided communications, housing, demoralizing 30% reduction in force The US Mission distributed facsimi- transport, data handling capabilities, of early 1989, no better way could les of the Florida indictments and and a parallel voting tabulation have been found to remind them- copies of Noriega bank records in system nationwide. Beginning in selves and others of the fundamental Europe. Together with the damning August, 1989, personnel from the mission of the OAS. OAS human rights report, these OAS OAS Secretariat in Washington took activities led to the isolation of turns in staffing the offices in Nicara- Noriega's Panama and the with- Human Rights gua. drawal of ambassadors from Panama Secretary General Baena Soares The independent OAS IACHR is the by many OAS members. informed the Permanent Council that conscience of the hemisphere. OAS Even so, OAS inaction was deeply the success of the program was due to involvement in human rights is based disappointing. Part of the problem upon the 1948 American Declaration was Noriega's obduracy, part of it the of the Rights and Duties of Man and 3 the 1969 American Convention on overcome the stereotypes associated Program development. The Human Rights. The IACHR and the with labels such as "producing, foregoing discussion illustrates the Inter-American Court on Human transit, and consuming" countries and OAS's capacity to adjust priorities Rights (CIDH) give the OAS an galvanized measures such as those and institutional structure to meet active and at times forceful role in agreed upon at Ixtapa, Mexico, last changing demands and requirements. promoting and protecting human month. What is new is the Secretary Gen- rights. Through both persuasion and CICAD's programs focus on eral's success in mobilizing the other published reports on human rights regional approaches to legal develop- inter-American specialized organiza- infringements, the commission has ment, public awareness, and preven- tions-PAHO and IICA-in joint been instrumental in improving tion. One project seeks to mobilize efforts such as election monitoring in member government practices. On private sector support for antinar- Nicaragua. The OAS, PAHO, and occasion it has directly helped resolve cotics programs, another to enlist IICA are continuing their close conflict situations. schools in preventing drug abuse, yet cooperation with CIAV. OAS Members of the IACHR are another to strengthen national and experts experienced in Nicaraguan elected in their own right, not as international law on seizure of conditions have prepared detailed representatives of governments. The traffickers' assets and control of projects for recovery in education, autonomy of the commission is precursor chemicals. In addition to job training, health services, and further enhanced by its prerogative support via the OAS budget, the agriculture. to initiate human rights investiga- United States has made several Specialized organizations. The tions without the approval of the special grants. The Inter-American OAS directly supports: Secretary General or the Permanent Development Bank (IDB), the Council. A US citizen, John Steven- European Community, and the The Inter-American Defense son, is currently one of seven commis- Italian, Japanese, and Canadian Board (IADB), created during World sioners; another US citizen is acting governments are currently consider- War II to plan and coordinate collec- executive secretary. ing grants to CICAD. tive hemispheric defense. It advises The IACHR prepares an annual the OAS on defense matters, and has Technical assistance. Respond- report with chapters on countries coordinated peacekeeping operations. ing to a major demand of less devel- with human rights problems in oped members, OAS programs train The Inter-American Defense general and on individual cases, às over 2,000 specialists annually (91,000 College (IADC) is supervised by and well as special reports. In its last 14 since its inception), primarily in the funded by the IADB. It strengthens years, the commission has effectively US but also at 23 inter-American military professionalism and aug- challenged abuses in Panama, Nicara- centers. The United States continues ments US international military gua, Cuba, Chile, El Salvador, to be the major contributor, but training programs. The college Guatemala, Suriname, Haiti, and Argentina, Brazil, Mexico, and annually trains about 60 field grade Paraguay, among others. The 1989 Venezuela have joined the United officers, many of whom reach leader- special report on Panama was an im- States as net donors. OAS feasibility ship positions in their respective portant factor in galvanizing interna- studies for large-scale projects in services. tional public opinion against the regional development, environment, Noriega regime. The IACHR also The Inter-American Children's and education are endorsed and played a key role in the release of Institute (IACI) is concerned with funded by the IDB. Wider recogni- thousands of political prisoners in problems of mothers, adolescents and tion of OAS effectiveness has at- Nicaragua. families, including the growing tracted contributions from nonmem- On February 23, 1990, the OAS number of "street children." bers, including Spain, Italy, Holland, Permanent Council adopted a resolu- Israel, and France, anxious to take The Inter-American Commis- tion mandating an in situ visit on the advantage of the favorable cost- sion of Women (CIM) is concerned human rights situation in Haiti. The benefit ratio achieved by the OAS. with women's rights and their IACHR visited Haiti April 16-20; its The OAS manages a major program integration into development and report will be part of a broad OAS of feasibility studies on modernizing decision-making processes. CIM and UN effort to support elections by telecommunications throughout Latin research and seminars have focused the new Haitian government. America and the Caribbean. The US on women and politics (1988), women private sector has also joined in. An and employment (1989), and violence Other Key Activities International Business Machines against women (1990). (IBM) contribution of $1,500,000 (not Drugs. The OAS Inter-American including in kind contributions) has Other organizations associated Drug Abuse Control Commission helped the OAS put together a highly with the OAS are financed outside (CICAD) was established in 1986, first met in April 1987, and began its sophisticated trade information the OAS budget: first activities in 1988. Under the program now at work facilitating an The PAHO, with resources of leadership of Irving Tragen, an expansion of north-south trade. $67 million (1988), has contributed American citizen, the CICAD has significantly to protecting the United 4 States from communicable diseases The Financial Crisis is Acute stration's determination to use and promoting improved sanitation multilateral diplomacy, where and health conditions throughout the A remarkable aspect of the enhanced feasible and appropriate, to resolve hemisphere. role of the OAS in the past several months is that it took place despite regional problems and to engage our The IICA, with resources of $34 serious underfunding. The US paid neighbors on topics of hemispheric million (1989), has worked closely concern. only $18 million of its 1989 assessed with the US Department of Agricul- Other countries are showing their quota payment of $40 million to the ture in preventing threatening animal OAS. (The US assessment for the commitment to the OAS. Argentina, and plant diseases from entering the OAS is 66%; the United States Ecuador, Mexico, Paraguay, and United States and in helping mem- accounts for 85% of the total GNP of Venezuela are all hosting important bers develop food production. all OAS members.) meetings this year. In September The Pan American Institute for This caused a severe cash flow 1989, Argentina paid most of its $12 million arrears. This year, Canada's Geography and History (PAIGH) has crisis which the OAS met by a 30% accession to the OAS in January was major geodetic and cartographic pro- personnel cut in January 1989, combined with one-time reductions in testimony to the benefits of member- grams of its own and facilitates coop- erative relationships between US program activities. From November ship and will further enhance effec- tiveness. agencies (such as the Defense Map- 1988 to March 1989, 293 employees ping Agency and the National Ocean either resigned voluntarily (205), Service of the National Oceanic and were on fixed-termed contracts The Second Century Atmospheric Administration) and allowed to lapse (76), or retired (12). Imagine the number of vital issues, other countries in such vital areas as The cuts, worked out in close coop- from drugs to economic development, safety of flight. eration with member states including from mutual security to the environ- the United States, fell roughly The Inter-American Indian In- ment, on which progress would be proportionately on nationals of all stitute (IAII) has been helpful in more rapid if we succeed in building member countries. Total OAS providing the US Department of on a democratic foundation where the personnel in 1974 numbered 1,577; by Interior's Bureau of Indian Affairs rights of individuals and of govern- the end of 1989, the number was with a vehicle for cooperation with ments are not in conflict. 654-a 55% reduction in 15 years. At other Latin American countries with As the OAS enters its second present, the United States provides major Indian populations. century, one of its enormous 14% of the entire OAS staff and 20% strengths is that its membership is of its professionals-easily the Finally, one organization created overwhelmingly made up of states largest national group among OAS and supported by the OAS receives that organize themselves in ways personnel. financial support largely from US that are democratic. The test of Despite these draconian cutbacks, corporations and other private membership is becoming democracy arrearages and the consequent lack of sources. The Pan American Develop- as well as geography. This is a stark reserves severely limit flexibility and ment Foundation (PADF) is a Section contrast to the situation just a threaten to undermine the work of 201(c)(3) entity with a subsidy from generation ago. Moreover, the the OAS on almost every front. For the OAS and some US Agency for flexibility of democracy is a strength example, the $1.5 million the OAS has International Development (AID) that is vital to today's rapidly chang- received for its work facilitating the funds; corporate donors provide over ing world. This hemisphere has come peaceful demobilization and reinte- one-half of its resources. It has a long way in the evolution toward gration of the Nicaraguan Resistance channeled over $100 million from the democracy and in the suffering that will run out later this month. private sector into development any evolution requires. Compare the Just last week, Assistant Secre- projects which mobilize private odysseys of Argentina, Brazil, Chile, tary of State John R. Bolton told the sector support in recipient countries. or Nicaragua in the past decade to House Subcommittee on Interna- The OAS and its specialized or- those of the countries of Eastern tional Organizations that "we must ganizations frequently carry out Europe now beginning to face the reestablish America's image as a programs for other organizations, problems of attempting to construct a credible, reliable participant in such as the UN Development Pro- democratic polity. international organizations. To do S0 gram (UNDP), the UN Environment Our challenge, a very difficult but we must fully meet our financial Program (UNEP), and the World inspiring challenge, should be to obligations when they are due." Bank, on a contract basis. The OAS make the second century of the OAS The Administration is asking the has received some $6 million annually the century of democracy. Already Congress for full funding of our FY in recent years for these purposes. others in the region see the need to 1991 quota assessment to the OAS as External entities recognize the value well as $38 million for arrears, which, reconcile the principle of noninter- of OAS management of technical vention, one of the traditional corner- if appropriated, would be paid in assistance and its effectiveness. stones of the inter-American system, equal installments of 20% a year for 5 with the principles of self-determina- years. This would fulfill the Admini- 5 tion and representative democracy, Still Far to Go education. The social, economic, and both of which are contained in the educational problems which cause S0 OAS charter and both of which have For some years, important issues have been considered outside the many young people to drop out of been given new urgency by today's OAS-or not considered at all. Now school waste human potential. needs. Speaking at a special session Curricula need to be redesigned and of OAS Permanent Council on April 100 years old, the inter-American teachers retrained. OAS multina- 27, 1990, President Carlos Andres system is turning a corner, and there tional programs in basic education Perez of Venezuela declared himself a is an exciting new focus for the 1990s and education for work provide convinced believer in "collective and beyond: mechanisms for all member countries unarmed intervention for the positive Promoting and assisting demo- to share successes and to avoid and peaceful resolution of conflicts." cratic transitions and strengthening repeating costly mistakes. On March 28, 1990, Assistant Sec- democratic institutions are now a Integration. The Caribbean, retary of State Aronson was explicit prime concern of the OAS. Central America, the Andes, the Rio to the Senate Foreign Relations The IACHR-the most re- de la Plata area-the Americas have Committee: "The conventional wisdom holds that our historic spected human rights organization of long been differentiated into natural mistake in Latin America has been any multilateral body-must continue subregions. So long as governments to keep human rights at the center of were despotic, SO long as frontiers interventionism. I would argue the the hemisphere's collective con- meant boundary disputes, and so long opposite is true. Our historic mis- science. as individual countries could attempt take-when we have made mis- In the drug wars, the OAS is to cut themselves off from progress, takes-has been to fail to rally early strengthening multilateral coopera- integration remained a dream. The and boldly and effectively to support tion and breaking new ground, most spread of democracy gives the OAS and extend democracy in its hour of need." recently in precursor chemicals and new vigor as a forge of common The Organization of American money laundering. As President consciousness and regional and States already serves as the basic Carlos Salinas de Gortari of Mexico subregional cooperation. sounding board of the western told the OAS ministerial conference 2 hemisphere. As an association of weeks ago, "We are encouraged by The OAS is by definition not a sovereign states, its structure makes the spread of a generalized aware- single-issue or single-country organi- ness that we have a common enemy zation. But all these areas-plus the it an inherently democratic sounding board. The OAS has no privileged and by the emergence of a balanced important work in trade promotion members, no security council, no and mature vision of how to attack it and democratically focused military vetoes. Every member has one vote, internationally." education and training-are of deep national interest to the United the same opportunity to be heard. Similar cooperation is foreseeable States. All require positive, practical, Visitors to OAS Permanent Council in other areas: productive, and patient contributions meetings sometimes comment that if we are to deal with the issues of the they can seem almost familial in spite The environment. The June next century in a manner befitting of their formality. And that is 1990, OAS General Assembly will the potential of the new world. another strength. Even with the consider a proposal to create an entry to membership over the past "Inter-American System for Nature generation of a dozen countries of the Published by the United States Department Conservation." Because of the great of State Bureau of Public Affairs Office Commonwealth Caribbean, OAS interest in environmental issues of Public Communication Washington, DC membership is still small enough to among member countries, the Gen- May 1990 Editor: Marilyn J. Bremner be manageable. No one need be eral Assembly might decide to call a This material is in the public domain and may silenced in the name of efficiency. be reprinted without permission; citation of this specialized conference of experts to The OAS is the natural forum to turn source is appreciated. develop a program of action. democracy in individual countries into democratic solidarity as a source Education. Democracy, economic of hemisphere-wide strength. development, and cultural sensitivity require substantial investments in 6 PA/PC, Mailing List BULK RATE United States Department of State POSTAGE & FEES PAID Washington, DC 20520-6810 US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested President Bush Current Policy Enterprise for the No.1288 Americas Initiative United States Department of State Bureau of Public Affairs Washington, DC Following are remarks by President are now looking to the power of the free the Caribbean as a whole. I asked Bush before administration officials and market to help this hemisphere realize its Treasury Secretary Brady to lead a members of the business community, untapped potential for progress. A new review of US economic policy toward this Washington, DC, June 27, 1990. leadership has emerged backed by the vital region, to make a fresh assessment strength of the peoplès' mandate- of the problems and opportunities we'll Thank you all very much for coming to leadership that understands that the encounter in the decade ahead. That the White House. It is my pleasure to future of Latin America lies with free review is now complete, and the results welcome SO many distinguished guests government and free markets. In the are in. And the need for new economic with such strong interests in the vital words of Colombia's courageous leader, initiatives is clear and compelling. Latin American and Caribbean region. Virgilio Barco-President Barco: "The All signs point to the fact that we In the past 12 months everyone of us, long-running match between Karl Marx must shift the focus of our economic inter- from the men in the White House to the and Adam Smith is finally coming to an action toward a new economic partner- man on the street has been fascinated by end" with the "recognition that open ship because prosperity in our hemi- the tremendous changes, the positive economies with access to markets can sphere depends on trade, not aid. I've changes taking place around the world. lead to social progress." asked you here today to share with you Freedom has made great gains, not just in For the United States, these are some of the ideas, some of the ways we Eastern Europe, but right here in the welcome developments-developments can build a broad-based partnership for Americas. We've seen a resurgence of that we're eager to support. But we the 1990s-to announce the new Enter- democratic rule, a rising tide of democ- recognize that each nation in the region prise for the Americas Initiative that racy never before witnessed in the must make its own choices. There is no creates incentives to reinforce Latin history of this beloved hemisphere. And blueprint, no one size fits all approaches America's growing recognition that free with one exception, Cuba, the transition to reform. The primary responsibility for market reform is the key to sustained to democracy is moving toward comple- achieving economic growth lies with each growth and political stability. tion. We can all sense the excitement individual country. Our challenge in this The three pillars of our new initiative that the day is not far off when Cuba joins country is to respond in ways that sup- are trade, investment, and debt. To the ranks of world democracies and port the positive changes now taking expand trade, I própose that we begin the makes the Americas fully free. place in the hemisphere. We must forge a process of creating a hemisphere-wide With one exception, that's the case. genuine partnership for free market free trade zone; to increase investment But the political transformation sweeping reform. that we adopt measures to create a new the rest of Latin America and the Carib- Back in February, I met in Cartagena flow of capital into the region; and to bean has its parallel in the economic [Colombia] with heads of the three further ease the debt-the burden of sphere. Throughout the region, nations Andean nations. And I came away from debt-a new approach to debt in the are turning away from the statist that meeting convinced that the United region with important benefits for our economic policies that stifle growth and States must review its approach not only environment. to that region but to Latin America and Trade free trade overnight; changes so far- through, and the wait for a new telephone In the 1980s, trade within our hemisphere reaching may take years of preparation line can be as long as 5 years-and that's trailed the overall pace of growth in world and tough negotiations. But the payoff in got to change. trade. One principal reason for that: terms of prosperity is worth every effort. Investment reform is essential to over-restrictive trade barriers that wall And now is the time to make a compre- make it easier to start new business ven- off the economies of our region from each hensive free trade zone for the Americas tures and make it possible for interna- other, and from the United States, at our long-term goal. tional investors to participate and profit great cost to us all. These barriers are And third, I understand that some in Latin American markets. In order to the legacy of the misguided notion that a countries aren't yet ready to take that create incentives for investment reform, nation's economy needs protection in dramatic step to a full free trade agree- the United States is prepared to take the order to thrive. The great economic ment. And that's why we're prepared to following steps: lesson of this century is that protection- negotiate with any interested nation in ism still stifles progress, and free markets the region bilateral framework agree- First, the United States will work breed prosperity. To this end, we've ments to open markets and develop closer with the Inter-American Development formulated a three-point trade plan to en- trade ties. Such agreements already exist Bank (IDB) to create a new lending with Mexico and Bolivia. Framework program for nations that take significant courage the emerging trend toward free market reform and that is now gathering agreements will enable us to move steps to remove impediments to interna- tional investment. The World Bank could forces in the Americas. also contribute to this effort; and First, as we enter the final months of Second, we propose the creation of a the current Uruguay Round of the world new investment fund for the Americas. trade talks, I pledge close cooperation A new leadership has This fund, administered by the IDB, could with the nations of this hemisphere. The emerged, backed by the provide up to $300 million a year in grants successful completion of the Uruguay in response to market-oriented invest- Round remains the most effective way of strength of the peoples' man- ment reforms in progress in privatization. promoting long-term trade growth in date-leadership that under- The United States intends to contrib- Latin America and the increased integra- stands that the future of ute $100 million to the fund, and we will tion of Latin nations into the overall seek matching contributions from Europe global trading system. Our aim in the Latin America lies with free and Japan. But in order to create an UruguayRound is free and fair trade. government and free attractive climate for new investment, we Through these talks, we are seeking must build on our successful efforts to to strengthen existing trade rules and to markets. ease the debt burden. That's the third expand them to areas that do not now pillar of this new Enterprise for the have agreed rules of fair play. To show Americas initiative. our commitment to our neighbors in Latin America and the Caribbean, we will seek deeper tariff reductions in this round on forward on a step-by-step basis to Easing the Debt Burden eliminate counterproductive barriers to products of special interest to them. Second, we must build on the trend trade and toward our ultimate goal of free Many nations have already undertaken trade. And that's a prescription for painful economic reforms for the sake of we see toward free markets and make our greater growth and a higher standard of future growth. But the investment ultimate aim a free trade system that links all of the Americas-North, Central, living in Latin America and, right here at climate remains clouded, weighted down home, a new market for American by the-heavy debt burden. Under the and South. We look forward to the day products and more jobs for American Brady plan, we are making significant when not only are the Americas the first workers. progress. The agreements reached with fully free democratic hemisphere, but Mexico and Costa Rica and Venezuela are when all are equal partners in a free trade Promoting free trade is just one of already having a positive impact on zone stretching from the port of Anchor- three key elements in our new Enterprise investment in those countries. age to the Tierra del Fuego. for the Americas Initiative. And our Mexico, to take just one example, has I'm announcing today that the United second pillar is increased investment. already seen a reversal of the destructive States stands ready to enter into free capital flight that drained so many Latin trade agreements with other markets in Investment Reform American nations of precious investment Latin America and the Caribbean, resources. That's critical. If we restore particularly with groups of countries that The competition for capital today is fierce. confidence, capital will follow. have associated for purposes of trade lib- And the key to increased investment is to As one means of expanding our debt eralization. The first step in this process be competitive, to turn around the condi- strategy we propose that the IDB add its is the now-announced free trade agree- tions that have discouraged both foreign efforts and resources to those of the ment with Mexico.¹ We must all recog- and domestic investment, reduce the International Monetary Fund (IMF) and nize that we won't bring down barriers to regulatory burden, clear away the thicket the World Bank to support commercial of bureaucratic barriers that choke off bank debt reduction in Latin America and 'On June 11, 1990, Presidents Bush and Latin America's aspiring entrepreneurs. the Caribbean and, as in the case of World Salinas endorsed the goal of a comprehensive In one large Latin city, for instance, it Bank and IMF, IDB funds should be free trade agreement between the United takes almost 300 days to cut through the States and Mexico. The presidents have directly linked to economic reform. directed their trade ministers to undertake the red tape to open a small garment shop. In While the Brady plan has helped consultations and preperatory work needed to another country, the average overseas nations reduce commercial bank debt for initiate such negotiations and to report back to caller has to make five phone calls to get nations with high levels of official debt- them before the two presidents' next meeting in December 1990. debt owed to governments rather than 2 private financial institution-the burden Debt-for-nature swaps are one indeed, as we talk with the leaders of the remains heavy. And today, across Latin example-patterned after the innovative G-24 about the emerging democracies in America, official debt owed to the US agreements reached by some Latin Europe-I've been talking to them also Government amounts to nearly $12 American nations and their commercial about their supporting democracy and billion, with $7 billion of that amount in creditors. We will also call for the economic freedom in Central America. concessional loans. In many cases, the creation of environmental trusts, where Our aim is a closer partnership between heaviest official debt burdens fall on some interest payments owed on restructured the Americas and our friends in Europe of the region's smallest nations- US debt will be paid in local currency and and in Asia. countries like Honduras and El Salvador set aside to fund environmental projects Two years from now, our hemisphere and Jamaica. in the debtor countries. will celebrate the 500th anniversary of an That's a problem we must address These innovative agreements offer a epic event, Columbus' discovery of Amer- today. As the key component in address- powerful new tool for preserving the ica, our New World. And we trace our ing the region's debt problem, I am natural wonders of this hemisphere that origins, our shared history to the time of proposing a major new initiative to we share. From the vistas of the un- Columbus' voyage and the courageous reduce Latin America's and the Carib- spoiled Arctic, to the beauties of the quest for the advancement of man. bean's official debt to the United States barrier reef off Belize, to the rich rain for- Today, the bonds of our common heritage for countries that adopt strong economic ests of the Amazons, we must protect this are strengthened by the love of freedom and investment reform programs with the living legacy that we hold in trust. For an and a common commitment to democracy. support of international institutions. increasing number of our neighbors, the Our challenge, the challenge in this new Our debt reduction program will deal need for free market reform is clear. era of the Americas is to secure this separately with concessional and commer- These nations need economic breathing shared dream and all its fruits for all the cial types of loans. On the concessional room to enact bold reforms. And this people of the Americas-North, Central, debt, loans made from aid or food for official debt initiative is one answer. A and South. peace accounts, we will propose substan- way out from under the crushing burden The comprehensive plan that I've just tial debt reductions for the most heavily of debt that slows the process of reform. outlined is proof positive the United burdened countries. And we will also sell States is serious about forging a new a portion of outstanding commercial loans Conclusion partnership with our Latin American and to facilitate these debt-for-equity and Caribbean neighbors. We're ready to debt-for-nature swaps in countries that I know there is some concern that the play a constructive role at this critical have set up such programs. revolutionary changes we've witnessed time to make ours the first fully free this past year in Eastern Europe will hemisphere in all of history. Strengthening Environmental Policies shift our attention away from Latin America. But I want to assure all of you These actions will be taken on a case-by- here today, as I've assured many demo- case basis. One measure of prosperity in cratic leaders in Central and South the most important long-term investment America and the Caribbean, and Mexico, Published by the United States Department any nation can make is environmental the United States will not lose sight of the of State Bureau of Public Affairs Office well-being: As part of our Enterprise for tremendous challenges and opportunities of Public Communication Washington, DC the Americas Initiative, we will take June 1990 right here in our own hemisphere. And Editor: Juanita Adams This action to strengthen environmental material is in the public domain and may be reprinted without permission; citation of this policies in this hemisphere. source is appreciated. 3 PA/PC, Mailing List United States Department of State BULK RATE Washington, DC 20520-6810 POSTAGE & FEES PAID US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested Lawrence S. Eagleburger Current Policy An Agenda to Promote No. 1283 Inter-American Cooperation United States Department of State Bureau of Public Affairs Washington, DC Following is an address by Deputy bursts that, as in 1830 and 1848, occa- Western Hemisphere can justly take Secretary Lawrence S. Eagleburger sionally have punctuated the course pride in having launched the epochal before the General Assembly of the of human events. But there is a dif- worldwide transition from dictator- Organization of American States in ference: the revolution underway ship to democracy, first in Argentina, Asuncion, Paraguay, June 5, 1990. today, for the first time in history, is Brazil, Bolivia, and Ecuador, and occurring on a truly global scale. lately in Chile, Panama, and Nicara- Let me begin by expressing my This global revolution has one gua. Think of the open wounds that sincere appreciation and praise to you universal and defining feature: the still festered in our midst when this [the assembly president, Paraguayan democratic form of government has assembly last met only 7 months ago, Foreign Minister Luis Argaño] and come to be recognized as the embodi- and you will realize how far we have your government. Appreciation for ment of political legitimacy. It is not traveled toward achieving an un- your generous hospitality and for the a revolution that has been imposed precedented degree of mutual respect highest standards that have charac- from without; rather, the democratic and common purpose among the terized the organization of this idea has become irresistible precisely nations of this hemisphere. assembly. Praise for your country's because it is now an indigenous force The attention of the world has struggle to realize democracy's full the world over, from Poland to been drawn in the last year to a promise. Please convey to President Paraguay, and from China to Chile. similar transformation in Eastern [Andres] Rodriguez our deep respect It has not triumphed everywhere, to Europe. I know that many in Latin and support. be sure; not all men and women today America wonder whether we have This, the 100th anniversary of the live under freedom and democracy. become unduly preoccupied with the Inter-American system, is a historic But we have reached the point where revolutionary saga now unfolding in occasion that comes at a time of revo- all are demanding to live under the old world. Yet it should be lutionary change throughout the freedom and democracy as their remembered that the United States world. We find ourselves in the midst God-given right. Democracy's has been deeply involved in Euro- of one of those revolutionary out- ideological foes, on the left and the right, have been discredited. The political and economic systems they fashioned stand today in ruins. The pean affairs for the last 50 years. We building blocks of economic integra- triumphing, we face-all of us in this have been SO engaged because it was tion and interdependence-trade and hemisphere face-the monumental there that two systems and two mili- investment. challenge of making those ideals work tary alliances stood poised on the The facts speak for themselves. in practice. For the first time, brink of conflict and where the fate of Any concern about where US inter- working in partnership with one humanity hung in the balance. I ests and attention lie must be another and through the Organization know that our friends in this hemi- weighed against the fact that our of American States [OAS], we, the sphere will understand and support two-way annual trade with Latin nations of the Americas, have a our continued engagement in Europe America today exceeds $100 billion, unique opportunity to fashion a to assure that the Cold War is and that US investment in the region diplomacy among democracies in brought to a peaceful and successful is in excess of $50 billion. In a pursuit of the consolidation of democ- conclusion. Surely this is a responsi- hemisphere in which we have been racy. The revolutionary changes bility we must bear, not only on our engaged, through this organization, through which we are passing will own behalf, but in the broader and for 100 years, it is simply inconceiv- require more, not less, of this organi- common interest of all mankind. able that we would turn our backs on zation. our fellow American states. It is The framers of the OAS Charter The Twin Revolutions equally inconceivable that five were forward-looking and visionary. nations in the heart of Europe could Our charter is not a timid document The United States has another, substitute, in our minds, in our com- committed to the status quo. If we equally compelling responsibility- mercial, political, and security are true to its purposes and to our and that is a responsibility to what relationships and, indeed, in our vast potential as a regional commu- [Bolivian] President [Jaime] Paz sympathies, for our many friends in nity, we will endeavor together: Zamora SO movingly described this hemisphere. yesterday as our common home, "El to forge our rightful and pro- There is, however, another factor Hogar de las Americas." We are, gressive policy in a world liberated at work today that, although imper- first and foremost, citizens of the from the authoritarian state and the ceptible to most observers, already Americas, and we fully recognize the command economy, taking advantage has begun to transform the nature of significance of the fact that, as of increasing global interdependence the relationship between my country President Paz noted, two revolutions and competition for markets. and the nations and peoples of the have taken place in Latin America, Americas. For what the United to address the underlying one political and one economic. The States is seeking to accomplish in causes of outstanding conflicts and conversion of almost the entire Europe today and what, I am confi- defeat new threats to peace, such as hemisphere to representative gov- dent, we will accomplish, is really the those created by the traffic in illicit ernment and to the principles of closing of an old chapter. It needs to drugs; and rational economic management opens be recognized that if we are success- to cooperate to preserve the up the possibility of closer ties than ful in this endeavor to end the Cold natural resources of this hemisphere. we have ever enjoyed between War once and for all, we will have ourselves and our Latin neighbors. It opened a new chapter in foreign is no accident that President Bush, policy of the United States, one in An Agenda for the Future whose keen interest in Latin America which our attention and our energies One hundred and two years ago, US is a secret to no one, asked Ambassa- inevitably will be drawn toward Secretary of State [James] Blaine dor [Carla] Hills to represent him at building, in partnership, a Western issued a call for an inter-American this historic gathering. The world Hemisphere of freedom, peace, prog- Congress and declared the willing- into which we are moving is one in ress, and prosperity. ness of the United States to "enter which national security will be Ladies and gentlemen, the ties into the deliberations of the Congress defined less in terms of military that bind my country to the nations of with the loyal determination to strength than in terms of economic this hemisphere-ties of history, ge- approach any proposed solution as well-being. Increasingly, the weap- ography, and natural affinity-are a single member among many co- ons of war will give way to the great indeed. For more than 200 ordinate and co-equal states." At years, we have been the champions— imperfect champions-of democracy. Now that our democratic ideals are 2 that first Inter-American Conference, toward this request will be signifi- American Human Rights Commission the United States made eight propos- cantly affected by our success in as a pioneering organization. It is a als. To mark that historic occasion, I developing a new quota system. well-established, experienced, and would like today to propose a new Second, the consolidation of unique body, rightfully called the agenda of eight points with the hope "conscience of the Americas." The democracy must be at the top of our that together we may open a new agenda. United States encourages the com- century of inter-American progress. The great democratic revolution mission to expand its activities to include technical assistance and First, we should recommit our- that is sweeping across the Americas selves to the OAS as the natural has created, fortuitously, the condi- training. forum for hemispheric dialogue. tions under which we can begin to act Fourth, we must unleash the The hemisphere is stirring with as a community that is both sovereign hemisphere's economic potential. new life. The OAS must harness its and democratic and, thereby, tran- The triumph of democracy has energy, broaden its scope, and scend over time an issue that long has handed us a unique and historical deepen its impact. Already, the OAS driven this hemisphere and this or- opportunity to reduce longstanding is showing new strength and demon- ganization. Building on the OAS political and security challenges in strating its great potential. Secre- Charter's call for a "land of liberty," this hemisphere to manageable tary General [João] Baena Soares is we can create a "system of liberty." challenges of an economic nature. leading a critical OAS contribution to We can, in short, now develop sys- We must not squander this opportu- the delicate equilibrium of peace, tematic means of ensuring democ- nity, and risk seeing the re-emer- national reconciliation, and demobili- racy's future in the fullest conformity gence of old security challenges by zation in Nicaragua. The CICAD with the hallowed principles of this allowing the economic problems that (OAS Drug Abuse Control Commis- organization. brought down Marxists and dictators sion) is in the vanguard of interna- We are on the right track. The to undermine the stability of their tional efforts to combat the traffic in OAS observation mission in Nicara- democratic successors. Our new illicit drugs. The Inter-American gua made an invaluable contribution democratic order will be blessed with Commission on Human Rights is to a peaceful, democratic transition. peace and stability only if the fruits of forging a new regional consciousness. It demonstrated the organization's ef- democracy-growth deriving from a For a decade, however, the OAS fectiveness, the dedication of its free market economy-are available has been hamstrung by lack of personnel, and the competence and to all. resources. Many members, including vision of its leadership. In just six months, the Uruguay the United States, have fallen behind Today, we in the OAS cannot be Round of the GATT [General Agree- in their payments. Last year the indifferent or settle for halfway ment on Tariffs and Trade] will con- Secretariat was forced to release measures when our Haitian brothers clude. We must continue to more almost one-third of all personnel. The and sisters are asking for our help. toward more open and liberal trading OAS has become dependent on We must do everything we can to practices. The cost of economic special voluntary contributions even heed Haiti's call for electoral assis- autarky is isolation, stagnation, and to support peace in Central America. tance. To aid responses in such cases, decline. Wide-ranging participation This General Assembly has the the United States supports the Can- in the global economy does not duty of developing a consensus on a adian initiative urging the Secretary exclude greater regional integration. new quota system that will distribute General to create a permanent Our objective must be to increase the organization's costs equitably. institutional mechanism to coordinate trade among ourselves even as we For my part, I can inform you that OAS support for democracy. work together to open up trade op- the United States shortly will pay Third, human rights must remain portunities throughout the world. more than $20 million to the OAS. at the core of our cooperative efforts. We in the United States applaud With other US payments this year, this means that the Secretariat will At its 30th anniversary last year, the courageous efforts underway Secretary Baker saluted the Inter- throughout the region to increase have the money it needs to work Latin America's global competitive- more effectively for us all. For Fiscal ness. We believe the hemisphere Year 1991, President Bush has cannot afford to lag behind the free- requested the money to begin paying market revolution if it is to survive US arrearages as well as the full US and to flourish economically in a assessment. Congressional attitudes 3 world where competition for capital is Sixth, we must ensure that we Eighth, we must find in ourselves growing more intense. For our part, bequeath to future generations a the impartiality and constancy that we pledge to redouble our efforts to hemisphere that can sustain human are essential to the peaceful resolu- confront and defeat protectionist life - our children's lives. tion of conflicts. pressures in our country. We will not Exploiting nature is necessary to From the earliest inter-American counsel freer trade in the Americas mankind's progress; preserving plan for arbitration to today's OAS while permitting new barriers to nature is necessary to mankind's efforts in support of national recon- trade to arise in the United States. survival. We have a common stake in ciliation in Nicaragua, the need for Fifth, we must commit ourselves the prudent use of our environmental active, collective involvement in the firmly to the rule of law. I am assets-air, water, plant, and animal making of peace has been an essential referring here not only to this organi- life. As with the war on drugs, no one and widely accepted purpose of our nation can defend the earth in isola- zation's traditional stance against the cooperation. tion. governmental abuse of freedom but, Recently, OAS support of the The United States believes this more particularly, to the emergence Central American peace process has of transnational threats to our General Assembly should use the deserved our full support. OAS work democratic form of government and Secretariat's proposal on an "Inter- in Nicaragua, first on elections and to our national sovereignty. Clearly, American System for Nature Conser- now on national reconciliation, is the most immediate threat to the rule vation" to develop an action program making clear the links between peace, of law today comes from the drug by the next General Assembly. The democracy, and development. We cartels. When we contemplate the OAS clearly has a vital role to play in call upon other members of this body great toll in human lives and the the environmental arena. We recog- to join us in making voluntary frontal assault on the rule of law nize that this issue is particularly contributions to support the OAS in carried out daily by the drug cartels, sensitive. Therefore, we ought to be Nicaragua, and we urge OAS mem- we should rise as one in indignation. examining ways in which we can bers to contribute to the Donors' address those sensitivities and do And we should rise in homage to the Conference on Nicaragua that starts people of Colombia who last week whatever is in our power to preserve in Rome tomorrow [June 6, 1990]. again defied the cartels to elect a new the patrimony of generations yet to We express our gratitude to the come. president in free, multi-party elec- Secretary General for his leadership tions. Seventh, we must make the and urge him to intensify his efforts In February, the summit attended substantial investments in education in El Salvador to promote peace on by the presidents of Bolivia, Colom- needed to support democracy and the basis of constitutional democracy, bia, Peru, and the United States gave human development. impartial justice, and full respect for birth to a powerful new anti-drug Education is clearly a matter that human rights. consensus. In April, the CICAD is closely linked to the hemisphere's It is important to note as well that economic future and the viability of ONUCA [United Nations Peacekeep- brought together attorneys general and ministers from throughout the its democratic institutions. Last ing Force in Central America] is pro- hemisphere to press for ratification of year, here in Asuncion, ministers of viding a stabilizing external presence the 1988 UN Anti-Narcotics Treaty education discussed informatics today without which the joint efforts [information science] as an educa- of the OAS and the UN in Nicaragua and approve model legislation to control chemicals and machines used tional tool. We believe that the would be jeopardized. We are in the manufacture of cocaine. Last Secretariat for Education, Science, pleased that Venezuela, a member of week, CICAD developed the first and Culture should take advantage of the OAS, is contributing a reinforced battalion to ONUCA. At the same international program of action for its regional outlook and multilateral education to prevent drug abuse. experience to propose a strategy for time, we note the absence of contri- enhanced cooperation. butions by member countries through The United States supports the OAS as such. My government CICAD's vital work, including its does not have a specific proposal but new experts group to develop model would welcome a review of how we legislation to stop money laundering might most effectively utilize existing and to seize illegal assets. OAS institutions, such as the Inter- 4 American Defense Board and the to democracy, our governments are democracy work. We in the United Inter-American Defense College, in developing a working partnership. States believe that our national well- ways supportive of peace and democ- Partners approach each other freely being is linked to the successful racy in the hemisphere. and as equals, with mutual respect. consolidation of democracy and the Partners look to fix problems, not to emergence of genuine prosperity A Call to Action affix blame. Partners accept the throughout Latin America. we notion of co-responsibility. And when believe that through our collective The late president of Colombia and they disagree, they air their dialogue efforts we can defeat the threats to secretary general of the OAS, Al- openly. democracy-drugs, debt and under- berto Lleras Camargo, said of the A heavy responsibility weighs development. We can do so, above OAS in 1954 that, "It is what the upon this generation in the Americas. all, by tapping fully the great poten- member governments want it to be The dreams and aspirations of our tial of our unique hemispheric asset, and nothing else the weaknesses forefathers for a hemisphere united our privileged forum for dialogue, of the organization, if it has them, are in a universal commitment to democ- cooperation, and collective action- weaknesses of the governments; racy are finally on the verge of being the Organization of American weakness in their capacity to act in realized. But history is no friend of States. coordination and jointly with each the status quo; our democratic other. The strength of the organiza- triumph will be short-lived if we do Published by the United States Department tion, when it is evident, lies precisely not meet the challenge now of making of State Bureau of Public Affairs Office in the action of the governments." of Public Communication Editor: Jim United by the practical commitment Pinkelman Washington, DC June 1990 This material is in the public domain and may be reprinted without permission; citation of this source is appreciated. 5 Get ready U.S. Trade With the European Community for the new How the U.S. Government Is Organized for EC 1992 European Community TABLE 1 US GOVERNMENT CONTACTS EC 1992: A Business Guide to US Government Resources is a 28-page booklet published by EC 1992: the US Department of State that will help you A Business Guide to US Government understand the coming economic challenge Resources from Europe. 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Mail To: Superintendent of Documents, Government Printing Office, Washington, D.C. 20402-9325 PA/PC, Mailing List BULK RATE United States Department of State POSTAGE & FEES PAID Washington, DC 20520-6810 US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested President Bush Current Policy Latin America's No. 1286 Year of Freedom United States Department of State Bureau of Public Affairs Washington, DC Following are remarks delivered by I am here today to assure you, than ever before to the day when all President Bush to the Council of the just as I have assured the many Latin the people of the Americas, North Americas, Washington, DC, May 22, American leaders I have met with, and South, will live in freedom. 1990. that the events of the past year have Even in Haiti, the scene of so increased US interest in this region- much human suffering and anguish [Introductory remarks deleted. ] strengthened our desire to forge a and turmoil, the provisional govern- new partnership with the growing ment has now announced its intention I am pleased once again to speak to forces of freedom in Latin America. to hold free elections. This Thursday this most influential group-pioneers Because the fact is, the great drama [May 24], I will be meeting at the in the private-sector effort to expand trade and investment between the of democracy is unfolding right here White House with the new leader of United States and Latin America. in our own hemisphere. Haiti [Ertha Trouillot], where we are And I am delighted to address this Think about the tremendous gains sure to discuss ways we can support democracy in Haiti. In all of Latin gathering after what has been a made for freedom this past year. remarkable year of change. When I spoke here last May, the America, only Cuba-Castro's Over the past 12 months, it has people of Panama were preparing to island-remains isolated, out of step sometimes seemed that the eyes of go to the polls-even as the dictator with the democratic tide. But today of Panama was preparing to steal the we are celebrating the anniversary of the world rest solely on Eastern election. In Nicaragua, civil war Cuban independence. Let me say Europe-on the miraculous transfor- mation that has taken place there. raged, the Sandinistas ruled, and the with certainty that even in Cuba, the brave men and women of the Nicara- dream of democracy can only be Our friends in Latin America have watched these historic events unfold guan opposition were just beginning pushed back a little, only be de- the long campaign that led to this ferred-it will never be destroyed. with inspiration and awe. But also, I know, with an unmistakable sense of year's great victory for democracy. As we in the United States anxiety [and] concern that our active In Central America: Nicaragua welcome our Central and South and Panama; in South America: involvement in Europe will mean a American neighbors into the ranks of decline in US interest in Latin Paraguay and Chile, all across the democracy, we must offer them our America. Americas, today more people live under freely elected governments than ever before, and we are closer help and something more; we must Peruvian economist Hernando de In Chile, with an overall growth rate offer them our respect, the respect Soto describes the maze of bureau- of 10%, US exports increased by due one free nation from another, and cratic barriers that stood in the way triple that rate-more than 30 the outstretched hand of partnership. of the entrepreneur and stifled percentage points. I have been working to economic growth in his country. De The most effective way to ensure strengthen our ties. Just this year Soto also shows how much Lima, expansion of trade between the alone, I have met with Presidents Peru's capital, owed its economic United States and Latin America is Barco [Colombia], Paz [Bolivia], and vitality to what he calls the "informal for all countries of the hemisphere to Garcia [Peru], at the Andean drug sector"-the thousands of independ- support a successful Uruguay Round. summit in Cartagena. Here in ent and enterprising individuals The ambitious agenda in the Uruguay Washington, I have hosted Presi- doing business without the consent of Round, including proposals for dents Perez [Venezuela], Paz Zam- the State. significant multilateral tariff reduc- ora, Cristiani [El Salvador] and De Soto's prescription-and tions, will benefit our Latin American Endara [Panama], Collor de Mello mine-is to free this economic force: trading partners. We are committed [Brazil], Calderon [Costa Rica], and unleash the million sparks of energy to the expansion of trade and invest- Callejas [Honduras], and Prime and enterprise; let the incentive of ment liberalization, and we seek Minister Manley [Jamaica]. In each reward inspire men and women to Latin American support for these case, I have come away from our work to better themselves and their very important objectives. In addi- talks with a strong sense of optimism. families. tion, the strengthened debt strategy And I believe every one of those Already, Latin America is discov- launched last spring has reinvigor- leaders left the White House knowing ering this path. In Brazil and Bolivia, ated market-oriented economies and that the United States is engaged as in Argentina, Venezuela, Mexico, reinvigorated the reforms in Latin never before in the future of this Costa Rica, and Jamaica-free America. These economies help hemisphere. market reforms are going forward, provide the needed foundation for creating space for private initiative to democracy itself. Democracy and Development take hold and flourish. As they That's why I am so pleased to succeed and as they reap the rewards report on the progress we've made While from country to country that will follow this—I would say this past year under the Brady plan. conditions differ, we know now that what will certainly be a painful Mexico, Venezuela, and Costa Rica our challenge is to consolidate transition-these nations will bring have all reached agreements with democracy and accelerate develop- others in their wake. their creditors on ways to reduce ment. That means advancing the We in the United States must do their debt; ways to complement their intellectual revolution now sweeping all we can to ensure the future of free efforts to restructure their economies Latin America, a movement away markets in the Americas because our along free-market lines. Because in from stale, statist doctrines; away nation has a stake in the economic the long term, the free market from dictatorships of the right and health of this hemisphere. We know remains the only path to sustained left; toward democracy, free govern- that since the late 1970s, Latin growth. ment, free enterprise; toward the America's share of all US trade true political and economic empower- dropped from 10% of all US exports, Role of the Private Sector ment of the people. down to 7%. And yet last year, for That means encouraging, for the the first time ever, two-way trade We all know the private sector plays first time in many cases, genuine free between the United States and Latin a crucial role. Taking advantage of market reform. Even in countries America topped $100 billion. As that new investment opportunities is good that claimed no kinship with commu- trade continues to grow, so will the for business, but at this critical nism, true free enterprise did not link between our prosperity and the moment there is something beyond exist. In practice, economies were prosperity of our Latin American the bottom line; something that often organized to ensure the pros- partners. cannot be measured simply in terms perity of the people in power-not to Let me provide a few statistics to of GNP. The role the Council of the open an avenue toward upward drive home this point: Last year, the Americas can play-expanding trade mobility for anyone ready and willing Colombian economy grew 3%; US and strengthening the private to work. exports to Colombia rose 9%. Mex- ico's economy grew 3%, and US exports to that country climbed 21%. 2 sector-contributes not only just to in your hands. Do the work of way the Sandinistas had politicized economic growth but to the growth of democracy-and pass this emergency the schools. Today, Mr. Cisneros is democracy itself. aid package now. minister of education. Now, there is an important role for government to play as well- And on July 10, 1988, opposition Personal Stories of Freedom especially during the difficult days of leader Myriam Arguello was beaten, transition from dictatorship to Today, I began by speaking about the taken from her home in the middle of democracy. That's why I have called changes that have riveted world the night by Sandinista police, tried, on Congress to provide $800 million attention on Europe. Part of the and sentenced to 6 months in prison. in emergency economic aid to Pan- power of the story is that it can be Today, Myriam Arguello is president ama and Nicaragua. We have a big told in intensely personal terms, as of Nicaragua's freely elected national stake in this. This aid is critical. A the story of the dissident playwright assembly. little over a week ago, I received a who is now president or of the These three stories underscore in letter from President [Violeta] electrician who came to symbolize his personal terms the truly revolution- Chamorro-just weeks into her term people's hopes for freedom. Democ- ary political change that has taken in office-telling me that Nicaragua racy's advance in Latin America has place not just in Nicaragua but across was bankrupt. And yet, for more produced its share of heroes-and the Americas, change that proves than 2 months now, this emergency today I will close with three from one beyond doubt that the day of the aid has been bogged down on Capitol country alone, Latin America's dictator is over and democracy's day Hill. To give you an idea of the newest democracy, Nicaragua. has come. magnitude of this problem, in March, For 4 years, beginning in 1979, For our part, we in the United I requested $800 million for Panama and Nicaragua, asking that this bill the year the Sandinistas took power, States must do all we can to help Enrique Dreyfus was head of Nicara- secure for all the Americas the free- be finished April 5. It is now May 22, gua's supreme council of private dom, the peace, and prosperity we and the funds for Panama and Nicara- gua have been reduced by $80 enterprise-a private-sector group in enjoy. Please keep up-more than million-even though $1.4 billion in many ways similar to this one. His ever-your important work in criticism of Sandinista rule put him guaranteeing that democracy suc- extra spending has been added. on the Sandinista black list and ceeds in this precious hemisphere of Finally, it appears the Congress landed him in prison. Today, with the ours. may act this week on this vital measure. For the people of Nicara- Sandinistas swept from power, Published by the United States Department gua and Panama democracy hangs in Enrique Dreyfus is not just free from of State Bureau of Public Affairs Office persecution-he is Nicaragua's new of Public Communication Washington, DC the balance. So let me say to the foreign minister. June 1990 Editor: Susan Holly This Congress: The fate of freedom rests material is in the public domain and may be In 1985, members of the Sandin- reprinted without permission; citation of this ista internal security force beat source is appreciated. Sofonias Cisneros for criticizing the 3 PA/PC, Mailing List United States Department of State BULK RATE Washington, DC 20520-6810 POSTAGE & FEES PAID US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested OPENING ADDRESS BY LAWRENCE S. EAGLEBURGER, DEPUTY SECRETARY OF STATE at the Washington Conference of The Council of the Americas May 21, 1990 Ladies and Gentlemen, I am delighted to be here with you this morning. I must confess, however, that I am somewhat baffled at David Rockefeller's and George Landau's invitation to appear before the Council of the Americas. I am, of course, flattered that they would want to hear about new and invigorated U.S. policy directions in Latin America from a Cold Warrior in a wheel chair. On the other hand, I do not believe they expected me to give my usual stump speech -- no pun intended -- on Eastern Europe. I suppose the Council felt they needed to beef up, as it were, their lineup of speakers, since you otherwise would be hearing only from Bob Mosbacher, Alan Greenspan, and the President -- not to mention Assistant Secretary Aronson, who will speak next, and whom I see has modestly assigned himself the task of discussing "U.S. Relations with the Western Hemisphere." That may not leave much ground for me to cover, but in all seriousness, while it is true that I have been busy with the job of coordinating U.S. assistance to Eastern Europe, I have also devoted a good deal of attention to hemispheric affairs. I will, for example, hobble off to Paraguay in early June to attend the annual session of the OAS General Assembly. I care deeply about U.S. relations with Latin America, and very much believe that those relations will grow ever more important to us in the years ahead. I have been asked to say a few words to you about how the Administration views Latin America in a global context, especially in light of the revolutionary changes that have been occurring in Europe and elsewhere over the past year. It will come as no surprise to you for me to say that American foreign policy has been largely focused over the past year on events in Eastern and Western Europe. The prospect of ending the Cold War is, quite simply, of immediate and overriding strategic importance to the United States. Europe is where we have fought two great wars in this century, and where we have stood face to face with the Soviet Union on the brink of thermonuclear war for the past four decades and more. It is, therefore, only natural that we should spend considerable energy in the near term on creating a new and stable security order in Europe -- a new order that will, hopefully, keep the peace there for generations to come. And part of that effort, quite obviously, entails doing all that we can to make the transition to democracy and free markets in Eastern Europe a successful one. We do not want to win the Cold War only to lose out in the perennial struggle to prevent Eastern Europe from becoming once again an unstable power vacuum and object of geopolitical rivalries. At the same time, however, what we are attempting to achieve in Europe today is in essence the closing of an old chapter. The new chapter in our foreign relations which we are about to open, while certainly not ignoring Europe, will be qualitatively different in several respects. First, assuming we are successful in closing that old chapter, our foreign policy will be much less oriented towards the East-West divide, which we hope, like the Berlin Wall which symbolized it, will be consigned eventually to the dust-bin of history. Second, the end of the Cold War should bring with it, to the maximum extent possible, a "de-militarization" of international relations. Military rivalry and the arms race which fuels it ought to be supplanted by peaceful economic competition. No one has ever accused me of being a dewy-eyed optimist. I have been warning for some time now that we need to be aware that the decline of the Soviet threat could, if we are not careful, diminish the commitment of the major Western nations to the collaborative trade and economic policies which have been so responsible for our peace and prosperity in the post-war era. Our great achievement over the past year -- and it is the culmination of forty-five years of American and Western foreign policy -- has been to reach the point where profound and intractable security challenges are well on the road to being reduced to challenges of a political or an economic nature. But we need to remember what the history books tell us, which is that economic problems themselves can contain the seeds of instability and potential conflict. Thus, we cannot afford to rest on our laurels -- not in our relations with our Western partners, where we will have to avoid the kind of autarky, protectionism and regionalism which prevailed in the 1930s; not in Eastern Europe, where we must contribute to the emergence of strong and prosperous states that will form a bulwark of stability; and not in Latin America, which, as a result of the revolutionary transformation in East-West relations is going to occupy a place of first importance in American foreign policy as we approach the 21st century. - 3 - This will be the case first of all because of strictly "selfish" economic reasons. The fact of the matter is that, in the post-Cold War era, our national security will be increasingly a function of our economic well-being, which in turn will be dependent on our international competitive position in a more highly integrated world economy. Our trade with Latin America, in short, will increasingly be seen as a vital national interest. It is an interest, however, which will continue to be threatened so long as the region remains mired in debt, unable to buy our products or redeem liabilities to U.S. financial institutions. Second, we are witnessing the emergence of a host of "transnational" issues and problems which pose direct threats to our national well-being and security, and whose solution is dependent on cooperation with our Latin American partners. I am thinking not only of drugs but also of threats to the environment in this hemisphere, as well as to unregulated immigration flows. Third, there is the undeniable fact that the population of the United States is becoming more Latin and more Latin-oriented. For all of our stake in peace and stability in Europe, we know that our West European friends will have primary responsibility for integrating the newly democratic regimes in the East, whereas our energies will be increasingly and inevitably drawn towards our own hemisphere -- an area which is a natural place for U.S. economic cooperation. The point I made earlier about our success in an East-West context of transforming security challenges into political and economic ones, is no less true in this hemisphere, just as our stake in preventing the re-emergence of old security challenges here is no less great than it is in Europe. Certainly the example of Panama and Nicaragua is a good one. When you think of how much the United States has invested in treasure, lives, and political capital over the past decade to obtain the historic successes we have achieved in those two countries, it boggles the mind that Congress continues to dilly dally as it has in appropriating the modest but urgently needed funds to consolidate the victory of democracy there. My purpose today is not to bash the U.S. Congress -- although there are some in that body who deserve it. Nor is it to focus on the ever-contentious Central American portfolio. However, Panama and Nicaragua are, in an important sense, metaphors for the kind of challenge we face throughout the hemisphere, the challenge of making democracy work. A lot has been made of the fact that the worldwide trend towards democracy actually began in Latin America in the early 1980s, 4 - and that, for perhaps the first time in history the entire hemisphere -- with two notable exceptions -- is now in democratic hands, and is united ideologically. We need to be aware, however, that democracy will rest on fragile ground for as long as the dire economic conditions which brought down Marxism and dictators hang, like a sword of Damocles, over their democratic successors. In other words, our ideals have triumphed in Latin America as in Eastern Europe, but those ideals will now be put to the test. We believe that peace and stability will result from a democratic world order, but only if the fruits of democracy -- growth deriving from a free market economy -- are available to all. We are greatly encouraged that the political leadership in Latin America -- in Mexico, Brazil, Argentina, Venezuela, Chile, Bolivia, and elsewhere -- is now committed to privatization and wholesale economic reform. To the extent that these reforms are fully implemented, we in the United States are going to have to exercise an equally courageous leadership of our own. I am not here to unveil any kind of initiative today. But it is clear that we are going to have to move in the direction of opening up trade further in this hemisphere, and that will mean fighting protectionist sentiment at home and abroad. We will also have to move in ways that boost the flow and transfer of investment and technology in the region. Lastly, building on our current strategy, we will have to examine new and creative approaches toward solving the debt problem. Our ability to assist in the economic recovery of Latin America will be directly related to the continued process of meaningful economic reform. In this respect as well, Latin America and Eastern Europe are not different. In the 1970's we made the mistake in Eastern Europe of throwing money at the region's problems. We will not make that mistake again; to do so would only serve to postpone the implementation of reforms which are as painful as they are necessary. As Carlos Menem put it in April, if the debt burden were to disappear suddenly and yet the economic policies of the past were to continue, "we would continue in the same situation of unemployment and disaster." Statist and protectionist pelicies must be fully rolled back, and the door must be opened wide to the reciprocal flow of trade and to the flow of investment. This is not a prescription made in Washington; it is a fact of life. If the door is not opened wide enough, it is certain that in a world where competition for scarce capital is growing more intense, investment will go elsewhere. - 5 - In conclusion, let me emphasize that while we are very much preoccupied with bringing the Cold War to a successful conclusion, we also recognize that Latin America must be a priority for us in coming years. And yes, we do have serious budget difficulties and our first duty in the wake of the Cold War will be to put our own economic house in order. As I have explained to you this morning, however, we realize that our economic health, and, ultimately, our national security, will be tied to the successful consolidaticn of democracy and the emergence of genuine prosperity throughout Latin America. And if, as I have indicated, trade, investment, and technology will be the weapons of choice in our struggle for our ideals in this hemisphere, then American business will clearly be called upon to play a principal, if not the leading, role on our behalf. A quick reference aid on U.S. foreign policy gist Debt and Growth in Latin America and the Caribbean Background income debtor countries. These measures support policy Latin America underwent a profound recession in the changes needed for sustained growth and improved 1980s. After vigorous expansion in the 1970s, when annual living standards for the people of Latin America and the Caribbean. per capita growth rates averaged 3.6%, per capita gross domestic product (GDP) fell 8.3% between 1981 and 1989 (all 1989 figures are preliminary). These statistics, com- Economic Stabilization piled by the UN Economic Commission for Latin America and Structural Adjustment and the Caribbean, mask wide variations from country to Debt problems have forced governments to realize that country. Per capita GDP of oil-exporting countries they cannot sustain large fiscal deficits indefinitely declined more than 14% during the period; oil-importing through excessive borrowing or monetary expansion. countries generally experienced a cumulative decline of Recognition is growing in Latin America that private 4.8%. Only Colombia, Chile, Barbados, and the Dominican initiative and private savings and investment must be Republic had positive per capita growth. stimulated if there is to be hope for sustained growth. As a consequence, most countries in the region now are Debt-Related Problems undertaking economic adjustment efforts supported by Revitalization of growth in Latin America is complicated international financial institutions and creditor countries, by severe, debt-related problems. In 1989, Latin Amer- including the US. ica's external debt totaled more than $416 billion, about In the last few years, many Latin American govern- 40% of the total indebtedness of all developing countries. ments have begun to move away from the excessive Interest payments alone absorbed some 30% of export government control, market intervention, and import earnings (this ratio would be higher except for substantial substitution strategies that they have relied upon for arrears built up by some countries). decades. Most have moved to adopt more realistic While debt is a serious problem and debt service a exchange rates, expand exports, and cut inflation. Aver- heavy burden to Latin American developing countries, age regional inflation fell from an initial peak of 275% in inappropriate domestic economic policies have been the 1985 to 65% in 1986, but recent dramatic surges in infla- principal cause of constraints on economic growth and tion in such countries as Argentina, Peru, and Brazil development. Lack of confidence resulting from such pushed the regional inflation rate to almost 1,000% in policies as overvalued exchange rates, price controls, 1989. wasteful government spending, and overregulation has Of even greater importance for the longer term, many dried up domestic savings and investment, discouraged governments are beginning to lower structural barriers to foreign investment, and led to huge capital flight in many growth. They have taken steps to reduce price controls countries. Total capital flight for Latin America is esti- and subsidies, liberalize trade, attack overregulation and mated conservatively to be in excess of $240 billion since excessive bureaucratic controls, and improve the invest- 1977. Adverse external economic developments, espe- ment climate, including removing some restrictions on cially higher interest rates in the early 1980s and commod- foreign private investment. For example, Chile, Mexico, ity price fluctuations, aggravated the resulting deficits in Costa Rica, and Jamaica have made great strides toward the borrowing countries' balance of payments. more market-oriented economies and more open trading In March 1989, the US announced several proposals to regimes. Bolivia, Colombia, Guatemala, Uruguay, and strengthen the international debt strategy by encouraging Dominica have undertaken impressive reforms. Vene- voluntary, negotiated debt and debt service reduction as a zuela, Paraguay, Trinidad and Tobago, El Salvador, and complement to commercial bank lending, domestic and Argentina have initiated similar adjustment efforts. foreign investment, and return of flight capital in middle- Several countries have recognized the heavy burden of U.S. Department of State March 1990 Bureau of Public Affairs Office of Public Communication inefficient and highly subsidized public enterprises that The US is encouraging more market-based reform siphon off domestic savings and often increase external through bilateral and multilateral economic assistance, indebtedness. Chile and Mexico, among other countries, the strengthened debt strategy, and continued efforts to have made important progress in transferring govern- achieve open world markets. The US is by far the largest ment-owned industries to private ownership. contributor of development assistance to the region- averaging more than $1 billion annually over the past few International Efforts To Encourage Growth years. The Caribbean Basin Initiative (CBI) gives The International Monetary Fund (IMF) and World Bank Central American and Caribbean countries improved US provide financing to encourage new commercial debt trade opportunities which have helped create many new reduction agreements and to assist debtors in pursuing jobs in those countries that have sound economic policies. fundamental economic reform. Since 1986, the IMF has The US Government has supported increases in World established a compensatory and contingency financing Bank and Inter-American Development Bank resources facility to help countries maintain reform efforts in the to advance economic adjustment and growth in the region face of external economic shocks and two special facilities and is seeking more open world markets through the to support structural economic adjustment in low-income Uruguay Round of multilateral trade negotiations. countries. The World Bank has assumed an increasingly Further Information important role in stimulating sustainable economic growth in debtor countries through policy-based, fast- For the origin of debt-related problems as well as US disbursing loans. policy regarding debt and growth, see the May 1989 Department of State Gist on "Third World Debt." BULK RATE POSTAGE & FEES PAID U.S. Department of State Permit No. G-130 PA/PC, Mailing List United States Department of State Washington, D.C. 20520-6810 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested Secretary Baker Current Policy Narcotics: Threat No. 1251 to Global Security United States Department of State Bureau of Public Affairs Washington, D.C. Following are remarks by Secretary rights and international law, concern for First, I will describe America's na- Baker before the UN General Assembly the well-being of all the world's peoples- tional drug strategy, which centers on the Special Session on Narcotics, New York if we fail to do our utmost to accomplish need to reduce the use of drugs at home. City, February 20, 1990. these aims, then we could end up living in Second, I want to share with you the a future that resembles our troubled past. results of the summit in Cartagena, These are promising times for the world Even as we work together to elimi- where President Bush and the leaders of community. From South Africa to East- nate war and conflict, there are other Colombia, Bolivia, and Peru formed the ern Europe, from the democratic move- troubles that will not wait and that are world's first antidrug cartel. ments in Asia to the new generation of bringing untold sorrow to mankind. Even Finally, I will offer my government's democratic leaders in Latin America, we as we heed the cry of freedom and democ- thoughts on how the United Nations can hear the stirring cry of freedom. People racy, we must not fail to hear another cry. best assist in the global fight against of faith, conviction, and courage are strug- This cry is not the affirmation of freedom narcotics. gling and prevailing against difficult odds. but its negation, not the uplifting of de- The old world of dogmatic dictator- mocracy but its degradation. It is the call ships is on its way out. Tragic throw- The U.S. Effort of the drug addict. backs to repression only serve to remind That cry concerns all of us, and it is First is our national drug strategy. The us that the new world of secure, prosper- urgent. We hear it close to home-to my American people consider drugs the num- ous, and just democracies has not yet home, to your home, and to the homes of ber one problem facing the United States. arrived. And it will not come auto- our neighbors in the world community. And winning the war against drugs is a matically. We all must work to bring it None of us-not one nation-remains top priority for President Bush and, into being and ensure that it will last. untouched. None of us-not one-is therefore, a top foreign priority for me. Global war brought this organization safe from the danger of drugs. The Bureau for International Narcotics into existence in 1945. And it was with Drugs pose a serious threat to global Matters at the Department of State, ably solemn determination that the UN found- security. We are here at this special ses- led by Assistant Secretary Levitsky, has ers pledged, in the opening words of our sion because we recognize this bitter done a first-rate job of ensuring that nar- Charter, "...to save succeeding genera- truth. We fully recognize the growing cotics control issues are fully integrated tions from the scourge of war...." importance of combatting drugs. I par- into our diplomatic efforts. Especially now, at this promising ticularly wish to thank the governments Our drug control strategy calls for an time, it is critical for the nations of the that have played leading roles in prepar- attack on the drug problem in all its world to recall the fundamental aims that ing the agenda before us. aspects-consumption, trafficking, illicit unite us. For if we fail to support the I would now like to review for you the production, treatment, and rehabilitation. goals of the UN Charter-peace, human comprehensive approach my government My government is placing greater empha- dignity, justice, respect for sovereign is taking to help rid my country and the sis than ever before on preventive world of illicit drugs. education programs, treatment, and Thus, consumption and supply, de- In one short and brutal decade in Co- rehabilitation. We aim to stop the traf- pendency and exploitation, greed and vio- lombia, the Medellin and Cali traffickers ficking in all illicit drugs, not just cocaine. lence become a vicious circle-in truth, have killed over 1,000 public officials, 12 Heroin, marijuana, and the so-called like a dragon chasing its own barbed tail. Supreme Court justices, over two dozen designer drugs are also major threats. That circle of misery and death must be journalists, and more than 200 judges and And we are attacking the problems of broken. America is helping to break it- judicial personnel, not to mention the domestic cultivation and trafficking. both at home and with our partners scores of men, women, and children who This kind of comprehensive approach abroad. happened to be going about their daily calls for increased resources. Since the lives in the wrong place at the wrong Bush Administration took office, the do- mestic antidrug budget has increased 67% The Cartagena Summit time. And no amount of laundering can wash the blood off money stained by to $7.6 billion. And our international This brings me to my second topic: last drugs. The so-called kings of cocaine are antidrug budget, including border and Thursday's [February 15] summit in Co- criminals-criminals of uncommon power off-shore interdiction efforts, has in- lombia. As you know, President Bush and and uncommon brutality. creased 73% to $3.1 billion. I traveled to Cartagena where we met Time and again, President Barco has We fully realize that attacking the with our counterparts from Colombia, put his own life on the line to free his na- problem of domestic consumption is our Bolivia, and Peru. In Cartagena, the sum- tion from the deadly grip of the drug most critical challenge. As long as the mit partners pledged to attack the mer- cartels. Together with President Barco, demand for drugs by Americans remains chants of drugs and death from every Presidents Bush, Garcia, and Paz all rec- voracious, our nation faces an endless, angle-production, distribution, finance, ognize their responsibility to take the lead uphill struggle to halt supply. We are and use. President Bush was unequivocal in combating cocaine, our common enemy. making progress. Domestic drug use in his commitment to reduce demand for Together at Cartagena, we reaffirmed dropped 37% from 1985 to 1988, and drugs in the United States. We agreed the need for development, trade, and in- cocaine use was cut in half over the same that it was pointless to apportion the vestment to strengthen growth-oriented period. But we have a long way to go. blame between producer nations and con- economic policies in order to offset the We are determined that drug users in sumer nations-narcotics are a deadly economic costs of counternarcotics pro- the United States face the hard facts: threat to all nations that are exposed to grams. We agreed to work in concert to Their behavior is not just a personal in- them. We and our summit colleagues are heighten public awareness of the debili- dulgence. American users act as paymas- determined to break the back of crack and tating effects that drug production, traf- ters to organized murderers. Profits from put the illicit cartels out of business. ficking, and abuse have on our countries. every kilo of cocaine bought in the streets By going to Cartagena, the President We agreed to provide economic assistance of America buy the bullets which rob demonstrated our country's absolute de- to help strengthen the legitimate econo- democracies of their dignity and freedom. termination to fight the drug war for mies of the Andean nations. And we American users aid and abet the drug car- however long it takes. We have assured agreed to strengthen the law enforcement tels which in turn foment and exploit re- our partners that we will not fail to sup- capabilities of our countries to bring traf- gional and global instabilities. When port them in the drug fight. fickers to justice. President Bush told his Americans feed their habits and enrich As part of our support, from FY 1989 Andean colleagues that he would raise the cartels, it's like they're giving succor to FY 1991, the United States will in- these issues with the G-7 at the Houston to terrorists. American users are acces- crease sevenfold our international drug summit and with other developed coun- sories to criminals who poison children. budget for Colombia, Bolivia, and Peru. tries as well. The United States seeks to Their habits also contribute to the murder Our total economic assistance will more improve and strengthen narcotics consul- of the land. Coca farmers have destroyed than double to those Andean nations next tation and cooperation with other devel- acres of forest lands; traffickers have year as they undertake tough counternar- oped countries to bolster international dumped millions of gallons of precursor cotics programs and apply sound eco- support of producer-country counternar- chemicals into rivers. nomic policies. cotics efforts. I regret to say that narcotics has be- It is fitting that the summit was held Finally, we and our Andean col- come a big business, a very big business in Colombia. We applaud Colombia's leagues agreed to urge all countries to in my country. Last fall in Los Angeles, courageous decision to seize and destroy ratify, as soon as possible, the UN Con- agents seized 22 tons of warehoused labs, arrest and prosecute narcotics vention Against Illicit Traffic in Narcotic cocaine. If all the kilo packages we seized offenders, extradite traffickers and Drugs and Psychotrophic Substances. were stacked, one on top of the other, the money launderers, and challenge the When ratified, the 1988 convention will pile would be a mile and a half high- cocaine empire. foster worldwide cooperation in such ar- that's a mountain of misery half the No nation has SO bravely confronted eas as money laundering, asset seizure, height of the tallest mountain in the conti- the drug lords or made greater sacrifices. precursor chemical control, extradition, nental United States. It was estimated No nation here can remain indifferent to investigation, intelligence gathering, and that the street value of the seized cocaine Colombia's fate. The scale of drug-related information sharing. I am pleased to re- exceeds the individual gross national violence in Colombia is horrific, even to port that President Bush signed the products of well over 100 of the nations those among us who have experienced instrument of ratification for the United represented in this chamber today. And firsthand the violence that has been SO States on February 13. We deposited the this was just one warehouse. Imagine the sadly a part of our turbulent century. signed instrument of ratification with the veritable Mt. Everests of misery we United Nations today. haven't found! 2 Ratification by all countries will help them out. We must order our priorities in laundering of money, that turns a blind us in regional efforts to combat cocaine such a way as to accomplish our aims and uncaring eye to drug abuse and drug and also increase worldwide cooperation within the framework of a unitary trafficking. We will give no quarter. against illicit drugs of all kinds. approach to the entire UN system and through zero real program growth in Conclusion A Strengthened Role budgets. for the UN System The Global Program of Action will re- I began these remarks by saying that we inforce the solid foundation which we are living in promising times. Freedom By fostering worldwide cooperation, the have built already; by this I mean the two and democracy are in the ascendancy, yet United Nations plays a crucial role. It is established international drug control they face formidable odds. Undoubtedly imperative that we make maximum use of treaties now in effect and the new con- drugs are among their mortal enemies, the UN instruments and the UN system vention against illicit trafficking which I for freedom and democracy are universal as a whole to buttress our efforts at the mentioned earlier. In addition, we have ideals that speak to the dignity of every national and regional levels. other mandates such as those contained in individual. And if these ideals are to be There is no country here SO proud or the comprehensive multidisciplinary out- realized, every individual must make a so great as to be able to rid itself of drugs line from the 1987 International Drug contribution to his or her own society and without the help of other nations. Nor is Conference and UN General Assembly to the world community. An individual there any country here so small that it Resolution 44/141, adopted in December caught in the grip of drugs becomes a cannot support in some way this impor- 1989. All of these documents give us the slave-no longer a free or a responsible tant international effort. Together we legal and program basis as well as the person. And the same thing can happen can work more effectively than in isola- clear authority with which to proceed. So to entire nations. tion. We can accomplish more in concert let us use these tools effectively before But such tragedies do not have to that at odds with one another. This we endeavor to write new treaties. We happen-not to our citizens, not to our special session affords to us all, the com- want to strengthen our systemwide countries, not to the world community. munity of nations, an opportunity to work efforts and ensure maximum cooperation, It's up to us-each of us, all of us to- together decisively against drugs. coordination, and efficiency in the conduct gether. A great deal is at stake. We must seize this opportunity now. of all UN programs. We know that we cannot cleanse the For if we let it pass, our inaction will con- To be sure, there is a good case for world of drugs in one generation. Yet I demn more children to suffering and improving and reinforcing our multilat- believe I am justified in ending on an opti- want, more families to destruction, more eral infrastructure. We agree that mem- mistic note. More than ever before, governments to the assaults of drug car- ber countries should allocate more re- nations all over the world are working tels. And more of the threads that hold sources to UN antidrug efforts in order to together on the global drug problem. The together the very fabric of civilized complement domestic counternarcotics United Nations has greatly helped to society will unravel. efforts. We are more committed than bring this about. That is why the President and I are ever to working with other governments, From the Soviet Union to Jamaica, convinced of the timeliness and efficacy of so that the UN system may be a stronger, from Spain to Malaysia, nations are join- this special session. We have the oppor- more responsive partner in the drug ing forces in the fight against narcotics. tunity to set an action-oriented course for fight. With the help of the Secretary We, the peoples of the world, must keep the UN system. General and all member states, the Presi- up the fight-in the deep jungles and It is my government's hope that adop- dent and I are hopeful that the Global mountain valleys where coca and poppies tion of the Global Program of Action, and Program of Action will energize a are grown, in the urban jungles ruled by the related Political Declaration, will take dynamic drug control effort of worldwide corruption and cruelty, in shadowy back- us considerably closer to ridding the scope. rooms where drug-stained money is international community of the drug In our global war against drugs, we laundered, and in the dark recesses of the scourge-provided, of course, that the regard as natural allies all nations sharing soul-there perhaps most of all. program commits us to concrete activi- the resolve to resist this scourge. Tradi- Now-today-for the sake of our chil- ties, that it is fully implemented by the tional friends and traditional adversaries dren and our grandchildren, we must do UN agencies of the system, and that it is alike must pool their efforts. Indeed, all that is humanly possible to rid God's backed by complementary efforts at the many of us already have joined forces, good earth of the evil scourge of drugs. national and regional levels. Certainly we despite political and economic differences. the member governments cannot ask the Together we will combat the multina- United Nations to do things that we will tional drug empires on every front. Published by the United States Department not do at home. Nor can we ask the Together we will hold to account any of State Bureau of Public Affairs United Nations to undertake ambitious government that grants safe havens to Office of Public Copmmunication drug profiteers, that actively permits the Washington, D.C. February 1990 programs without financial backing and a Editor: Phyllis A. Young This material is strong infrastructure with which to carry in the public domain and may be reprinted without permission; citation of this source is appreciated. 3 PA/OAP, Rm. 5815A BULK RATE United States Department of State POSTAGE & FEES PAID Washington, D.C. 20520-6810 U.S. Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE $300 Address Correction Requested Melvyn Levitsky Current Policy No. 1287 The Andean Strategy To Control Cocaine United States Department of State Bureau of Public Affairs Washington, DC Following is a statement by Melvyn drugs, we must also work hard to reduce Objectives Levitsky, Assistant Secretary for Inter- the international supply; otherwise, it will national Narcotics Matters, before the be more difficult to sustain effective The Andean strategy has three major Subcommittee on Western Hemisphere domestic programs in law enforcement, objectives. Affairs of the House Foreign Affairs education, prevention, and treatment. First, through concerted action and Committee, Washington, DC, June 20, In 1989, the administration completed bilateral assistance, it is our goal to 1990. a comprehensive plan to work with the strengthen the political will and institu- three Andean governments to disrupt and tional capability of the three Andean I welcome the opportunity today to destroy the growing, processing, and governments to enable them to confront discuss the President's Andean strategy transportation of coca and coca products the Andean cocaine trade. With new and outline our policy goals and objectives within the source countries in order to governments in Colombia and Peru, it will in this area. Cocaine control is our reduce the supply of cocaine entering the be essential for the US Government to number one priority and our main focus United States. In September 1989, the help them address the full range of their has been, and will continue to be, the President's National Drug Control drug-related problems. Andes. Strategy directed that a 5-year, $2.2 Second, we will work with the The President's historic meeting in billion counter-narcotics effort begin in Andean governments to increase the ef- Cartagena, Colombia, in February FY 1990 to augment law enforcement, fectiveness of the intelligence, military, signaled a new era in narcotics coopera- military, and economic resources in Co- and law enforcement activities against tion with our Andean partners. No longer lombia, Bolivia, and Peru. After careful the cocaine trade in the three source is the drug issue simply a law enforce- negotiations between the United States countries, particularly by providing air ment problem. We are working with Co- and each of the individual cooperating mobility for both military and police lombia, Bolivia, and Peru to explore ways governments, implementation plans have forces and making sure they are well to strengthen law enforcement, military, been prepared to ensure effective use of equipped and trained and that they intelligence, and economic cooperation, the assistance. cooperate in an integrated strategy. It including opportunities for expanded The administration's $2.2 billion plan has become clear that the Andean trade and investment in order to attack provides a cooperative approach for countries cannot conduct effective anti- the drug trade in a comprehensive way. working with the three major Andean narcotics operations without the involve- The President's Andean strategy seeks to governments to disrupt and destroy the ment of their armed forces; this is bolster these countries' capabilities on all growing, processing, and transportation especially true where the traffickers and fronts. The programs we have are coop- of coca and coca products within the insurgents have joined forces, as in Peru. erative programs. We cannot do the job source countries in order to reduce the Specific objectives include efforts to without a strong effort from the Andean supply of cocaine from these countries to isolate key coca growing areas, block the countries, the countries that surround the the United States. Congress has author- shipment of precursor chemicals, identify Andean region, and the transit countries ized and appropriated funds for the first and destroy existing labs and processing through which cocaine passes. year of this plan. For FY 1990, approxi- centers, control key air corridors, and The Andean strategy is a multi- mately $230 million in economic, military, reduce net production of coca through faceted approach to the complex problem and law enforcement assistance is being aerial application of herbicides when it is of cocaine production and trafficking. Of offered to the three Andean countries for effective to do so. course, the main front in this war is here counter-narcotics-related initiatives. In Our third goal is to inflict significant at home. But as we work to diminish our 1991, we are asking for $423 million, damage on the trafficking organizations own demand for and consumption of including narcotics-related economic which operate within the three source assistance. countries by working with host govern- Misconceptions About Militarles' Roles and their involvement is a sign of greater ments to dismantle operations and overall national commitment in dealing elements of greatest value to the traffick- Let me deal directly with concerns which with the problem. ing organizations. By strengthening ties have been raised regarding the role of the Third, while we believe the militaries between police and military units and Andean militaries in the drug war and of the Andean states need to play a more creating major violator task forces to potential human rights abuses. There is constructive role, we never have nor will identify key organizations, the bilateral no reason to expect that US military aid force military assistance on these assistance will enable host government will undermine democracy or civilian rule countries. Nor is the assistance we are forces to target the leaders of the major in the Andes. On the contrary, I believe providing of a nature to create large, new cocaine trafficking organizations; impede it will help to strengthen both democracy forces in the region. We are developing the transfer of drug-generated funds, and and the international struggle against the specialized skills and units required to seize their assets within the United illegal narcotics for the following reasons: conduct or support meaningful counter- States and in those foreign nations in US security assistance will be narcotics operations, not creating major which they operate. Intelligence is a negotiated with and delivered through combat units. We should remember the critical component of this strategy. We the civilian governments; immense size of the countries we are have worked closely with the intelligence dealing with and that the narcotics community and law enforcement agencies An impoverished, poorly trained and processing facilities and growing areas to focus intelligence collection on these equipped military, unable to feed its are spread over large areas, often in targets. In short, we have developed a troops, is far more susceptible to corrup- remote locations. Narcotics law enforce- strategy that is coherent, focused, and tion and human rights abuses; and ment units are neither equipped nor determined. The military is far more likely to trained to address the increasingly A major tenet of this strategy is the take a constructive approach if actively paramilitary nature of the problem. incorporation of expanded economic engaged in the drug waras opposed to Further, as the case of Bolivian military assistance beginning in FY 1991 and being left to criticize civilian efforts from support for counter-narcotics operations the sidelines. The involvement of the demonstrates, military support in some directed toward offsetting the negative military, as in our own country, can bring cases can be an effective way to avoid economic dislocations we know will occur. a significant resource in the war against duplicating a parallel military capability This assistance will, in turn, strengthen the political commitment of the three drugs if properly coordinated and within police narcotics enforcement Andean nations to carry out an effective directed by civilian authorities. agencies. The financial resources of the counter-narcotics program. US-economic I would also like to set out a number narcotics traffickers, such as those in assistance is, in general terms, linked to counter-narcotics performance and to of points that address misconceptions that Colombia, enable them to hire private have grown up in recent months about armies and terrorists on a national and follow-through with economic policy the so-called militarization of the US international scale. Their ability to buy reform. In harmony with the views of the counter-narcotics effort. Like many manpower and equipment surpasses the three Andean governments, our direct economic assistance and other initiatives slogans, the use of emotionally charged police capability and, in some cases, calls and sometimes politically motivated into question even the military's ability to support economic alternatives for those words like "militarization" is a gross respond effectively. These capabilities directly involved in the cultivation of and trade in coca. Examples of such assis- oversimplification that does not do justice permit the narco-traffickers to challenge to the effort either to understand or deal or defy the sovereignty of local govern- tance include crop substitution and other with the complex problems of interna- ments in a way unprecedented in our economic alternative activities, drug tional narcotics. experience. awareness, administration of justice, US counter-narcotics policy, there- balance of payments, and export promo- In the first place, the level of our fore, should not be characterized as a tion. The assistance reflects our conclu- security assistance is only a part of our "militarized" effort, but rather one that sion, incorporated in the Declaration of total effort. Of some $129 million in seeks to provide legitimate governments Cartagena, that a comprehensive, counter-narcotics funds requested for with the tools and assistance to help intensified counter-narcotics strategy Peru in FY 1991, for example, only about defend their political sovereignty. must include understandings regarding $40 million is for military assistance, and economic cooperation, alternative much of that is for maintenance support But the problem does not end there. development, and encouragement of trade and infrastructure improvement. Nor do There is now a further complicating and investment. As vigorous host we contemplate large levels of US factor, and that is the degree to which so- government programs against the drug military presence in the Andes. We have called guerrilla organizations are becom- trade and economic policy reform never maintained such a presence, and ing involved in narcotics trafficking, initiatives become more effective, our our strategy includes as one of our tenets either in providing protection in return economic assistance will increase in the the determination not to Americanize the for profit or in engaging in the production outyears (1991-94) of the Andean effort to work with local governments. and sale of coca. strategy. We are not seeking to impose Second, our decision to encourage The effort of the United States to help law enforcement, security, or economic greater participation of the local militar- these countries deal with "narco-insur- assistance on these countries. These are ies in the counter-narcotics efforts gents" has raised the specter of counter- programs that require cooperation and parallels the evolution of our own policy insurgency-specifically, whether the mutual agreement. Our intensive that projects a greater role for the United States should engage in support- dialogue with the Andeans is refining a Department of Defense in the war on ing Andean militaries, some with past common understanding of what is needed drugs in the United States. Indeed, the records of human rights abuses, in waging and what is possible on both sides. militaries in the Andean states are an a struggle against insurgent groups which important component of the governments 2 are clearly involved in many aspects of The involvement of the Colombian In March, the Office of the US narcotics trafficking. We cannot gloss military in supporting counter-narcotics Trade Representative (USTR) announced over past abuses in some countries. We law enforcement operations over the past that 129 products were accepted for do not support these and never will. But 2 years proves the effectiveness of this review under the US generalized system neither should we succumb to the approach. Recently, the Colombian of preferences (GSP) special Andean romantic notion of downtrodden peasant military, using equipment supplied by the review. Final results of the review will masses protesting in arms against social United States, with the police seized over be announced in July. injustice, nor depict organizations like the 18 tons of cocaine in one transportation We have also conducted successful Sendero Luminoso (Shining Path) of Peru complex deep in the Colombian jungle. or the FARC (Fuerzas Armadas Revolu- It is basic to our policy that human technical seminars on the GSP program in cionarias de Colombia-Armed Revolu- rights remain under continuous review to Colombia, Bolivia, Peru, Ecuador, and tionary Forces of Colombia) in Colombia determine whether government policies Venezuela to help the Andean countries as champions of human rights. Moreover, justify, reinforce, or call into doubt our take full advantage of the GSP. A US team is in the Andes the week of June 18 these groups are now becoming narcotics continued assistance relationship. State to conduct seminars on the US textile traffickers themselves, profiting from the Department human rights reports on environment of drugs and using drug Colombia and Peru have been candid in program. monies to finance further violence. their criticisms and, in fact, received We have scheduled a workshop in In such groups, we are dealing with praise from human rights groups. We will Washington for the Andean countries the professional organizations of tight-knit work with the Andean militaries to week of July 9 on ways to expand US- cadres whose human rights abuses, eliminate human rights abuses as they Andean trade and investment opportuni- indiscriminate bombings of civilian increase their involvement in anti- ties. targets, use of torture, terrorism on a narcotics operations. Our training, in national scale, and barbaric brutality are fact, will emphasize human rights and We are exploring areas of potential plainly part of the public record in civic action. cooperation with the multilateral develop- Colombia and Peru. While the US Involvement of US military personnel ment banks and have emphasized US attitude toward these problems is well and organizations is clearly defined, support for World Bank efforts in the known, the United States has not limited, and subject to continuing review. area of trade policy reform. provided significant financial assistance to The US military role is to provide support On May 8, the United States and any of the Andean nations to deal with and development of host country capabili- Bolivia signed an agreement to establish these specific problems. We are focusing ties. It will provide training and opera- the US-Bolivia Trade and Investment our effort on counter-narcotics, not on tional support, materiel, advice, and Council, whose objectives are to monitor counter-insurgency, but we cannot lose technological and maintenance support to trade and investment relations, identify sight of the fact that it is the insurgents cooperating nations' counter-narcotics opportunities for expanding trade and who have become involved in narcotics organizations. Defense personnel will not investment, and negotiate agreements and, along with the traffickers, created a participate in actual field operations. where appropriate. militarized situation. Contrary to some media reports, the Let me also point out the following. levels of counter-narcotics based eco- We also renewed our commitment to At this point, we have not concluded a nomic assistance planned for in the seek a new International Coffee Agree- security assistance agreement with the President's Andean strategy outweigh ment (ICA). government of Peru. We have done some the levels of military assistance being We have offered to accelerate advance planning and held discussions offered. Over the 5 years that the negotiations on tariff and nontariff with officials of the government, but no strategy covers, from FY 1990 to 1994, measures in the international trade programs of assistance can go forward economic assistance will total over $1.1 negotiations now going on in Geneva. without such an agreement. While it is billion, versus approximately $676 million Andean participants have not yet our belief that the narcotics situation in in security assistance. Moreover, this responded to our offer. the upper Huallaga Valley cannot be dealt does not include other economic assis- with effectively without the involvement tance such as food aid and trade prefer- In addition to the bilateral aspects of of the Peruvian military, this is a Peru- ences for the Andean region. the Andean strategy, we are also working vian government decision. And, of with the international community to gain course, it will be a decision as to whether Further Initiatives support for Andean initiatives. The the counter-narcotics performance of the strategy suggests that a consultative Peruvian institutions involved in the We are, of course, living up to the mechanism with other developed coun- struggle will justify the provision of economic commitments made at the tries be established to encourage closer economic assistance. Our request for Cartagena summit. We are implementing coordination of international counter- economic assistance for Peru in 1991 is the initiatives contained in the Presi- narcotics efforts. I will be travelling to based on the assumption of effective dent's November 1 Andean trade Europe at the end of this month to counter-narcotics performance. package, including working with the further this goal. Our counter-narcotics work in Bolivia countries in the region to develop further We are pleased with the work of the does not create a significant military initiatives: G-7 Financial Action Task Force on capability; it, too, focuses on improving money laundering; the United States the military's ability to support counter- In February, administration officials hopes to expand the number of countries narcotics efforts. This includes improve- met with representatives from the that embrace the action recommendations ments in riverine programs by the European Community, Canada, and Japan of the task force to ensure that all Andean navies to interdict the flow of to discuss ways we can help the Andean countries have comprehensive domestic precursor chemicals and drugs on countries improve their trade perform- programs against money laundering and Bolivia's waterways. ance. cooperate to the maximum extent 3 possible in international money launder- In closing, I would like to take this Success will not happen overnight, ing investigations and prosecutions. opportunity to say that I believe that but we are beginning to see that our Narcotics is also on the agenda of the during the coming year, we and the efforts are having an impact in the Andes, Houston economic summit next month, Andean governments will have many and on the streets of the United States. and there we hope to gain greater G-7 opportunities for progress as we work Provided we are prepared to sustain our support for precursor chemical control. together to attack all aspects of the activities and not allow our thinking to be As our own controls become more cocaine trade. We are optimistic. The clouded by false analogies and oversimpli- effective, the drug traffickers look to price of coca leaf is down in Peru and fications, I believe we will continue to Europe and the surrounding countries for Bolivia. As a result, in Bolivia voluntary make progress toward a goal the Ameri- supply of these chemicals, and so we must eradication of coca is up-this year has can people have made clear that they bolster international efforts to limit their already surpassed last year's total-and support. use to legitimate industry. Without increasing numbers of growers are essential chemicals, cocaine cannot be moving out of the illegal industry. DEA Published by the United States Department produced. We have just completed a laboratory analysis indicates that purity of State Bureau of Public Affairs Office State Department-Drug Enforcement levels of cocaine at both the wholesale and of Public Communication Washington, DC Administration (DEA) mission to Europe retail levels are down and prices have July 1990 Editor: Marilyn J. Bremner to promote the control of essential and increased at the wholesale level in many This material is in the public domain and may precursor chemicals. We will be conduct- areas throughout the nation. Cartagena be reprinted without permission; citation of this ing similar missions to Latin American ended the argument over who is to blame source is appreciated. countries. for the drug crisis; we now have a consensus on the nature of the problems we face and a solidifying common front against the drug trade. PA/PC, Mailing List United States Department of State BULK RATE Washington, DC 20520-6810 POSTAGE & FEES PAID US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested A quick reference aid on US foreign policy gist International Narcotics Control Background National Drug Control Strategy International cooperation to stop narcotics production and trafficking is a central element of US foreign policy. Few foreign policy concerns have as direct a domestic impact as The President's National Drug Control Strategy calls for: international narcotics. Ninety-five percent of the illicit Increased economic, military, and law enforcement narcotics consumed in the United States comes from other assistance to Colombia, Peru, and Bolivia; countries. It is essential, therefore, to gain international Expanded US-Mexican cooperation in drug cooperation to reduce drug supplies while the United States enforcement, "money laundering" disruption, and demand works to reduce demand at home. As Secretary Baker reduction programs; stated in November 1989: "[T]here is no foreign policy issue short of war or peace which has a more direct bearing on the Continued US support for law enforcement programs well-being of the American people." in South American producer and transit countries, including Ecuador, Venezuela, Paraguay, Argentina, and US Policy Chile; Continued law enforcement and intelligence programs In January 1990, President Bush issued a National Drug with Central American and Caribbean nations; Control Strategy that calls for increased international cooperation against drug production, trafficking, and abuse. Development of an international strategy focused on A critical part of the strategy is increased emphasis on opium and heroin; cooperative efforts with three Andean nations (Colombia, Broadened domestic and foreign efforts to counter Peru, and Bolivia) to dismantle cocaine trafficking organiza- international money laundering activities; tions and disrupt cocaine processing and trafficking as close to the source as possible. In FY 1990, $423 million in Expanded efforts to reduce the illegal manufacture economic, military, and law enforcement assistance is being and shipment of chemicals essential to illicit drug provided to the three nations to strengthen their ability to production; and meet these objectives. Additional economic aid will be Promotion of international law enforcement available to these countries in FY 1991 if they use current cooperation through mutual legal assistance treaties and resources effectively and establish sound economic policies. the pursuit of anti-drug initiatives at international forums. The State Department's Bureau of International Narcotics Matters, which has a budget of $150 million, provides $58 million to the Andean strategy funding. It has counter- and the Soviet Union. There is a growing consensus that the narcotics programs in South and Central America, Mexico, solution to the world's drug problem must be global in scope, the Caribbean, and Southeast and Southwest Asia. addressing all elements of the grower-to-user chain. In February 1990, President Bush met with the presi- dents of Colombia, Peru, and Bolivia at the Andean summit Role of Developed Nations in Cartagena, Colombia. The four presidents agreed to work closely in a number of critical counternarcotics areas, Developed nations play a key role in global efforts to fight including the control of precursor chemicals, drug education, narcotics production and trafficking. The President's drug exchange of tax information, and a broadened role for each control strategy calls on European nations, Canada, Japan, country's military in fighting narcotics. and Australia to take greater steps to help Andean, Carib- In addition, the United States is undertaking cooperative bean, and Asian countries reduce drug supply and demand. efforts with concerned governments in Asia, Africa, Europe, An informal consultative mechanism is being established for US Department of State June 1990 Bureau of Public Affairs Office of Public Communication this purpose. Trafficking organizations are seeking new have dropped because of increased anti-drug pressure in markets for cocaine and heroin. Developed nations, recog- Colombia and Bolivia, encouraging many coca farmers to nizing the threat, are beginning to respond. switch to legitimate crops. Working with the United States, the government of Peru constructed a secure police Progress in International Narcotics Control base in the upper Huallaga Valley to house Peruvian and US enforcement personnel. Government leaders are focusing on the international Progress has occurred in other countries as well. narcotics threat and on positive solutions. A recent UN Mexico seized 34 MT of cocaine in 1989 and drug trafficking special session was devoted entirely to the narcotics issue. has diminished in and around The Bahamas. Last year, British Prime Minister Margaret Thatcher sponsored a joint Jamaica further reduced its marijuana crop. Ecuador has UN-UK ministerial conference on cocaine and demand been successful in eliminating coca production, and Pakistan reduction this spring. reduced its opium crop. Recent Colombian counternarcotics operations have Nevertheless, much remains to be done. The estimated resulted in the extradition of 15 narcotics traffickers and production of illicit narcotics supplies increased in 1989. money launderers to face justice in the United States, the Most dramatically, Burma's opium crop doubled as the seizure of about 19 metric tons (MT) of cocaine at a major Burmese turned their attention away from narcotics drug trafficking transportation complex in southern Colom- control. Worldwide, coca production grew by about 10% bia, and the confiscation of numerous properties and other last year. assets belonging to drug "kingpins." Coca prices in Bolivia BULK RATE POSTAGE & FEES PAID US Department of State Permit No. G-130 PA/PC, Mailing List United States Department of State Washington, D.C. 20520-6810 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested Secretary Baker Current Policy Democracy, Diplomacy, No. 1228 and the War Against Drugs United States Department of State Bureau of Public Affairs Washington, D.C. Following is the prepared address by through you to the American people our spair. It is the tragedy of our daily Secretary Baker for the Forum Club, gratitude for what America has done for headlines-of careers ruined, of families Houston, Texas, November 22, 1989. Germany and particularly for what disrupted, of children gone astray, of America has done for Berlin." lives endangered, and of lives lost. I am especially pleased to be here in He said as well, "This is a moving Our most fundamental values, in- Houston to join you in celebrating the moment for our nation, but I'm calling deed our humanity, are at stake. To Forum Club's 10th anniversary. to express our gratitude to the people of prevail in this twilight struggle against As we gather with our families and America." It almost brings tears to your drugs will require courage and con- friends this Thanksgiving, we Ameri- eyes. It's a very moving event. stancy of purpose, because there are no cans have much to be thankful for, In Thus, we see the postwar era near- easy victories in this twilight war. so many ways, we are reaping the har- ing its end. Yet, we still live with its International drug trafficking is a vest of our long-held values. We have legacy. We will do so for many years to threat to our national security. That is planted and nurtured them at home. come. How we overcome that legacy no exaggeration. Through our efforts and by our ex- will be a central question when Presi- According to a survey taken in late ample, they have taken root around the dent Bush meets with President Gor- September, over half of the American world. They are ripening even in what bachev in the Mediterranean next people named illicit drug use as the seemed to be the most forbidding and month. In the meantime, the peoples of most important problem facing the barren ground. the East are coming in from the cold, country today. Illegal drug use in this We Americans rejoiced when just drawn closer to the warmth of democ- country crosses the entire spectrum of 2 weeks ago the Berlin Wall was racy. our society. It affects people from all breached. We shared the excitement of Faith, conviction, and personal cour- walks of life, all age groups, all back- the moment with the German people, age are prevailing against all odds. The grounds, and all levels of income. And just as in darker times we shared their long, twilight struggle between East while some regard narcotics as an ur- grim determination to overcome the and West that President Kennedy de- ban phenomenon, this big-city problem 1948 blockade, the 1953 crackdown, scribed may be coming to an end at last. is also a major problem for rural and, for 28 years, the stark presence of It is ending with neither a bang nor a America. the wall itself. whimper, but with the triumphant cry I am sad to say that this native city I had an extraordinary telephone of the human spirit. of mine, where we meet today, and our conversation with the Foreign Minister But there is another cry of the hu- state of Texas are no exceptions. Hous- of the Federal Republic of Germany, man spirit that must be heard. It is not ton is one of the four major narcotics Mr. Genscher. He called. I came on the the affirmation of freedom but its nega- distribution centers in the country. It line. His secretary said, "Just a mo- tion; not the uplifting of democracy but has a significant cocaine problem. In ment, sir, and thank you for everything. its degradation. It is the call of the east Texas, the Sheriff's Office of Gregg God bless America. Here's the minis- drug addict, of the human souls and County reports that between 1987 and ter." This was his secretary. Then the bodies afflicted with the scourge of de- 1988, there was an 80% increase in the minister came on the line, and he said, number of crack cases. Also during that "I'm calling to simply express to you and period, robberies rose by 70%. Four extradite traffickers and money laun- First, to isolate and disrupt coca years ago, crack cocaine was pretty derers to this country. Time and again, production by interdicting air, road, and much nonexistent in the town of Tyler, President Virgilio Barco has put his - river traffic in drugs and chemicals es- Texas. Today, Tyler has crack houses own life on the line for his nation and sential to drug production; and "shooting galleries." Indeed, well for the cause of democracy everywhere. Second, to eradicate COCA when and over 80% of the crime in Tyler is crack In Colombia, the Medellin and Cali where possible and effective; and related. traffickers consider themselves a coun- Third, to develop income alterna- Drugs hit close to home-my home try and a law unto themselves. They tives to the illicit drug industry by and that of another Houstonian, George operate just like the pariah states that strengthening the legitimate economies Bush; your home and the homes of our export terrorism. They have bought of Andean countries. neighbors. That is why the President banking systems to store their wealth and I are personally committed to the and mercenaries to attack their adver- This is not a strategy for massive and unilateral U.S. intervention in the struggle against drugs. That is why I saries. And who are their enemies: Andes. The Andean countries want and have made the narcotics issue a top for- public figures, judges, journalists, and need our assistance. But we know we eign policy priority. I have instructed innocent bystanders, whom they mur- won't be effective unless we attack the our ambassadors worldwide and the der in broad daylight. demand for drugs as well as the supply. Department of State's assistant secre- It is hard for Americans to compre- To that end, we have accepted the An- taries to ensure that narcotics control hend the scale of such violence and in- dean leaders' invitation to sit down and issues are fully integrated into our dip- timidation. Let me try to put it into discuss our mutual struggle at an An- lomatic efforts. To my mind, there is no perspective. Imagine one day that a hit dean summit in February next year. foreign policy issue short of war or squad attacks the U.S. Supreme Court We realize that as long as American peace which has a more direct bearing and murders half of the justices. Imag- demand for drugs continues, we face an on the well-being of the American ine our Attorney General being assassi- endless, uphill battle to halt supply. people. nated by organized crime figures. And That is why the President decided that As I see it, the survival of democracy imagine a criminal organization declar- reducing the demand for drugs must be at home and abroad is perhaps our most ing "absolute and total war" on our gov- at the center of our antidrug policy. fundamental national interest. And ernment after assassinating a leading America's demand drives the spiraling drugs are mortal enemies of democracy. presidential candidate. Let me tell you why. This is what has happened in Co- cycles of production and trafficking, con- Democracy speaks to the dignity of lombia in one short and brutal decade: sumption, and addiction. Profits from every kilo of cocaine buy the bullets every individual. Every person is con- the traffickers have killed over 1,000 which rob Colombia of its dignity and sidered a free and responsible citizen public officials, 12 Supreme Court jus- freedom and threaten Bolivia and Peru. whose vote and say in public affairs is tices, over two dozen journalists, and I want every user of drugs in the essential. An individual caught in the more than 200 judges and judicial per- United States to face a fact: Their ac- drug habit soon becomes a slave of that sonnel. habit-no longer a free person or a re- President Bush has come to Colom- tions are not just a personal indulgence. They act as paymasters to organized sponsible citizen. And in a similar way, bia's aid by authorizing $65 million in murderers whose victims are defenders what can happen to the individual can emergency military assistance. Can- of democracy and the rule of law. They happen to a nation. The drug pirates ada, Norway, United Kingdom, Italy, are accessories to criminals who poison and profiteers attack the central nerv- Spain, and Portugal have also pledged children and babies. And users by their ous system and vital organs of democ- their help to Colombia's effort. habits also contribute to the murder of racy: the administration of justice; the Moreover, this Administration has the land. Coca farmers have destroyed integrity of government; the right of proposed a bold, comprehensive strat- countless acres of forest; cocaine traf- free speech. egy to address the cocaine problem in fickers have dumped millions of gallons Ultimately, the illegal narcotics the hemisphere. We call it "the Andean of chemicals into water supplies. trade robs dignity and freedom not only strategy." This strategy is nothing less Above all, we must be honest with from the individual but from entire na- than a multiyear, $2-billion American ourselves. There is nothing glorious or tions. Malaysia was one of the first na- plan to provide military, economic, and admirable or honorable in the so-called tions to declare that drug traffickers law enforcement assistance to help the drug lords and kingpins. They are just threatened its sovereignty. Pakistan, Andean governments as they fight co- criminals-criminals of uncommon Thailand, Jamaica, and Mexico-all caine. Our primary goal is to attack power and uncommon brutality. No have come to the alarming conclusion and dismantle the drug trafficking or- amount of laundering can wash the that drug abuse is eroding their hopes ganizations themselves. In short, to put them out of business. We are going di- blood off money stained by drugs. for the future, and they are taking ac- Narcotics has become a big business, tion to combat this insidious enemy. rectly to the source. And that is the a very big business. Recently in Los Look at Colombia. No other nation Andes, where we will support the gov- Angeles, agents seized 20 tons of ware- has so bravely confronted the drug ernments of the region in a three-part housed cocaine. If all these kilos were lords. No other nation can afford to be plan: stacked, one on top of the other, the pile indifferent to Colombia's fate. We ap- would be a mile and a half high-half plaud Colombia's courageous decision to the height of Mount Whitney, the tallest mountain in the continental United 2 States. It was estimated that this co- an initiative to encourage our European ruption and cruelty. It is being fought caine had a street value of $6.7 billion. allies to play a larger role in this and in in shadowy backrooms where drug- That exceeds the individual gross na- other areas, such as approaching major stained money is laundered. And, tional products of well over 100 nations. drug countries such as Burma, Laos, - above all, it is a struggle of will and of And this was just one warehouse. and Iran-where U.S. influence is conscience-one that is fought by each Imagine the mountain of misery that limited. of us, often in the dark recesses of the represents. And three, we signed an agreement soul. I want to say a few more words now in Paris with the Soviets last January But I want to end on a brighter note. about the international dimension of which permits us to share information For light is being shed on this pervasive the drug problem and what we are on narcotics issues. Since then, Foreign problem both ct home and abroad. doing about it. Narcotics use, produc- Minister Shevardnadze and I agreed in Now, more than ever before, we see na- tion, and trafficking are urgent prob- Wyoming to expand our cooperation tions all over the world working to- lems not only for our hemisphere but and, to follow through, the Attorney gether on this global problem. From the worldwide. So we are going to be taking General has traveled to the U.S.S.R. Soviet Union to Jamaica, from Spain to some important actions that will give Next week, our Assistant Secretary of Malaysia, governments, leaders, and teeth to our campaign against the ille- State for International Narcotics Mat- the private sector are joining in the gal drug trade. The central idea behind ters also will travel to the Soviet Union. struggle against drugs. our efforts is to attack these merchants These are only a few instances of Tomorrow, all across America, we of death from every angle-production, how, working together with traditional will be sitting down to Thanksgiving distribution, finance, and use. Let me allies, friends and adversaries alike, we dinner and blessing the Lord for the give you just a few examples. are beginning to attack the multina- bounty before us. We should give tional drug empires on every front. thanks as well for the harvest of new One, we are working with the Sen- These actions, of course, are all part of ate to promote ratification of the UN freedom that has sprung up around the Convention Against Illicit Traffic in the larger strategy announced by the world. And we pray that, with hard Narcotic Drugs and Psychotropic Sub- President and which is being coordi- work, our communities here at home as nated by Bill Bennett [Director of the stances, and we will encourage other well as the community of all nations can Office of National Drug Control Policy]. governments to ratify as well. rid God's good earth of the scourge of Two, over the next few years you As Secretary of State, I pledge that we drugs. will see an intensified effort to enlist will hold to account nations that grant our allies and friends in a common ef- safehavens to drug profiteers, who fort to fight drugs. We and our Summit actively permit the laundering of Published by the United States Department Seven partners have established a fi- money, and who turn a blind eye to of State Bureau of Public Affairs Office drug shipments. of Public Communication Editorial Division nancial action task force against money When I began this speech, I called Washington, D.C. November 1989 laundering. We have already launched our war on drugs a twilight struggle. Editor: Sharon R. Haynes This material is Our struggle against narcotics is being in the public domain and may be reprinted fought abroad in the deep jungles and without permission; citation of this source is appreciated. mountain valleys where coca and pop- pies are grown. It is being fought at home in the urban jungles ruled by cor- 3 Fact Sheet Presidential Drug Summit Cartagena, Colombia February 15, 1990 Presidents Virgilio Barco of Colombia, Jaime Paz Zamora of Bolivia, Alan Garcia of Peru, and George Bush of the Bilateral Agreements United States met on February 15 in Cartagena, Colombia, to strengthen cooperation attacking the production, traf- The U.S. and Bolivia signed the: ficking, and consumption of illicit drugs. Colombia, Bolivia, and Peru are sources of most of the world's supply of Essential Chemicals Control Agreement to provide a cocaine; the United States is the world's largest consumer. basis for monitoring and controlling drug precursor- chemical movement; The Declaration of Cartagena, signed by the four presidents, provides the framework for a comprehensive Weapons Export Control Memorandum of antinarcotics strategy. The declaration acknowledges that Understanding to ensure greater cooperation toward a successful program will necessarily involve economic and preventing U.S. weapons exports from being acquired by narco-traffickers; and "We've committed ourselves to the first Public Awareness Memorandum of Understanding to build public support for programs against production, common, comprehensive international drug trafficking, and consumption. control strategy." - President Bush The U.S. and Peru signed the: Tax Information Exchange Agreement to provide for development cooperation and support as well as intensified bilateral exchanges of tax-related financial information in actions aimed at narco-trafficking and reducing demand. order to track and prosecute financial gains from trafficking; The leaders also stressed the need to increase public awareness of the dangers of trafficking and use, and to Exchange of Notes on Extradition to confirm explic- undertake diplomatic initiatives aimed at building interna- itly that narcotics trafficking and related drug offenses are tional support for drug control and economic development. covered by the 1899 U.S. -Peru Extradition Treaty; and The declaration calls for strengthened bilateral coop- Public Awareness Memorandum of Understanding eration. The U.S. and Bolivia signed agreements on the to build public support for antinarcotics programs. control of essential chemicals, weapons exports, and on public awareness. The U.S. and Peru signed accords on the The U.S. and Colombia pledged to: exchange of tax information and public awareness and Continue efforts to reduce the flow of illicit drugs; exchanged notes on extradition. Other agreements are Seek ways to maintain economic growth and stability; under negotiation. Work toward expanding U.S.-Colombian trade. The summit nations agreed to hold a high-level follow- up meeting within the next 6 months and called for a world Participating Andean Countries antinarcotics meeting in 1990. Declaration of Cartagena-Key Points Colombia The four nations pledged to seek a cooperative, compre- hensive strategy to the drug problem by: Attacking the production, transport, and consumption of illegal drugs; Stimulating trade, investment, economic cooperation, Peru and alternative development in the Andean countries; and Increasing public awareness of the drug problem and Bolivia strengthening international support for efforts aimed at curbing illicit drug traffic. U.S. Department of State Bureau of Public Affairs February 1990 Office of Public Communication FACT SHEET U.S. ASSISTANCE PROGRAMS RELATED TO DRUG CONTROL Narcotics assistance to the Andean countries addresses various economic and political issues which are intertwined with the problem of narcotics trafficking. The majority of funding support focuses on narcotics enforcement activities. It is widely recognized, however, that a significant reduction in narcotics flow cannot be achieved without an effective demand reduction program in the U.S. Andean narcotics enforcement agencies are ill-equipped to deal with the magnitude of the narcotics problem in their countries. U.S. bilateral narcotics enforcement assistance programs with Colombia, Bolivia, and Peru provide for specialized enforcement training, the loan of helicopters and aircraft for use in reconnaissance and interdiction operations, expanding the physical plant of host country narcotics bases and assistance in developing communications and intelligence capabilities. The increased assistance for Andean narcotics enforcement programs is coupled with an additional emphasis on economic assistance, in order to offset the political and economic costs of success in dismantling the cocaine trade. The U.S. also supports Andean efforts to expand public and private sector demand reduction programs. U.S. narcotics assistance to the Andean countries in FY 90 places a particular emphasis on bringing the Andean military into the anti-narcotics battle. Military support for anti-narcotics operations in Peru and Colombia has become a vital element of enforcement operations, due to the involvement of some insurgent groups in narcotics trafficking activities. The principal program objectives and measures are as follows: Disrupt narcotics trafficking as close to the drug source as possible o Provide the necessary equipment to host government narcotics enforcement agencies to identify and destroy coca paste, base, and cocaine laboratories and clandestine airstrips in coca-producing countries. Aid host governments in the development of effective domestic law enforcement capabilities in cocaine source and transit countries through training, professional exchanges, and intelligence sharing. -2- Prevent drugs destined for the U.S. from entering international trafficking channels Support interdiction operations which attempt to cut air, land and water transportation links used by traffickers to move narcotics and precursor chemicals. Reduce illicit crop production where feasible o Support host country efforts to eradicate narcotics crops through reconnaissance, agricultural research, and provision of equipment. Provide economic support to offset the social and economic costs of successful anti-narcotics programs o Supply economic assistance which covers agricultural, infrastructure, education, and transportation projects for improving the standard of living for farmers engaged in illicit narcotics cultivation and processing. K o All four countries have agreed that economic assistance can best be utilized in the context of sound economic policies. in specify Support the efforts of foreign governments to reduce the internal consumption of narcotics produced in their countries O Provide the necessary resources to allow governments to sensitize opinion leaders and the general public to the health and national security dangers of drug production, trafficking and abuse. Attachment: Funding Chart - U.S. Counternarcotics Assistance to the Andes - U.S. COUNTERNARCOTICS ASSISTANCE TO THE ANDES (in millions of dollars) FY 1990 ESTIMATE FY 1991 ESTIMATE Bilater- Bilater- al Law al Law Econ- Enforce- Econ- Enforce- Military omic ment TOTAL Military omic ment TOTAL Colombia 40.3 0.0 20.0 60.3 60.5 50.0 20.0 130.5 Peru 36.4 3.1 19.0 58.5 39.9 63.1 19.0 122.0 Bolivia 33.7 30.8 15.7 80.2 40.9 95.8 15.7 152.4 Total Andean Strategy 110.4 33.9 54.7 199.0 141.3 208.9 54.7 404.9 Human Rights Problems in a Democratic Western Hemisphere United States Department of State Bureau of Public Affairs Public Information Series Washington, DC Remarks of Ambassador Luigi R. time, a sober reading of the annual report The commission is unsparing in its Einaudi, US Permanent Representative of the IACHR dispels superficial opti- judgments on incidents in these countries, to the Organization of American States mism. Human rights are the cornerstone demonstrating that good intentions are (OAS), during the June 7, 1990 debate on of the modern state. This hemisphere is not a guarantee of satisfactory perform- the Annual Report of the Inter-American making major strides, but we have few ance on human rights matters. Unlike Commission on Human Rights at the grounds for complacency. dictatorships, however, democracies do 20th OAS General Assembly in Asuncion, not stand alone in working to improve Paraguay. Human Rights and Democracy human rights conditions. The commission works with them to address problems. In this last semester, as throughout its 30- Since our last meeting, Panama, Nicara- And, to their credit, member states year history, the Inter-American Com- gua, and Chile have joined the ranks of have-as the commission confirms-a mission on Human Rights (IACHR) has countries with democratically elected solid record of cooperation with the com- distinguished itself in its professionalism governments. In noting the milestones mission. This record of active cooperation and its productivity. It is today the along the way to the return of elected attests that, for human rights and conscience of the Americas. The standard civilian government in Chile, in detailing international cooperation, democracy it sets for performance in the advance- the steps taken in Panama to consolidate works-not as a panacea, but as the best ment of human rights is a global standard. democratic rule, and in highlighting the environment for getting the job done. That is a good thing, indeed, for the importance of the February elections in dynamic of global development requires Nicaragua, the commission is exemplify- that we accelerate efforts to secure the ing the link between democracy and The Country Reports human rights of all citizens. Countries to- human rights. Its timely reports of Cuba. My government perceives Cuba, day must be open and outward-oriented, electoral campaign irregularities in Nica- the first country reported on, as having a ready to engage effectively with the rest ragua last year prompted corrective government that sets it apart from the re- of the world-in trade and commerce and, actions, thus contributing to the peaceful maining countries covered in the annual more generally, in affairs across the and representative vote in February. Its report for two reasons. Cuba is the only board. visit to Haiti in April and the special country in the group-or in this hemi- Countries turned inward by the report presented to this assembly on the sphere-that has not committed itself to fratricidal internal conflicts so often asso- situation there can make a similar elections, and Cuba is the only country in ciated with human rights abuses are contribution. the hemisphere whose government can be greatly disadvantaged. Moreover, com- To its credit, the commission makes said to repress human rights as a matter petitiveness in today's world requires clear that human rights problems do not of official policy. efforts to maximize human potential-an suddenly or automatically disappear with Cuba's human rights situation has imperative that is irreconcilable with the return of democratically elected deteriorated over the past year. The com- disrespect for human rights. leaders. El Salvador, Guatemala, mission documents government harass- In short, a modern state cannot afford Paraguay, and Suriname have all opted ment, judicial sentencing without due to minimize human rights concerns, and for democracy. But the painstaking, long- process, deprivation of work, and impris- we of the Americas have made great term effort of building democratic onment under extremely negative progress in our generation. At the same institutions and ensuring respect for conditions. The report lists 34 members human rights continues. of 10 different human rights and dissident incorporate all elements of society in the ated with the commission's visit and organizations who have been detained political process. But the violence is refused to impose a state of siege when since September 1988. retarding these efforts. The commission violence peaked last summer. This is the commission's most detailed observes that "the relative advances (in Finally, the report also mentions coverage of the Cuban government's human rights) made have been seriously reforms being attempted in the judicial human right practices since its special compromised by recent events." It cites branch under the tutelage of the presi- report on Cuba in 1983. The account of claims by nongovernmental organizations dent of the Supreme Court. The active the crackdown on dissidents complements of an increase in torture of political role of the new human rights ombudsman other recent reports by Americas Watch, prisoners and by journalists of harass- and the new possibility of ending the Amnesty International, and the US ment, threats, and arrest by security guerrilla war through the peace talks Department of State. forces. The commission also observes that initiated in Oslo in March 1990 are Chile. The chapter on Chile gives the the government has not as yet replied to additional positive signs. its request for information on the killings The friends of democracy should draw annual report an upbeat turn. The of the Jesuits. a sober but not defeatist conclusion from commission "underscores its satisfaction Those who follow the situation in El these facts. The will to improve human on the re-establishment of representative Salvador differ over particular cases and rights must be joined with the power to democracy," a note of welcome to the new general characterizations. But what secure those rights. government of Chile that my government fully shares. The chapter marks the key emerges is a series of fundamental truths. Nicaragua. The commission gives events in the transition: the October 1988 It is time to stop the killing in El Salva- special attention to Nicaragua's electoral dor. It is time to move forward with plebiscite, the July 1989 constitutional campaign and vote, events the commis- reform, the December 14, 1989 elections, dialogue. The war must yield to genuine sion describes as "in themselves an national reconciliation. and the March 11, 1990 transfer of power important contribution to peace and to the civilian government. Guatemala. The report on Guatemala respect for human rights." Somewhat The report highlights the new is disturbing. But if the commission is modestly, the commission also notes that government's plan to establish a commis- frank in exposing problems, the govern- the release of the 39 persons excluded sion to investigate human rights abuses ment and the military of Guatemala are from the March 17, 1989 pardon "complied during the military regime. It comments equally frank in acknowledging the with the recommendation made repeat- briefly, but concretely, on the persistence problems. The commission reports the edly" by the commission. of terrorist actions throughout the period. "most serious" increase in violence and The commission looks briefly at the El Salvador. The El Salvador human rights violations since the present post-electoral environment with a sense government began its term. It finds the of the enormity of the task that lies ahead chapter notes two "conflicting tenden- cies"-an escalation of violence and government ineffective in preventing, and makes two judgments we share in controlling, and investigating the violence full. It trusts that the transfer of power human rights violations and progress and prosecuting those involved. It also and "positive experience with the toward a resumption of peace talks perceives a lack of control over those in exercise of political rights" will be applied between the government and the Fara- bundo Marti National Liberation Front the security forces who, in the commis- to the political, economic, social, and sion's view, appear to have had direct cultural challenges ahead. And the report (FMLN). involvement in a number of the violations. concludes with a reminder of the "respon- The report makes a thorough-and The report deals with defects of the sibility of the international community" to frankly disheartening-record of events judicial system as well as inconclusive support Nicaragua's new government. since its last report on El Salvador. Many police investigations. While detailing acts It is perhaps proof of the commission's of us in this room recall that this commit- tee last met in the midst of horrifying of terrorism by the guerrillas, the independent state of mind that it does not commission also cites Minister of Defense even mention one of the most striking news: the launching on November 11 of [Hector] Gramajo, who accuses army dis- contributions of the international commu- the largest guerrilla offensive of the civil sidents of serving the extreme right. nity to national reconciliation in Nicara- war. Then, 5 days later, the murder, President [Vinicio] Cerezo, during his gua: the work of the OAS electoral ob- apparently by government forces, of six visit to the UN General Assembly in Sep- servers and the OAS Verification and Jesuit educators, their cook, and her tember 1989, said that extreme right wing Support Commission (CIAV) under the daughter. The commission describes these groups were responsible for kidnapings, leadership of Secretary General [Joao torture, and murder of trade unionists, Clemente] Baena Soares. I congratulate events as part of a "vicious cycle of journalists, and students and that former Commission President [Leo] Valladares violence" in which the right and left, officers of the security forces might also for including such a reference this security forces and guerrillas, share have been involved. morning. I would add that my govern- blame. The violence and the abuses have The situation is grave, but the ment fully supports the demobilization of affected noncombatants, journalists, government's willingness to acknowledge the Nicaraguan Resistance in accordance government officials, churchmen and problems is positive, and the institution- with existing agreements and accepts the -women, and labor unionists-every alization of democracy has made substan- leadership of the secretary general in sector of Salvadoran society. tial gains. There is a high degree of press supporting them. My government is convinced that the freedom in which even the guerrillas can democratically elected government of El Panama. The Panama chapter publish at will. The government cooper- Salvador is making serious efforts to documents major improvements in the 2 human rights situation and in official Paraguay. The report on Paraguay transition to democracy possible. We responsiveness. The government has praises many positive actions taken by hope to see continued progress on restored basic civil liberties and has the [Andres] Rodriguez administration. remaining problem areas such as lengthy devoted special attention to restructuring At the same time, it notes legal and socio- pre-trial detention. the security forces. The commission economic difficulties that "hamper the full Suriname. The report on Suriname is notes: observance of human rights." This hard-hitting. There are accounts of arson, The reestablishment of freedom of detailed report was enriched by a visit of shootouts, attacks on government officials expression and right of association and the commission to Paraguay in response and property, attempted assassinations, restoration of news media that had been to an invitation extended by the Ro- and ongoing civil strife. The report draws shut down or confiscated; driguez administration shortly after two general conclusions about the assuming office. The freeing of former military men situation in Suriname: "First, that the The report notes many specific steps and civilians who had been detained on duly elected civilian authorities have no taken by the Rodriguez administration charges of coup plotting or otherwise real control over the military situation in including: endangering public safety and who had, in Suriname. Second, the army is the de most cases, been tortured; Repeal of laws used to jail dissi- facto power in the country." dents; My own government has observed The launching or reopening of Judicial action against former that the Surinamese military, whose investigations into killings under the previous regime, including the Spadafora officials accused of abuse and corruption; influence had diminished following the Elimination of official obstacles to return to elected government, has case; "reestablished itself as the dominant The decentralization of the security the freedom of expression, thought, and forces to ensure their compliance with the association; and political force in the country." Clearly, conflict among different constitution; and New guarantees of personal ethnic groups has been the source of much The initiation of judicial and penal freedom, judicial protection, due process, violence and deteriorating respect for reforms. political rights, and access to public office. internationally recognized norms of The commission also summarizes humanitarian conduct. Efforts to bring The commission reports that it has recently received many fewer complaints complaints made to the commission genuine peace to conflictive areas would and that the new government has members who interviewed landless greatly benefit the human rights situ- responded to them promptly and satisfac- peasants, union leaders, and representa- ation. torily. At the same time, the commission tives of the approximately 50,000-member The commission reports on the recommends government action in six indigenous population. The commission passage by the national assembly of a bill areas, from the status of individuals praises the new government for ratifying removing civil arrest powers from the detained after the US military action last the Inter-American Convention on military police. "Promulgation as law of December to measures to prevent Human Rights as well the UN and inter- this bill would constitute a first step American conventions against torture. toward the establishment of a true recurrence of abuses like those described in the special report of September 1989. The new electoral law, the new human democracy in the sense that the military We are encouraged that human rights rights committee in the Chamber of must be subservient to the elected civilian concerns are being addressed by the new Deputies and the new National Commis- authorities." President [Ramsewak] government. Several-such as protection sion to Coordinate Rural Development Shankar has now signed this bill into law. against any renewal of military abuses are also cited. and institutionalization of democracy- The commission sees the most serious An Agenda for the 1990s are the subjects of a series of govern- failings in the area of judicial protection. I would like to close with a few additional ment-proposed constitutional amend- It notes that 90% of the detainees in the comments. I would like to express my ments currently before the Legislative country's major prison are still awaiting congratulations to Leo Valladares Assembly, which has also been asked to sentencing. In most cases, their trials had (Honduras) and Edith Marquez (Vene- revise the nation's judicial statutes. not been completed. zuela) for their new positions as president The status of detainees remains a The report discusses legislative and executive secretary of the commis- problem. Panamanian courts are over- amendments to correct this problem, as sion and my government's genuine loaded with criminal cases, and there is a well as government requests to the OAS gratitude to their predecessors, Oliver backlog of persons awaiting sentencing. and United Nations for human rights Jackman (Barbados) and Edmundo Similarly, improvement of economic and training to police and armed forces and Vargas (Chile). They have given us high social conditions for low-income Panama- the government's proposal to amend the expectations; we pledge to cooperate to nians depends on overall economic constitution in 1992 to create a stable make them reality. As the Permanent recovery, especially reduction of high career system for judges. Representative of the United States, it is unemployment. The economic assistance My government endorses the findings with great pride that I thank David recently approved by the US Congress— of the commission, and welcomes the Padilla, a US citizen, for his exemplary after considerable urging by President positive developments in Paraguay since performance as acting executive secre- Bush-is designed to help alleviate both the Rodriguez government took office. tary during the past 4 months. problems. We congratulate the government of Finally, a word about future direc- Paraguay for restoring respect for the tions. First, the commission's high fundamental freedoms that make a 3 standards of professionalism, impartiality, general and senior secretariat officials themselves, I would hope that the and integrity must be maintained. charged with responding to requests from members of the commission would make Independence and non-partisanship are governments to support democracy. the situation of those activists in the vital to the commission's effectiveness. In conclusion, let me note that the hemisphere who are threatened and My delegation concurs fully with the progress in democracy and human rights abused a special concern-either within appeal by the distinguished delegate of that we are witnessing is not the product upcoming country reports or perhaps as Chile that the work of the commission not of impersonal forces. If the prospects of the theme of a separate chapter. be politicized. freedom seem better than ever, it is The activist human rights observer Second, the commission should, as largely because men and women every- plays a role that is not always welcome. [Deputy] Secretary Eagleburger indi- where-tradespeople, laborers, lawyers But it is a role that is indispensable to cated in his speech before the assembly, and journalists, churchmen and -women, effective modern-day democracies-to consider offering technical assistance and and many others-have worked long and governments which derive their strength human rights training to interested hard. One of the most moving moments in from the steady popular support that can member states and, with their consent, to this morning's debate was the statement only be earned through strict accountabil- their citizens. Our common democratic by the distinguished representative of ity and continuing openness. Any abuse orientation provides an opportunity, Paraguay, describing the human dimen- against any individual's human rights indeed creates an obligation, to move sions of cooperation in the face of oppres- merits attention. This must hold for from consensus to action, from high sion and joy at the great progress that has human rights activists and monitors as aspirations to practical measures. taken place in this most beautiful land. well. Their work is critical to the process IACHR assistance might include, for Human rights activists are prominent of democratic consolidation now under- example, training of governmental and in freedom's forward movement. I salute way. nongovernmental human rights workers them. And I add, with a sense of personal or organizations, training to strengthen concern, that these very persons who are Published by the United States Department judicial systems, advice on national in the vanguard of the struggle for human of State Bureau of Public Affairs Office of Public Communication legislation to protect human rights, and rights are themselves, in all too many Washington, DC July 1990 Editor: Marilyn J. Bremner building safeguards to protect political instances, the victims of human rights This material is in the public domain and may rights. Such assistance might well be abuse. As human rights monitors be reprinted without permission; citation of this offered in coordination with the secretary source is appreciated. PA/PC, Mailing List United States Department of State BULK RATE Washington, DC 20520-6810 POSTAGE & FEES PAID US Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE Address Correction Requested John R. Bolton Current Policy Human Rights Challenges in No. 1244 Central America for the UN United States Department of State Bureau of Public Affairs Washington, D.C. Following is an address by John R. we are witnessing a process in which ring now in Nicaragua sends a re- Bolton, Assistant Secretary for Inter- the linkage between human rights, sounding message that an electoral national Organization Affairs, at the genuine self-determination, and peace process without the guarantees of Department of State Human Rights and stability has been made explicit. human rights provided-for example, Day ceremonies, Washington, D.C., The Tela accords signed by the Gov- in our own Constitution-cannot be December 7, 1989. ernments of Costa Rica, Guatemala, taken for granted. El Salvador, Honduras, and Nicara- Since coming to power, the I am pleased to join with Dick gua expressly connect cessation of Sandinistas have made it quite clear Schifter [see Current Policy No. external support for insurrectionist that the one thing they fear most is 1242] today in commemorating the groups; voluntary demobilization, re- the possibility that the Nicaraguan human rights values which have nur- patriation, or regional relocation of people could vote their conscience in tured us as a nation and which have the Nicaraguan Resistance; and the an unfetterred election. They have served as a standard and as a goal for creation of an environment in Nicara- done their utmost over the years to the international community. Forty- gua, whereby the Resistance can re- avoid such a possibility. However, one years after the United Nations turn without fear of further abuses of thanks to the diplomacy of the other adopted the Universal Declaration of human rights, and whereby all groups Central American governments, and Human Rights, we meet here today can participate in free and fair to the Sandinistas' own abundant amazed at the real impact the hopes elections. cynicism and duplicity which have led embodied in the Universal Declara- to many blunders on their part, the tion have had upon the people of the Open, Free, and Fair Elections Nicaraguan Government has signed Soviet Union and Eastern Europe. for Nicaragua on to an agreement which requires it We have also watched with sadness, to permit the holding of an open, free, while people in other parts of the We in this country, with a 200-year and fair election next February. world struggle against great odds to history of peaceful change of govern- realize their rights to freedom of ex- ment through the electoral process, Sandinista Violence pression and assembly. We meet do not have to think about what free Against the Opposition here today knowing that while much and fair elections require. We are has been accomplished, the chal- fortunate that the institutions pro- It is not surprising that the Sandinis- lenges remain formidable. vided for in our Constitution or which tas are violating the spirit of the proc- How can we in the United Nations have evolved over the years provide ess which they have formally under- change the ugly face of human rights a framework for genuine elections.. taken to support. Polls indicate that abuses? Today in Central America The people of Nicaragua, sadly, are the Nicaraguan opposition, at first not SO fortunate. And what is occur- fragmented and disorganized, has electoral process that the Sandinistas Cuba's Human Rights Abuses now evolved into a political force are pledged to uphold. Meanwhile, enjoying widespread support among they have stepped up international Cuba is in many respects the source the people of Nicaragua. As the op- pressure to force the contras to ac- of Central America's problems. It is cept their vague assurances that Fidel Castro's Cuba, of course, that position has coalesced, the Sandinis- the Sandinistas have modeled them- tas have stepped up tactics designed there will be no recriminations, no to discredit, confuse, and intimidate further human rights abuses of the selves upon politically and militarily. the opposition and its supporters. contras and their families should the As communist regimes throughout Resistance lay down their arms and the world are being repudiated by Press reports detail incidents of open harassment, beating, threats, fire- return to Nicaragua as refugees. their own citizenry, it is highly ironic that Castro remains dinosaur-like- bombings, smears, and even at- able to resist in his own domain the tempted murder directed against the UN Election Monitors changes sweeping the rest of the opposition. For instance, in the town of Pan- The UN Security Council has given a world. tasma on November 26, the opposi- clear mandate to the UN election Three years ago the United monitors for Nicaragua. This man- States launched a campaign to call tion's vice presidential candidate Virgilio Godoy along with a group of date includes the obligation to raise the world's attention to the nature of all incidents that violate or interfere the gross and systematic human supporters were stopped by soldiers. with the principle of free and fair rights violations that form the under- Godoy took the opportunity to com- plain to the soldiers that two of his elections. We are working closely pinnings of Castro's power over the supporters had been beaten and de- with Ambassador Elliot Richardson, Cuban people. We still believe that who heads the UN monitors, to en- the spotlight afforded by a UN hu- tained by the army. The soldiers re- sure that the types of violations I man rights investigation affords one sponded that the opposition had been have described are noted and raised of the best ways to affect Castro's throwing rocks and their commander then threatened to open fire on with the Sandinistas. Ambassador behavior. The UN Secretary General Godoy and his party. Richardson will be required in Febru- has received a mandate from the UN An opposition activist, Encarnacio ary to certify that the elections and Commission for Human Rights to Porras, was beaten by a Sandinista electoral process conform to the let- raise cases of human rights violations ter and spirit of the Tela agreement. with the Cuban Government. We are soldier following a rally in San Dioni- sio. The mobs of young toughs known Given the current situation, he will working closely with the UN Center need to work very hard in the next for Human Rights to ensure that the as turbas that have been employed by few weeks to be in a position to do Secretary General has the details of the Sandinistas to cow the Nicara- guan populace throughout their rule this. human rights abuses in Cuba, and we are now actively involved in the elec- The relationship among the enjoy- look to the Secretary General to ment of those human rights described forcefully pursue his mandate. tion campaign. Our Embassy reports that at virtually every opposition in the Universal Declaration of Hu- rally turba gangs roam about throw- man Rights, democratic process, and The Unitary UN Approach ing rocks, shouting down speakers regional peace and stability in Cen- and roughing up supporters. Several tral America is inescapable, for us, for Our approach to human rights in the opposition activists have been at- the United Nations, and for the gov- United Nations is a major facet of ernments of Central America. The what I call the unitary UN. As I tacked by turbas who have inflicted severe injuries. Sandinista officials Central American peace process de- have described, we need to be mind- pends on the ability of the people of ful of the interrelationships among have not even attempted to veil threats intended to prevent the oppo- the region to express their wills human rights, democracy, and inter- through free and fair elections which national peace and stability. In the sition from campaigning. For in- stance, the Sandinista mayor of Nan- in turn require such fundamental United Nations, we are constantly on daime warned prior to a rally sched- human rights as a free press, freedom the lookout for ways to hammer home uled for November 19 that if the of speech, of assembly, of worship. these interrelationships. We make The United Nations has the opportu- human rights concerns an aspect of event occurred "there will be blood, nity to make a lasting contribution to what we seek to do throughout the there will be death." the welfare of all the people of Cen- UN system whether it is in economic These and other incidents too nu- or social forums. merous to mention now present a tral America. It will require forth- clear pattern of abuses designed to rightness and toughness to ensure interfere with the open, free, and fair that this opportunity does not fall by the wayside. U.S. DEPARTMENT OF STATE Office of the Assistant Secretary/Spokesman For Immediate Release June 18, 1990 PRESS CONFERENCE BY SECRETARY OF STATE JAMES A. BAKER, III FOLLOWING MEETINGS WITH CENTRAL AMERICAN PRESIDENTS Ramada Inn, Antigua, Guatemala Monday, June 18, 1990 SECRETARY BAKER: Ladies and Gentlemen, I have a statement and then I'll be delighted to respond to your questions. As I said to the six Presidents this morning, they have completed I think, an historic summit meeting, and it is a symbol of the changes that are transforming this region. For the first time in history, all of the Presidents attending their summit have been democratically elected. Also, for the first time, the principle subject for discussion is regional economic development, not the resolution of conflicts. And, of course, Panama is attending for the first time. Here in Antigua, the Presidents have adopted a far-reaching agenda for regional economic integration and development and we congratulate them on this achievement. When President Bush took office this was a region in crisis and many argued that the United States faced only two choices -- accommodation to dictatorship or disengagement. President Bush instead has pursued a new regional policy with four elements. First, support for the regional peace process begun in Esquipulas. Secondly, enlisting the cooperation of the Soviet Union to end the conflicts in this region. Third, engaging our European allies and Japan in support of regional democratization and development. And fourth, building a bipartisan base in the United States for our policy toward Central America. We believe that this region has an historic opportunity today to realize three goals: democracy, disarmament and development. We also recognize that there are fears in Central America that the United States and the industrial democracies will be diverted by the changes in Eastern Europe and ignore this region at this moment of historic opportunity. I'm here today at the request of President Bush to make it very clear that the United States will continue to be fully engaged and fully supportive of this regional peace process. That's why we are exploring with Japan, with the European community, Canada and other industrial democracies, possible ways to achieve more support for democracy and development in Central America. I have discussed these proposals with the six Presidents and they tell me that they welcome this effort. We will continue to consult closely about the best way to proceed. -2- The bottom line, I think, is this -- Central America is poised as never before to consolidate democracy, achieve lasting peace and disarmament, and create the conditions for growth and opportunity in which all of the peoples of this region, particularly the poor, can share. The United States wants to do everything that it can to help this region's leaders seize this historic opportunity. Any questions? Q: An American official today said that he felt that the arms levels in Central America were excessive and pointed to Costa Rica as an example to be emulated in the future. I would like to ask you Mr. Secretary, if you agree with that and if you think that the help to be offered by the G-24 will have to be preceded by cuts in both levels in armaments and troops in the region? SECRETARY BAKER: I would not anticipate that the G-24 would expressly condition their willingness to support democracy, disarmament and development, by requiring total disarmament in advance. So I would not see that as an absolute pre-condition. Costa Rica, of course, has a rich tradition of pursuing democracy and freedom and disarmament and it is a tradition that the United States has supported for many, many years in the past and continues to support. Remember, there are three goals: democracy, disarmament and development. And in trying to encourage additional support from the G-24, we would be trying to encourage support for all three goals. Q: I understand that the G-24 is not going to operate on the basis of pre-conditioning, but there will be some kind of ordering of assistance on the basis of pre-defined projects. Isn't that right? SECRETARY BAKER: Yes, and there will be as it appropriately should be, conditionality with respect to G-24 efforts, just as there is conditionality with respect to the efforts the G-24 has made to support democracy and freedom in Eastern Europe. For example, there were certain events in Romania here during the course of the last several days which did not move in the direction of respect for human rights, freedom and democracy. And the G-24, at least for the time being, put on hold or temporarily suspended its efforts with respect to Romania. Q: In the past when the United States participated in efforts of this kind it imposed a number of conditions, one of which was the establishment of democratic regimes. I would like to ask in this case, what requirements the United States intends to impose in order for countries to get assistance and get it on a timely basis, because the pressure of poverty and misery in the countries at this time does not allow them to continue under the present circumstances. -3- SECRETARY BAKER: First of all, if it was a cooperative effort through the G-24, whatever conditions were imposed would be imposed through the cooperative efforts of the G-24 countries and not just the United States. But, secondly, the United States conditions its assistance now on respect for human rights, freedom, democratic traditions and we make no bones about that. We're quite proud of that, because these are principles that we believe very strongly in. Furthermore, we believe these principles more and more are being adopted by countries around the world, not just in Eastern Europe, not just in Central America, but indeed in Africa and Asia as well. Q: In order to cooperate in this disarmament effort is the United States willing to reduce its military aid to El Salvador, for instance, and the presence of its military advisors? SECRETARY BAKER: Well, the United States only has 55 advisors there and that's the same number we had, if I'm not mistaken, when I first came to Washington with President Reagan in 1981. But further to the point of your question -- the United States is for the first time willing to condition its military assistance to El Salvador and we are in the process of having discussions with our Congress to that effect now. We should be careful not to interpret that in the wrong way. There is a major insurgency going on in El Salvador in which some are seeking to reverse the results of the ballot box with bullets and bayonets. That's not our idea of democracy and that's not our idea of an approach to freedom. Q: Mr. Secretary, you mentioned the Soviet Union and I would like to ask you what might be the political and economic contribution of the Soviet Union to the development of Central America to which the United States and the other countries in the G-24 are going to be contributing? SECRETARY BAKER: Well, hopefully, the Soviet Union will stop supporting regimes in this hemisphere that support attempts to reverse decisions at the ballot box with bullets and bayonets, as I said a moment ago. The Soviet Union has indicated to us that they are prepared to do this, and so we hope that's one contribution. We think it was a contribution with respect to what happened in Nicaragua. We've had discussions with the Soviet Union about the prospects of their continuing the assistance to Nicaragua that they furnished during the period of time of the Sandinista government. We make the point that it would be nice to see them support a freely, democratically elected government in this hemisphere since they themselves now profess to support the idea of democratization. We'll see whether or not they're able to do that although they've indicated to us some prospect that they will be able to continue some assistance to this freely elected democratic government in NIcaragua. Q: Thank you. Democracy in Latin America Special Report and the Caribbean: No. 158 The Promise and the Challenge United States Department of State March 1987 Bureau of Public Affairs Washington, D.C. "Latin America's extraordinary effort to create a democratic order is the most stun- ning and moving political fact of recent years." Jose Sarney, President of Brazil, Address to the UN General Assembly, September 23, 1985 Contents Latin America and the Caribbean Recent Achievements 1 Roots of Change 4 Facing the Challenges 8 The United States A New Consensus? 13 Support for Democracy Proven Tools 14 Recent Initiatives 20 The Need for Mutual Support 22 Country Summaries 24 Cover photo: © UPI/Bettmann Newsphotos Recent moves toward more democratic Latin America In marked contrast, today 91% of systems of government in Latin America and the Caribbean the people of Latin America and the are now a decade-long trend that has led Caribbean live in nations committed to a to the replacement of numerous military future based on democratic principles. In regimes or dictatorships (see map at 10 years, 10 countries have moved, often centerfold). In the United States during RECENT ACHIEVEMENTS dramatically, toward democracy. In nine the same period, considerations of of the ten, military presidents have been human rights, the dignity of the indi- Since the early 19th century when most replaced by elected civilians: Argentina vidual, and the defense of freedom have of the nations in the hemisphere (1983), Bolivia (1982), Brazil (1985), led to a widening bipartisan consensus achieved independence, most people liv- Ecuador (1979), El Salvador (1984), in support of democracy as a key prin- ing in the region found that national Guatemala (1986), Honduras (1982), ciple of U.S. foreign policy. independence did not necessarily bring Peru (1980), and Uruguay (1985). In the These converging trends create a rare individual freedom. Today's democratic 10th country, Grenada, an elected opportunity. If sustained, they could advances, however, could mark a water- civilian succeeded two consecutive have profound implications for the future shed between-a past of instability and autocrats who were themselves civilians of the Western Hemisphere. At a authoritarianism and a future of greater but who had relied on armed thugs to minimum, their continued convergence freedom. rule. (In an 11th country, Panama, direct can make possible a new era of greater Just a decade ago, such a possibility military rule ended in 1978, but in a cooperation in hemispheric relations. seemed remote indeed. In 1976, only clear setback for democracy in 1985, a The instability of past Latin 34% of the people in the Western civilian president was pressured to American development and the discon- Hemisphere outside the United States resign by the military.) In the Caribbean tinuity of U.S. policy toward its and Canada enjoyed democratic rule. Basin, the six former British dependen- neighbors make clear that this long-term True, Costa Rica had a strong tradition cies-Antigua and Barbuda, Belize, promise is still just a possibility. of civilian authority, competitive politics, Dominica, St. Christopher and Nevis, St. Today's converging trends are real, but and model constitutional arrangements Lucia, and St. Vincent and the Grena- they are also fragile. Latin Americans for elections. But Costa Rica's neighbors dines-that became independent nations continue to struggle with numerous and in Central America were presided over during the past decade did SO as urgent obstacles to full democratization, democracies. including appalling differences in the liv- The following examples of electoral ing standards of rich and poor, inade- politics where there were none just a quate economic opportunities, and "Man's capacity for justice few years ago highlight the progress political extremism. To help turn today's makes democracy possible, that has been made from the Caribbean promise into tomorrow's reality, the but man's inclination to to Tierra del Fuego and from Central United States also must overcome many America to the Andes. domestic problems and conflicting injustice makes democracy priorities that hinder sustained U.S. necessary. Argentina. The 1983 presidential support for democracy in Latin America and legislative elections ended a decade and the Caribbean. Reinhold Niebuhr of internal conflict and military rule. Both the democratic promise and the Voter participation exceeded 85% of challenges to it have become more sharply those registered in an open contest defined since the Department of State by generals who had become presidents among eight political parties repre- first reported on the democratic transi- either by open use of force or by stage- senting the full political spectrum. The tion nearly 3 years ago (see "Democracy managed elections. In South America, presidential race offered a choice in Latin America and the Caribbean," democratic Venezuela and Colombia between candidates from Argentina's Current Policy No. 605, August 1984). were almost as isolated. Led by generals two major historic movements, Peronism This report was prepared in the Bureau as different as Chile's Augusto Pinochet and Radicalism. In winning, Radical of Inter-American Affairs. on the right and Peru's Juan Velasco on Civic Union leader Raúl Alfonsín the left, the continent was almost received the most votes in Argentine defiantly militarized. The promise of history. In the two ensuing years, voter Bolivia's national revolution of the 1950s registration increased by an additional had given way to military dominance, as 4%, and the 1985 legislative elections had Uruguay's social democratic utopia. again attracted massive participation. Even decentralized and moderate Brazil was under military rule. Individual Latin Brazil. Congressional and municipal Americans bearing witness to torture elections in 1982 heralded the transition and official violence were in exile to civilian government and the resur- throughout the Americas and Europe. gence of competitive electoral politics in When internal war and repression in Latin America's largest country and the Argentina were followed by surprise world's third most populous democracy military action in the Falklands/Malviñas (after India and the United States). The Islands, many saw a pattern that sym- percentage of adults who voted rose bolized a region condemned to military abuse and antidemocratic practice. transfer of power was a reaffirmation of Dominican democracy. The absence of either interference by the military or outside intervention also contrasted markedly with past Dominican history, which includes the 31-year Trujillo dic- tatorship, a military operation by the United States and the Organization of American States in 1965, and overt pressure from the United States for all sectors to support the results of the democratic elections in 1978. El Salvador. Four times in 5 years, massive numbers of voters braved violence and threats of violence to cast their ballots in hotly contested nation- wide races conducted under intense international scrutiny. In 1984, an absolute majority of all adult Salvadorans twice defied guerrilla appeals for a boycott to vote in the first truly competitive presidential elections in 12 years. The result: civil engineer and Christian Democratic leader Jose Napoleon Duarte-the very man who had been denied the presidency by the military in 1972-was elected over retired Army Maj. Roberto D'Aubuisson and six other candidates. Grenada. After the Marxist New JEWEL Movement seized power in a 1979 coup, it reneged on its promise to hold elections. In October 1983, however, the New JEWEL's "People's Revolutionary Government" disintegrated in bitter factional fighting. Prime Minister Maurice Bishop and three other ministers were assassinated by their own comrades. At the invitation The richness and variety of democratic life in Latin America and the Caribbean are symbolized by four of Governor General Sir Paul Scoon, a elected political leaders. Eugenia Charles (top left), head of the center-right Dominica Freedom Party joint U.S.-Caribbean military expedition and Prime Minister of Dominica; José Napoleón Duarte (top right), Christian Democratic reformer and President of El Salvador; Victor Paz Estenssoro (bottom left), founder of the Nationalist Revolutionary restored order, then withdrew, leaving a Movement and three-time President of Bolivia; and Raúl Alfonsín (bottom right), leader of the Radical provisional government named by Civic Union Party and President of Argentina. (Photos of Duarte, Paz, and Alfonsin courtesy of the Organization of Grenada's Governor General to organize American States) free elections. On December 3, 1984, 85% of Grenada's registered voters went to the polls to elect a parliament. Six political parties were on the ballot, from 45% in 1962 to 81% in 1982. A Dominican Republic. The ruling including one formed by supporters of civilian president was elected by indirect party expected to retain the presidency Maurice Bishop and one backed by vote on January 15, 1985, but died and to control the legislature in the May former Prime Minister Eric Gairy before his inauguration. In accordance 1986 national elections. But after 70% of (whose violent overthrow had initially with legal procedures, the civilian Vice the registered voters cast their ballots, enabled Bishop to seize power). Neither President-elect, José Sarney, was sworn the opposition candidate had the most of these groups was successful: the New in, ending two decades of military rule. votes. When the leader of the opposition, National Party garnered roughly 58% of The democratic transition is being com- Joaquín Balaguer, became president in the vote, and Herbert Blaize formed a pleted with the writing of a new con- August 1986, the entirely peaceful new government in accordance with the stitution by the Congress elected in 1974 constitution. November 1986 by more than 47 million voters. Guatemala. Seeking a political path out of Guatemala's internal violence and international isolation, military leaders in 1983 decided to transfer power gradually to civilians. On July 1, 1984, 2 72% of Guatemala's eligible voters cast ballots that sent representatives from Growth of Voter Participation in Selected Countries¹ nine political parties and one regional civic committee to a constituent Estimate of percent of total adult population voting assembly. On November 3, 1985, free elections were held for president, vice 0 10 20 30 40 50 60 70 80 90 100 president, congressional deputies, and mayors. When no candidate for the presidency received a majority, a runoff 1963 Argentina was held on December 8, 1985, between 1985 the two leading contenders, both civilians. In that contest, Christian Democrat Vinicio Cerezo won more than 1962 68% of the vote. On January 14, 1986, Brazil the new constitution came into force, 1986 Cerezo was inaugurated, and military control over daily life in Guatemala was sharply reduced. 1962 Colombia Peru. After 12 years of military 1986 rule, the 1979 constitution and 1980 presidential elections put Peru back on a democratic course under civilian leader- 1962 ship. Since then, municipal (1983 and Costa Rica 1986) and presidential (1985) elections 1986 have followed prescribed constitutional and legal procedures. In 1985, more than 91% of Peru's registered voters divided 1962 their ballots among candidates Ecuador representing 12 political parties. Alán 1984 Garcia became the first member of Peru's historic American Popular Revolutionary Alliance (APRA) party to 1962 El Salvador be elected president. He also became the first elected civilian since 1945 to receive 1985 Peru's presidential sash from another elected civilian. 1964 Guatemala Uruguay. Uruguay returned to 1985 democratic government in March 1985 following 12 years of military rule that had tarnished a record of freely elected 1965 civilian government dating back to the Honduras 19th century. More than 87% of the 1985 nation's eligible registered voters cast their ballots in national elections in which two major political parties and a 1964 leftist coalition competed. Mexico 1982 The swell of democracy is not super- ficial. It has been welcomed by elec- torates which have organized, cam- 1962 paigned, and voted in record numbers Peru throughout the region. Since 1980, 1985 voters in 24 independent countries of Latin America and the Caribbean have cast more than 280 million votes in more 1963 than 50 nationwide elections to select Venezuela presidents, national legislatures, and 1983 constituent assemblies. In virtually every case, the number of people going to the 1964 polls reached record highs. United States 1984 Estimates based on votes cast as a percentage of total population age 20 or over as reported in the United Nations Demographic Yearbook for the year in question. 3 Compared to the 1950s and 1960s, 1,300 the proportion of eligible voters actually going to the polls has been up sharply, in some cases by as much as 50%. Nor have the increases resulted from forced 1980 Per Capita Energy Consumption 900 voting. Turnouts were as high or higher in some countries where voting is not mandatory (85% in Grenada in 1984 and (Kilogram coal equivalent) 600 89% in The Bahamas in 1982) as in some countries where voting is traditionally compulsory. Where voting is required, 1960 300 the historic form of voter protest, the incidence of blank or defaced ballots, tended to diminish substantially as voters gained the opportunity to vote for 0 genuine alternatives. 180 Democracy, of course, is more than free elections. But its essence is the right of citizens to decide regularly 140 whether to keep or replace those who (Infant deaths per 1,000 live births) 100 Infant Mortality³ 3 Expressed as the number of deaths in the first year of life per 1,000 live claim to represent them. The absence of genuinely free elections in Chile and Paraguay, patently unfair elections in Nicaragua, and allegations of vote fraud in Mexico and Panama are major continuing difficulties. Cuba has not held 60 a single direct popular election for births. national office since Castro came to power in 1959. 0 Though Latin America's recent elec- toral record is still far from perfect, the 120 changes that have already taken place have made an enormous difference for millions of Latin Americans. Most of the 100 2 Computed from the energy equivalent of daily per capita net food supplies available in country and expressed as a percentage of the estimated require- ment as determined by the Food and brutal dictatorships are gone. Latin America's longstanding democracies- Costa Rica, Venezuela, and Colombia- Calorie Supply2 Agriculture Organization. no longer are isolated. On the contrary, 90 it is the authoritarian regimes that are becoming isolated. Cuba and Nicaragua on the totalitarian left, and Chile and 80 Regional Comparison: Indicators of Living Standards, 1960 and 1980 (Percent) Paraguay on the authoritarian right, are the only major exceptions to the trend. Even Haiti, perhaps the most compelling 0 case of a country plagued by brutal dic- tatorship and the degrading economic 80 deprivation that it generated, has taken the first steps toward democratic 60 Adult Literacy The number of adults with the ability to read and write expressed as a percen- tage of the adult population age 15 and government following the ouster of the Duvalier dynasty on February 7, 1986. 40 20 (Percent) Region Latin America and Caribbean Sub-Saharan Africa Middle East and North Africa East Asia and Pacific Source: World Bank, World Tables, 1983 (3d ed.). ROOTS OF CHANGE The shift away from authoritarian regimes (typically dominated by military above. leaders) to freely elected governments (typically led by civilians) reflects many 1 forces, some of them quite transient. But 0 more lasting underlying forces have South Asia been at work as well. Social change and economic develop- ment, the growth of institutions, and political and cultural shifts have com- 4 Life Expectancy, 1950-55 and 1980-85 1950-55 1980-85 Years (est.) 80 70 60 50 40 30 20 10 0 Argentina Brazil Dominican El Salvador Guatemala Haiti Mexico Peru Uruguay Republic Source: CEPAL, Informe de la Reunión Regional Latinoamericana Preparatoria de la Asamblea Mundial sobre el Envejecimiento, San José, March 31, 1982. bined to weaken the old power centers literacy, nutrition, and energy consump- section) that pose serious challenges to and add new ones. Influences from out- tion) have improved more dramatically the democratic transition. But the side the region also have been impor- in Latin America and the Caribbean than development that has taken place is tant. This section describes the many in any other region in the developing undeniably improving the base necessary factors increasing Latin America's world (see charts, p. 4). for democracy to prosper. capacity to sustain democracy; the next Between 1960 and 1980, per capita section discusses the many problems income doubled despite rapid population Education. Improvements in educa- with which democrats must still contend. growth. Throughout Latin America, tion have outstripped increases in urbanization, industrialization, and population. The percentage of primary Improved Socioeconomic Conditions institutional development broke down school-age children attending school old class structures and spurred the increased from 57% in 1960 to 82% in Latin American societies are scarred by growth of middle classes. Values and 1980. In 1960, only 35% of the region's poverty and sharply unequal distribution attitudes developed that foster political children aged 12-17 were enrolled in of opportunities and services. Yet, over participation and make dictatorships school; a mere 6% of the university-age the last two generations, standards of harder to sustain. population attended universities and living (as measured by infant mortality, This increased potential for technical schools. By 1980, these figures democracy cannot by itself guarantee were 63% and 26% respectively. These that democracy will be achieved or main- gains account for the 79% adult literacy tained. Moreover, recent declines in gross domestic product have created a host of problems (discussed in the next 5 rate for the region in 1980. Such suc- cesses have increased political awareness, increased expectations about Regional Comparison: Urban Population, 1960 and 1980¹ 1960 the role of government, and expanded Percent of economic opportunities for workers and total population 1980 entrepreneurs. 70 Health. Lowered infant mortality rates and increases in life expectancy have combined with the virtual eradica- tion of once-common debilitating diseases such as poliomyelitis to improve 60 general health conditions. Healthier individuals have more opportunity to develop political interests, as well as greater energy to devote to political involvement. 50 Urbanization. Once overwhelmingly rural, Latin America has urbanized faster than the rest of the developing world. In 1950, only seven cities in the 40 region had populations larger than 1 million; by 1980, the number had climbed to 25, and this figure could double by the end of the century. About 37% of Latin America's population resided in urban 30 areas in 1950. Today, more than two- thirds of the region's people are city dwellers. Urbanization has eroded the rural power base of the traditional landed elite, while simultaneously 20 facilitating communication and political participation. Institutional Development 10 The spread of education and indus- trialization have transformed old institu- tions and created new ones. Both public institutions (military forces, government bureaucracies, and national universities) 0 and private institutions (the church, Latin Sub-Saharan Middle East & East Asia South Asia America & Africa political parties, private universities, North Africa & Pacific Caribbean trade unions, and major corporations) have been affected. 1 As defined by individual countries. The evolution of religious and Source: World Bank, World Tables, 1983 (3d ed.). military institutions- "the cross and the sword" of the Spanish conquest and key pillars of traditional order ever since then-illustrates the new values, organizational diversity, and reduced more professional. Despite ever-present Political and Cultural Changes power of individual caudillos that have rewards for strong individual leadership, military leaders must deal with their Mass Communications. Radio has given increased space for democratic politics. fellow officers within an institutional virtually every household in Latin In the quarter century since Vatican America and the Caribbean access to Council II, Latin America's Roman framework. The road to command is now Catholic bishops have tended to act as usually as much a function of technical information previously reserved to the social critics, leading the church to posi- competence, bureaucratic skill, and coali- traditional elites. More people are tions open to change and independent of tion building as it is of personal reading an ever-growing variety of secular authorities. Together with the magnetism or direct troop command. newspapers, magazines, and books. And except for the few people isolated in spread of Protestantism, this has remote regions such as the Amazon encouraged political as well as religious Basin or Patagonia, almost everyone has diversity. at least occasional access to television. The armed forces, meanwhile, have become less tied to economic elites and 6 Improved access to information and ideas has raised expectations and Conciencia and the São Paulo, Brazil. Requests from groups increased pressures for participation and Future of Democracy in Bolivia, Chile, and Peru have prompted political change. Conciencia to organize the First South In August 1982, on the eve of Argentina's American Meeting on Civic Education and return to civilian government after 8 years Democratic Activism. Aspirations Participation, scheduled for September of military rule, 22 women organized a 1987 in Buenos Aires. Participants from 10 for greater political participation have grassroots movement to help the nation countries are expected to attend. tended to combine in recent years with prepare for the general elections. Today, Conciencia receives financial support rejection of the violence and abuse of Conciencia (Awareness) has more than from corporations, local foundations, and political extremists and dictatorships of 8,000 members engaged in countless proj- the U.S. National Endowment for both left and right. Volunteer civic ects to educate Argentines about their Democracy (NED), established by Con- education programs, such as the Argen- rights and responsibilities as citizens of a gress in 1983 to support the development tine organization Conciencia (see box, democracy. of democratic institutions around the Conciencia's goal is to train the right), have proliferated. By informing world. NED support for Conciencia has nation's citizens, particularly its women, to people of their rights and responsibilities been managed by OEF International, participate actively and effectively in originally established as the overseas arm as citizens of a democracy, civic political and community life. In addition to of the U.S. League of Women Voters. The movements draw more people into the courses in basic civics, civic leadership, NED also is assisting other civic education political process. and political participation that emphasize organizations in Dominica and the consensus building, Conciencia sponsors Dominican Republic and is a major source Momentum. With each election, the lectures and exhibits on various domestic of funding for the Buenos Aires right to choose becomes more institu- and international topics, publishes a series conference. tionalized, establishing habits of of educational pamphlets, and produces The impact of Conciencia on civic "public service" announcements for pluralistic political practice that widen education at the grassroots level is a radio and television. All activities are voter participation and broaden support measure of the powerful attraction of nonpartisan. democracy as both a political system and for democratic government. Each elec- Conciencia's success has motivated a way of life. It has inspired thousands in tion increases political activism, as more similar women's groups in several Latin Latin America, drawn primarily from the citizens take part in civic education pro- American countries. At the request of a middle class, to make a personal invest- grams, serve as poll workers, campaign group in Montevideo, Uruguay, Conciencia ment in democratic government. Concien- for candidates, or run for office. With helped establish the Uruguayan organiza- cia's success demonstrates that each peaceful transition from one civilian tion Encuentro (Encounter) in 1985. Con- democratic solidarity across borders can government to its successor, the ciencia has also provided assistance to a be eminently workable. sister organization of the same name in democratic machinery is further refined and improved. External Influences U.S. Policy. Under two very different administrations since the mid-1970s, the United States has sought to encourage democratic transitions in Latin America. Under the Administration of President Jimmy Carter, support for human rights was the guiding principle. During the Administration of President Ronald Reagan, the emphasis shifted toward a policy championing the broader values of democracy. The practical effect was one of substantial bipartisan continuity. Bolivia and El Salvador, for example, were both very controversial at the time of the 1980-81 transition between the Carter and Reagan Administrations. In The Board of Directors of Conciencia meets in Buenos Aires. (© The New York Times/Daniel Merle) both cases, the United States consistent- ly supported democratization to suc- cessful outcomes. By 1986-when the U.S. offer to transport Jean Claude Duvalier out of Haiti helped prevent fur- ther bloodshed and proved a key factor in Duvalier's decision to step down-few doubted that democracy was one area where the U.S. Executive and Congress had found common ground. 7 Iberian Examples. Despite frequent popularly elected Corazon Aquino, also is superficial and transient, the product political disagreements, most Latin have bolstered the belief that democracy of "time-for-a-change" swings induced American countries have cultural and is the tide of history. by the failure of authoritarian regimes to emotional affinities to Spain and Portu- cope with economic and social problems, gal rooted in the colonial experience. their abuses of human rights, and plain The demise of authoritarian military political exhaustion. Similar swings took regimes in the two Iberian "mother" FACING THE CHALLENGES place after World War II and again in nations during the mid-1970s added the late 1950s and early 1960s. Each impetus to democratic forces in Latin Though recent progress is undeniable, time, the pendulum swung back again. America. The subsequent consolidation democracy's future is far from secure. Is recent progress just the latest of democracy in both countries provided Such factors as literacy and organiza- swing in an endless cycle? Or do the na- democratic models to complement that tional potential are necessary ingredi- tions of the region finally face a real op- of the United States and those of Latin ents of democratic politics, but they are portunity to maintain their democratic America itself. not sufficient. Like Europe's experience momentum? This section attempts to with nazism and fascism, Latin contribute to an answer by analyzing Failed Alternatives. Democracy America's history demonstrates that five key problems that impede also has profited by negative examples. wealth and a widely educated citizenry democratic consolidation. The military development model are not necessarily incompatible with (generally dubbed "Nasserist" for its dictatorship-consider the records of Argentina, Chile, and Uruguay. Militarism Egyptian variant despite its prevalence in Latin American history) has taken a Socioeconomic development is not Military leaders and institutions played severe drubbing along with military dic- enough by itself to avoid dictatorship or key positive roles in the democratic tran- tatorships in general. And the evident turn authoritarianism into democracy. sition in several countries, notably misery inflicted on the people of Cuba by Many observers of the Latin Brazil, El Salvador, Guatemala, Hon- the rigid political and economic controls American scene see the region caught up duras, and Uruguay. In several coun- imposed by Castro's regime inspires in a perpetual cycle of instability in tries, moreover, military leaders have little willing emulation. which elected civilian governments lose sought changes in their relations to the authority to govern and give way to civilian institutions that would reduce Outside the hemisphere, calls for authoritarian military regimes, which, in pressure on the military and provide a political and economic freedom in turn, lose legitimacy and give way to a more stable political balance. For their Poland, student demonstrations in repetition of the cycle. In this view, the part, while recognizing their debt to par- China, and the replacement in the Philip- democratization described in this report ticular military leaders, the new pines of President Marcos by the democratic governments have generally sought to strengthen civilian authority over the military institutions. The results have included a historic low in the frequency of military coups. Legal provisions prohibiting or limiting military participation in politics are more common, as are-arrangements increasing civilian participation in matters previ- ously reserved to the military. In Guatemala, new military statutes require an officer to be off active duty for 5 years before running for public office. In Argentina, civilians now occupy key positions in the Ministry of Defense, including those responsible for the defense budget. In Peru, the 1933 con- stitution gave the military what could be interpreted as independent authority to decide the meaning of the constitution itself; the 1979 constitution eliminated this provision and states explicitly that the armed forces are subordinate to con- stitutional authority. Two incidents make clear, however, that military pressures remain a threat to democracy. President Vinicio Cerezo of Guatemala and his wife are greeted by Army Chief of Staff Gen. Hector Gramajo on their return from Europe in October 1986. (Photo courtesy of Depto. Información y Divulgación del Ejército, Sección de Relaciones Públicas, Guatemala) 8 Two Democrats Betrayed extensively from Martí and even imitating the thesis that there could be no political his landing by sea in eastern Cuba. Today, opposition in Nicaragua. He played a Castro includes Martí in the pantheon of leading role in two armed attempts to oust heroes-Marx, Lenin, Engels, and Che the Somozas and fought frequent censor- Guevara-that Cubans are taught to ship to use La Prensa as a platform to admire. urge democratic reform. Castro's use of Martí has to be selec- His deep convictions and fearless tive, however. As in the days of Martí, determination made him a natural leader Cuba's political opposition is in exile or in of the opposition. In 1966-67, Chamorro jail, its economy is tied to a foreign coordinated the National Union of the empire, and it is governed by a dictator Opposition (UNO) against Somoza's whose powers exceed those of a Spanish presidential candidacy. In 1974, he led the viceroy. Union of Democratic Liberation (UDEL), a Martí opposed personal rule as much coalition of opposition political groups that as he opposed colonialism, abandoning an included people of the left and the right, in 1884 plan to liberate Cuba because he boycotting Somoza's staged elections. feared some of its leaders were seeking When Somoza accused Chamorro of personal gain. His political writings cham- instigating Sandinista violence by criticiz- pioned democracy as the path to national ing him in La Prensa, Chamorro replied, self-determination and a just social order. "The regrettable deaths and Martí advocated both political freedom injuries are not the fruits of my harvest, from Spain and economic independence but of the violence your regime has institu- from the United States, and he believed tionalized for many years." that democracy-ensured by a free press, On January 10, 1978, Chamorro was José Marti an active legislature, and general freedom shot to death while riding to work. Spon- The poet-essayist José Martí is revered in of expression-would prove Cuba's best taneous riots erupted in Managua as news much of Latin America as Cuba's national guarantee. of his murder spread. The killers were hero and the inspirational hero of Cuba's The sad truth is that Martí's vision of never found, but Chamorro's death independence from Spain. democracy and national sovereignty is as became the catalyst that united all Born in Cuba in 1853, Martí was just distant today for most Cubans as it was in elements of Nicaraguan society against 16 when he was arrested for treason for 1895. Somoza. When Somoza fell 18 months writing a letter critical of Spanish colonial later, in July 1979, Chamorro's widow, rule. He was expelled from Cuba after Violeta Barrios de Chamorro, became a serving 8 months of a 6-year prison member of the five-person junta at the sentence. Martí studied in Spain and head of the new government. worked as an educator, political writer, The tragedy of Pedro Joaquín and journalist in New York, Guatemala, Chamorro has not ended. In April 1980, Mexico, Venezuela, and elsewhere in the Violeta de Chamorro resigned from the hemisphere. The cause of Cuban freedom junta. "I realized that the course promised was always his foremost concern. did not correspond to what was being In 1892, Martí led several exile groups done," she wrote later to the Secretary in founding the Partido Revolucionario General of the Organization of American Cubano, a Cuban liberation movement. In States. "The principles for which we all 1895, the revolutionaries landed their fought have been betrayed by the party ships in Cuba to wage a war of inde- in power, that is, the Sandinist Front of pendence. Barely 1 month later, Martí was National Liberation." shot and killed in a skirmish with Spanish In June 1986, the Sandinistas closed forces. His life and prolific writings made La Prensa indefinitely. In an open letter to him a natural choice as Cuba's preemi- Daniel Ortega, Violeta de Chamorro wrote nent national hero. By 1953, the centen- that the "Sandinista party has already nial of Martí's birth, more than 200 full- created a great concentration camp in length biographies of his life had been Nicaragua by means of repression and written. the banning of all contradictory opinion." Fidel Castro has gone to great lengths Nine years after his death, the Pedro Joaquín Chamorro 0 associate himself with the memory of freedom for which Pedro Joaquín Martí. He began his revolution by quoting Jailed five times and exiled twice by the Chamorro fought continues to be denied Somozas, Pedro Joaquín Chamorro, editor to his countrymen. of the independent daily La Prensa and a member of a leading Nicaraguan conser- vative family, never wavered in his belief in democracy and a free press. From early adulthood on, Chamorro never accepted 9 In September 1985, Panama's civilian President Nicolàs Ardito Bar- letta resigned under pressure from the Defense Forces less than halfway into the term for which he had been elected. The presidency was assumed, according to constitutional procedures, by Vice President Eric Arturo Delvalle. This preservation of democratic forms and the continuing openness of Panamanian society kept the event from being an outright reversal of Panama's move toward democracy, but it was a serious setback nonetheless. In January 1987, the elected civilian President of Ecuador, León Febres Cordero, was kidnaped and held several hours by a group of dissident air force officers. He was released only after free- ing a jailed general who had challenged the government and after governments throughout the region had urged both the military and the civilian opposition to put the preservation of democratic insti- tutions above domestic political rivalries. Preserving democracy requires close civil-military cooperation and good Five former members of the Salvadoran National Guard at their trial for the murders of four American church- government. As memories of past women near Zacatecoluca, El Salvador, in December 1980. On May 24, 1984, a jury convicted all five and military abuses and failures fade, the gave them the maximum sentence of 30 years imprisonment. (© UPI/Bettmann Newsphotos) risk of renewed military interventions will increase again in direct proportion to the difficulties democratic govern- Increased concern for human rights have been indicted before the statute of ments will have in coping with economic is apparent in several key countries limitations for indictments for these and social problems and in fighting where military and public security forces crimes expired on February 22, 1987, a insurgency, terrorism, and the illegal had previously been involved in gross date established in an effort to ensure narcotics traffic. Mutual respect is violations of human rights. In El continued civil-military cooperation. critical. Civilians must recognize military Salvador, military personnel now receive Looked at in historic perspective, the contributions to the national defense human rights training, and the National current shift to democratic rule appears and, in many cases, to public administra- Police recently inaugurated a com- to offer a genuine opportunity to break tion and development in remote areas. prehensive, professional course in human the cycle of alternation between civilian For their part, military leaders must rights that is mandatory for all person- governments that lack the authority to honor the constitutional order and nel. In the past 2 years, human rights govern and military governments that administer their own institutions in a violations have been reduced to a frac- lack the legitimacy to last. Setbacks are manner that contributes to public con- tion of their previous levels. Similar inevitable, but the general prognosis is fidence in the fairness and effectiveness improvements in human rights per- improving. of civilian democratic government. formance have been registered in Argen- Civil-military cooperation becomes tina, Brazil, and Guatemala, where the absolutely critical when a society faces military and civilian leadership is com- Economic Difficulties terrorism, illegal drug trafficking, or mitted to respect human rights. The phenomenal economic gains of the guerrilla warfare. An active and in some In Argentina, high-ranking military 1960s and 1970s have been partially instances even expanding military role officers accused of committing severe eroded in the 1980s by macroeconomic may be required to counter such threats. human rights abuses during the military policies that fail to cope with falling com- But defining the nature of the threat and regime from 1976 to 1983 have been modity prices, global recession, and choosing the appropriate response tried in civilian courts. Nine members of foreign debt that approaches $400 billion require close cooperation between the ruling juntas were tried together for for the region. Only Brazil has been able civilian and military authorities. And rights violations; five of the nine were to maintain consistently high growth then the actual defense of democracy convicted, with two receiving life rates since 1983. Although oil prices and must be carried out without unnecessary sentences. In 1986, Ramón Camps, an interest rates have fallen since their or indiscriminate force. Abusers of army general in charge of the civilian human rights cannot claim to be acting police during military rule, was sen- in the name of democracy. tenced to 25 years in prison for human rights violations. In all, several hundred military personnel were expected to 10 peaks in 1981, the prices of most of the (OECD) realize the importance of coordi- become more market-oriented and hemisphere's commodities have nating their economic policies to pro- generate higher levels of savings, invest- remained depressed. The oil-producing mote free trade and economic stabiliza- ment, and production and lower levels of countries in the region-Ecuador, Mex- tion SO as to facilitate continued inflation, living standards will improve ico, Peru, Trinidad and Tobago, and democratic progress. The OECD coun- provided population growth is Venezuela-were hit especially hard by tries also recognize that nations commit- restrained. Such positive developments the collapse of petroleum prices in 1986. ted to democratic government and would lead to greater confidence in the In many countries, the old statist, pro- policies fostering economic growth political system that inspired them. tectionist policies that inhibit invest- should receive priority for foreign Democracy, however, also provides an ment, reduce business initiative, and assistance. The International Monetary environment in which unpopular stimulate capital flight are changing only Fund (IMF), the World Bank, and the measures can be challenged and even slowly. Inter-American Development Bank are disrupted. Should growth not resume, A rising tide of protectionism in the all creating incentives for policy reforms and should the critics of current developed countries-essential export that promote economic freedom, less economic policies prevail in coming elec- markets for Latin America and the state interference, and higher economic tions, governmental intervention in the Caribbean-also threatens growth. In growth. economy and confrontation with recent years, the United States has Greater participation by Western creditors could increase. substantially outperformed all other Hemisphere nations in the General industrialized countries in expanding the Agreement on Tariffs and Trade (GATT) purchase of Latin American and Carib- should help stave off protectionist Illegal Narcotics Trade bean goods. At the same time, however, demands by broadening the opportuni- The growing illegal narcotics trade, U.S. exports to the region contracted ties for redress of trade grievances. In spurred by the tremendous demand for sharply, creating a more favorable trade 1986, Mexico joined the GATT, and drugs in the United States, has become a balance for Latin America but also add- Costa Rica applied for membership. major regional problem. In some situa- ing fresh pressures to open the Twenty Latin American and Caribbean tions, narcotics traffickers have aligned hemisphere's markets to U.S. products. countries are now members of GATT themselves with guerrillas and ter- Most of the Latin American and and are participating in the new multi- rorists, buying protection that under- Caribbean countries that have achieved national trade round agreed to at the mines elected civilian government. modest growth during the 1980s still Uruguay talks in September 1986. Addiction among youth and government find that the economic gains do not off- The consolidation of democratic corruption are major problems. No set higher population growth. The governments throughout Latin America nation in the Western Hemisphere is pressures of immediate human needs and the Caribbean offers the promise of untouched by the production, use, or increase the difficulties of allocating a stable political environment for trafficking of illegal drugs. scarce resources to important longer restored economic health. Many Latin The increase in narcotics-related term institutional development. American governments are encouraging activities-from crop production to The United States and the other private entrepreneurship and reducing processing to transshipment to bank members of the Organization for restrictions on foreign investment in laundering of profits-is caused in part Economic Cooperation and Development order to stimulate growth. As economies by severe economic problems. Faced with limited opportunities at home and a Western Hemisphere: Population, 1950 and 1985 Millions of persons 0 50 100 150 200 250 300 350 400 South America Central America Caribbean Latin America and Caribbean South America Central America Caribbean 1950 United States and Canada 1985 (est.) Source: United Nations Statistical Yearbook, 1983/4. 11 large market for narcotics in the United throughout the hemisphere. Parliamen- ships, totalitarian governments are States, many people have turned to the tary exchanges between legislators in highly authoritarian. A key difference is drug trade out of economic necessity. In the hemisphere and their counterparts in that they also are systematically hostile Bolivia, for example, it is estimated that other countries are a growing source of to all activities independent of state con- approximately 350,000 people, or 5% of solidarity, as are similar programs trol. By stifling individual enterprise and the population, depend directly on coca involving democratic trade unions. driving professionals and entrepreneurs production for their livelihood. The 61% into exile, these new "revolutionary growth rate in Bolivia's agricultural sec- Political Extremism and vanguards" have aggravated their coun- tor between 1980 and 1986 was due Totalitarianism tries' social and economic underdevelop- almost entirely to increases in coca ment as well as denied the political and production. Latin America's authoritarian tradition cultural rights of their citizens. and the lack of a democratic consensus A second threat is subversion. Act- Institutional Weaknesses have promoted factionalism, intran- ing both directly and through Cuba and, sigence, and fear of instability. On-both more recently, Nicaragua, the Soviet The civilian institutions critical to the far left and the far right, political Union has provided support-ranging democracy's proper functioning are movements have relied on force to attain from propaganda to training and often fragile, inefficient, or unevenly objectives. weaponry-to guerrilla forces and other developed. Judicial systems generally Dictatorships of the right-typically terrorist groups in Latin America and suffer from inadequate financial, institu- closely linked to the military-have the Caribbean. In El Salvador, such tional, managerial, and human historically been the nemesis of Latin assistance helped turn what had, in the resources. For decades, the press and 1970s, been poorly armed and mutually media have been strongly influenced by antagonistic bands of kidnapers and authoritarian regimes or traditional bank robbers into what by the early elites; journalists typically suffered from "There can be no peace, even 1980s had become a centrally com- low pay and poor training. The resulting if [the Sandinistas] throw all manded and well-armed guerrilla army mixture of servility and resentment with secure communications. hampers objectivity and professionalism. their artillery and their A third threat is that the totalitarian The difficulties faced by political parties helicopter gunships into Lake offensive will stimulate a new reaction in developing national organizational Managua, if there is no from the far right. Guerrilla warfare and structures and effective leadership are democratic opening in other forms of subversion have anti- compounded by the disruptions and Nicaragua. democratic consequences even when losses suffered in past repressions. Elec- their perpetrators do not succeed in seiz- toral laws and procedures have been sub- Honduran President ing power. In Central America, the guer- ject to frequent changes, and there is a José Azcona, rillas have been stopped by improved lack of trained electoral administrators. May 21, 1986 government performance, the outstand- Finally, but far from least in importance, ing leadership of democrats like the pervasiveness of hierarchical struc- American democrats. While in most Presidents José Napoleón Duarte of El tures with deep historic and cultural Salvador and Vinicio Cerezo of roots have created ingrained cases not establishing totalitarian con- Guatemala, and U.S. support for authoritarian habits even among trols over all aspects of life, dictator- democracy, but persistent subversion individuals and parties with democratic ships like those of Gen. Fulgencio from Nicaragua could still endanger this Batista in Cuba and Gen. Anastasio intentions. progress by stimulating an ugly Many of these weaknesses can be Somoza in Nicaragua have carried out some of the cruelest abuses of human resurgence of right-wing extremism. In overcome if the current democratic Chile, the authorities succeeded in momentum continues and if those Latin rights in the postwar period. Moreover, discovering-before they could be used- Americans interested in overcoming by cloaking abuse in democratic forms large caches of arms secretly smuggled them are able to obtain cooperation from such as plebiscites, artificial opposition in by the Soviet bloc, but the evident groups with similar interests. Fortun- parties, and rigged elections, such dic- threat of armed insurrection that the ately, linkages between political parties tatorships debase democratic ideas and arms represented created new problems in Latin America and the Caribbean and procedures and discredit genuine democrats. for moderates working for a democratic international political movements are transition to replace the military regime stronger than ever before. So are direct Authoritarianism of the far right has of General Pinochet. party-to-party ties. Many European thus been a major factor contributing to political party foundations are active a new and growing threat to democracy in Latin America: the threat of com- munist totalitarianism. The totalitarian threat takes several forms. The most obvious is the actual consolidation of totalitarianism in power as occurred in Cuba and is happening in Nicaragua. Like traditional dictator- 12 The United States conflict between a democratic United economic freedoms provide a predictable States and a totalitarian Soviet Union. and equitable basis for economic Support for democracy, the very essence development. A NEW CONSENSUS? of American society, is becoming the Democracy helps the United States new organizing principle for American organize itself to cooperate and get For more than three decades, it was an foreign policy. things done internationally. As a people, axiom of American foreign policy that Support for democracy advances Americans are more comfortable dealing politics stopped at the water's edge. The U.S. interests in several important ways. with democratic governments than with axiom reached its height during World Democracy helps to guarantee U.S. authoritarian regimes. Our common War II when the Democratic and security. Democratic governments, interests are better understood. A Republican Parties united to defeat because they must be responsive to their foreign policy that supports democracy fascism and militarism. Following the people, tend to be good neighbors. Open is capable of garnering broad, enduring war, both parties supported containment and regular political competition lessens public and congressional support. It is of the new threat: Soviet expansionism. political polarization and extreme swings much easier for the United States, as a Unfortunately, that bipartisan consen- of the pendulum (as happened in Chile, democratic society, to work with sus, which had been the hallmark of the Cuba, and Nicaragua) and makes nations civilians like Presidents Alfonsin and more resistant to subversion. Demo- postwar period, began to break down Duarte than with the generals who over the war in Southeast Asia. cratic governments are more reliable as preceded them. For awhile, it appeared that a new signatories to agreements and treaties Support for democracy not only consensus might coalesce around con- because their actions are subject to embodies American values; it reconciles sideration for human rights. But the con- public scrutiny. the conflict that often arises between cept of "human rights" suffered the fate Democracy also advances important U.S. strategic interests and the need to of many fresh ideas and was viewed with U.S. political and economic interests. give moral substance to whatever policy a suspicion that produced heated con- Democratic countries are more likely to serves those interests. As a commitment troversy. There were contradictions protect human rights and create environ- with bipartisan support, it provides the between the policy's stated goals and its ments in which people can work to basis for a consistency and continuity in actual implementation. It proved to be achieve their full potential. Democratic American foreign policy that have long an incomplete moral basis for policy processes are good for business and been seen as lacking. Finally, support for because, strictly applied, it treated the labor. Once established, political and problem of political repression without regard to the structure of government that permits or prevents abuses. In addi- The Case of Bolivia tion, the soundness of the human rights nonhumanitarian aid and military policy in national security terms was Bolivia in 1967 became the end of the line assistance, and closed the U.S. military mission in Bolivia. Despite pressure to nor- called into question as it became for Che Guevara and his band of Cuban malize ties with Bolivia, the Reagan identified-rightly or wrongly-with two guerrillas. But with 175 or more changes Administration continued to deny U.S. traumatic foreign policy events: the fall in government in 162 years of inde- support to García-Meza. On October 10, of the Shah of Iran and of the Somoza pendence, Bolivia has long been Latin 1982, new military leaders allowed Siles to dynasty in Nicaragua. Both had been America's most unstable country. Already assume the presidency. The Siles govern- among the poorest countries in the world, viewed as staunch U.S. allies in areas of ment received considerable economic with an annual per capital income of less geostrategic importance and both were assistance and moral support from the than $600, Bolivia must now overcome the replaced by governments inimical to United States. Because his government decline of the tin mining industry that has U.S. interests, to democratic ideals, and was weakened by a lack of cooperation been its most important source of among coalition members, a faltering to fundamental human rights. nonagricultural employment. Finally, economy, and increasingly violent labor The idea that U.S. foreign policy Bolivia has recently become a major pro- disruptions, Siles cut his term short by 1 should embody America's values was duction and staging center for global traf- fundamentally sound. The basis for a ficking in cocaine. year and called a presidential election in 1985. Despite these extraordinary obstacles, consensus did exist. It ultimately found Thirty parties and eighteen presiden- Bolivia has in recent years made signifi- expression in a value that the American tial candidates participated in the 1985 cant progress toward democracy. Calls for people-that, indeed, all people-could political liberalization led to Gen. Hugo election. The final electoral count gave rally around; a value more constructive Bánzer's resignation in 1978 and ushered 28.5% of the vote to retired army general and former dictator (1971-78) Hugo than the concept of containment, on in a series of short-lived military and civilian regimes. In presidential elections Bánzer. Ex-president (1952-56, 1960-64) which the original postwar consensus Victor Paz Estenssoro, patriarch of the had been built, and more comprehensive in 1980, former President Hernán Siles 1952 revolution, had the second highest than that of human rights, on which the (1956-60) won a popular plurality, but tally, 26.4%. Because neither candidate new consensus had initially foundered; a General Luís García-Meza, using Siles' value, moreover, that clearly defined the failure to win a majority of the popular vote won a majority, selection of the president fell to the legislature, which voted 94 to 51 as a pretext, seized power in August 1980 with the support of Bolivian narcotics traf- for Paz despite his having placed second fickers. to Bánzer in the popular vote. Bánzer accepted the legality of the outcome, and Secretary of State Edmund Muskie he and his party have actively cooperated denounced the García-Meza coup, and the Carter Administration downgraded with the Paz government on vital policy issues such as economic reform and nar- diplomatic relations, suspended cotics control. 13 democracy enables U.S. foreign policy to major foreign policy speeches, in ministers of several independent match (and exceed) what has been identi- bilateral meetings with their counter- English-speaking Caribbean nations in fied as perhaps the strongest element of parts in the region, and in consultations Grenada in a demonstration of Soviet foreign policy: an enduring sense with our allies. Their visits to the region, democratic solidarity. of direction. and invitations extended to the Visits by the Vice President, the These new perceptions have par- democratic leaders of Latin America and Secretary of State, and other senior ticular significance for U.S. policy in the Caribbean to come to the United officials are employed to reinforce our Latin America and the Caribbean, where States, are consciously used to commitment to democratic civilian rule. many believe that the United States has demonstrate U.S. support for democratic The inaugurations of democratically sacrificed democratic principles and even rule and repudiation of both civilian and elected leaders (among them the encouraged repressive military regimes military authoritarian regimes. Presidents of Argentina, Brazil, Colom- in the pursuit of containment and stabil- The President himself announced the bia, the Dominican Republic, El ity at any price. This critical view Caribbean Basin Initiative (CBI) in Salvador, Guatemala, Honduras, ignores the role that U.S. assistance pro- February 1982 in a speech before the Uruguay, and Venezuela) have become grams and support for free trade, to Organization of American States. His key occasions for mutual support and take just two examples, have played in message linked the future of democracy consultations among democratic forces. the fundamental socioeconomic transfor- in that part of the hemisphere to The inauguration of President Raúl mations that have contributed to the economic development and pledged Alfonsín in December 1983 (at which democratic transition. Nevertheless, major U.S. support for those dual goals. Vice President George Bush represented cynicism about U.S. purposes has broad On this and other occasions, President the United States) became a powerful acceptance and contributes to the Reagan has stressed that the United and emotional celebration in which ambivalence that many people in Latin States will not remain indifferent "when representatives of Spain, Portugal, America and the Caribbean express democratic values are at risk." Peru, and Ecuador-all countries that about relations with the United States. Support for democracy also has been had moved into the democratic ranks Now that U.S. policy embodies the recurrent and consistent theme in during the previous decade-demon- democratic values in an explicit, con- speeches by the Secretary of State and strated their solidarity with the newest crete, and continuing manner, the the Assistant Secretary for Inter- member of the international democratic impact on public opinion will, over time, American Affairs. At the OAS General community. prove quite substantial. Assembly, in testimony before commit- The state visit to Washington of tees of Congress, and in statements in President Alfonsín in 1985 was the first numerous public fora during the past 5 by an Argentine head of state since years, U.S. leaders have reaffirmed Jef- 1958. The official visit by President SUPPORT FOR DEMOCRACY: PROVEN TOOLS The United States cannot support "The objective I propose is quite simple to state: to foster the democratization in Latin America unless it supports the efforts of Latin infrastructure of democracy-the system of a free press, Americans. Democracy depends on com- unions, political parties, universities-which allows a people to plex interactions that come in many choose their own way, to develop their own culture, to recon- forms; it is not an export commodity. cile their own differences through peaceful means. This section considers U.S. efforts to make more effective use of the proven President Ronald Reagan, tools of statecraft to support the move- Address before the British Parliament, ment toward democracy in the London, England, June 8, 1982 hemisphere; the following section describes efforts to create new tools to bolster democratic institutions and development. ferson's maxim that "the will of the peo- Vinicio Cerezo in May 1987 will be the ple is the only legitimate foundation of first ever by a Guatemalan president. Diplomacy any government." During 1986 alone, the civilian Support for democratic institutions Presidents of Brazil, Uruguay, Costa Two principal goals of U.S. diplomacy in was a main theme of President Reagan's Rica, Honduras, and Mexico made state Latin America and the Caribbean are to visit to Central and South America in or official working visits to the United strengthen democratic government and December 1982. Accompanied by States. President Reagan also met at the to promote peaceful resolution of the Secretary of State George Shultz, the White House with Gen. Henri Namphy, conflicts and tensions that threaten its President visited two traditional head of Haiti's National Governing consolidation. Diplomatic activity to democratic allies (Costa Rica and Colom- Council, as a signal of support for the advance these goals takes a variety of bia) and Brazil, where congressional democratic transition there and for the forms in many different arenas. elections had just marked a major step in The President and the Secretary of the democratic transition. In February State, along with other key foreign 1986, the President met with the prime policy leaders, enunciate U.S. goals in 14 electoral timetable drawn up by his pro- recover the promise of democracy stolen visional government. In addition, the The Power of Public Opinion from the Nicaraguan people by the President has met with several of his Sandinistas. Latin American and Caribbean counter- Of the 33 independent nations of Latin America and the Caribbean, only three— parts while they were in the United Cuba, Nicaragua, and Paraguay-prohibit Economic Assistance States on private visits. independent public opinion polls. In the Progress toward democracy is a rest of the region, political parties, U.S. bilateral economic assistance major topic of discussion with our Euro- individual scholars, and dozens of polling totaled slightly more than $1.5 billion in pean allies. In consultations such as the firms are continually using internationally FY 1986. It is administered by the Agen- semiannual NATO experts' meetings on recognized survey methods to measure cy for International Development (AID) Latin America and the Caribbean, U.S. citizen concerns. and consists of developmental officials regularly exchange views with Political polling, from in-depth ques- allied officials on the status of tions about citizen concerns to polls on assistance, Economic Support Fund candidate popularity and opinions on (ESF) assistance, and PL 480 food aid to democratic government and the foreign affairs, is the speciality of several Latin America and the Caribbean. measures being taken to support its con- dozen respected public opinion firms, Developmental assistance accounted tinuance. Consultations within the including Gallup affiliates, from Mexico to for almost 30% of total U.S. bilateral framework of the OECD provide an Argentina. UNIVISION-Spanish Interna- economic assistance to the region. Those opportunity to win support for policies tional Network, the largest Spanish- funds are used primarily to improve that promote growth and development language television system in the United educational and health systems, to sup- for our neighbors in the Western States, has conducted extensive voter exit port improvements in infrastructure, to Hemisphere, thereby strengthening the polls in several countries, including El economic underpinnings of democracy. Salvador, developing a record of predict- build democratic institutions, and to ing election returns with enviable bolster the private sector as the principal In fora such as these, as well as in accuracy. engine of growth. bilateral consultations with our allies, The Economic Support Fund, which is the United States has urged sending used almost entirely for budget support, international observers to encourage comprised about 42% of U.S. bilateral electoral freedom and to recognize it Foreign Military Sales (FMS) program. economic assistance to Latin America publicly when it takes place. FMS credits to the region have been and the Caribbean in FY 1986. Almost Through the efforts of the Presi- discontinued in favor of MAP grants.) 30% of U.S. bilateral economic dent's Special Envoy for Central America, who is charged with promoting Approximately 82% of U.S. military assistance for the region in FY 1986 con- assistance for the region in FY 1986 sisted of ESF for the countries of Cen- negotiations to resolve the conflict there, went to El Salvador, Honduras, tral America. the United States supports regional Guatemala, and Colombia-four regional In FY 1987, reduced global foreign negotiations, giving special emphasis to democracies battling insurgencies. assistance appropriations required that the need for comprehensive, simul- Nowhere is this assistance more impor- U.S. bilateral assistance to Latin taneous, and verifiable implementation tant than in Central America, where the America and the Caribbean be cut by of the security and democratic goals set forth in the 1983 Contadora Document Sandinista regime in Nicaragua supports nearly 20% to approximately $1.2 billion. guerrilla movements in El Salvador, These cuts come at a critical time when of Objectives. Three distinguished Guatemala, and Honduras and provides many of the countries are instituting dif- Americans have served as Special military training to a nascent insurgent ficult economic reforms, attempting to Envoy: Richard Stone, former U.S. movement in Costa Rica. Another 9% consolidate democratic civilian govern- Senator (D-Florida); Harry W. Shlaudeman, former Assistant Secretary went to support the development of ment, and battling leftist insurgents. of State and now U.S. Ambassador to basic surveillance, search and rescue, The United States provides addi- and self-defense capabilities in the Carib- tional economic assistance to the nations Brazil; and Philip C. Habib, former bean democracies. Our military of Latin America and the Caribbean Under Secretary of State and Special Middle East Envoy, the current Special assistance also supports hemisphere- through contributions to multilateral wide efforts to halt the production and institutions such as the the World Bank, Envoy. trafficking of narcotics. the Inter-American Development Bank, Under the initial FY 1987 alloca- the Central American Bank for Military Assistance tions, military assistance to the region Economic Integration, and the Carib- has been cut by about 7%, thus limiting bean Development Bank. In 1985, U.S. Military assistance for Latin America our ability to support our neighbors in contributions to multilateral develop- and the Caribbean consists of funds pro- combating both guerrilla insurgencies ment banks for Latin American pro- vided under the Military Assistance Pro- and illegal narcotics trafficking. grams were approximately $2 billion. gram (MAP) and the International In October 1986, Congress approved Programs administered by these institu- Military Education and Training (IMET) $100 million to support the Nicaraguan tions provide additional sources of fund- program. In fiscal year (FY) 1986, military assistance for the region totaled democratic resistance in its struggle to ing, generally on concessionary terms, for development projects in the region. approximately $234 million, or about 4% U.S. contributions to these institutions of all U.S. military assistance worldwide. also face cuts in FY 1987. (The 1986 figures included a small amount of credit assistance under the 15 Economic Stabilization structural adjustment loans by the reduce price controls and subsidies, to The United States has a fundamental World Bank to support these reforms; liberalize trade, to attack overregulation and interest in the prosperity of the coun- and excessive bureaucratic controls, and Third, when the first and second tries of the Western Hemisphere. Our to improve the investment climate, strategy for dealing with economic prob- elements are in place, new lending by including reducing restrictions on lems, including the debt crisis, has been the commercial banks to provide addi- private foreign investment. Until these coordinated with other industrial coun- tional support for the reforms and for reforms produce practical results for a tries. Applied on a case-by-case basis, long-term growth. majority of citizens, however, the democratic leaders of Latin America and the strategy emphasizes the need for The heart of the new strategy is economic adjustment in the debtor coun- increased emphasis on growth to reduce the Caribbean would benefit greatly tries with the support of the interna- debt and raise living standards. This from a demonstration that the developed tional financial institutions, especially approach has received strong support countries (and especially the United the International Monetary Fund and internationally and was recently States) are prepared to ease the burdens the World Bank. affirmed by the IMF Interim Committee imposed by existing debts. U.S. efforts to reduce domestic infla- At the 1985 annual meeting of the and the IMF/World Bank Development tion have lowered international interest IMF and World Bank in Seoul, Korea, Committee at their meetings in U.S. Treasury Secretary James Baker September 1986. rates, thus reducing the debt-servicing burden on all the Latin American debt- proposed an initiative that builds on and The renewed emphasis on growth strengthens the previous strategy. The requires reduced reliance on statism, ors. Similarly, our battle against protec- plan he put forth contains three essential market intervention, and import tionism and our own continuing and mutually reinforcing elements: substitution. The response thus far has economic growth in the last 4 years have First, adoption of economic policy been encouraging. Most Latin American helped countries in the region by ena- and Caribbean countries have estab- bling them to increase their exports. U.S. reforms to promote growth in the debtor lished more realistic exchange rates, imports from Latin America and the countries; Second, a continuing central role expanded exports, and cut inflation. Caribbean-mostly manufactured for the IMF coupled with an increase in Several countries have begun to reduce products-rose by nearly 7% per year entrenched structural barriers to during the 1980s, a rate well in excess of annual growth in gross domestic prod- growth; specifically, to take steps to uct. At the same time, the region reduced imports from the United States. Thus, a $3-billion U.S. trade surplus with Latin America and the Caribbean in U.S. Bilateral Assistance to 1981 had become a $17-billion deficit by Latin America and the Caribbean, FY 1986¹ 1985. The Caribbean Basin Initiative is an attempt by the United States to engage Other the nations of the Caribbean and Central Economic 2 America in the development of new 4% opportunities for trade, investment, employment, and broad-based growth in PL 480 the region. The program was designed 21% Military with a 12-year lifespan representing a Assistance long-term U.S. political commitment 13% with incentives beyond immediate trade objectives. Countries with the policy framework to promote private invest- ment and innovation will be most able to Economic seize trade opportunities. The CBI has Support Fund not yet generated the substantial 37% Development economic growth that was originally Assistance envisioned. Thus the United States has 25% added several other benefits and con- tinues to seek additional measures for promoting economic growth. 1 Bilateral assistance amounted to $1.8 billion. This does not include U.S. contributions to the World Bank, the International Monetary Fund, the Interamerican Development Bank, and the Caribbean Development Bank expended in Latin America and the Caribbean. 2 "Other Economic" includes funds for programs of USIA, Peace Corps, and the State Department (e.g., refugees, narcotics). 16 Peace Corps The Peace Corps has been one of the Bipartisan Commission Stimulates Stop declines in income, employ- most successful U.S. foreign policy Support for Democracy ment, and economic activity by providing initiatives of the postwar period. Almost in Central America major balance-of-payments support; Build the foundation for long-term 1,700 Peace Corps volunteers are cur- In July 1983, President Reagan appointed economic growth by supporting improve- rently serving in 18 countries in Latin a National Bipartisan Commission on Cen- ments in economic policy and the infra- America and the Caribbean. Throughout tral America to advise on a long-term U.S. structure needed for efficient production the region, Peace Corps volunteers con- policy that would best respond to the and diversified exports; tinue traditional programs such as challenges of social, economic, and Assure the widest possible distribu- teacher training, nutrition, and health democratic development in the region and tion of the opportunities and benefits of care. In recent years, however, pro- to internal and external threats to its growth by helping to create jobs and grams have focused increasingly on sup- security and stability. The Commission, improve health, education, and housing headed by former Secretary of State for the poor; and port for the private sector with training Henry A. Kissinger, reported to the Presi- Help secure peaceful evolution in and technical assistance in management dent on January 10, 1984, that the fun- support of these objectives by providing and marketing to small businesses and damental strategic and moral interests of military assistance to create a shield to entrepreneurs. New projects include the United States require a long-term protect democratization and growth from activities that range from the develop- national commitment to economic oppor- Soviet-backed subversion. ment of income-generating student tunity, human development, democracy, cooperatives modeled on the "Junior and security in Central America. Complementing these development Achievement" program to technical The President and Congress and security policies, U.S. diplomacy sup- assistance in crop diversification to small approved the recommendations of the ports negotiations both within and among Commission virtually unchanged, setting the countries of Central America to bring farmers. about the reconciliation needed to achieve in motion a comprehensive strategy of economic and military assistance to socioeconomic progress, national security, Educational Exchange address the root causes of poverty and and lasting peace. social unrest, to foster equitable develop- This bipartisan approach, whose founda- In the past 5 years, the United States ment, and to support democratization to tions are the promotion and defense of Information Agency (USIA) has help the region move beyond its history of democracy, has proved critical to the prog- expanded various international visitor dictatorships and instability. The strategy ress achieved since 1984 in every country of is to: Central America except Nicaragua. And the programs. Exchange visitor grants fund Commission noted that "the development of travel to the United States for outstand- Support democratic processes and an open political system in Nicaragua, with a ing regional leaders in fields as diverse institutions by backing free and com- free press and an active opposition" would be as journalism, arts and sciences, politics, petitive elections, the administration of a key to progress there as well. government administration, and educa- justice, technical training, and the tion. Through the Fulbright Program, development of leadership skills; American scholars have the opportunity to teach, study, and conduct research abroad while their foreign counterparts are given similar opportunities in this Support for Private solidarity as a means of sustaining, pro- country. In addition, USIA administers Sector Organizations moting, and defending democratic prac- the new pilot Central American Program The U.S. Government lends its help to tices in more than 50 democratic coun- for Undergraduate Scholarships appropriate private initiatives that sup- tries around the globe. (CAMPUS). The new Central American port democratic development. Long- Peace Scholarship (CAPS) program, term AID support for the programs of Liaison With Trade Unions using AID resources, will eventually the "Partners of the Americas" helps bring a total of 7,000 students from develop linkages between U.S. civic and U.S. diplomatic missions in Latin lower and middle class backgrounds to community organizations, youth groups, America and the Caribbean traditionally the United States. Other USIA pro- service organizations such as the Lions have maintained active liaison with trade grams support student exchanges at the and Rotary Clubs, and business groups unions and labor leaders because of secondary school level, help set up and their counterparts in the their central role in national politics special programs for voluntary visitors hemisphere. These people-to-people pro- throughout the region. U.S. Government to the United States, and arrange for grams promote mutual understanding funds also support various activities of U.S. travelers to the region to meet with and cooperation and contribute to the AFL-CIO, including a major train- counterparts in their respective fields. institutional development. ing program for union organizers at the In 1986, AID funded and the Depart- George Meany Center in suburban ment of State assisted with the organiza- Washington, D.C. tion of a regional conference for Latin America and the Caribbean sponsored by the International Committee for a Com- munity of Democracies (ICCD). The ICCD promotes worldwide democratic 17 1976 Mexico The Bahamas Cuba Dominican Republic Haiti Jamaica Honduras Guatemala El Salvador Barbados Nicaragua Grenada Panama Trinidad and Tobago Costa Rica Venezuela Guyana Colombia Suriname Ecuador Peru Brazil Types of Government, LATIN AMERICA and Bolivia The CARIBBEAN: 1976 and 1986 Paraguay Largely or entirely democratic and open societies Dictatorships or military regimes Not catagorized Uruguay Note: Haiti was a dictatorship Chile until February 7, 1986. Argentina Names and boundaries are not necessarily authoritative. 18 1986 The Bahamas Mexico D Cuba Dominican Republic St. Christopher Haiti and Nevis Antigua and Barbuda Jamaica Dominica Belize Saint Lucia St. Vincent and Barbados the Grenadines Honduras Grenada Trinidad and Tobago Guatemala El Salvador Nicaragua Panama Venezuela Costa Rica Guyana Suriname Colombia Ecuador Brazil Peru Bolivia Paraguay Uruguay Chile Argentina and boundaries are not Names necessarily authoritative. SUPPORT FOR DEMOCRACY: Electoral Institutions RECENT INITIATIVES The consolidation of democratic govern- ment in Latin America and the Carib- The National Endowment bean depends in large measure on for Democracy increased public confidence in the elec- The National Endowment for Democ- toral process and the institutional capac- ity to administer it. U.S. assistance racy was established by Congress in seeks to build this capacity in national 1983 in the belief that private institu- institutions through technical assistance, tions in free societies can contribute to training, and material resources to help the development of democracy through establish sound laws and procedures, assistance to counterparts abroad. Four constituent institutes-the AFL-CIO's administer elections, carry out measures Free Trade Union Institute, the Center to prevent fraud, and educate citizens about the voting process. In El Salvador for International Private Enterprise of in 1982, 1984, and 1985, and in the U.S. Chamber of Commerce, and the Guatemala and Honduras in 1985, U.S. National Democratic Institute for Inter- assistance for the electoral process- national Affairs and National Republican including provision of special ballot Institute for International Affairs paper and ink and aid to computerize representing the two major American voter registration rolls-supported the political parties-administer a broad Víctor Raúl Haya de la Torre (1895-1979) democratic transition. AID funds have range of projects in the region that addresses Peru's Constituent Assembly, of also been used to finance training of poll emphasize leadership training, civic which he was president, on July 23, 1978. monitors in Guatemala and to support education, expanding and strengthening Haya founded one of the hemisphere's first teams of international electoral the linkages among U.S. and regional mass movements, the American Popular Revo- political parties, development of elec- lutionary Alliance (APRA), while in exile in Mex- observers for elections in Honduras and ico in 1924. (© UPI/Bettmann Newsphotos) El Salvador. toral machinery, support for democratic In addition to assistance to individ- workers' federations, and promotion of ual countries, AID provides support to private enterprise. Although most of the technical assistance, training, and Endowment's funds are provided by con- including training for judges, research programs of the Inter- gressional appropriation, it is an prosecutors, and other legal personnel; American Center for Electoral independent, nonpartisan organization. improving court administration; Assistance and Promotion (CAPEL), a In fact, the National Endowment for reproducing and disseminating basic division of the Inter-American Institute Democracy is probably the most con- legal materials; training for criminal of Human Rights, located in San Jose, crete example of the growing bipartisan investigators; modernization of law Costa Rica. The creation of CAPEL was consensus in foreign policy based on sup- codes; strengthening of case reporting a Latin American initiative, stemming port for democracy as its guiding systems; and support for local bar from a meeting of foreign ministers in principle. associations. In addition, U.S. officials October 1982. Its services and resources are facilitating the establishment of are available to public and private Administration of Justice cooperative links between relevant institutions and individuals throughout private U.S. organizations-such as law the region. The development of independent, acces- schools, bar associations, and law Since 1984, increased funding has sible, and fair justice systems is a crucial institutes-and their counterparts in allowed CAPEL to expand its programs part of the consolidation of democracy in Latin America and the Caribbean. rapidly. The center has developed a Latin America and the Caribbean. The Grants to support these activities have roster of electoral experts from the U.S. Government recognizes this impor- been made to the UN-affiliated Latin Americas and Europe who can provide tant fact and, in the past several years, American Institute for the Prevention of technical advice and participate in train- has developed an innovative program to Crime and Treatment of Offenders ing courses, research projects, and assist democratic Latin American and (ILANUD), the University of the West observer missions. CAPEL has Caribbean governments in their efforts Indies, the Inter-American Bar Associa- responded to requests for technical to carry out fundamental judicial tion and Foundation, and private and advice from Bolivia and Honduras on reforms. Collaborative efforts involve governmental agencies in individual improving and computerizing voter the Departments of State and Justice, countries. registries; from Guatemala on drafting a USIA, and AID. The U.S. program first new electoral law; and from Ecuador on focused on Central America and is now improving the vote counting system. The expanding to the Caribbean and South center has conducted training courses on America. Under the program, the United electoral legislation in Guatemala, Costa States has given support for a variety of practical judicial reform measures 20 Rica, and Honduras, cosponsored by with technical assistance from partici- new resources provided by the omnibus each country's electoral court, the bar pants in the Dominican program, the drug bill passed in 1986. Of course, a association, and local universities. A legislatures of El Salvador, Guatemala, central part of any strategy must deal private organization in Haiti invited and Honduras are undertaking similar with the massive consumption of drugs CAPEL to collaborate in a seminar on programs funded by AID to strengthen in the United States. the electoral process and in a proposed information management and analysis nationwide voter education project to and administrative support. promote full participation in the elec- Civil-Military Relations tions scheduled for 1987. Antinarcotics Assistance In 1987, U.S. authorities in California CAPEL's growing data center col- arrested retired Argentine General lects and disseminates materials on elec- The United States is cooperating with Suarez Mason whose extradition Argen- toral legislation, rights, and processes, governments throughout the hemisphere tina had requested after his indictment and maintains permanent records of to end production of and trafficking in for human rights abuses. Through tangi- election results for all the countries in narcotics. In Mexico, Jamaica, and ble actions, private consultations, and the region. The Department of State is Colombia, we are working together to public statements, the U.S. Government aiding development of an electoral data eradicate drug crops. Our most dramatic is attempting to make clear that it base through a project with the Institute efforts to date have been in Bolivia, expects cooperation between U.S. and of Interamerican Studies at the Univer- where U.S. military forces provided Latin American military services to take sity of Miami that is being coordinated transportation for local law enforcement place within a framework of civilian con- with CAPEL. The data base will be teams to destroy drug processing trol and support for democracy. This available to students, journalists, and laboratories. was the theme of a major address scholars from throughout the In the Caribbean and The Bahamas, entitled "A Democratic Vision of Secu- hemisphere as well as government we have supported extensive programs rity" by Assistant Secretary of State for analysts. to interdict drug shipments. Other pro- Inter-American Affairs Elliott Abrams By collaborating with national grams throughout the region support at the 25th commencement ceremony of organizations, CAPEL is building a training for law enforcement officers the Inter-American Defense College on valuable network of individuals and and public education. The war on drugs June 13, 1986 (see Current Policy No. institutions committed to promoting at all levels also is being expanded with 844). well-administered, free, and competitive elections. In 1985, CAPEL helped stimulate creation of the Association of Electoral Organisms of Central America and the Caribbean, an organization designed to foster international coopera- tion to promote representative democracy. As its interim secretariat, CAPEL helped organize and fund the association's first annual meeting in San Salvador in December 1986 to which both Haiti and the Philippines sent official observers. Strengthening Legislative Capacity AID funds are used to support activities designed to promote and facilitate continuing interchange among parliamentarians in Latin America and the Caribbean, North America, and Western Europe, as well as to build the institutional capacity of regional legislative bodies. In 1982, AID funded a training seminar for newly elected legislators initiated by the Congress of the Dominican Republic and a local univer- sity. Interest generated by the seminar led to the design of a long-range pro- gram of support services to enhance the policymaking and administrative skills of Poll workers in San Salvador open a ballot box and begin to count the votes in the presidential runoff election of May 6, 1984. Ballot counting had to be done by candlelight after guerrillas disrupted the city's power legislators. Drawing on this model and supply. (© UPI/Bettmann Newsphotos) 21 For Latin America, the preliminary motion in favor of officers with better con- indications suggest that, this time, the nections. Because of his dental skills, cycle of instability is being broken in Tiradentes eventually met some mer- enough countries to make a difference. chants in Rio de Janeiro and, with them, developed his plans for an independent The strengthening of constitutional republic. government has increased protection of The scheme called for Tiradentes to human rights and provided channels for provoke a riot, then lead an assault on the the redress of grievances. Freedom of Governor's residence at the head of a the press has been restored in as large a group converted to the republican cause. country as Brazil, in some ways the After declaring an independent republic in freest of societies, and as small a coun- Minas Gerais, the conspirators hoped to try as Haiti, where for decades govern- carry their war of independence to the ment censorship limited all forms of other provinces. The constitution they planned called for economic reforms; political expression. freedom for native-born slaves; and Many of the same forces that establishment of a university, schools, and sparked the decline of authoritarianism hospitals. Citizens would have the right to seem likely to favor continued bear arms and would be required when democracy. Urbanization, industrializa- necessary to serve in a national militia, but tion, and the growth of the middle there would be no standing army. Each classes are continually expanding the Tiradentes: A Vision Vindicated town would have a council subordinate to potential democratic power base. Higher a parliament in the capital. After 3 years of In late 1788, in the Province of Minas rates of education and literacy are provisional rule to consolidate the Gerais in the Brazilian interior, a group of republic, elections were to be held increasing the number of people capable men launched the first major conspiracy annually. of seeking an active role in government against Portuguese colonial rule. Their Before they could carry out the plan, and of communicating and obtaining motives were mixed: freedom from debt one of the conspirators divulged the plot. mutual support from like-minded groups and taxes owed to the Crown, a more Tiradentes confessed but, to spare the to protect democracy once achieved. open commercial system, and abolition of others, claimed that he had conceived the In 1985, two amendments to the a social structure that denied them upward plot alone. Among the charges leveled mobility. Some were inspired by the dream Charter of the Organization of American against him was attempting to translate of a free republic, patterned after the States were proposed to recognize that the U.S. Constitution into Portuguese. The newly independent American colonies. As "representative democracy is an indis- conspirators were tried, convicted, and students in France, several had discussed sentenced to death; all save Tiradentes pensable condition for the stability, their plans with Thomas Jefferson. had their sentences commuted. On peace, and development of the region" The central figure in the Inconfidência April 21, 1792, he was led to the gallows and that the promotion and consolidation Mineira (or Minas Conspiracy) was on the outskirts of Rio and hanged. of democracy are among its essential Joaquin José da Silva Xavier, a low- After Brazil became an independent purposes. These provisions foster and ranking officer known by his nickname republic almost 100 years later, Tiradentes reflect the potential for hemispheric "Tiradentes" (toothpuller), who embodied was hailed as a hero. His vision had the complex motivations behind the con- solidarity and cooperation among coun- helped thrust Brazil into the nationalist, spiracy. After several business failures tries united by democratic principles and anticolonialist, republican mainstream of and the loss of his property, he entered practices. The inaugurations of newly the Enlightenment and set Brazil on the the military but was passed over for pro- road to the democracy it enjoys today. elected civilian governments have become regular occasions for the democratic nations of the hemisphere to show their commitment to these With funding from AID and other The Need for Mutual Support principles. donors and the assistance of the Bureau The international implications of of Inter-American Affairs of the Depart- Latin America's democratic revolution ment of State, the School of Interna- The promise created by the convergence are enormous. The democratic Govern- tional Service of the American Univer- between Latin American democratiza- ment of Argentina has stressed its sity in Washington, D.C., is undertaking tion and increased U.S. support for desire for a negotiated settlement with a study of civilian-military relations democracy can only be fulfilled if head- the United Kingdom over control of the designed to promote dialogue among way is made in overcoming two separate Falklands/Malviñas Islands. This scholars and military and civilian leaders problems, one for each potential partner approach sharply contrasts with that of from the United States and Latin in the quest for inter-American coopera- the predecessor military regime, which America. Civil-military relations is now a tion. They are Latin American instability tried to resolve the issue through standard topic in the Washington brief- and U.S. inconsistency. military action. In July 1986, Argentina ings given to participants in USIA's and Brazil signed a dozen accords International Visitor Program. designed to promote trade, cooperation 22 in key industries, and otherwise strengthen mutual support and Nicaragua: Appearance V. Reality tion votes. And as in 1974, other parties cooperation. opposed the ruling party's manipulation. Finally, the absence of democracy Elections were held throughout the Major opposition forces united in the Coor- Somoza era. Real power, however, was has been recognized as a major source of dinadora Democratica to run Arturo Cruz never put to a vote. The major change conflict within countries as well as for president but boycotted the election under the Sandinistas is that elections are when it became clear that their candidates among them. In Central America, not even regular. were denied the right to campaign freely. democratization has been the key to General Somoza offered the The Independent Liberal Party tried to progress in El Salvador, while in Conservative opposition 40% of the seats withdraw later in the campaign, but was Nicaragua the absence of democracy in a constituent assembly in 1971. The prohibited from doing so on a technicality. hampers national reconciliation. "pact" between the Conservatives and On April 22, 1984, Nicaragua's Democratization in both El Salvador and Somoza's Liberal Party was rejected by Roman Catholic bishops responded to the Honduras contributed to reducing other opposition parties, including the growing polarization of Nicaraguan society Independent Liberal Party and the Social historic border tensions and to their by issuing a pastoral letter which declared Christian Party. But Somoza's manipula- ability to implement the dispute resolu- that "it is dishonest to constantly blame tions made possible legal and constitu- internal aggression and violence on tion mechanisms contained in the 1980 tional changes that allowed him to run for foreign aggression" and called for national peace treaty ending the 1969 war president in 1974 in an election in which 9 reconciliation through dialogue. "All between them. out of 10 opposition groups had been Nicaraguans inside and outside the coun- In the United States during the past excluded. try," asserted the bishops, "must par- decade, the U.S. Government-with both On August 17, 1974, Nicaragua's ticipate in this dialogue, regardless of the Congress and the executive branch Roman Catholic bishops responded to the ideology, class, or partisan belief. Further- participating and, at times, even seem- exclusion of the opposition by issuing a more, we think that Nicaraguans who have pastoral letter that declared that "a domi- ing to compete-has taken an increasing- taken up arms against the government nant majority party does not have the right ly active role in support of democratic must also participate in this dialogue." to exclude and deny recognition to the On February 7, 1987, seven opposi- processes and institutions throughout minorities." The bishops denounced tion parties-the Independent Liberal the hemisphere. "legal weapons," asserting: "When the Party, the Social Christian Party, the Con- Considerable uncertainty nonethe- law becomes an instrument of force used stitutional Liberal Party, the Popular Social less remains about the consistency of to deprive citizens of their rights, to Christian Party, the Conservative Party, vigorous U.S. support for the democratic sterilize and destroy civic action, to im- the Social Democratic Party, and the Com- revolution in the region. Lack of suffi- prison for the sole offense of not accepting munist Party called for the creation of a cient funding for U.S. foreign assistance the only system or the existing regime, it is National Peace Commission to work for a legal war: it is the absurd destruction of could, over time, cripple U.S. foreign ceasefire; full political, social, and man by the law." policy. New protectionist trade barriers economic rights in accordance with the Ten years later, in 1984, the San- would aggravate the debt crisis. Halting new constitution; general amnesty; and an dinistas put Nicaragua through the election calendar. The 1983 Contadora support for democratic forces in Nic- motions of another election. As in 1974, objectives and more recent Central aragua would further endanger the the Sandinistas never intended that the American negotiating initiatives, including security of the Central American elections would determine who would proposals put forth by President Oscar democracies. exercise power. As in 1974, the San- Arias of Costa Rica on February 15, 1987, Increased U.S. continuity in foreign dinistas permitted a faction of the Conser- also make clear that democracy can no policy and political and financial commit- vatives to win the largest share of opposi- longer be left to appearances. ment to democracy would mitigate many of these threats. Continued support for democracy requires a consistency-the combination of political will and suffi- among democratic societies throughout important to our own security is cient resources-that has often been the Americas have more reason to be strengthening support for a new bipar- absent from U.S. foreign policy in recent optimistic today than at any time since tisan consensus. years. The emergence of bipartisan coali- the early days of the Alliance for Prog- If the United States and the coun- tions in the Congress on matters from ress. In Latin America, democratic tries of Latin America and the Carib- the Caribbean Basin Initiative to support achievements are all the more impres- bean continue to provide each other for the Nicaraguan democratic resist- sive because they have come piecemeal, support and encouragement, as they have ance suggests this may be possible. one country at a time, usually without in the past decade, it will be possible to In short, though the dangers are grand illusions about the outside world. say that democracy will have fulfilled its great and growing, those who envision In the United States, the realization that promise as both a cause and a result of an enduring cooperative relationship our neighbors in Latin America and the good relations between Latin America Caribbean are increasingly committed to and the United States. democracy and that their success is 23 Type of Date of most Date of Country Summaries election(s) recent election(s) next election(s) Antigua and Barbuda siege, which in no way interfered with Barbados the campaign or the polling. The nearly 84% turnout, which approached that of Parliament Apr. By the 1983 presidential election, was seen Parliament May By 1984 1989 as a massive repudiation of violence and 1986 1991 a popular affirmation of democracy. Distribution of the vote probably also Antigua and Barbuda, which achieved its helped to consolidate democracy: while One of the most stable and prosperous independence from Great Britain in the governing Radical Civic Union Party countries in the Caribbean, Barbados is a 1981, has a parliamentary system of of President Raúl Alfonsin maintained flourishing parliamentary democracy government with an elected House of its majority in the lower house, the with an elected lower chamber (House of Assembly and an appointed Senate. The Justicialist (Peronist) Party, despite Assembly) and a nominated upper British monarch, who continues to be serious internal divisions, polled suffi- chamber (Senate). The chief of state is recognized as chief of state, is cient support to maintain its plurality in the British monarch, who is represented represented by an appointed Governor the Senate and its credibility as a poten- by an appointed Governor General. Elec- General. The governing Antigua Labor tial democratic alternative. In late 1986, tions constitutionally are due every 5 Party (ALP), led by Prime Minister parties began active campaigning for the years. There is a well-established two- V.C. Bird, Sr., won decisively in the 1987 round of congressional and provin- party system; both parties are moderate, April 1984 elections, defeating an cial elections. centrist, and pro-Western. Major dif- opposition coalition composed of the ferences center on personalities rather United People's Movement, the People's than philosophy. The ruling Democratic Labor Movement, and the Antigua Labor Party (DLP) of Prime Minister Caribbean Liberation Movement. The Bahamas Errol Barrow is closely allied to the Although the centrist ALP swept 16 of island's major labor union and won 24 of 17 parliamentary seats, the election was 27 seats in the May 1986 elections. The considered free and fair by all accounts. Parliament June By opposition Barbados Labor Party won A new opposition party, the United New 1982 1987 three seats and is led by Henry Forde. Democratic Party (UNDP), was formed Although there are several radical, left- in March 1986 from the remnants of wing parties active in Barbados, they do several old opposition parties. The The Commonwealth of The Bahamas not pose a challenge to the dominance of UNDP, which has attracted several became an independent member of the the two major parties. Elections have newcomers to politics, has a moderate, British Commonwealth on July 10, 1973. been scrupulously free and keenly pro-Western philosophy. As in most other Commonwealth contested. nations, the chief of state is the British monarch, who is represented by an appointed Governor General. The Argentina government is a Westminster-style Belize parliamentary democracy. The executive Nov. Nov. Congress and the legislative branches are inter- 1985 1987 dependent, but the judiciary is independ- Parliament Dec. By 1984 1989 ent. Parliament, which has a maximum President Oct. Nov. term of 5 years, consists of two houses: 1983 1989 an appointed, 16-member Senate and an Belize achieved independence from elected 43-member House of Assembly. Great Britain in 1981 after an extended Argentina's most recent return to The Senate's members are appointed by period of internal self-government. The democracy began with a record-breaking the Governor General on the advice of pattern exemplifies the successful local turnout of more than 15 million voters in both the Prime Minister and the leader adaptation of the British parliamentary presidential and congressional elections of the opposition. Members of the House tradition that flourishes in the Carib- on October 30, 1983. Argentines also of Assembly are elected from individual bean. In December 1984, in the first went to the polls in large numbers in constituencies. Prime Minister Sir general elections since independence, the October 1984 in a nonbinding plebiscite Lynden O. Pindling's Progressive United Democratic Party (UDP) led by on the Beagle Channel Treaty prior to Liberal Party (PLP) has won five con- Manuel Esquivel won 21 of 28 seats in the treaty debate in the Congress. secutive national elections dating back to the House of Assembly. Voter turnout Subsequent legislative elections in 1985 1967. The next election must take place was moderate, and the election was free were widely considered an important by August 1987. of any charges of fraud. The UDP, a step in consolidating democracy in moderate-to-conservative party, favors Argentina. A wave of terror bombings private enterprise to diversify Belize's designed to disrupt the campaign failed sugar-based economy. The major opposi- when the government invoked a state of tion party is the moderate-to-leftist People's United Party. 24 One Inspiration, Many Models In 1813, Thomas Jefferson imagined the day when the people of Latin America would be liberated from colonial rule and military despotism. In a letter to his old friend Lafayette, he predicted that the inevitable conflicts of the old autocratic order would "bring the people into motion, into action, and into the exertion of their understandings." The example of the United States, Jefferson hoped, would be "an excitement as well as a model for their direction." In their struggle for independence, the peoples of Latin America and the Carib- bean did find inspiration in many of the same Enlightenment principles that formed the basis of Jefferson's constitu- tional thought. The philosophers of the Enlightenment believed that, just as there were laws of Nature, there were laws that governed human activity. They had limitless confidence in the ability of reason to discern those laws and apply them to Top: The Barbados House of Assembly is one of the oldest representative bodies in the world. The human affairs. They also believed that House, the lower chamber of the modern Parliament pictured here, has met continuously since 1639. man could be persuaded by Reason to (Photo courtesy of the Barbados Board of Tourism, New York) conform to those laws without resort to the tyrannical and barbarous practices of Bottom: Brazilian President José Sarney tells a joint session of the U.S. Congress on September 11, earlier governments. 1986: "The true name of peace is democracy, because democracy is understanding, the capacity to find solutions other than the solutions of might." (Photo courtesy of the U.S. House of Representatives) It was in the New World that men first attempted to apply these principles and to systematize not only the laws that govern the citizens of the state but also the rights of those citizens. These principles, spelled out in constitutions throughout the Americas, are familiar to all of us: govern- ment derives its authority from the consent of the governed; all men are equal under the law and entitled to due process; government has an obligation to guarantee individual liberties such as freedom of speech, of assembly, and of religion; and the constitution itself forms a body of supreme law. The people of Latin America and the Caribbean sought additional inspiration in the French "Declaration of the Rights of Man and of the Citizen" and the Spanish Constitution of 1812. A number of the original Latin American constitutions went beyond the U.S. model by outlawing slavery. Constitutional revisions in this century have emphasized economic and social rights conforming to contemporary conceptions of social justice. As Jefferson had envisioned, the United States did serve as an inspiration neither possible nor desirable. The democratic neighbors, we have a role to for the independence movement region's constitutions establish many dif- play in support of a democratic transition throughout the Western Hemisphere. ferent forms of government-federal and based on the values that all people of the Today, however, U.S. policy does not envi- unitary, parliamentary and presidential, Americas share-liberty, equality, justice, sion a single model of government for our republic and commonwealth. But Jeffer- and peace. neighbors. We know now that that is son's essential vision remains: as 25 Type of Date of most Date of election(s) recent election(s) next election(s) Bolivia of military rule, a civilian was elected scheduled to vote on a single candidate president by an electoral college on nominated by the junta of commanders Congress, July July January 15, 1985. The President-elect, of the army, navy, air force, and police President 1985 1989 Tancredo Neves, fell ill on the eve of his to serve until 1997. If the junta's inauguration and died without taking nominee receives a majority of the votes Municipal July Dec. office. Vice President-elect José Sarney cast, he would assume his duties on 1985 1987 became president. President Sarney has March 11, 1989. If the nominee is not established himself as a major political confirmed in the plebiscite, the constitu- Bolivia returned to democratically figure in his own right. The Sarney tion provides for open presidential and elected government in October 1982 administration is backed in Congress by congressional elections to be held 90 following 18 years of military regimes. the Democratic Alliance, comprised of days before the completion of Pinochet's In 1984, faced with an increasingly two centrist parties: the PMDB (Party current term extended by 1 year; that is, chaotic economic situation, inflation of of the Brazilian Democratic Movement) the new election would be held 90 days more than 20,000%, severe social unrest, and the PFL (Liberal Front Party). prior to March 11, 1990. On that date, the specter of a military coup, and the Together, they have instituted signifi- the newly elected president and Con- incapacitation of his government, Presi- cant changes in the social and economic gress would accede to power. dent Hernán Siles Zuazo called for spheres. President Pinochet has publicly national elections in July 1985, a year A second major election was held on opposed any changes to the 1980 con- ahead of schedule. The first round of the November 15, 1985, when Brazilians stitution, although opposition represent- 1985 balloting gave no candidate an voted for mayors of the capital cities of atives and some government supporters absolute majority. In accordance with the country's 23 states. The Democratic have advocated replacing the plebiscite Alliance won most of the races. A third with free elections. A constitutional the Bolivian Constitution, the Congress election on November 16, 1986, selected then chose between the principal vote amendment allowing free elections in winners and elected Victor Paz governors, federal deputies, two-thirds 1989 is theoretically possible, if proposed Estenssoro president. of the Senate, and state legislatures. by President Pinochet and ratified by Once installed, the Paz government Again, the Democratic Alliance scored a plebiscite. moved swiftly and successfully, with the major victory, with the PMDB winning While the 1973 military takeover support of losing presidential candidate 22 of 23 gubernatorial races and major- enjoyed considerable popular backing, Hugo Banzer and his Nationalist ities in the Chamber of Deputies and the opposition to continued military rule has Democratic Action Party, to impose Senate. The election was especially grown over the 13 years of the Pinochet stringent economic reforms and deal significant because the Congress will government. It responded to mounting write a new constitution for Brazil. with disruptive social elements. In 1986, public opposition and demonstrations the Paz administration requested U.S. with a tentative political opening in 1983, which ended with the imposition of military assistance to mount a very effective drug interdiction campaign Chile a state of siege. Another period of liberalization followed the removal of the despite severe domestic political criticism. state of siege in mid-1985, but the Constitutional Sept. 1989 Pinochet government firmly rejected plebiscite 1980 dialogue with the democratic opposition, which had by then come together in a Brazil broad coalition of political parties known The military took power in Chile in as the National Accord. The Chilean far Jan. Jan. September 1973, replacing an elected left, meanwhile, has actively supported President 1985 1991* government led by Marxist Salvador terrorist violence in hopes of blocking (indirect) (direct) Allende, whose alliance with both development of conditions that might Marxist-Leninist radicals and Moscow- lead to a peaceful transition to full line communists was creating mounting democracy. The government, in turn, Nov. Nov. Mayoral opposition and disorders in what had has used this communist-sponsored ter- 1985 1989 previously been considered one of Latin rorism to justify broad crackdowns America's most democratic countries. against the opposition. An assassination The military ruled by decree until 1981, attempt against President Pinochet by Congress, Nov. Nov. when a constitution ratified by a communist terrorists in September 1986 Governors 1986 1990 September 1980 plebiscite took effect. led to reimposition of a state of siege, The constitution's provisions and the which was lifted in January 1987. conditions under which it was adopted The Pinochet government has taken Brazil has held three major elections in were criticized by opposition groups. some steps to establish the juridical the last 2 years. Following two decades The constitution confirmed Gen. framework for the presidential plebiscite Augusto Pinochet as president until expected in 1989: adopting an electoral * The new constitution may change the 1989, at which time another plebiscite is registration law in 1986 and announcing presidential term; thus, it is possible that the that a law to legalize democratic political next presidential elections will be held before January 1991. parties would be promulgated early in 1987. But severe restrictions on political activity and other human rights prob- 26 Type of Date of most Date of election(s) recent election(s) next election(s) lems persist. Efforts to improve the reelection (or the election of anyone in Behind the ideological smokescreen, political atmosphere and restore fund- the president's cabinet or immediate Castro's government is that of an aging, amental freedoms such as freedom of family). National elections, held every 4 traditional caudillo, within the modern assembly and speech are necessary for years, select the president, two vice control mechanism of the 20th century meaningful progress on a transition to presidents, the entire Legislative party-state. There is no concept of a full democracy. The United States has Assembly, and local municipal councils. legal organized opposition, and this is strongly supported a return to elected, In 1982 and 1986-and for many summed up in Fidel Castro's aphorism: democratic civilian government in Chile, years before-the elections were actively "Within the revolution, everything; welcoming the National Accord and urg- contested, free of fraud, and featured against the revolution, nothing." Under ing dialogue between the government voter turnouts of approximately 85%. these circumstances, those elections that and the democratic opposition. Two major parties-both moderate- have been held in Cuba since the revolu- dominated both elections: the Christian tion have been recognized as democratic Social Christian Unity Party meaningless. and the social democratic National Colombia Liberation Party. The latter captured both the presidency and the legislature Dominica Congress Mar. Mar. in the last two elections. Other parties 1986 1990 active in the 1982 election included the center-right National Movement, the President May May communist Pueblo Unido coalition, and Parliament July By 1985 1990 1986 1990 the fringe Independent and Democratic Parties. The 1986 election, which gave Colombia has been governed by the presidency to Oscar Arias, also Dominica is a parliamentary democracy democratically elected governments for included the communist Popular Alli- in the British tradition with an elected most of this century. The only exception ance, the communist Pueblo Unido coali- House of Assembly and nominated was the dictatorship of Gen. Gustavo tion, the personalist National Christian Senate. Unlike the other states of the Rojas Pinilla (1953-58). Since then, the Alliance, and the fringe Independent Organization of Eastern Caribbean Liberal and Conservative Parties have Parties. An earlier split within the Costa States (OECS), where the chief of state dominated the political system, generally Rican Communist Party (PVP) was suc- (the British monarch) is represented by alternating the presidency between cessfully arbitrated by the Supreme an appointed Governor General, the them. Congressional and presidential Electoral Tribunal. head of state in the Commonwealth of elections in 1982 and 1986 were con- Dominica is the president. Dominica, sidered free of fraud. The 1986 presiden- however, remains a member of the Com- tial election, which saw heavier than Cuba monwealth and continues to recognize usual voter turnout, produced a landslide Queen Elizabeth II as sovereign. Elec- victory for Liberal Virgilio Barco Vargas Although Fidel Castro's ascension to tions are constitutionally due every 5 over Conservative Alvaro Gomez power in 1959 was based in part on his years and have been free and fair. In the Hurtado. President Barco continued promises to bring democratic freedoms, 1985 national election, the Dominica efforts to entice guerrillas to join the Cuba is a communist one-party state, Freedom Party (DFP) of conservative, political system. and-with the fall of Trujillo in the pro-Western Prime Minister Eugenia Dominican Republic and Duvalier in Charles defeated the leftwing opposition Haiti-the most important exception to Labor Party of Dominica and the affili- ated Marxist-led Dominica United Labor Costa Rica Caribbean traditions of democracy and representative government. The Cuban Party. constitution contains provisions for President, Feb. Feb. popular and competitive elections; Congress 1986 1990 freedom of the press, speech, and Dominican Republic religion; and guaranties of civil liberties. However, in accordance with the con- Costa Rica is one of Latin America's stitution, these protections are not President, May May oldest constitutional democracies. The available to "enemies of socialism," as Congress 1986 1990 Constitution of 1949 eliminated the army defined by the state. Thus, Castro rules in order to end any institutionalized through classic authoritarian and military threat to elected civilian govern- Marxist-Leninist repression. There are Despite an earlier history of alternating ment; created a fourth branch of no independent institutions or freedom civil turmoil and authoritarian rule, government-the Supreme Electoral of press or speech. Neither an democracy and fair election procedures Tribunal-with remarkable independent independent judiciary nor a free trade have become institutionalized in the powers to assure scrupulously honest union exists, and there are restrictions Dominican Republic. Suffrage in the elections; and prohibited presidential on religious practice. Dominican Republic is universal and compulsory for those over age 18 and married. Over 70% of the registered voters participated in the 1986 national 27 Type of Date of most Date of election(s) recent election(s) next election(s) elections. The country's three major rule, and Febres Cordero declared his elected civilian president in more than political parties, the Reformist Party, intention to complete his term and to 50 years; more than 80% of the elec- the Dominican Revolutionary Party, and hold elections as scheduled in 1988. torate went to the polls. the Dominican Liberation Party, are Febres Cordero, a businessman, is a International observers attested to represented at all levels of the member of the Social Christian Party the fairness of both rounds of the 1984 government-federal, state, and local. (PSC), which in the 1984 elections joined presidential elections. Legislative and With the election of Joaquín Balaguer in several other parties in a coalition called municipal elections, held as scheduled in May 1986, the Dominican Republic has the National Reconstruction Front to March 1985, were again judged by inter- now had six consecutive elections at defeat the presidential candidacy of national observers to have been free and 4-year intervals. This follows a 5-year Rodrigo Borja Cevallos of the fair. In a surprise result, the Christian period of instability (1961-66) and the Democratic Left (ID). Borja is one of Democrats obtained an absolute majority long dictatorship of Rafael L. Trujillo several candidates expected to seek the in the Legislative Assembly by winning (1930-61). Two of those elections-in presidency in 1988. In the midterm elec- 33 of 60 seats. The remainder of the 1978 and 1986-resulted in the transfer tions of June 1986, the ID won 17 seats seats were split among ARENA (13 of power to the major opposition party. in the unicameral Congress, giving it the seats), the Party of National Conciliation largest congressional representation of (12 seats), and several minor parties. El any political party. The ID and other Salvador is now preparing for the next opposition parties hold a total of 40 of Ecuador round of Legislative Assembly (1988) the 71 seats in Congress and have vigor- and presidential (1989) elections. In addi- ously debated government initiatives, tion to the established parties, new con- Congress, June Jan. especially economic policy. servative and social democratic parties Municipal 1986 1988 are seeking legal inscription from the Central Electoral Council and working Jan. El Salvador to build support for the next elections. May President 1984 1988 (2d round) (1st round) President May May Grenada 1984 1989 Seven years of military rule ended in 1979 when Ecuador returned to civilian Congress, Mar. Mar. Municipal 1985 1988 Parliament Dec. By rule with elections under a new constitu- 1984 1989 tion. The constitution stipulates that no president may succeed himself. The In 1979, a reformist coup began what inauguration of President León Febres has turned out to be a gradual transition The parliamentary elections of Cordero on August 10, 1984, marked the to democracy despite civil war and December 3, 1984, were the first first transition in 24 years from one foreign intervention. In 1982, popular national elections since 1976, the first elected democratic government to elections were held for a constituent since the rise and disintegration of the another. assembly. Political parties allied with the Marxist New JEWEL Movement, and Democratic institutions have had to guerrilla umbrella organization, the the first since the brief 1983 U.S.- survive several potentially destabilizing Farabundo Martí National Liberation Caribbean military operation to restore events since 1979. In May 1981, Presi- Front (FMLN), rejected an offer of order. Not surprisingly, the elections dent Jaime Roldós died in a plane crash, automatic registration for the elections, took place under the close scrutiny of but Vice President Osvaldo Hurtado and called on voters to stay home. Very several observer organizations. The assumed power in an orderly transition heavy voting was widely interpreted as a observers concluded overwhelmingly even though he belonged to a different popular plea for peace. When none of the that the elections were free and fair. The party. In March 1986, a disgruntled air six participating parties won a majority, 84% voter turnout produced a firm man- force general, Frank Vargas, staged two the assembly selected independent date for the New National Party coali- uprisings against the government of lawyer Alvaro Magaña Borja to head a tion led by Herbert Blaize. Five other President Febres Cordero. In January government of national unity. parties participated in the elections, 1987, rebellious air force troops suppor- A presidential election was held on including the Grenada United Labor tive of Vargas briefly kidnaped the presi- March 25, 1984. Eight candidates Party of former Prime Minister Sir Eric dent and obtained Vargas' release from representing a broad political spectrum Gairy and the Maurice Bishop Patriotic military custody. This incident generated competed in the first round. José Movement, formed by supporters of the coup rumors and led to opposition calls Napoleón Duarte, a founder of the Chris- late Marxist prime minister, who had for Febres Cordero's resignation. In tian Democratic Party and former ousted Gairy in the 1979 coup. response, the Ecuadorean Armed Forces populist mayor of San Salvador, and publicly rejected the notion that they Roberto D'Aubuisson, a retired army might use the crisis to reimpose military officer and leader of the ARENA (National Republic Alliance) party, received the most votes. In a runoff held on May 6, 1984, Duarte won 54% of the vote to become El Salvador's first freely 28 Type of Date of most Date of election(s) recent election(s) next election(s) Guatemala course of transition from capitalism to by General Henri Namphy, replaced socialism." The constitution states that Duvalier, eliminated the repressive sym- presidential, National Assembly, and bols and practices of his regime, and set Congress Nov. Nov. regional elections are to be held every 5 in motion a process of political institu- 1985 1990 years. Since 1964, the People's National tion-building. In June 1986, the council Congress (PNC) has dominated political issued a comprehensive political calen- life in Guyana. Opposition parties and Dec. Nov. dar. Fulfilling one of the initial steps in President some civic organizations have charged the calendar, the CNG held Constituent 1985 1990 electoral fraud. Since 1980, there have Assembly elections on October 19. The (runoff) been two elections, the first on Decem- assembly will draft a new constitution Constituent Assembly elections on July ber 15, 1980, and the most recent on which then is to be approved in a 1, 1984, with the participation of an un- December 9, 1985. In the last election national referendum in March 1987. precedented 72% of the eligible elec- Desmond Hoyte was elected president. Elections are to be held in November torate were characterized by interna- Opposition parties have either pulled out 1987 for a president and for members of tional observers to have been of these elections (1980) or refused to the national legislature. Dates of future remarkably free and open. The number acknowledge the results as valid (1985). elections will be determined with the of voters exceeded by nearly 800,000 the Municipal elections were scheduled for adoption of a new constitution. December 1986 for the first time since previous high recorded in 1982. Nine political parties and one regional civic 1970; however, the opposition parties committee, covering the legal political decided to boycott the elections even Honduras spectrum in Guatemala, won seats. In before nominations were closed. They the 1985 National Assembly elections, alleged that the elections would not be fair since the PNC dominated the elec- three parties or coalitions, representing President, Nov. Nov. the right, center, and left, won 23, 21, toral machinery. The unopposed PNC Congress 1985 1989 and 20 seats respectively. The left-of- candidates were declared elected by the center Christian Democrats ran well in elections commission, but no voting took the heavily populated Indian highlands. place. The April 1980 Constituent Assembly The center-right Union of the National elections began a process that ended Center won the majority of seats in the nearly 18 years of military rule. On capital area and made a strong showing Haiti November 29, 1981, Roberto Suazo on the south coast. The conservative Cordova of the Liberal Party won 54% parties (particularly the National Libera- of the presidential votes and 44 of 82 tion Movement) fared less well than Constituent Oct. Not congressional seats. The major opposi- expected but retained their traditional Assembly 1986 appli- tion party, the National Party, won 34 cable strongholds in the eastern portion of the seats. Suazo's inauguration in January country. At the other end of the political 1982 restored democratic civilian spectrum, the Social Democratic Party Constitutional Not Mar. government to Honduras. In 1985, José competed openly after years of exile and Referendum appli- 1987 Azcona Hoyo of the Liberal Party won cable won one congressional seat. President election as president with about 51% of Vinicio Cerezo of the Christian voters casting ballots for his party. The Democratic Party was inaugurated on President, Not Nov. Liberal Party won 67 of 134 congres- Congress appli- January 14, 1986. Guatemala still faces 1987 cable sional seats and the National Party won formidable social, cultural, human rights, 64. Azcona's election led to the first and economic problems, but the progress transfer of power between two made since 1984 is encouraging. On February 7, 1986, President-for-Life democratically elected presidents in Jean-Claude Duvalier fled Haiti, ending Honduran history. almost 30 years of autocratic govern- The National Party, the oldest ment under the Duvalier family. He left political party in Honduras, has tradi- Guyana behind an impoverished people with the tionally maintained a moderate-to- lowest per capita GDP in the Western conservative ideology and close ties to President, Dec. No later Hemisphere, a bankrupt government, a the Honduran military. The Liberal National Assembly 1985 than Mar. faltering economy, and an almost com- Party, which developed from the 1991 plete lack of institutions capable of par- National Party in the early years of this ticipating effectively in a democracy. century, has maintained a slightly more While Guyana maintains the structure of The "elections" held during the Duvalier reformist ideology. Two smaller parties, a multiparty parliamentary republic era were designed to perpetuate the the Innovation and Unity Party and the within the Commonwealth, its 1980 con- status quo and placate aid donors insist- Christian Democratic Party, have taken stitution defines the country as a ent on tangible evidence of democratic positions somewhat to the left of the two reform. "democratic sovereign state in the major parties, but neither has obtained The National Governing Council substantial electoral support. The (CNG), the transitional government led National Congress recently passed elec- 29 Type of Date of most Date of election(s) recent election(s) next election(s) toral reforms that include the introduc- Institutional Revolutionary Party (PRI). After rejecting elections as useless tion of American-style party primaries PRI candidate Miguel de la Madrid was bourgeois trappings, the Sandinistas and conventions to select presidential elected president in 1982. But in recent announced presidential and congres- candidates. years, opposition political parties have sional balloting for November 1984, the grown in membership and have run suc- week before the U.S. elections. The key cessfully in some municipal and opposition force was the Coordinadora, Jamaica legislative elections. Under electoral made up of political parties, labor reforms begun in the late 1970s and unions, and private sector organizations, modified in 1986, opposition parties have which nominated former junta member Parliament Dec. By begun to play an increasingly important Arturo Cruz as its presidential can- 1983 1988 role in the Chamber of Deputies, the didate. The Coordinadora ultimately did lower house in Mexico's bicameral not register its candidates because it national legislature. Beginning with the believed the FSLN failed to provide the Jamaica, a member of the Common- new Chamber that will be elected in conditions necessary for free and fair wealth, has been a functioning 1988, at least 200 of that body's 500 elections. Coordinadora's rallies were democracy since independence in 1962. seats will be allocated to the opposition broken up by government-sponsored Under the country's parliamentary on the basis of a modified form of pro- mobs. Although the electoral law system, elections are held for members portional representation. In addition, the required that all parties be given equal of the House of Representatives in each opposition will still be able to compete time on television, opposition parties of the country's 60 constituencies. The for the Chamber's remaining 300 seats, were denied access to the media. The constitution requires the prime minister which are elected on the basis of single- FSLN received 67% of the vote, and to call a general election not later than 5 member districts. In the July 1985 con- Daniel Ortega was elected president. years after the first sitting of the gressional elections, the opposition won Some 75% of those eligible voted. Power previous parliament. The 1980 election 8 of the 300 single-member districts then was not at stake in the way the FSLN saw the Jamaica Labor Party (JLP) being contested. One-hundred seats conducted the elections, but the fact of defeat the then-ruling People's National allotted to the opposition in 1985 were holding elections at all did give the Party (PNP) led by Michael Manley. In divided among eight opposition parties FSLN some credit abroad. 1983, Prime Minister Edward Seaga on the basis of proportional representa- Since 1984, political parties opposed called a "snap" election. The PNP tion. The opposition, of which the to the FSLN have attempted to maintain boycotted the election because it con- National Action Party (PAN) is the some semblance of political life inside tended that new elections should not be largest component, often accuses the Nicaragua while exile groups, most of held until the voter rolls were updated. PRI and electoral officials of fraudulent them linked to the armed resistance, Following a revision of the rolls and the practices. On some occasions, election have formed the United Nicaraguan adjustment of electoral districts to reviews have indicated irregularities at Opposition (UNO), the Southern Opposi- reflect population shifts, the PNP par- the local level and initial PRI victories tion Bloc (BOS), and the Miskito-Sumo- ticipated in island-wide municipal elec- have been overturned. In general, Rama Indian Unity (MISURASATA). tions on July 29, 1986. Opposition vic- however, election campaigns and A new constitution was promulgated tories in 12 of the 13 parishes have led to balloting are conducted in an open January 9, 1987, but was followed the PNP domination of local government, manner. same day by the declaration of a state of while the JLP controls the national emergency. The government had said government. The next parliamentary that municipal elections would be held in election must be called by December Nicaragua 1987 but did not set a specific date. 1988 and held within 3 months of being Since then, the government has called. equivocated on that promise. President, Nov. 1990 Congress 1984 Mexico Panama In July 1979, a broadly based coalition, President July July whose military component was the San- 1982 1988 dinista National Liberation Front President, May May (FSLN), overthrew the 44-year-old Congress 1984 1989 Chamber of July July Somoza dynasty. The promised democ- Deputies 1985 1988 racy never materialized. In April 1980, In 1968, the late Gen. Omar Torrijos and moderate members of the original Unlike many countries in the region, several other military leaders seized revolutionary junta resigned, and, by the civilians have governed Mexico power, instituting prolonged rule by the end of 1981, the FSLN held all key throughout most of the 20th century. National Guard (subsequently known as positions. For almost 60 years, this leadership has the Panamanian Defense Forces). The been drawn exclusively from the 30 Type of Date of most Date of election(s) recent election(s) next election(s) Panamanian Constitution, in effect since effectively powerless. A state of siege is (APRA) of President Alán García mark- 1972, provides for basic civil liberties; continuously renewed and human rights ing the first transfer of power between freedom of the press, speech, and problems persist. Though Paraguay has democratically elected civilian presidents assembly; and regular, competitive elec- few political prisoners, the free exercise in 40 years. APRA also gained a tions. While Panama is generally viewed of individual liberties is curtailed, and majority in the Congress. Nationwide as an open society and constitutional opposition media voices remain banned municipal elections in 1980, 1983, and norms are followed for the most part, or under heavy government pressure. In 1986 have reinforced the democratic the Defense Forces' involvement in February 1983, President Stroessner trend and have recently brought local governmental affairs is pervasive. was reelected to a seventh term that self-government to many rural com- The 1984 elections, the first direct ends in 1988. The elections resulted in munities for the first time presidential and legislative elections held the ruling Colorado Party officially APRA, founded by Victor Raul Haya in Panama since Torrijos came to power, receiving more than 90% of the votes de la Torre in 1928, was Peru's first remain a source of friction between the cast. Opposition party officials claim, mass political party. Inspired by the government and opposition party however, that the elections were Mexican Revolution, APRA has been leaders. Although more than three- characterized by impediments to voter both anti-imperialist and anti-Marxist. quarters of Panama's electorate par- registration, fraud, ballot-box stuffing, Over the years, it has evolved into a ticipated in the elections, the vote was and tabulation irregularities. The United social democratic party; it champions widely perceived as flawed, due to the States strongly supports the evolution of integration of all of the disparate prolonged vote tabulation process which a more open political system in elements of the Peruvian population into was marked by irregularities. The Paraguay, in which freedom of the press the country's society. The center-right resignation in September 1985 of Presi- and expression are protected and all Popular Christian Party favors a greater dent Nicolás Ardito Barletta, who had democratic parties can participate. role for private enterprise in the been declared the winner of the 1984 economic development of Peru. The contest, under pressure from the United Left (IU) is a coalition of leftist Panamanian Defense Forces was viewed Peru parties, including two communist as a further setback to democracy. organizations and entities further to the Barletta was succeeded by Eric Arturo left of the communists. In the 1983 Delvalle, who had been elected vice Congress, Apr. Apr. municipal elections, the IU won the president in 1984. President 1985 1990 mayoralty of Lima, Peru's capital and The Democratic Revolutionary Party largest city; the APRA candidate won is the largest member of the National this position in the 1986 local elections. Democratic Union Coalition, the political Municipal Nov. Nov. Ex-President Belaunde's Popular Action organization affiliated with the Panama- 1986 1989 Party fared badly in the 1985 national nian Defense Forces. The Panameñista election and became a minority party. Party of Arnulfo Arias is the opposition party with the greatest mass support, Peru returned to democratic rule in but historically it has been a major 1980, ending 12 years of military dicta- political force only when Arias has been torship. The new constitution, pro- St. Christopher and Nevis an active candidate. The Panamanian mulgated in 1979, provides for the Christian Democratic Party is well- separation of powers among an connected internationally, maintaining Parliament May By executive (president), a bicameral close contact with the Christian 1984 1989 legislature, and a judiciary; one 5-year Democratic International. This opposi- term for the president; a second-round tion party is respected for its ideological balloting system in presidential elec- integrity but lacks a significant grass- St. Christopher (commonly called St. tions; and enfranchisement of illiterates. roots following. Kitts) and Nevis, which became an In the 1980 elections, Fernando independent member of the Com- Belaunde Terry, whom the military had monwealth in 1983, has a parliamentary ousted in 1968 when it came to power, system of government with an elected Paraguay was elected president. In April 1985, House and an appointed Senate. Prime Peru again had free and fair elections Minister Kennedy A. Simmonds, leader for a president, two vice presidents, and of the People's Action Movement, rules President, Feb. Feb. 240 members of the two houses of Con- in coalition with the Nevis Reformation Congress 1983 1988 gress. In July 1985, the Popular Action Party, led by Simeon Daniel. This coali- Party of President Belaunde turned tion government returned to power in a power over to the rival American peaceful, democratic election in 1984. There has been little change in Popular Revolutionary Alliance Party The leader of the opposing St. Paraguay's political system since Gen. Christopher-Nevis Labor Party, Lee Alfredo Stroessner emerged as the Moore, lost his seat in the 1984 elec- political strongman in 1954 following tions, thus limiting his ability to several years of instability. The legal challenge the present government. opposition parties are guaranteed one- third of the seats in Congress but are 31 Type of Date of most Date of election(s) recent election(s) next election(s) St. Lucia leader Vincent Beache. Both parties are replacing the hereditary monarch, centrist. The three nominally radical represented by an appointed Governor parties that contested the 1984 elections General, with a president as head of Parliament May By were resoundingly defeated. state. The government is a Westminster- 1982 1987 style parliamentary democracy in which the executive and legislative branches Suriname are interdependent; the judiciary is St. Lucia-an independent nation within independent. The nation's bicameral the Commonwealth since 1979-is a Until a violent military coup in February Parliament has a maximum term of 5 parliamentary democracy in the British tradition with an elected House of 1980, Suriname was a functioning years. There have been six parliamen- Assembly and nominated Senate. Elec- democracy with a history largely free of tary elections since independence. The violence. The last national elections-and first five elections were won decisively tions are constitutionally due every the only ones held since independence in by the Peoples' National Movement 5 years and have been free, fair, and 1975-were the parliamentary elections (PNM), formerly headed by late Prime keenly contested. The centrist St. Lucia Labor Party (SLP) won the first of 1977. The new military government, Minister Sir Eric Williams. In the headed by Lt. Col. Desiré Bouterse, December 1986 general elections, postindependence election in 1979 but suspended the constitution and placed however, the center-to-left National was brought down by internal squab- bling and economic decline. The govern- effective power in the hands of a five- Alliance for Reconstruction, under the member military authority, subsequently leadership of A. N. R. Robinson, ing United Workers Party, a conserv- reduced to its current two members. In resoundingly defeated the ruling PNM. ative party led by Prime Minister John August 1985, Bouterse, the chairman of Compton, won the 1982 elections. The the military authority, was made head of Progressive Labor Party, a leftist government. In January 1985, a splinter group of the SLP, is the only 31-member National Assembly was Uruguay other major opposition group but is seen appointed; 14 members were nominated as unlikely to attract any significant by the military, and 17 were nominated electoral support. President, Nov. Nov. by the labor unions and a business Congress 1984 1989 association. The assembly was tasked with drafting a new constitution. The St. Vincent and the Grenadines military authority announced in Uruguay has one of the longest December 1986 that the constitution democratic traditions in Latin America, would be ready by March 1987. The con- and voting is taken very seriously. The Parliament July By stitution is expected to be submitted to a advent of military rule in 1973, in the 1984 1989 popular referendum by September 1987. wake of long-term economic decline and General elections are scheduled to be a serious problem of insurgency and ter- held no later than March 1988. In July rorism, is seen by almost all Uruguayans St. Vincent and the Grenadines is a 1986, a new cabinet composed of as an anomaly in the country's political British-style parliamentary democracy representatives of military, labor, and history. The return to democratic rule, with an elected House of Assembly business groups, as well as of the three marked by the inauguration of President (lower house) and an appointed Senate traditional political parties, was Julio Maria Sanguinetti for a 5-year (upper house). The country has been an appointed to implement a program of term in March 1985, following elections independent member of the Com- political and economic reforms. The in November 1984, was supported by the monwealth since independence in 1979. nature of this program has not been vast majority of Uruguayans. Voter Elections are due every 5 years and have further defined. turnout was estimated at more than 90% been free, fair, and keenly contested. of the electorate. The victorious Col- Five parties contested the 1984 elec- orados won 41% of the vote, followed by tions. The two major parties are Prime 35% for the Blancos and 22% for the Minister James Mitchell's New Trinidad and Tobago Broad Front. These parties now hold Democratic Party and the opposition St. roughly those same proportionate shares Vincent Labor Party of newly elected Parliament Dec. By 1986 1992 Trinidad and Tobago achieved independence in 1962, initially retaining the British monarch as head of state. The country became a republic in 1976, 32 Type of Date of most Date of election(s) recent election(s) next election(s) in the bicameral legislature. In addition Dependent Territories to the Colorado and Blanco parties, a third political factor is the leftist Broad Front coalition, including Christian Democrats, Social Democrats, socialists, Anguilla vote of "no confidence" in August 1986. and communists. Elections in September 1986 brought Chief Minister Lavitty Stout's Virgin Mar. House of Assembly By Islands Party to power. 1984 1989 Venezuela The British monarch is represented by Cayman Islands Congress, Dec. Dec. an appointed Governor, who presides President 1983 1988 over an elected Executive Council and a House of Assembly. Chief Minister Legislative Nov. Nov. Emile Gumbs led his Anguilla National Assembly 1984 1988 Venezuela has had a democratic govern- Alliance to victory in March 1984 over ment since the dictatorship of Gen. Mar- cos Perez Jimenez was overthrown in the opposition Anguilla People's Party. The Cayman Islands is a British depend- 1958. Presidential elections are held ent territory with a parliamentary form every 5 years and are preceeded by of government. The Legislative years of campaigning. In the last four Aruba Assembly consists of 12 elected elections, the opposition party has won members and three official members. and been duly seated. In the 1983 elec- There are no political parties in Cayman, tions, Social Democratic candidate Dr. Parliament Nov. By Nov. though loosely structured "teams" of Jaime Lusinchi was elected president. 1985 1989 like-minded politicians have banded The central government has considerable together to contest elections. The last power since state governors are election took place in 1984. Elections appointed, not elected. There are On January 1, 1986, Aruba became an must take place at least every 4 years. municipal elections for aldermen every 5 autonomous state within the Kingdom of years, shortly after the national elec- the Netherlands. Prior to this date, tions. Although there are a variety of Aruba formed part of the Netherlands small parties, including the Communist Antilles. The Aruban Government is a Montserrat Party, which cover the entire political parliamentary democracy. General elec- spectrum, power has alternated between tions for the 21-member Parliament are held every 4 years. A free election was Feb. By the two major parties, the Social Legislative Council held on November 22, 1985, to choose 1983 1988 Democrats (Accion Democratica) and the Christian Democrats (COPEI). the Island Council, which became the Venezuelans are enthusiastic supporters National Legislature when Aruba of democratic elections and encourage achieved separate status. Montserrat is a British crown colony. Elections are held every 5 years. In electoral activity in other Latin March 1983, Chief Minister John American and Caribbean nations with Osborne was reelected, but his People's less experience. British Virgin Islands Liberation Movement lost two of its seven seats in Parliament to the opposi- tion People's Democratic Party. Legislative Council Sept. By 1986 1991 The British Virgin Islands is a British dependent territory governed by an appointed Governor and an elected local government. Former Chief Minister Cyril Romney's government fell to a 33 Type of Date of most Date of election(s) recent election(s) next election(s) Netherlands Antilles French Overseas Departments Staten Nov. By Nov. 1985 1989 French Guiana ment pour la République slates on the right. Guadeloupe's northern dependen- cies, St. Martin and St. Barthelemy, The Netherlands Antilles is an National Mar. By operate as separate political entities but autonomous part of the Kingdom of the 1986 1991 retain representation in the regional and Netherlands. The government is a general councils located in Guadeloupe. parliamentary democracy. There are two levels of government: the central French Guiana normally holds elections government and the local governments every 5 years. It elects one Senator and of the island territories of Curaçao, one Deputy to the French Senate and Martinique Bonaire, St. Maarten, St. Eustatius, and National Assembly. Saba. General elections for the 22-member Staten, or parliament, and National Mar. By for the Island Councils are held every 4 1986 1991 Guadeloupe years. An overseas department of France, Mar- National Mar. By tinique enjoys an open political system. Turks and Caicos Islands 1986 1991 In recent years, elections in Martinique have been highly competitive and often May To be In Guadeloupe, elections are open, very close, with strong, well-known local Legislative Council 1984 deter- democratic, and actively contested by candidates heading up tickets offered by mined parties on both the left and the right. both the right and the left. Voter turnout is traditionally low; often The Turks and Caicos Islands is a British fewer than 40% of registered voters cast Crown Colony. The government consists ballots. As a French overseas depart- of a Governor appointed by the Queen ment, Guadeloupe's political parties are and an 11-member elected Legislative essentially local versions of those com- Council. The People's National Party peting in metropolitan France. Com- (PNP), headed by Norman Saunders, munists and socialists compete won eight seats in the May 1984 elec- independently of each other on the left, tion. Saunders was appointed Chief while disagreements have led to the Minister but had to resign when he was formation of separate Union pour la arrested and subsequently convicted of Democracie Française and Rassemble- narcotics trafficking offenses in the United States. Nathaniel Francis replaced Saunders as Chief Minister but resigned in 1986 when a Commission of Inquiry established by the Governor "Twenty-five years ago, when the Alliance for Progress was found Francis and two of his ministers first launched, the entire hemisphere seemed to discover that unfit to hold public office. The commis- there could be no long-term security without economic sion also found the leader of the opposi- development. Today, we are learning a new lesson: in addition tion party to have been involved in a conspiracy to commit public order offen- to the nexus between security and development, there is a ses to overthrow the Francis govern- second nexus-this one between security and democracy." ment. As a result of these internal dif- ficulties, the constitution was amended Elliott Abrams, Assistant Secretary of State by an Order of Council that replaces the for Inter-American Affairs, Executive Council, drawn from elected to the Inter-American Defense members of the Legislative Council, with College, Washington, D. C., an Advisory Council, nominated by the June 13, 1986 Governor. The constitution is currently under review. 34 Additional Information Recent steps to strengthen the rule of Report," August 1986. The progress law in Latin America and the Caribbean made in one particular case also is sum- are summarized in U.S. Department of marized in "Guatemala's Transition State Special Report No. 145, "Hemi- Toward Democracy," Public Information spheric Cooperation in the Admin- Series, November 1986. Special Report istration of Justice," April 1986. The No. 132, "Revolution Beyond Our role of the military within a democracy is Borders: Sandinista Intervention in Cen- the subject of Current Policy No. 844, tral America," September 1985, "A Democratic Vision of Security," an examines in detail the manner in which a address by Assistant Secretary of State powerful minority proclaimed itself a Elliott Abrams before the Inter- vanguard committed to revolutionary American Defense College, June 13, internationalism and sought to under- 1986. U.S. support for democracy in mine elections and democratic reforms. Central America in accordance with the These materials and others on U.S. recommendations of the National Bipar- foreign policy and U.S. relations with tisan Commission on Central America Latin America and the Caribbean are (the "Kissinger Commission") is exten- available by writing to the Bureau of sively documented in the report to the Public Affairs, Room 5815A, United President from the Secretary of State, States Department of State, Washing- Special Report No. 148, "The U.S. and ton, D.C. 20520, or by telephoning Central America: Implementing the (202) 647-6575. National Bipartisan Commission Published by the United States Department of State Bureau of Public Affairs Office of Public Communication Editorial Division Washington, D.C. March 1987 Editor: Colleen Sussman U.S. GOVERNMENT PRINTING OFFICE: 1987-1 81-738 / 40054 35 Bureau of Public Affairs United States Department of State BULK RATE Washington, D.C. 20520 POSTAGE & FEES PAID U.S. Department of State Permit No. G-130 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE $300 If address is incorrect please indicate change. Do not cover or destroy this address label. Mail change of address to PA/OAP, Rm 5815A.