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323153162
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[Uruguay Backup Material] 12/5/90 [OA 8320] [2]
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323153162
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[Uruguay Backup Material] 12/5/90 [OA 8320] [2]
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13742-006
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13742
Folder ID Number:
13742-006
Folder Title:
[Uruguay Backup Material] 12/5/90 [OA 8320] [2]
Stack:
Row:
Section:
Shelf:
Position:
G
26
21
2
2
martyr
she
was
a
grimage
to
On
the
as
238,
Huns
ne
removed
in
1969
life.
Carp
in
the
Aco
legend.
Catholic
Named
fo
Italy,
in
EPA
proved
by
Montevideo, the capital of Uruguay, is a major seaport on the Río de la Plata.
nembers
live
but
in
were
In
1612,
URUGUAY, yoor'e-gwi, a republic in southern
Uruguay enjoys a generally pleasant temper-
of
Paris
South America. Throughout its history, this
ate climate. Average temperatures range from
trict
enclosure
country has lived in the shadow of its two larger
74°F (22°C) during the summer month of January
to
North
to 50°F (10°C) in June. In the cooler season, it is
Amer
and more powerful neighbors-Brazil, to the
de
l'Incarnati
north, and Argentina, to the west and south.
advisable to wear a coat in the evening. Rainfall
congregation
However, Uruguay has been markedly different
averages an adequate 40 inches (1,000 mm) a
Tranchep
from both of them.
year, with April and May the wettest months.
La.
At
All parts of the republic are easily accessible,
Almost 75% of Uruguay consists of grass-
of
the
congre
and the nation has been remarkably homo-
lands, suitable for grazing. Only 3% is forested.
formed
the
geneous ethnically and culturally. Largely ow-
The forests contain a variety of hardwoods and
Un
other
congre
ing to the impact of a great leader, José Batlle y
some softwoods such as willows and acacias.
entity.
Ordóñez, Uruguay in the early 1900's experi-
Elsewhere, there are palms (along the coast) as
enced fundamental economic and social reforms
well as pines, cypresses, oaks, cedars, magnolias,
that were a model for countries of the Western
mulberry trees, eucalypti, sycamores, and fig
Hemisphere. It evolved a degree of political
trees.
Mexico,
in
stability and democracy that was the envy of
Wildlife includes seals, in colonies on Lobos
southwest
many of its neighbors.
Island, American ostriches (rheas), deer, otters,
of
a
region
1
However, after World War II, the situation in
capybaras, foxes, armadillos, and wildcats.
oranges
and
Uruguay changed drastically. The country's
Among the bird varieties are vultures, parakeets,
trays.
economic base deteriorated to crisis proportions.
owls, and game birds such as partridges, quails,
Progreso)
This in turn fueled social and political unrest,
and wild ducks. The major poisonous snakes are
scan missionary
which resulted in uncharacteristic resort to vio-
rattlers and pit vipers.
has preserve
lence and, in the 1970's, led to the establishment
spital of that
of a military dictatorship.
The
three
main
The Land. Most of Uruguay is an extension of
INFORMATION HIGHLIGHTS
and
fruit
trees
the great pampas of Argentina, although the land
streams
and
is more rolling than in the exceedingly flat Ar-
Official Name: Eastern Republic of Uruguay (Repúb-
lica Oriental del Uruguay).
volcano Parícuth
gentine plains. The north is hilly, but the high-
Head of State and Government: President.
(1978
est)
est altitude in the republic-only 1,644 feet (501
Legislature: Council of State.
Area: 72,172 square miles (186,925 sq km).
meters)-is in the south.
Boundaries: West, Argentina; north, Brazil; east, At-
Uruguay faces the Atlantic Ocean on the east
lantic Ocean; south, Río de la Plata.
in Peru.
and the Río de la Plata estuary on the south.
Highest Elevation: Cerro Mirador (1,644 feet, or 501
he
Vilcanota,
the
The country gets its name from the Uruguay
meters).
Population: (1975 census) 2,781,778 (1980 est.)
of Cusco and
River, which forms the western boundary and
2,919,000.
miles (720 km)-
hows into the Río de la Plata. The only other
Capital: Montevideo.
to form the Uca
river of consequence is the Negro, which goes
Major Language: Spanish (official).
Major Religious Group: Roman Catholics.
Amazon.
through the center of the country before empty-
Monetary Unit: New peso (= 100 centésimos).
by subsis
ing into the Uruguay River. The largest of sev-
Flag: Four blue horizontal stripes alternating with
the
Gorge
of
To-
eral shallow bodies of water near the east coast
five white ones, with a 16-rayed golden sun in a
white canton at the upper left.
of Machu Piccha
is Lake Mirim (or Merín), which straddles the
National Anthem: ¡Orientales, la Patria o la tumba!
Below
the
gorge
Uruguayan-Brazilian frontier. Along the Atlan-
(Uruguayans, our country or the tomb!)
thinly
settled.
tic are miles of sandy beaches.
820e
RIO GRANDE
Spanish is the official language of
DO SUL
and now virtually everyone's
SOUTH
The Uruguayans speak a "Río
BRAZIL
AMERICA
Artimas
PACIFIC OCEAN
URUGUAY
ATLANTIC OCEAN
sion The at of least Spanish, great formally majority heavily Roman of influenced the people the MA of Urugusy
church has never been as influential as in the
are Catholics. But
other Latin American countries. Church some
state have long been constitutionally separated. and
SaltoGrande
Salto
in the capital city, Montevideo. No other urban live
Almost half of the 3 million Uruguayans
center approaches 100,000 population. The
chief Mercedes. provincial cities are Paysandú, Salto, and
In contrast to many other Latin American
Paysandu
countries, Uruguay has a relatively slow rate of
annual population increase. In 1980 it was esti.
Rincon
mated at 1.2%. Virtually all of this growth is nat-
Fray
ural increase because for decades there has been
Bento
Rincon
little immigration. Indeed, since the advent of
economic crisis in the 1960's and the establish
01
Mercedes
ment of a military dictatorship early in the
1970's, many people have left the country.
large percentage of the immigrants established A
Uruguay is a strongly middle-class nation.
small commercial or artisan enterprises, many of
which still exist. During the middle decades of
ha
Colonia
Buenos
de
*Canelones
COMO
the 20th century, government employment and
Aires
10
Mirador
wide variety of services vastly expanded the a
Plata
Punta del Este
number of middle-class citizens. Upward social
Montevideo
and economic mobility was a characteristic of the
Lobos
country. But since the 1960's, Uruguayan soci-
URUGUAY
ety has been much less fluid.
ATLANTIC
1 Dam
The manufacturing and transportation sectors
0
100 Mi.
of the economy support a large manual working
OCEAN
0
100 Km.
class. This group has suffered from a decline in
the meat-packing industry, a major source of its
employment.
The still appreciable rural population con-
sists of workers on the cattle ranches and small
Uruguay is notoriously bereft of fossil fuels
b
farmers in crop production. Partly because of
and metallic minerals. The only ores of conse-
the country's relatively small area, and partly
quence are iron reserves in the north, which
because of the great preponderance of Montevi-
have not been exploited because of the low per-
deo in national life, the contrast between urban
centage of metal in the mineral. However, con-
and rural life in Uruguay is much less marked
siderable deposits of marble, granite, and semi-
than in most parts of Latin America. For a long
precious stones are exploited and the products
time it was easy for rural workers to move to the
p
exported to some degree.
city if they were sufficiently unhappy with their
The People. Uruguay is one of the immigrant
lot-which has been an incentive for employers
countries of America. Although at the time of
to provide income and services adequate to keep
independence in the early 1800's, the majority of
the agricultural workers on the land. General-
the people were mestizos (mixed European-
ized public education also has helped to homog-
Indian), and there were still some Indians, this
enize the population.
situation changed drastically in the last decades
Until the economic crisis that began in the
of the century.
1960's, Uruguayans were accustomed to one of
Mass immigration began as the grazing indus-
the highest levels of living anywhere in America.
try developed in the interior of the country, pro-
Most of them tended to dress well, to eat large
viding increasing quantities of beef cattle and
quantities of meat, pasta, and fruit, and to drink
sheep and promoting the establishment of mod-
good wine and beer. They shared with their
ern packing houses in Montevideo and several
Argentine neighbors a taste for maté, a bitter tea
other urban centers. Many people who finally
grown in northeastern Argentina. The Uruguay-
settled in Uruguay had first made their way to
ans were among those who patronized the na-
neighboring Argentina, where an even larger in-
tional tourist industry. As a result of the reforms
flux of Europeans was occurring. The great ma-
launched by José Batlle in the early 20th cen-
jority of Uruguayan immigrants during the 30 or
tury, virtually the whole population was covered
40 years before World War I made their homes in
by health insurance. Certainly, during the mid-
Montevideo and a few smaller cities.
dle decades of the century, the people had better
As a consequence, most Uruguayans are peo-
and more extensive health care than almost any
ple whose ancestors came from Europe within
other Latin Americans. Now, like most aspects of
the last hundred years. They are predominantly
Uruguayan life, even health care has declined.
of Spanish and Italian descent, although small
Uruguayans tend to be intense sports fans.
numbers are of German, East European, and
and their favorite sport is soccer. They follow
British origin. Only 10% or less are mestizo, and
with particular attention their national team in
less than 2% have some African ancestry.
the quadrennial World Cup competition. In the
820f
nguage of the
first such contest, held in Montevideo in 1930,
one's native tong
'Río de la Plata
the Uruguayans were the victors.
Education and Cultural Life. The educational
fluenced by Italia
le people of Urus
system long has been a unifying element in Uru-
n Catholics. But
guay. However, cultural life has suffered se-
influential as in
verely from the political crisis of recent years.
Not only have many of the country's literary and
intries. Church
itutionally separation
artistic elite fled abroad, but the mass exodus of
lion Uruguayans live
people with advanced education and special
deo. No other un
skills has restricted the audience for cultural
0 population.
events.
Education. As early as 1877, a law passed un-
Paysandú, Salto,
der the inspiration of José Pedro Varela formally
ther Latin America
established free and compulsory public educa-
elatively slow rate
tion. In the decades that followed, this kind of
educational system became a reality. It was esti-
In 1980 it was esth
I of this growth is
mated in 1980 that 94% of the total population
was literate and that 97% of those children of
cades there has
primary-school age were attending school, while
since the advent
)'s and the establish
on the secondary-school level, the rate of atten-
dance was 47%.
orship early in
the
Higher education also is tuition-free. The
eft the country.
University of the Republic, in Montevideo, dates
ddle-class nation.
from 1849. In 1980 about 4.7% of the national
migrants established
population was attending the university, which
enterprises, many
has ten faculties (schools). The Labor Univer-
EPA
e middle decades
sity, also in Montevideo, provides technical
Punta del Este is Uruguay's most popular resort. The city
nt employment and
training in both industrial and agricultural fields.
has hosted numerous international conferences.
vastly expanded
the
Uruguay has some 40 publicly supported
zens. Upward social
teacher-training schools.
a characteristic of the
Newspapers, Libraries, and Bookstores. The high
most famous painter, and a graduate of the
0's, Uruguayan soci-
rate of literacy is reflected in other institutions.
school, is Pedro Figari, who specialized in his-
d.
Daily newspapers in the capital city have a total
torical canvases dealing with early 19th century
ransportation sectors
circulation of more than 200,000. Traditionally,
Montevideo. José Luis Zorilla de San Martín,
arge manual working
the Montevideo newspapers have been closely
son of the poet, whose bronze statue of the gau-
red from a decline is
associated with one or another political faction
cho (cowboy) stands in one of the squares in cen-
a major source of its
and have had national circulation. Most of the
tral Montevideo, is particularly well known.
provincial newspapers are weeklies.
Uruguayan architecture has never had any
iral population con-
Libraries are widespread. The National Li-
particular distinction, although at one time the
le ranches and small
brary and the National Archives in Montevideo
country is said to have had a larger proportion of
Partly because of
were long among the best in Latin America, in
architects in its population than any country in
all area, and partly
terms of both organization and collection size.
the world. With the postwar tourist boom in
derance of Montevi
Before the 1973 coup, Montevideo had a
Montevideo and other coastal centers, many
trast between urban
small but thriving book-publishing industry.
S much less marked
The city's bookstores stocked a wide variety of
America. For a long
publications from other Latin American coun-
A quiet street in Punta del Este offers visitors the pleasure
orkers to move to the
tries, Europe, and North America. One peculiar-
of a leisurely stroll or open-air refreshment.
unhappy with their
ity was the wide range of books from the Soviet
CARL FRANK/PHOTO RESEARCHERS. INC.
entive for employers
Union and other East European countries.
ces adequate to keep
Prose and Poetry. Undoubtedly, Uruguay's
the land. General-
most famous literary figure is José Enrique Rodó,
as helped to homog
who was primarily an essayist. His small vol-
ume Ariel (1900), comparing the supposedly cul-
is that began in the
tured spirit of the Latin American with the al-
ccustomed to one of
leged crass materialism of the Yankee, remains
nywhere in America.
one of the most important Latin American pro-
:SS well, to eat large
tests against the influence of the United States in
d fruit, and to drink
the area. Other literary figures of significance
y shared with their
are the novelist Carlos Reyles and the poet Juan
for maté, a bitter tea
Zorilla de San Martín, who some have called the
itina. The Uruguay
finest South American romantic poet. One of
) patronized the na:
Latin America's greatest playwrights, Florencio
CAMBIO
result of the reforms
Sánchez, was born in Uruguay but lived much of
ALQUILER Y VENT
PROPIEDADE
the early 20th cen*
oulation was covered
his life in Buenos Aires. Some critics compare
him with his contemporary, Ibsen.
nly, during the mid.
Uruguay has produced several modern social
he people had better
scientists of distinction. Perhaps the most out-
care than almost any
', like most aspects of
standing is Carlos Rama, whose particular con-
1 care has declined.
cerns were with the history of organized labor
intense sports fans,
and political movements influenced by it, in
occer. They follow
Latin America and in Spain.
eir national team in
Art and Architecture. The National School of
competition. In the
Fine Arts plays a significant role in encouraging
painting and sculpture. Probably the country's
820g
© CARL FRANK, PHOTO RESEARCHERS, INC.
Meat-packing is one of Uruguay's principal industries.
D J. ALLAN CASH/PHOTO RESEARCHERS.
Large quantities of beef are processed for export.
Uruguay produces wool for trade and domestic use. The
country exports both raw wool and woolen textiles.
apartment houses were built. Modern in design
and constructed of reinforced concrete with lib-
winemaking. In the north, citrus cultivation is
eral use of glass, they sometimes rise 15 to 20
fairly extensive, and from various regions come
stories, a sharp contrast to the low buildings that
the Uruguayan diet.
apples, pears, and other fruits that help diversify
have traditionally characterized the capital.
Music. The most important musical institu-
Forestry and fishing provide small quantities
tion in the country is the 100-person National
of exports. During the 1970's the government
Symphony Orchestra in Montevideo. Some pro-
began to take particular interest in stimulating
the expansion of commercial fishing.
vincial cities have their own, smaller orchestras.
There are three music conservatories in the cap-
Manufacturing. Enterprises based on process.
ital. Opera and legitimate-theater seasons are
ing of the country's agricultural products include
features of Montevideo's cultural scene.
meat-packing houses, wool-processing plants,
sugar refineries, wineries, and flour mills. The
Uruguayan popular music is similar to that in
nation's cement plants also get most of their raw
Argentina, with the tango particularly favored.
material domestically.
One of the most famous songs of this type, La
Cumparsita (1917), was written by Uruguayan
The advent of the meat-packing industry at
the beginning of the 20th century gave impetus
composer Gerardo H. Matos Rodríguez.
to the modernization of Uruguay's grazing econ-
The Economy. Since colonial times, grazing has
omy. The first freezing plant was built in 1904,
constituted the core of the Uruguayan economy.
and subsequently slaughterhouses and meat-
The gaucho, almost inseparable from his horse,
packing plants were established in Montevideo
riding the rolling plains, running down and skin-
and five smaller cities. They prepare chilled
ning wild cattle, and fighting both the Indians
and frozen meat for local consumption but partic-
and encroaching whites, was as characteristic of
ularly for shipment abroad.
Uruguay as of the Argentine pampas and the Bra-
zilian state of Rio Grande do Sul.
Sheepherding grew along with cattle raising
in the rural areas. Although some lamb and mut-
Agriculture, Forestry, and Fishing. In the 19th
ton were produced, wool was the most important
century the countryside of Uruguay was charac-
sheep product. Plants to clean and process the
terized by large landholdings. However, there
wool and prepare it for export became another
has been a tendency to divide some of these into
family farms.
important feature of the urban economy.
President José Batlle began the government
Nine tenths of the exploited rural land is used
policy of encouraging manufacturing in the early
for the raising of cattle, sheep, and some smaller
20th century. He established the Administra-
animals, whereas only one tenth is used for crop
ción Nacional de Combustibles, Alcohol y Port-
production. Grazing predominates particularly
land (ANCAP) as a government monopoly of
in the center of the country. In 1978 it was esti-
petroleum refining, cement production, sugar re-
mated that there were more than three times as
fining, and alcohol production. He also began
many cattle as people in Uruguay, and consider-
the policy of encouraging private enterprise in
ably more than six times as many sheep as
the manufacturing sector through high tariffs, im-
human beings. Much of the nation's industrial
port quotas, and other protective devices. Tar-
activity is concerned with processing animal
iffs were sometimes as high as 150% of the orig-
products, and the country's export pattern also
inal price of imported goods. Events outside
reflects the continued importance of grazing.
Uruguay had a role in stimulating the develop-
Crop production, which has increased mod-
ment of national industries. Two World Wars
estly, is concentrated particularly along the At-
and the Great Depression, by decreasing foreign
lantic coast, the Río de la Plata, and the Brazilian
exchange earnings, greatly limited the country's
frontier. Uruguay is largely self-sufficient in
capacity to import manufactured goods.
grains, sugar, and wine. Major grain crops in-
As a consequence of these policies and exter-
clude wheat, oats, barley, maize, and rice. The
nal factors, a sizable textile industry was created,
country also produces small amounts of sugar-
as well as light engineering and electric-products
cane and larger quantities of sugar beets.
firms and chemical plants. There are also small
Grapes are grown for table fruit as well as for
rolling mills for steel and aluminum.
820h
URUGUAY
820i
Because Uruguay possesses no known re-
It was the Portuguese who in 1680 founded
serves of petroleum or coal, it depends almost
the country's first town, Colonia, as an outpost
entirely and on imported fuel for thermal power
across the Río de la Plata from Buenos Aires.
motor vehicles. During the decades
Not until 1726 did the Spaniards establish their
before World War II a beginning was made in
major foothold in Uruguay, at Montevideo. In
donstruction of hydroelectric facilities, and since
1777, Portugal ceded Colonia to Spain, and Uru-
efforts have been greatly intensi-
guay was attached to the newly created Spanish
fed. Two projects-Rincón del Bonete, with a
viceroyalty of the Río de la Plata.
Rincón de Baygorría,
The Struggle for Independence. The movement
on the Río
for independence in Uruguay began in 1811 un-
Negro, with the help of International Bank fi-
der the leadership of José Gervasio Artigas, as
nancing. Power output at the 1,890-kw Salto
part of the general struggle in the Plata viceroy-
Grande project, undertaken on the Uruguay
alty. However, as the Argentines fought for
River in conjunction with Argentina, began in
their independence and aided the Pacific coast
1979. Production of electricity, which is a mo-
nations against the Spaniards, the Brazilians
nopoly of the government, had already increased
moved into Uruguay. In 1821, after establishing
more than 500% between 1948 and 1978.
their control, they incorporated the Banda Orien-
Transportation, Trade, and Tourism. The infra-
tal into Brazil as the Cisplatine province.
structure of the Uruguayan economy was greatly
In 1825 a group of Uruguayan patriots crossed
CASH/PHOTO
e and domestic RESEARCHERS, use.
expanded in the early 20th century. Railroads
the Río de la Plata from Argentina, where they
extending nearly 1,860 miles (3,000 km) were
had taken refuge, and began the struggle led by
nd woolen textiles
built, largely by British firms. They were pur-
the "Thirty-three Immortals" against Brazilian
chased by the Uruguayan government in 1948.
domination. They were headed by Juan Antonio
Subsequently an extensive road network was
Lavalleja. Britain had a strong influence in the
citrus cultivation
built, amounting to almost 6,200 miles (10,000
Plata region because of its trade, and, as the
arious regions con
km), of which about half have been paved. A
struggle for Uruguayan independence went on,
ts that help divers
major international airport was built to serve
the British government exerted diplomatic pres-
Montevideo. A government-owned airline,
sure. Largely through British mediation, Argen-
ide small quantits
PLUNA, serves interior cities of Uruguay and
tina and Brazil agreed in 1828 to recognize an
'O's the governme
flies to Brazil, Paraguay, and Argentina.
independent Uruguayan republic as a buffer
erest in stimulatis
The economy continues to depend substan-
state between them.
1 fishing.
tially on foreign trade. Two of the three major
Colorados and Blancos. The lines of future po-
es based on process
exports come from the traditional grazing sec-
litical controversy in the republic emerged
ral products include
tor-meat and meat products on the one hand,
among its founding fathers. Divisions soon
l-processing plants
and wool on the other. Textiles constitute a
arose between the Liberals, led by Gen. José
nd flour mills. The
third major export. Raw materials and machin-
Fructuoso Rivera, and the Conservatives, headed
get most of their raw
ery needed by manufacturing industries are ma-
by Gen. Manuel Oribe. The two groups quickly
jor import items. Despite the development of
came to be known by the colors they chose for
packing industry
at
hydroelectric resources, Uruguay remains de-
identification: the Liberals as the Colorados,
entury gave impetus
pendent on imported petroleum. Since the on-
or Reds, and their opponents as the Blancos, or
guay's grazing econ.
set of the world energy crisis in the early 1970's,
Whites.
it was built in 1904
the government has shown some interest in de-
Colorado-Blanco rivalry led to a civil war
rhouses and meat-
veloping alternatives to oil, including wood.
(1839-1851), during the last nine years of which
shed in Montevideo
Patterns of Uruguay's international commerce
ney prepare chilled
have changed substantially since World War II.
Cattle try to elude the gaucho's lasso. Uruguay has more
sumption but partic-
Before then, Britain bought most of Uruguay's
than three times as many cattle as it has people.
meat and wool and provided most of the im-
9 CARL FRANK, PHOTO RESEARCHERS. INC.
g with cattle raising
ported manufactured goods. However, Britain's
some lamb and mut-
role declined precipitously. For a short while in
S the most important
the 1960's, the Soviet Union was the chief buyer
ean and process the
of Uruguayan wool. Later, Brazil, West Ger-
ort became another
many, and the Netherlands became the largest
an economy.
purchasers of Uruguayan exports, followed by
gan the government
Britain and France. The major providers of im-
acturing in the early
ports are the European Common Market, the
ed the Administra-
oil-producing countries of the Middle East, and
les, Alcohol y Port-
Argentina and the United States. No single
ment monopoly of
country is any longer Uruguay's major trading
production, sugar re-
partner.
on. He also began
Tourism is a major sector of the economy.
rivate enterprise in
Resort areas scattered along the Atlantic coast
bugh high tariffs, im-
draw foreign tourists, particularly from Argentina
ctive devices. Tar-
and Brazil, as well as Uruguayans. Punta del
as 150% of the orig-
Este is famous as the site of numerous interna-
ds. Events outside
tional conferences since World War II.
ulating the develop-
History and Government. The first European to
Two World Wars
reach Uruguay was the Spanish explorer Juan
y decreasing foreign
Díaz de Solís, in 1516. During the colonial pe-
imited the country's
riod the future republic was a battleground be-
ured goods.
tween the Spanish Empire and that of Portugal,
e policies and exter-
which was reaching down toward the Río de la
ndustry was created,
Plata from Brazil. The Spaniards called the re-
nd electric-products
gion the Banda Oriental del Río Uruguay, or
There are also small
Eastern Shore of the Uruguay River.
uminum.
820j
URUGUAY
the insurance business and part of banking,
set up government industries. firms to found cement and and
refining In the interest of oil.
welfare he organized an extensive system public of
cial security, providing health insurance and to
had a wide variety of labor laws enacted.
age pensions for most of the population. He old. also
One of the reforms that Batlle proposed
not enacted. This was the establishment was
"collegiate" presidency,
from the majority party
president. However, after leaving the
ity-who would function in the single
dency in 1915, he got the constitutional convent presi-
par
tion of 1918 to adopt a modified version of the
colegiado. It set up a Council of State of nine
members, who shared the functions of the chief
executive with a president.
Few people have had as much impact on their
nation as José Batlle had on Uruguay. His vision
and leadership made Uruguay economically and
socially the most advanced country in Latin
America and politically the most democratic
However, his achievement was so great that his
heirs of the Colorado party, who continued to
govern until the end of the 1950's, were content
po]
to rest on his laurels. Complacently they failed
to come to grips with new kinds of problems that
accumulated after World War II.
COURTESY OF ORGANIZATION OF AMERICAN STATES
The Post-Batlle Period. Batlle died in 1929.
President José Batlle promoted social welfare programs,
During the 1930's, Uruguay veered sharply, if
economic nationalism, and a collegiate presidency.
temporarily, from the model he had established.
In 1933, President Gabriel Terra carried out
coup with the support of the national police and a
du
Montevideo withstood a siege by Blanco troops
established a personal dictatorship. In 1934 he
and forces of the Argentine dictator Juan Manuel
remodified the constitution to abolish the coun-
the
de Rosas. Another round of Uruguayan party
cil of state and reestablish an unfettered single
thi
strife touched off one of the bloodiest wars in
presidency. In 1938 he was succeeded by Gen.
Latin American history. After a revolt launched
Alfredo Baldomir after a democratic election.
in 1863 against a Blanco government, the Colora-
During and immediately after World War II.
po:
dos came to power in 1865 through Brazilian mil-
Uruguay suffered substantially from the exis-
to
itary intervention. Meanwhile, the ambitious
tence of the regime headed by Juan Domingo
Paraguayan dictator, Francisco Solano López,
Perón in Argentina. Many Argentine political
in
had moved to support the Blancos, provoking
leaders sought refuge in Uruguay from the dicta-
eco
the War of the Triple Alliance. Paraguay was
torship in their own land. Uruguay steadfastly
crushed by a coalition of Brazil, Argentina, and
refused to take any steps against the refugees, in
Uruguay. See also under PARAGUAY-History.
spite of Perón's demands.
The Colorados were to remain in power for
As a result, Argentina imposed a virtual eco-
96 years. During the remainder of the 19th cen-
nomic boycott on Uruguay. It refused to allow
tury, the country was controlled by a succession
its citizens to take their customary vacations at
of Colorado caudillos (political strong men), most
Uruguayan resorts, and it cut off wheat ship-
of whom seized power by force. On several
ments to its grain-deficient neighbor. The latter
occasions, they suppressed armed insurrections
move forced Uruguay to convert some of its graz-
by their Blanco opponents.
ing land to high-cost wheat production, with
By the latter part of the 19th century, the Col-
damaging long-run results for the economy.
orado and Blanco parties had come to represent
A new constitution promulgated in 1952 fi-
fairly well-defined groups. The former spoke for
nally established the collegiate presidency in the
the interests of the urban areas, most particularly
form envisioned by José Batlle. For the next 15
of Montevideo. The Blanco party represented
years, the country had as its chief executive a
the rural interests, especially large landowners.
nine-man council with six members of the lead-
José Batlle's Reforms. In 1903 the Colorados
ing party and three members of the runner-up.
elected as president José Batlle y Ordóñez, son
Economic and Social Crisis. The collegiate pres-
of ex-President Gen. Lorenzo Batlle, but himself
idency was a disaster. With nine "presidents"
a civilian and journalist. In 1904, President José
sharing responsibility, in effect no one had re-
Batlle suppressed the last attempt of the Blancos
sponsibility, and, as a result, few efforts were
to seize power through civil war.
made to face up to new economic and social
After leaving the presidency in 1907, Batlle
problems. In 1967 the council was replaced by a
made an extended trip to Europe, where he stud-
president and vice president.
ied the economies and political systems of sev-
The economic and social crisis grew almost
eral countries. He returned to office in 1911,
imperceptibly. It had many facets. One in-
determined to carry out broad reforms in his
volved the manufacturing industries stimulated
country's economic and political structure. To
by the Great Depression and World War II.
ensure national economic independence, he es-
These had been established behind high protec-
tablished government ownership of the docks,
tive walls, and their products were costly. Little
URUGUAY
820k
part of banki
done after the war to make manufacturing
No administration after World War II under-
e interest of
bund cement and
was more efficient.
took to deal with these and other wide-ranging
A second economic problem was that the
problems. The result was a stagnant economy
ensive system and Pol
Uruguayan grazing industry did not adapt to
and a growing struggle among various groups
echnological changes taking place in other
over distribution of the national income. In the
population. He
laws enacted.
countries that exported beef and wool. New
mid-1960's the country's gross national product
grasses, new fertilizers and pesticides, and new
was slightly less than it had been a decade
echniques were not adopted in Uruguay. As a
before, whereas the population was somewhat
result, Uruguayan beef became increasingly un-
larger. At the same time, the cost of living was
ible to meet its competition. The number of cat-
increasing by more than 50% a year.
from the mi
de was virtually stable for the quarter-century
Political Discontent. Meanwhile, political dis-
place of the simply
after 1950. By the mid-1960's, it took 27 head of
content had begun to grow in the 1950's. Its ini-
leaving the
onstitutional com Pin
cattle to produce a ton of beef in Uruguay, com-
tial impact was to bring the Blancos to power for
pared with 17 in Argentina, 15 in the United
the first time in 94 years. The two Blanco
lified version of
States, and 13 in the Netherlands. Also, Uru-
administrations, between 1959 and 1967, made
cil of State of
guay was slaughtering only 13% of its herd each
only modest efforts to deal with the country's
inctions of the
year, compared with 35% in several major meat-
problems. They did undertake a limited pro-
producing countries. Similarly, Uruguayan
gram of rehabilitating the cattle and sheep
nuch impact on th
sheep growers were getting only 6.4 pounds (2.9
ranges, but they made no moves to modify social-
Uruguay. His vision
kg) of wool per sheep, compared with 8.6 pounds
security legislation, rationalize national indus-
ay economically
d country in
(3.9 kg) in Australia.
tries, or end the system of multiple employment.
At the same time the social security and wel-
By the late 1960's the economy was burdened by
e most democrat
fare system got out of hand. Instead of there
serious inflation and by grave deterioration in
was so great that the
being a single social-security system, more than
the nation's social overhead capital. Most gov-
1950's, were content to
who continued
two dozen funds covered different parts of the
ernment firms were running at substantial defi-
population, which meant an exaggerated over-
cits. Corruption had also become widespread.
placently they failed
head. Also, exceedingly low retirement ages
Social unrest intensified. The 1960's were
nds of problems the
were established in many of these funds, none of
characterized by numerous strikes, including
:I II.
which, however, provided adequate pensions.
two general strikes, and in 1968 the situation got
atlle died in 1928
In addition a system had developed in which
serious enough for the government to suspend
he had established. if
veered sharply,
a large part of the work force held more than one
constitutional guarantees for nine months. By
job. Usually, a worker was employed by some
the end of the decade some political opposition
Terra carried out
branch of the government or in a private firm
had assumed a different form. Although a Com-
national police and
during the morning and had another position
munist party had long existed in Uruguay, and in
torship. In 1934 he
with the private sector or with some other part of
the 1960's and 1970's tended to control the labor
to abolish the coun-
the government in the afternoon, and perhaps a
movement, it had never been a major contender
in unfettered single
third position in the late afternoon and evening.
for political power. Also, it had never resorted
succeeded by Gen
The reason for this system of multiple jobholding
to force as a means of gaining power. But in the
nocratic election.
was that workers were not able to earn at one
late 1960's, a new political movement not only
after World War II,
post enough to maintain themselves at the level
challenged basic elements of the Uruguayan
ally from the exis-
to which they aspired. The effect was that a
economy and polity, but also resorted to force.
I by Juan Domingo
large part of the work force did an inadequate job
This was the National Liberation Movement,
Argentine political
in all its employments, and the efficiency of the
better known as the Tupamaros. Recruited
guay from the dicta.
economy as a whole suffered severely.
largely from young people of the upper and mid-
Uruguay steadfastly
inst the refugees, in
Life-size monument to Uruguayan pioneers, José Belloni's bronze Covered Wagon is in Batlle Park, Montevideo.
posed a virtual eco-
ALLAN CASH/PHOTO RESEARCHERS, INC.
It refused to allow
tomary vacations at
cut off wheat ship-
eighbor. The latter
ert some of its graz-
it production, with
r the economy.
mulgated in 1952 fi-
te presidency in the
le. For the next 15
S chief executive a
embers of the lead-
$ of the runner-up.
The collegiate pres-
1 nine "presidents"
fect no one had re-
t, few efforts were
conomic and social
il was replaced by a
crisis grew almost
y facets. One in-
dustries stimulated
and World War II.
behind high protec-
were costly. Little
fro
of
Br
an
the
An
has
the
-0
The grandiose Legislative Palace in Montevideo houses the Uruguayan General Assembly.
COLOR LIBRARY INTERNATIONAL
lon
bar
main speech site
Jus
dle classes, and drawing inspiration from the vic-
fall
torious guerrilla war of Fidel Castro, the Tupa-
guayan government agents in foreign countries.
site
maros organized their own urban "guerrilla
particularly Argentina. Civil liberties were
war." Their tactics included bank robberies,
ended for the average citizen, the rights of labor
by
is
kidnappings, temporary seizure of small towns as
were curtailed, and the universities and other
propaganda gestures, and spectacular jailbreaks
educational institutions were purged. Impres-
the
sive numbers of intellectuals fled abroad.
by captured members of the group. So long as
The military government inaugurated a pro-
cep
the Tupamaros did not shed blood, they enjoyed
gram of relative free enterprise and free trade. It
Pay
wide sympathy among the general populace,
the
reduced subsidies to various industries and dras-
which was increasingly frustrated and discon-
The
tically cut protective tariff duties, particularly on
tented with the status quo. But when they be-
chemicals and other products used in the coun-
wes
gan a campaign of assassination of policemen and
Ent
try's grazing and agriculture. By 1980 there was
soldiers, public opinion turned against them.
the
indication that lowered costs of production were
Meanwhile, in the elections of 1971, the Col-
having some positive impact on the output of the
Gra
orado and Blanco parties were for the first time
for
grazing industry. However, there was still no
faced with a major opponent, the Broad Front
general movement to reorganize and modernize
ries
coalition, which included the Socialist, Commu-
Uruguayan cattle- and sheep-raising.
nist, and Christian Democratic parties, as well as
UR
Another characteristic of the period of mili-
dissident groups from both of the major parties.
tary dictatorship was intense real-estate specula-
city
A Colorado, Juan Bordaberry, won the presi-
in
tion in Montevideo and its environs. Reflecting
dency but received fewer votes than the com-
is 1
continued inflation, this flight of capital to high-
bined total of the Blanco and coalition candi-
rent land and buildings discouraged more funda-
wh
dates. Although the Broad Front came in third,
mental economic investment and reform.
it had challenged the complete domination of
the
In 1980 the military regime put forward its
national politics by the two traditional parties.
Tie
program for a return to "constitutional normal-
After taking office in 1972, Bordaberry turned
froi
ity. This involved a new constitution, which
over the job of dealing with the Tupamaros to the
would, in effect, have given the military veto
viet
military. Within a year, they had largely de-
power over any future elected government. In
rou
stroyed the Tupamaro organization, arresting,
November the plan was strongly defeated in a
are
killing, or exiling most of its militants.
popular referendum, and the next year Gen. Gre-
larg
Military Interlude. For the first time since the
For
gorio Alvarez became president. After pro-
civil war of 1904, the armed forces had played a
tracted negotiations the government and opposi-
anc
major role in national politics. Their success
tion leaders reached agreement in 1984 on
city
a
against the Tupamaros apparently encouraged
return to civilian rule. Elections were held in
sin
them to carve out a still more important place for
November. Early in 1985 the new legislature
iroi
themselves in the country's political life. In
convened and the president-elect-Colorado
anc
February 1973 the military leaders carried out a
centrist Julio María Sanguinetti-took office for a
coup, the immediate result of which was the dis-
single term of five years.
a n
solution of the legislature. After deposing Pres-
Sin
ROBERT J. ALEXANDER, Rutgers University
ident Bordaberry in June 1976, they governed
is
behind another puppet civilian president, Apari-
Bibliography
inc
cio Méndez.
Finch, M. H. J., A Political Economy of Uruguay Since
mir
1870 (St. Martin's 1981).
The military dictatorship installed in 1973
Hanson, Simon G., Utopia in Uruguay (1938; reprint, Hype-
Sin
proved to be brutal and sanguinary. At one
rion Press 1981).
sity
Vanger, Milton I., José Batlle Ordóñez of Uruguay: The
point, Uruguay had a higher proportion of politi-
Creator of His Times, 1902-1907 (Harvard Univ. Press
cal prisoners to the general population than any
1963).
ren
country in the world. Important leaders of the
Vanger, Milton I., The Model Country: Jose Batlle
size
Ordóñez of Uruguay, 1907-1915 (Univ. Press of New
opposition were murdered, several by Uru-
the
England 1981).
the
820L
population
1096 Uruguay
is
Because Uruguay's birth rate has been fairly low (and
older
contains the chief concentration of manufacturing. In-
dustries were also established at Fray Bentos, Salto, and
stable) since 1900, the age distribution differs sharply
Paysandú along the Uruguay River.
(P.E.J.)
from that of most of the other Latin American countries.
Demo-
Si
In 1963 only about 28 percent of the population was less
of
graphic
than 15 years of age, and only about 8 percent was 65 or
e
0
25
50
75 mi
age
Persons
O
50
100 km
per sq km
per sq mi
over. This proportion of young people is only about two-
patterns
15
thirds as high as is typically the case in Latin America,
5
and that of the aged is almost double the percentages
Artigas
40
105
prevailing in most of the other countries.
120
310
Rivera
Uruguay, Area and Population
very
middle
area
population
Salto,
sq mi
sq km
1963 census
1972 estimate
class
Departments
Tacuarembó
(departmentos)
Artigas
4,689
12,145
53,000
not as
Canelones
1,750
4,532
258,000
Cerro Largo
5,348
13,851
71,000
Paysandú
much
Melo
Colonia
2,372
6,144
105,000
Durazno
4,713
12,208
54,000
Flores
1,982
5,133
24,000
rich/poor
Florida
4,009
10,384
64,000
Lavalleja
3,918
10,149
66,000
Fray
Maldonado
1,817
4,705
61,000
disparity
Bentos
Mercedes
Montevideo
198
514
1,203,000
Durazno
Treinta Tres
Paysandú
5,446
14,106
88,000
than
Río Negro
3,721
9,637
47,000
Trinidad
Rivera
3,513
9,099
77,000
Rocha
4,244
10,991
55,000
Then
Salto
5,544
14,359
92,000
San José
1,928
4,994
80,000
Latin
Soriano
3,442
8,914
78,000
Tacuarembó
6,166
15,969
77,000
nations
Colonia del
San José
Minas
de Mayo
Rocha
Treinta y Tres
3,736
9,676
43,000
Sacramento
Total Uruguay
68,536
177,508*
2,596,000
2,956,000
RiO PLATA
ATLANTIC
*Area figures do not add to total given because of rounding.
Montevideo
Source: Official government figures.
Punta del Este
Las Piedras
Canelones
OCEAN
Florida
Between 1908 and 1963, the dates of Uruguay's two
*2nd level subdivision data for department of Colonia not available
most recent censuses, the growth of population averaged
Population density of Uruguay.
only 0.7 percent per annum, by far the lowest during that
period for any of the Latin American countries. In all
PEOPLE AND POPULATION
probability, however, the current rate is much higher, or
Ethnic, linguistic, and religious groups. The people of
Very
about 1.4 percent per year subsequent to 1963. For the 20
Uruguay are predominantly white, most of them de-
Latin American countries taken together the index is
European
scendants of 19th- and 20th-century immigrants from
about 2.8 percent per annum.
feel to
Spain, Italy, and other European countries. The Indian
The present increase of population in Uruguay is due
population is almost completely extinct, and only a
almost entirely to natural increase, or the difference be-
this
very small proportion of Uruguayans exhibit any notice-
tween a birth rate of about 20 per thousand population
country
able Indian physical characteristics. There are few
and a death rate of 9 per thousand. Only a very low pro-
Negroes or mulattoes, probably not more than 10,000
about 13
portion of the growth of population may fairly be at-
of the former or 50,000 of the latter.
tributed to immigration. In this connection, however,
Italian
Comprehensive statistical data on religious affiliations
it is notable that Uruguay's data on immigration and
of Uruguayans are lacking, but less satisfactory sources
emigration are involved and perplexing. It was the first
of information are sufficient to indicate that the large
of the Latin American countries to legalize divorce, and
majority profess the Roman Catholic faith. Spanish is the
by the mid-20th century Montevideo and Punta del Este
official language and the one used in the home by an
had become temporary places of residence for thousands
overwhelming majority of the families. In the sections
of divorce seekers from Argentina and from other
along the Brazilian border, however, the language in dai-
populous areas in the southern part of South America.
ly use includes a large admixture of Portuguese words
(T.L.S./Ed.)
and phrases.
Demography. A census of population taken in 1963,
THE NATIONAL ECONOMY
the first since 1908, put the population of Uruguay at
A comparative view. The foundation of Uruguay's
about 2,590,000. Since that time, the annual increment
has amounted to about 40,000. In 1972 the official popu-
economy is said to have been laid in 1603, when a far-
seeing governor of Paraguay, Hernando Arias de Saaved-
lation estimate was 2,956,000. In 1963 the density of
ra, having observed the fertility of the empty southern
population was about 37 per square mile (14 per square
kilometre). The 1963 census also furnished reliable data
pastures, shipped about 100 head of cattle and 100 horses
downstream from Asunción. The animals were landed on
about the geographic distribution of Uruguay's popula-
tion. The city of Montevideo contained almost half of
the Uruguayan riverbank, where they were left to run
the nation's people, with many thousands more residing
wild. Later in the century, the herds were so abundant
nearby in the adjacent department of Canelones. The
that they attracted gauchos, who crossed the Río de la
remainder of the inhabitants are concentrated in those
Plata from Buenos Aires and began a trade in hides. The
departments that front upon the Río de la Plata, namely,
gauchos were nomads, with no desire to settle, but,
Colonia, San José, and Maldonado (the chief town of
gradually, merchants from Buenos Aires established
which is Punta del Este), and among those adjacent to
themselves on the Uruguayan side of the estuary. As
the Uruguay River, especially Soriano, Salto, and Pay-
more cattlemen arrived, boundaries had to be fixed, and
sandú. In addition to Montevideo, the most important
thus there came into existence the great estancias that are
cities are Salto, Paysandú, Punta del Este, Rivera, Las
still characteristic of the country.
Piedras, Melo, Mercedes, and Minas. In 1963, 81 per-
The relatively high standard of living enjoyed in and
cent of the population was classified as urban.
around Montevideo is closely related to the earnings
Uruguay
1097
from pastoral and agricultural exports; prosperity is
Transport and communications. In the early 1970s
somewhat precarious because these primary products are
Uruguay possessed over 2,000 miles of railway and
Structure
subject to sudden fluctuations in world demand and
more than 8,000 miles of paved or surfaced highways,
of the
prices. To reduce the nation's dependence on external
both systems radiating from Montevideo. The resultant
economy
trade, successive governments have encouraged the de-
competition has mainly favoured road transport, and in-
velopment of domestic industry by means of protective
ternational loans have been obtained to improve the high-
tariffs, import controls, exemptions of machinery from
ways, particularly those providing links with Brazil.
import duties, and preferential exchange rates. But, as
About 775 miles of the country's inland waters are navi-
there are no local sources of petroleum, coal, or iron and
gable. Local shipping handles only a small proportion of
no heavy industries, Uruguay is obliged to import most of
the country's foreign trade; in 1970 Uruguay's merchant
its fuel and industrial raw materials and all of its vehicles
fleet totalled about 198,000 tons. There is a hydrofoil
and industrial machinery. These essential supplies have to
service from Montevideo to Buenos Aires. The main air-
be paid for with the produce of the ranches and farms
port is at Balneario Carrasco, 13 miles from Montevideo;
and the income derived from tourists. Uruguay is
a state airline, Primeras Líneas Uruguayas de Navigación
noted among Latin American countries for its highly
Aérea (PLUNA), provides services within Uruguay and to
developed social services, but these were placing an
neighbouring countries.
excessive burden on the country's resources.
In the early 1970s the state telephone service had more
Telephone
Components of the economy. Agriculture.
Pastoral
than 235,000 subscribers (over four-fifths in Mon-
and broad-
farming is Uruguay's most important economic activity.
tevideo). Broadcasting services, including 9 television
casting
Wool and beef are its chief products and the source of
channels, are operated by state and private companies.
services
about three-fourths of its total earnings from foreign
Four cable companies provide foreign communication
trade. All available land is in use for grazing or agricul-
links; an international telex service was inaugurated in
ture, and production can be increased only by improved
mid-1964.
(I.C.Cn./G.Pe./C.P.D.)
techniques. Improvement has, in general, been slow; out-
put has not kept pace with local demand, with the result
ADMINISTRATION. SOCIAL
that exports now account for only 26 percent of the total
CONDITIONS, AND CULTURAL LIFE
agricultural and livestock produce, compared with 46
The structure of government. Constitutional frame-
percent in the 1930s. Government policy has generally
work. In 1966 a new constitution restored the pres-
The 1966
sought to achieve national self-sufficiency in wheat. This
idential system of government and repudiated a colegia-
constitu-
has sometimes led to overproduction of this cereal and to
do (plural-executive) system previously in use. The presi-
tion
a partial neglect of livestock farming, although, by con-
dent is chief of state and commander of the armed forces.
trast, wheat imports from Argentina were necessary, for
The legislative branch consists of a Senate of 31 members
example, in 1964. Other crops include corn (maize), lin-
and a Chamber of Deputies of 99, elected for four years
seed, sunflower seed, oats, barley, and rice. Fruits grown
by universal suffrage, the political parties having propor-
are oranges, lemons, peaches, grapes (sufficient for the
tional representation.
local wine industry), pears, and apples.
Local government. Uruguay consists of 19 depart-
Power and industry. The state operates a large num-
ments, each governed by a departmental council, which
The
ber of public corporations. It controls electricity and the
exercises executive functions, and by a legislative assem-
public
refining of imported petroleum; it manufactures alcohol
bly; both the councils and the assemblies are elected by
corpora-
and cement; it directs a meat-packing plant and the pro-
popular vote.
tions
cessing of fish; and it controls the railways (purchased
The political process. The three principal political
from their British owners at the end of World War II),
parties are the Colorado Party (which traditionally has
the principal banking institutions, and insurance.
had an urban base), the Blanco Party (supported by the
Since the low, rolling countryside of Uruguay is not
landowners), and the Frente Amplio (Broad Front), rep-
generally suited to hydroelectric development, most of
resenting a coalition of Christian Democrats, Socialists,
the electric installations were formerly dependent on im-
Communists, and dissident members of the two other
ported coal or oil; but two hydroelectric plants were built
parties. In the 1971 presidential elections, the Colorado
on the Río Negro.
Party received 575,000 votes, the Blanco Party 565,000,
The processing of food and other products of the land is
and the Frente Amplio 262,000. The radical-revolution-
the basic form of industry. The subsidized wool-combing
ary Tupámaros guerrilla movement operates outside the
industry has added to the country's exports. Consumer
parliamentary system.
goods manufactured locally (mainly around Montevi-
Justice. A Supreme Court of five judges is elected for a
deo) include textiles, tires and other rubber goods, shoes,
ten-year term by the General Assembly (i.e., the two
and household appliances.
houses of the legislature). The death penalty has been
Foreign trade. Wool exports in the late 1960s amount-
abolished since 1907.
ed to about 40 percent of the national total, while meat
The armed forces. The army, with a strength of 12,-
and by-products varied from 20 to 42 percent. Hides and
000 (1971), composed of volunteers enlisting for one or
skins were the other principal items. The chief markets
two years, comprises regiments of cavalry, engineers, in-
were the United Kingdom, Italy, West Germany, Spain,
fantry, artillery, and tanks. There is a small navy (about
The Netherlands, and the United States. The main
1,800 men) and an air force (about 2,000 men) of about
imports were raw materials for industry, vehicles, ma-
200 planes. A reserve force is trained every year under a
chinery, and fuels. The chief suppliers of these imports
compulsory military training law.
were the United States, Brazil, West Germany, Argentina,
Social conditions. Education. Uruguay has long been
and the United Kingdom. Despite import controls, the
renowned for its progress in education, after reforms
balance of trade up to the late 1960s was usually unfa-
instituted in the late 19th century that established a sys-
vourable. Uruguay was a founder-member of LAFTA (Lat-
tem of free, compulsory, coeducational, and secular edu-
in American Free Trade Association), set up at Monte-
cation. This progress was reflected in the high literacy
video in 1960.
rate (about 90 percent).
Banking and finance. The functions of a central bank
The Universidad de la República (founded in 1849) had Higher
are exercised by the state-owned Banco Central, formed
an enrollment of more than 13,000 in the early 1970s. It
education
in 1967. Another state bank, the Banco de la República,
has ten faculties, including a distinguished medical school
regulates many aspects of foreign trade and is the coun-
that draws students from many South American coun-
try's largest commercial banking organization. An admi-
tries. There is also a privately supported Instituto de
rable record of currency stability was reversed in the
Estudios Superiores (Institute of Higher Studies) devot-
1960s, when the inflationary effect of persistent budget
ed to scientific research. Vocational training is given by
deficits began to be felt. The rise in the cost of living
the Universidad del Trabajo del Uruguay, which organiz-
index, together with the consequences of a decline in the
es and controls a number of industrial and night schools.
gross domestic product as well as increasing inflation, led
Health and welfare. Since the early years of the 20th
to social unrest and substantial emigration.
century, Uruguay has played a leading role in the de-
1098 Uruguay
velopment of social security. The country's comprehen-
Spain began the effective occupation of the country; from
sive program includes extensive provisions for unemploy-
1776, it formed part of the Viceroyalty of Rio de la
ment insurance, compensation for injuries to workmen,
Plata, capital of which was at Buenos Aires. The year
family allowances, and aid to the aged and indigent. With
1810 marked the beginning of the wars of independence
respect to problems of health and sanitation, Uruguay is
in the Spanish American colonies. Buenos Aires was one
among the most fortunately situated of the Latin Ameri-
of the urban centres where the independence movement
can countries. In 1960, for example, the infant mortality
was strongest; from Buenos Aires, revolutionary senti-
rate was about 47 per thousand births, but by 1970 the
ment spread to the interior of the Rio de la Plata Viceroy-
rate had dropped to 43 per thousand. In 1971 there was
alty, and also to centres of Spanish crown rule beyond the
about one physician for every 800 people. Long a South
Andes. Lima and Montevideo were both bulwarks of
American pioneer in international cooperation, Uruguay
resistance to the ideas proclaimed by the new revolution-
participates in the technical assistance programs of the
ary power groups (see further LATIN AMERICA AND THE
United States, the Organization of American States, and
CARIBBEAN, COLONIAL).
the United Nations.
The struggle for national identity (1811-90). Monte-
Living and working conditions. With 1953 figured as
video was the site of a Spanish naval installation; in 1811
100, the cost of living had risen to 314 by 1960. Between
an armed insurrection led by the rural spokesman José
Artigas'
1955 and 1970, inflation increased by 9,000 percent. The
Artigas broke out in its hinterland, the Banda Oriental del
revolt
strength of the trade-union movement is reflected by the
Uruguay (the east bank of the Uruguay River). Spanish
number of workers-approximately 45,000-who were
authority was challenged, and unresolved colonial prob-
members of internationally affiliated trade unions in the
lems were brought to the fore. The estancieros (ranchers)
late 1960s. A severe economic depression began in the
were joined in revolt by the gauchos (cowboys), the
mid-1960s and by the early 1970s had created great un-
peons, and the slaves. Artigas proposed a plan for a re-
rest as government officials sought, apparently unsuccess-
publican federation of the Rio de la Plata territories and
fully, to cope with the growing economic crisis.
a democratization of rural life based on advanced social
Cultural life. Uruguay falls within the same cultural
principles.
context as other Spanish-speaking American states. Inter-
The Buenos Aires oligarchy, realizing how Artigas' pro-
est in literature and the arts has flourished. There is a
posals would affect them, decided to crush his growing
thriving press, both in Montevideo and the provinces;
power; their forces defeated him in 1816, ending the first
censorship, to which the press in many South American
manifestation of Uruguayan autonomous government.
countries is frequently subjected, has been virtually non-
The emancipation of the Banda Oriental eventually was
existent. Recreational facilities are provided by the sandy
achieved during the period of Portuguese-Brazilian occu-
beaches on the coast, as well as by the wildlife resources
pation (1817-28). In 1825, Juan Antonio Lavalleja
of the interior; both have served as tourist attractions.
and his supporters (known as the "33 orientales") formed
Football is the principal sport, but basketball and horse
an army with Argentine help and defeated the Brazilians
racing are also popular.
(G.I.B./Ed.)
at Ituzaingó (February 20, 1827). A preliminary peace
pact with Brazil (August 27, 1828) recognized Uruguay's
PROSPECTS FOR THE FUTURE
independence. On July 18, 1830, a constitution for the
Whereas Uruguayans have long prided themselves on
new nation was approved. Uruguay had scarcely 74,000
their national slogan, "Como Uruguay, no hay" ("There
inhabitants; its main economic resources, livestock and
is no country like Uruguay"), in the early 1970s Uru-
land, were concentrated in the hands of a few families
guay's future appeared beset by uncertainties. Continuing
who had acquired economic empires in the countryside
economic crisis, the deterioration of the party system,
during the colonial period. The first two decades of inde-
the emergence of the small but significant Tupámaros
pendence were a time of testing. There were frequent
guerrilla movement, and the emigration of many edu-
uprisings in the interior, and, in the urban areas, opposing
cated Uruguayans all gave cause for concern. On the
factions grew up around their leaders Fructuoso Rivera
and Manuel Oribe. The colours used by each faction
The
other hand, the country's strongly rooted democratic and
gave rise to the present names of Uruguay's main
Colorados
humane traditions, its level of education, and its tem-
political parties: red, or Colorado, for Rivera's group,
and the
perate climate were among the factors that, to some
and white, or Blanco, for Oribe's.
Blancos
extent, offset negative factors and encouraged hopes that
Antagonism between these groups led to the civil war of
the country would eventually experience a return to
1839-51, during which the Blanco Party controlled the
more favourable conditions.
(Ed.)
interior and the Colorado Party controlled Montevideo.
BIBLIOGRAPHY. Two general introductions to the coun-
Several foreign powers intervened-Argentina on the
try-its geography, history, economy, and culture-are RUS-
side of the Blancos, England and France on the side of
SELL H. FITZGIBBON, Uruguay: Portrait of a Democracy
the Colorados.
(1954); and GEORGE PENDLE, Uruguay, 3rd ed. (1963). See
The period ended without losers or victors, and the
also D.C. REDDING, "The Economic Decline of Uruguay," In-
failure to achieve national unity opened a whole new era
ter-American Economic Affairs, 20:55-72 (1967), a careful
of turbulence and uprisings, frequently involving the
report on how the Uruguayan economy has been overloaded
country in Brazilian and Argentine affairs. This led to
by the measures of a welfare state; and RONALD H. MCDONALD,
"Electoral Politics and Uruguayan Political Decay," ibid.,
Uruguay's participation with Brazil and Argentina in war
26:25-45 (1972), presents the argument that one of the
against Paraguay (1865-70). Successive attempts at polit-
more democratic societies of Latin America has been under-
ical coexistence and internal order, indispensible to Uru-
mined by an organized minority. Other works of interest in-
guay's modernization and entrance into world economics,
clude CARLOS M. RAMA, Ensayo de sociología Uruguaya (1957)
were frustrated. Internally the caudillos, (personalist
and Las clases sociales en el Uruguay (1960); JOHN STREET,
leaders) struggled for power with liberal parliamentarians
Artigas and the Emancipation of Uruguay (1959); PHILIP B.
known as principistas or "doctors." In the 1870s, con-
TAYLOR, JR., Government and Politics of Uruguay (1962);
trol of the government passed into the hands of the
MILTON I. VANGER, José Batlle y Ordóñez of Uruguay: The
military.
Creator of His Times, 1902-1907 (1963); and MARVIN ALIS-
KY, Uruguay: A Contemporary Survey (1969), a descriptive
During the administration of Col. Lorenzo Latorre
account of the economy.
(1876-80), power was more firmly centralized: pacifi-
(M.I.V.)
cation of the rural areas permitted advances in stock
breeding and ended the power of the caudillos. Capitalist
Uruguay, History of
development and internal stability continued under the
Before the coming of the Europeans, the east bank of the
governments of Gen. Máximo Santos and Gen. Máximo
Uruguay River was inhabited by a group of Indian tribes
Tajes (1880-90).
known collectively as the Charrúas. European settlers
The prosperity of the export economy (1890-1954). By
raised cattle there in the 17th century, and in 1680 the
the time civilian rule was restored under Julio Her-
Portuguese founded a settlement at Colonia del Sacra-
rera y Obes in the 1890s, the rural economic structure
mento. With the establishment of Montevideo in 1726,
had adapted itself to the demands of external markets.
Uruguay, History of
1099
Wool and dried (or jerked) beef exports rose greatly. The
With the beginning of World War II, President Baldomir
population, as a result of immigration from Mediter-
kept Uruguay neutral. Many Uruguayans sympathized
ranean Europe, more than doubled during the last quarter
with the Allies, but the leader of the Blanco Party, Luis
of the 19th century, rising from 450,000 people in 1875 to
Alberto de Herrera, campaigned for strict neutrality and
about 1,000,000 in 1900. The adoption of new fiscal
sought to prevent the installation of North American
policies and the development of transportation and com-
naval bases in the country. Other leading Blancos had
munication facilities (railroads and telegraphs) stimulated
definite Nazi-Fascist sympathies. Nevertheless, Uruguay,
foreign loans and investment, usually of British origin.
along with most of the other Latin American republics,
At the beginning of the 20th century, the country was
declared war on the Axis powers in 1945.
again torn by a factional dispute, based on the Blanco (or
At the beginning of 1942 President Baldomir dissolved
Nationalist) Party's demands for greater participation in
the Congress and prepared a new constitution. His sup-
government affairs. After a Blanco uprising and the assas-
port came not only from his own Colorado Party but also
sination of the Colorado president, Juan Idiarte Borda, in
from the independent Blancos (members of the Blanco
1897, tension between the two parties reached a climax in
Party who, in 1933, had separated from it because of
1904. At this time, a year after being elected president,
their opposition to the ideology of Herrera). The takeover
the Colorado leader, José Batlle y Ordóñez, was confront-
of the government by Juan José Amézaga in 1943 marked
ed by a Blanco revolt headed by Aparicio Saravia. After
a return to democratic liberalism. Once again, a war aided
eight months of bloody fighting and the death of Saravia,
the Uruguayan economy. As had happened during World
the conflict was ended by the Peace of Aceguá. This
War I, the value of livestock products rose disproportion-
agreement was followed by a reorganization of the politi-
ately, a lucrative European market opened up, and im-
cal parties and marked the beginning of a long period of
ports declined tremendously. Small industries prospered,
internal peace and orderly government for Uruguay.
filling the gap created by the import decline. The standard
The
From 1904 until his death in 1929, José Batlle y Ordóñez
of living rose. Internal consumer markets grew, unem-
influence
dominated the political scene. Twice president of the
ployment dropped, educational opportunities opened up,
of Batlle y
republic (1903-07; 1911-15), he designed reform pro-
and labour legislation bettered the existing social security
Ordóñez
grams that became the objectives of the modern
system.
Uruguayan state.
Tomás Berreta, a disciple of Batlle y Ordóñez, was
Administrative reforms included the creation of a Su-
elected president in 1946, but his sudden death left the
preme Court of Justice, greater municipal autonomy, and
government in the hands of Batlle's nephew, the urban
the creation of more public services. Social reforms in-
caudillo Luis Batlle Berres. The government readopted
cluded the removal of public education from the control
the principles of the 1917 constitution, and after reaching
of the Roman Catholic Church, the extension of free
an agreement with the Blanco Party, created, in the
education on the secondary and university levels, a reform
constitution of 1951, the National Council of Govern-
of the university system, extension of the right of divorce
ment, which replaced the presidential office with a nine-
to women, and, finally, separation of church and state in
member council.
1917.
Uruguay became a haven for exiles from Argentina who
Advanced labour legislation that was passed (the right to
opposed Juan Perón, that country's president from 1946
strike, an eight-hour workday, obligatory accident insur-
to 1955. They used the Uruguayan press and radio net-
ance) emphasized the role of the state as mediator be-
works to win support for their cause, with the tacit
tween management and labour.
approval of the Uruguayan government. An opposition
Batlle's policies discouraged foreign intervention in Uru-
campaign and anti-Peronist committees, based in Monte-
guay's economic affairs. While North American penetra-
video, found support in the liberal temper of the country.
tion pushed on the frozen meat industry, he promoted a
Uruguay's relations with Argentina deteriorated, reaching
strong policy of nationalism, by means of several govern-
their lowest point just before Perón's overthrow in 1955.
ment monopolies, assuring state control of areas usually
Economic and political developments since 1954. The
dominated by private or foreign capital (mainly British,
Korean War precipitated a brief economic boom that
os
toward which Batlle showed an open disaffection).
ended in 1954. Uruguay then entered a period of econom-
During World War I, the agriculturally based economy
ic stagnation, followed by a period of recession aggravat-
flourished with the export boom. At the same time,
ed by the lowering of world prices on its chief exports
domestic production and consumption of manufactured
(wools, meat, leather products) as well as by the rising
goods increased, in reaction to protective tariffs in other
price of manufactured goods. The economic deterioration
countries and the spiralling cost of imported goods. This
resulted in labour riots, demonstrations, and general dis-
economic expansion was accompanied by political reform.
content among the populace.
President Batlle, fearing the power of the presidency,
The 1958 elections reflected this discontent. For the first
The
proposed its abolition and the substitution of a nine-
time in 93 years, the Colorado Party was defeated, and
Blanco
member executive council. A plebiscite defeated the idea
the Nationalists (Blancos), promising an improvement in
victory of
(1916), but it was partially retained in the constitution of
the economy, came to power under Martin R. Echegoyen.
1958
1917 that, while retaining the presidency, provided for the
The change of government came at a time of tremendous
creation of a National Council of Administration made up
inflation. In 1959, a monetary reform law was passed,
of nine elected members. This constitutional reform, com-
providing for successive devaluations of the currency.
bined with the extension of suffrage rights in 1924, gave
Tension and discontent rose among all sectors of the
new impulse to representative government in Uruguay.
population.
At the same time the economy entered a bad period.
In the same year (1959), Herrera, former leader of the
Exports declined with the reorganization of European
Blanco Party, died, and divisions within the party deep-
markets following the war. U.S. capital was used to
ened. The Blanco government was unable to deal effec-
finance road construction, in competition with the British
tively with the crisis. Its free enterprise orientation
railway system, and U.S. business investments heralded
allowed economic elite groups to import luxury items at
the shift from British to U.S. economic domination. The
a time when official government policy limited imports to
New York stock market crash of 1929 caused a further
essential consumer goods.
decline in exports and a price decrease for Uruguayan
The second Blanco administration (1963-66) was charac-
goods. Complicating the situation were the Ottawa Agree-
terized by an even sharper disintegration of the traditional
ments (1932), which greatly limited the accessibility of Río
political parties, resulting in the proliferation of groups
de la Plata meats to British markets. An austerity pro-
and subgroups under personalist leaders. Inflation was not
gram was instituted to improve the economic situation. In
halted. A 1965 bank failure staggered the monetary
1933, however, Pres. Gabriel Terra, of the Colorado
economy. Furthermore, the cost of living rose, affecting
Party, proclaimed himself dictator. The constitution of
those income groups (mainly urban) that were least able
1917 was invalidated and full power was restored to the
to afford it. The inflation and production slump continued
president; this situation lasted until mid-1938, when Gen.
into the 1970s.
(J.A.O.)
Alfredo Baldomir was elected president.
Economic crisis incubated the Tupamaro urban guerrilla
1100 Uruguay, History of
movement, the widespread terrorist activities of which
respected and criticized and by whom he was admitted to
brought on a military coup in 1973. The military gov-
the Qãdiriyah and other Sufi orders.
erned first through the previously elected Colorado Party
In about 1774-75 Usman began his active life as a
president Juan María Bordaberry Arocena (1972-76) and
teacher, and for the next 12 years combined study with
then replaced him in 1976 with Aparicio Méndez. Au-
peripatetic teaching and preaching in Kebbi and Gobir,
thoritarianism earned Uruguay the reputation of having
followed by a further five years in Zamfara. During this
the highest ratio of political prisoners to population in the
latter period, though committed in principle to avoiding
world. The government turned to free market economics,
the courts of kings, he visited Bawa, the sultan of Gobir,
but economic recovery was impeded by the need to
from whom he won important concessions for the local
import all the country's oil and by the unwillingness of
Muslim community (including his own freedom to propa-
the Common Market countries of Europe to import meat,
gate Islãm); he also appears to have taught the future
a principal Uruguayan export. A new constitution and an
sultan, Yunfa.
election (with only one official presidential candidate) were
Throughout the 1780s and '90s the Shaykh's reputation
promised by the military for 1981.
(M.I.V.)
increased, as did the size and importance of the communi-
BIBLIOGRAPHY. EDUARDO ACEVEDO, Anales históricos del
ty that looked to him for religious and political leader-
Uruguay, 2nd ed. (1933-36), a detailed description of politi-
ship. Particularly closely associated with him were his
cal, economic, and administrative events covering the period
younger brother, Abdullahi, one of his first pupils, and
1830-1930; J.P. BARRAN and B. NAHUM, Historia Rural del
his son, Muhammad Bello, both distinguished teachers
Uruguay Moderno, 1851-1914, 7 vol. (1967-78), the major
and writers. But his own scholarly clan was slow to come
history of rural Uruguay, with provocative interpretations;
over to him. Significant support seems to have come from
EDITIONES DE LA BANDA ORIENTAL, Historia Uruguaya, 6 vol.
the Hausa peasantry. Their economic and social griev-
(1975), series by six different authors covering Uruguayan
ances and experience of oppression under the existing
history from discovery to 1929; S.G. HANSON, Utopia in Uru-
dynasties stimulated millenarian hopes and led them to
guay (1938), an analysis of different economic sectors affect-
ed by Batlle's reforms, covering the era 1911-30; EDY
identify him with the Mahdi (Divinely Guided One),
KAUFMAN, Uruguay in Transition: From Civilian to Military Rule
whose appearance was expected at that time. Though he
(1979), a political science analysis of the 1973 military coup
rejected this identification, he did share and encourage
and its aftermath; G. LINDAHL, Uruguay's New Path (Eng.
their expectations.
trans. 1962), a review of programs, finances, and economic
During the 1790s, when Usman seems to have lived
structures from 1919-33; GEORGE PENDLE, Uruguay, 3rd ed.
continuously at Degel, a division developed between his
(1963), a survey of contemporary Uruguay, with particular
substantial community and the Gobir ruling dynasty. In
emphasis on the birth and evolution of the welfare state; J.E.
about 1797-98 Sultan Nafata, who was aware that the
PIVEL DEVOTO and A. RANIERI DE PIVEL DEVOTO, Historia de la
República Oriental del Uruguay, 1830-1930 (1945), a didactic
Shaykh had permitted his community to be armed and
synthesis tracing the political processes that accompanied the
who no doubt feared that it was acquiring the characteris-
formation of an independent Uruguay; JOHN STREET, Artigas
tics of a state within the state, reversed the liberal policy
and the Emancipation of Uruguay (1959), a concise, document-
he had adopted toward Usman 10 years earlier and issued
ed study explaining the significance of the role of Artigas;
his historic proclamation forbidding any but the Shaykh
M.I. VANGER, José Batlle y Ordoñez of Uruguay: The Creator of
to preach, forbidding the conversion of sons from the
his Times, 1902-1907 (1963) and The Model Country: José
religion of their fathers, and proscribing the use of tur-
Batlle y Ordoñez of Uruguay, 1907-1915 (1980), studies of the
bans and veils.
presidencies of Batlle and of the history of that era; MARTIN
In 1802 Yunfa succeeded Nafata as sultan, but, whatev-
WEINSTEIN, Uruguay: The Politics of Failure (1975), a flawed
attempt to explain the collapse of Uruguayan democracy.
er his previous ties with the Shaykh may have been, he
ALBERTO ZUM FELDE, Proceso histórico del Uruguay, 4th ed.
did not improve the status of Usman's community. The
(1963), an interpretive essay that is based on now outdated
breakdown, when it eventually occurred, turned on a
sociological data, but it is still valuable.
confused incident in which some of the Shaykh's support-
(J.A.O./M.I.V.)
ers forcibly freed Muslim prisoners taken by a Gobir
military expedition. Usman, who seems to have wished to
Usman dan Fodio
avoid a final breach, nevertheless agreed that Degel was
Usman dan Fodio (Arabic, 'Uthmãn ibn Füdi), often
threatened. Like the Prophet Muhammad, whose biogra-
simply referred to as "Shehu" or "the Shaykh," was the
phy he frequently noted as having close parallels with his
most important reforming leader of Africa's western Su-
own, the Shaykh carried out a hijrah (migration) to
dan region in the early 19th century. His importance lies
Gudu, 30 miles to the northwest, in February 1804.
partly in the new stimulus that he, as a mujaddid, or
Despite his own apparent reluctance, he was elected imãm
Elected
renewer of the faith, gave to Islãm throughout the region;
(leader) of the community, and the new caliphate was
imãm
partly in his work as a teacher and intellectual, the focus
formally established.
of a network of students, author of a large corpus of
During the next five years the Shaykh's primary interests
writings in Arabic and Fulani that covered most of the
were necessarily the conduct of the jihãd (holy war) and
Islãmic sciences and enjoyed-and still enjoy-wide circu-
the organization of the caliphate. He did not himself take
lation and influence; partly in his activities as founder of
part in military expeditions, but appointed commanders,
a jamã'a, or Islãmic community, which became a new
encouraged the army, handled diplomatic questions, and
polity, the Sokoto caliphate, and brought the Hausa
wrote widely on problems relating to the jihãd and its
states and some neighbouring territories under a single
theoretical justification. On this his basic position was
central administration for the first time in history.
clear and rigorous: the Sultan of Gobir had attacked the
Though involved in an active life of preaching and
Muslims; therefore he was an unbeliever and as such
controversy, the Shaykh was also a serious Sufi who
must be fought; and anyone helping an unbeliever was
underwent mystical experiences. Usman was familiar with
also an unbeliever. (This last proposition was later used
jinns (spirits), and he lived ascetically without wealth or
to justify the conflict with Bornu.)
servants.
As regards the structure of the caliphate, the Shaykh
Usman was born in 1754 at Maratta in the Hausa state
attempted to establish an essentially simple, non-exploit-
Early
of Gobir, in what is now northwest Nigeria. His father,
ative system. His views are stated in his important treatise
years
Muhammad Fodiye, was a scholar from the Toronkawa
Bayan wujüb al-hijra (November 1806) and elsewhere: the
clan, which had emigrated from the Fouta-Toro in Sene-
central bureaucracy should be limited to a loyal and
gal in about the 15th century. While still young Usman
honest vizier, judges, a chief of police, and a collector of
moved south with his family to Degel, where he studied
taxes; local administration should be in the hands of
the Qur'ãn with his father. Later he moved on to other
governors (amirs), selected from the scholarly class for
scholar relatives, travelling from teacher to teacher in the
their learning, piety, integrity, and sense of justice.
traditional way and reading widely in the Islãmic sciences.
Initially the military situation was far from favour-
One powerful intellectual and religious influence at this
able. Food supplies were a continuing problem; the req-
time was his teacher in the south Saharan city of Agadez,
uisitioning of local food antagonized the peasantry;
Jibril ibn 'Umar, a radical figure whom Usman both
increasing dependence on the great Fulani clan leaders,
CONFTDENTIAL
ACTION
DEPARTMENT OF STATE
ARA/NEA REARCS
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MONTEV 83488 " OF 02 1721552 828822
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ACTION: VYPA (81)
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COOPERATION THROUGHOUT OUR HEMISPHERE.
0 172841Z JUL "
FM AMEMBASSY MONTEVIDEO
MR. PRESIDENT, AS VE LEAVE THE LAND OF ARTIGAS WE
TO SECSTATE WASHDC IMMEDIATE 3228
WISH TO THANK YOU FOR ALL THE ATTENTION AND COURTESIES
VE HAVE RECEIVED, AND TO EXPRESS TO YOU AND TO THE PEOPLE
MONTEVIDED #3485
OF URUGUAY OUR MOST SINCERE WISHES FOR A PEACEFUL AND
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BASED ON CURRENT SCHEDULING INFORMATION THE ONLY
OCCASION ON WHICH WE ANTICIPATE THERE VILL BE A TOAST
REF: STATE 225839
IS THE LUNCHEON TO BE HOSTED BY PRESIDENT LACALLE ON
THE 18TH.
1. CONFIDENTIAL ENTIRE TEXT.
IT IS INDEED A PLEASURE FOR ME TO BE IN URUGUAY
2. FOLLOWING ARE EMBASSY MONTEVIDEO'S SUGGESTED ARRIVAL
TODAY. AFTER HAVING MET WITH YOU IN WASHINGTON AND
AND DEPARTURE STATEMENTS, A SUGGESTED LUNCHEON TOAST AND
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BE IN YOUR COUNTRY. I HAVE TO TELL YOU. MR. PRESIDENT,
THAT I TRULY ENJOYED THE DRIVE INTO TOWN FROM THE
ARRIVAL STATEMENT
AIRPORT. AS YOU KNOW. I AM PARTIAL to FISHING, AND MY
REGRET IS THAT I DO NOT HAVE TIME IN TRIS ALL-TOO-SHORT
.. If IS A GREAT PI EASURE 10 BE URUGUAY,
VISIT TO TRY MY LUCK IN THE WATERS OF THE RID DE LA
THAT
HAS
ALWAYS
PLATA. BEYOND THE PHYSICAL ATTRACTIVENESS OF THE CITY
TRANSCENDED ITS SIZE IN THE INTERNATIONAL ARENA.
OF MONTEVIDED, WHAT IMPRESSES ME, MR. PRESIDENT: IS THE
COMMITMENT OF YOU AND YOUR COUNTRYMEN TO DEMOCRACY AND
URUGUAY WAS ALWAYS HAD AN IMPORTANCE OUT OF PROPOR-
FREEDOM AND THE FREE ENTERPRISE SYSTEM, URUGUAY IS A
TION TO ITS SIZE. NOT JUST BECAUSE OF THE GREAT SUCCESS
MODEL FOR ALL. NOT ONLY DID YOU AND YOUR COLLEAGUES
OF ITS SOCCER TEAM OR THE INTERNATIONAL REPUTATION
SUCCESSFULLY RETURN THIS COUNTRY TO DEMOCRACY, BUT
ENJOYED BY ITS BEEF, WOOL AND HIDES, BUT BECAUSE OF ITS
ALSO DEMOCRATIC URUGUAY IS TO BE CONGRATULATED FOR ITS
TRADITIONAL RESPECT AND SUPPORT FOR DEMOCRACY. THE
PRUDENT AND EXEMPLARY MANAGEMENT OF ITS FOREIGN DEBT.
CLARITY AND DIGNITY OF ITS AFFIRMATIONS: AND THE
VE ARE PARTNERS IN DEVELOPING A PEACEFUL, DEMOCRATIC
PRIMACY OF THE RULE OF LAW THAT HAS CHARACTERIZED ITS
AND PROSPENOUS WEMISPHERE. AS YOUR GREAT LEADER
HISTORY.
JOSE ARTIGAS SAID *INDUSTRY AND COMMERCE ARE THE
CHANNELS FOR PEOPLE'S NAPPINESS." WORKING TOGETHER. WE
MR. PRESIDENT, WE NET FIRST IN WASHINGTON, AND I AM
CAN FORGE AN ALLIANCE WICH WILL BENEFIT NOT ONLY OUR
NOW DELIGHTED TO BE IN YOUR COUNTRY.
TWO COUNTRIES BUT PERHAPS EVEN THE ENTIRE HEMISPHERE.
MR. PRESIDENT, I SALUTE YOU.
-
-- YOU ARE ONE OF LATIN AMERICA'S NEW LEADERS. A
FORWARD-LOOKING MAN WHO TAKES INITIATIVES AND PROMOTES
REMARKS OF PRESIDENT GEORGE BUSH TO THE EMBASSY STAFF
By_H_____________________ NARA, Date 06/06/23
E.O. 12958, SEC 3.4 (B), July 21, 1997
Department of State Guidelines
DECLASSIFIED
CHANGE AND ECONOMIC PROGRESS NOT ONLY IN YOUR OWN
COUNTRY BUT THROUGHOUT THE REGION.
.
IT'S A GREAT PLEASURE FOR BARBARA AND ME to BE HERE
WITH YOU TODAY. AS YOU KNOW, 1 WAS AN AMBASSADOR MYSELF
-- 1 RECALL, MR. PRESIDENT, YOUR REMARKS AT THE LAST
AND I REMEMBER HOW MUCH WORK WAS PUT INTO SUCH VISITS.
OAS GENERAL ASSEMBLY, CALLING FOR A NEW HEMISPHERIC
1 WANT TO THANK YOU ALL URUGUAYANS AND AMERICANS
RELATIONSHIP BETWEEN THE U.S. AND LATIN AMERICA. THIS
AND I WANT YOU TO KNOW THAT YOUR HARD WORK HASN'T GONE
STATE VISIT, THE FIRST TO YOUR CAPITAL CITY BY AN
UNNOTICED OR UNRECOGNIZED.
AMERICAN PRESIDENT SINCE THAT of PRESIDENT EISENHOWER
36 YEARS AGO, IS PART OF MY RESPONSE 10 YOUR CALL, FOR
.
I UNDERSTAND THAT I'M THE FIRST PRESIDENT OF THE
IF 1 AM TO MEET YOUR CHALLENGE I MUST LEARN FIRSTHAND
UNITED STATES TO VISIT URUGUAY SINCE LYNDON JOHNSON WENT
OF YOUR PROBLEMS AND YOUR SUCCESSES.
TO PUNTA DEL ESTE IN 1967. UNFORTUNATELY I DON'T HAVE
TIME TO GO TO THE BEACH, BUT I NAVE BEEN IMPRESSED WITH
-
DEPARTURE STATEMENT
WHAT I'VE SEEN OF MONTEVIDED AND OF URUGUAY. If
REMINDS ME SOMEWHAT OF MY HOME STATE OF TEXAS, EXCEPT
-- II WAS A PLEASURE FOR BARBARA AND ME TO HAVE SPENT
THAT YOU CALL YOUR COWBOYS CAUCHOS AND YOUR BARBECUES
THESE FEW HOURS IN URUGUAY. AS TEXANS WE HAVE FELT VERY
ASADOS, AND YOUR FOOTBALL IS ROUND.
MUCH AT HOME.
TWENTY-THREE YEARS IS TOO LONG BETWEEN VISITS, BUT
.
-- THOUGH OURS WAS A SHORT VISIT, 11 HAS BEEN
AS YOU KNOW WE ARE ENTERING A SPECIAL TIME IN U.S.
SUFFICIENT TO CONFIRM MY FAITH IN URUGUAY'S COMMITMENT
LATIN AMERICAN RELATIONS, AND I THOUGHT IT WAS IMPORTANT
TO DEMOCRACY.
TO COME TO THE REGION MYSELF, MEET DIRECTLY WITH ITS
LEADERS, AND TALK TO THEM FACE TO FACE ABOUT SOME KEY
CONFIDENTIAL
CONT TUENTIAL
DEPARTMENT OF STATE
ARA/NEA REARCS
PAGE #2 OF 02 MONTEV 93480 = OF $2 1721552
028822
886319
ISSUES THAT CONCERN US BOTH -- MV ENTERPRISE FOR THE
AMERICAS INITIATIVE THAT WAS AMNOUNCED IN JUNE, THE DEBT.
THE CONSOLIDATION OF DEMOCRACY IN THE REGION, AND OTHER
ISSUES OF MUTUAL INTEREST. AS YOU KNOW, I MET PRESIDENT
LACALLE IN WASHINGTON WHEN HE WAS PRESIDENT-ELECT. WE
HAVE AN EXCELLENT WORKING RELATIONSHIP, HE HAS BEEN A
STRONG SUPPORTER OF OUR ENTERPRISE FOR THE AMERICAS, WE
APPRECIATE THE LEADERSHIP ROLE HE HAS TAKEN IN PROMOTING
IT AMONG HIS LATIN AMERICAN COLLEAGUES, AND WE RECOGNIZE
HIS ROLE IN THE CONSOLIDATION OF DEMOCRACY IN THE
SOUTHERN CONE.
1 WANT TO TAKE JUST A MINUTE TO REITERATE HOW MUCH
I APPRECIATE THE WORK OF THIS EMBASSY .. NOT JUST
RECARDING THIS VISIT BUT ON A DAY-TO-DAY BASIS. YOU
ARE AMONG THE BEST OF OUR COUNTRY, AND WE OWE YOU A DEBT
OF GRATITUDE. AND, 1 WANT TO PAY TRIBUTE TO THE
URUGUAYAN FOREIGN SERVICE NATIONAL EMPLOYEES WHO, AS
ANY EX-ANBASSADOR KNOWS, REALLY RUN THE EMBASSY.
.
THANK YOU ALL FOR YOUR HOSPITALITY, FOR YOUR HARD
WORK IN MAKING THIS BRIEF VISIT A SUCCESS, AND FOR YOUR
DEDICATION AND LOYALTY IN SERVICE TO THE UNITED STATES.
GOD BLESS YOU. CRIST
OTRA
DEPARTMENT OF STATE
ARA/NEA REARCS
BUSH
PAGE 01
MONTEV 03130 " of #2 2928282
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ACTION:
POSSIBLE ACTORS IN THIS NEGOTIATION WOULD DE THE LATIM
AMERICAN INTEGRATION ASSOCIATION CALADI) MIOSE
INFO: DSC 1811 DDSC (01) IDD MS (81) RJ(0)) EX (01) PMO (#1)
HEADQUARTERS IS IN MONTEVIDED. VE WOULD DE THE LAST
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TO SAY ALADI IS AN EFFECTIVE ORGANIZATION AT PRESENT,
29/20182 A2 P.B. (TOTAL COPIES: #121
BUT ITS ROLE SHOULD UNDOUBTEDLY BE ACKNOWLEDGED IN
ACTION ARA-OU
THIS CONTEXT.
INFO LOG-## ADS-## $5.08 EB-00 NSCE-## SS0-## SP-D#
1, INVESTMENT: URUGUAY MAINTAINS AR EXTREMELY OPEN
C-81
E-01
1007 Y
LEGAL AND ECONOMIC REGIME WITH REGARD to FOREIGN INVEST-
345238 2920302 /72 60
MENT. A THEME IN THIS AREA WOULD BE THE NECESSITY FOR
0 2919512 JUN "
DEVELOPING ADEQUATE CAPITAL MARKETS IN LATIN MERICAN
FN AREMBASSY MONTEVIDEO
COUNTRIES AS A COMPLEMENT TO THE DEVELOPMENT OF h
TO SECSTATE WASHOC IMMEDIATE 3061
NEMISPHERIC CAPITAL MARKET. THIS WOULD INCLUDE THE NEED
INFO AMEMBASSY BUENOS AIRES
TO RENOVE STRUCTURAL AND LEGAL BARRIERS TO THE FLOV OF
AMENBASSY CARACAS
CAPITAL AS WELL AS LEGAL AND REGULATORY REFORM AIRED AT
AMENDASSY BRASILIA
ENHANCING THE ATTRACTIVENESS TO BOTH SMALL AND LARGE
AMEMBASSY SANTIAGO
SAVERS OF THE CAPITAL MARKETS CREATED. THE PRESIDENT
COULD CITE LACALLE'S MEMISPHERIC CAPITAL MARKET IDEA AS
MONTEVIDEO #3139
AM EXAMPLE OF NEW AND CREATIVE THINKING IN THIS AREA.
THE PRESIDENT SHOULD SUPPORT LACALLE'S EMPHASIS ON
E.O. 12356: DECL:0ADR
"RISK CAPITAL" AS A SOURCE OF GROWTH AND PROGRESS.
TAGS: OVIP: UY
THE PRESIDENT SWOULD ALSO POINT TO THE SIGNING OF THE
SUBJECT: PRESIDENT'S SOUTH AMERICAN TRIP: SPECIFIC
BILATERAL INVESTMENT TREATY BETWEEN URUGUAY AND THE
TOPICS FOR URUGUAY
UNITED STATES OMICH SHOULD BE COMPLETED BY THEM, AS
EVIDENCE OF WHAT THE UNITED STATES AND ITS LATIN
REF: (A) STATE 201919, B) ASUNCION 2432
WEIGHBORS CAN DO IN CONCRETE TERMS TO SMOOTH THE PATH
OF SUCH RISK CAPITAL AND MAKE THE NEMISPHERIC CAPITAL
1. CONFIDENTIAL ENTIRE TEXT.
MARKET A REALITY. ME WOULD NOPE TD HAVE THE SIGNING
CEREMOMY FOR THE BILATERAL INVESTMENT TREATY DURING THE
2. THE PRESIDENT'S ENTERPRISE FOR THE AMERICAS
VISIT.
INITIATIVE PROVIDES AN EXCELLENT BACKGROUND FOR SPEECHES
RE WILL MAKE DURING HIS VISIT. TWO THEMES IN THAT
5. STRUCTURAL ADJUSTMENT: LACALLE IS UNDER-
INITIATIVE, TRADE AND INVESTMENT. ARE OF PARTICULAR
TAKING A WIDE RANGE OF STRUCTURAL REFORMS WHICH WILL SERVE
INTEREST TO URUGUAY. PRESIDENT LACALLE IN HIS SPEECH
10 ENNANCE THE ECONOMIC ENVIRONMENT FOR INVESTMENT III
10 THE DAS IN ASUNCION DIEF I UNDERLINED EXACTLY THAT
URUGUAY. THE REVENUE MEASURES AND EXPENDITURE
POINT, HE STATED "THE ECONOMIC RELATIONSHIP BETWEEN
REDUCTIONS HAVE ALREADY IIM MAYI BEGUN TO PRODUCE
LATIN AMERICA AND THE UNITED STATES NEEDS TO BE
RECONSIDERED. VE 00 NOT BELIEVE THAT THE SOLUTION IS
MORE AID BUT RATHER MORE TRADE, MORE INVESTMENT. VE
WOULD ALSO LIKE 10 POINT OUT THAT OUR COUNTRIES ARE
SURPLUSES IM THE CENTRAL GOVERNMENT ACCOUNTS AND WILL
UNDERTAKING PROFOUND TRANSFORMATIONS IN THEIR
BEGIN 10 BRING DOWN THE OVERALL DEFICIT. PENDING REFORMS
RESPECTIVE ECONOMIES CREATING IN THIS WAY, A FAVORABLE
MHICH MAY DE APPROVED BY SEPTEMBER WILL REDUCE THE SIZE
CLIMATE FOR INVESTMENT. THE RESTRUCTURING OF THE
OF THE STATE AND REFORM EXISTING AND COSTLY STATE
STATE HAS BEEN UNDERTAKEN AS A NECESSARY GOAL BY ALMOST
MONOPOLIES. LACALLE HAS ALSO PROPOSED REFORMS 10
ALL OF THE AMERICAN NATIONS AND If IS PROOF OF THE WILL
MODERNIZE URUGUAY'S LABOR RELATIONS. THE PRESIDENT
TOWARDS CHANGE WHICH GUIDES LATIN AMERICAN GOVERNMENTS,
SHOULD INCLUDE IN HIS SPEECH RECOGNITION OF THESE
BECAUSE WE SEE AND RECOGNIZE THAY THIS IS NOT A ONE -
ENDEAVORS AND PERHAPS USE THEM AS MODELS FOR THE TYPE
WAY STREET." LACALLE ALSO PROPOSED THE CREATION OF
OF REFORMS THAT ATTRACT FOREIGN INVESTMENT.
"A GRAND CAPITAL MARKET. IN THE REGION."
JURECKY
3. TRADE: K BELIEVE THAT THE PRESIDENT'S SPEECH IN
MONTEVIDEO SHOULD FIRST OF ALL UNDERLINE THE IMPORTANCE
OF THE SUCCESSFUL IMPLEMENTATION OF THE SATT ROUND
WHICH WAS BEGUN IN PUNTA DEL ESTE, URUGUAY. THE
PRESIDENT SHOULD ALSO URGE URUGUAY TO WORK CLOSELY
WITH ITS LATIN AMERICAN NEIGHBORS AND THE UNITED STATES
TO ENSURE THAT AN OVERALL SATISFACTORY RESULT ON THE
MATTERS OF KEY CONCERN, INCLUDING AGRICULTURE, IS
ACHIEVED. IT WOULD ALSO BE IMPORTANT FOR THE PRESIDENT
TO EXPAND ON HIS NOTION OF A REGIONAL FREE TRADE
AGREEMENT. AT THIS POINT IT IS DIFFICULT TO SAY EXACTLY
WHAT THIS PORTION SHOULD CONSIST OF, SINCE THE
INITIATIVE HAS JUST BEEN ANNOUNCED AND WE HAVE NOT YET
OBTAINED ANY SUBSTANTIVE REACTION FROM URUGUAY OR ANY
OF its MEIGHBORS. MUCH WILL DEPEND ON WHETHER THERE
IS BROAD ACCEPTANCE FOR THIS NOTION IN LATIN AMERICA
AND/OR WHETHER NATIONS INCLUDING URUGUAY HAVE ACCEPTED
THE IDEA OF NEGO7:ATING BILATERAL FREE TRADE AREAS.
II SHOULD ALSO BE NOTED THAT ONE of THE REGIONAL
INTEGRATION MECHANISMS MENTIONED IN THE INITIATIVE AS
CONFIDENTIAL
- 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
I
-- 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 1,ow-growth
LDCs such as Brazil to East European countries.
Reflecting on the impact of Europe 92 on the Caribbean one
leader said: "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 - Sente negatall a "FTA
Argentine exports of soybeans have grown 28 times in the
little over a decade to make the world's 3rd largest
exporter.
o
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."
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/Nicaraqua. 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/humanitarian 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 guarantors
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.
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.
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.
A quick reference aid on U.S. foreign policy
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
per capita growth rates averaged 3.6%, per capita gross
the Caribbean.
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
Debt-Related Problems
a consequence, most countries in the region now are
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
Bureau of Public Affairs
March 1990
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
Bank and Inter-American Development Bank resources
established a compensatory and contingency financing
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
For the origin of debt-related problems as well as US
growth in debtor countries through policy-based, fast-
disbursing loans.
policy regarding debt and growth, see the May 1989
Department of State Gist on "Third World Debt."
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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 consolidation 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.
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-
equally compelling responsibility-
committed to the status quo. If we
mercial, political, and security
are true to its purposes and to our
and that is a responsibility to what
relationships and, indeed, in our
[Bolivian] President [Jaime] Paz
vast potential as a regional commu-
sympathies, for our many friends in
Zamora SO movingly described
nity, we will endeavor together:
this hemisphere.
yesterday as our common home, "El
There is, however, another factor
to forge our rightful and pro-
Hogar de las Americas." We are,
at work today that, although imper-
gressive policy in a world liberated
first and foremost, citizens of the
ceptible to most observers, already
from the authoritarian state and the
Americas, and we fully recognize the
has begun to transform the nature of
command economy, taking advantage
significance of the fact that, as
the relationship between my country
of increasing global interdependence
President Paz noted, two revolutions
and the nations and peoples of the
and competition for markets.
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-
up the possibility of closer ties than
ful in this endeavor to end the Cold
to cooperate to preserve the
we have ever enjoyed between
War once and for all, we will have
natural resources of this hemisphere.
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
is a secret to no one, asked Ambassa-
One hundred and two years ago, US
inevitably will be drawn toward
dor [Carla] Hills to represent him at
Secretary of State [James] Blaine
building, in partnership, a Western
this historic gathering. The world
issued a call for an inter-American
Hemisphere of freedom, peace, prog-
into which we are moving is one in
Congress and declared the willing-
ress, and prosperity.
ness of the United States to "enter
which national security will be
Ladies and gentlemen, the ties
defined less in terms of military
into the deliberations of the Congress
that bind my country to the nations of
strength than in terms of economic
with the loyal determination to
this hemisphere-ties of history, ge-
well-being. Increasingly, the weap-
approach any proposed solution
as
ography, and natural affinity-are
ons of war will give way to the
a single member among many co-
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
that together we may open a new
democracy must be at the top of our
"conscience of the Americas." The
agenda.
United States encourages the com-
century of inter-American progress.
The great democratic revolution
mission to expand its activities to
First, we should recommit our-
that is sweeping across the Americas
include technical assistance and
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
portunities throughout the world.
more than $20 million to the OAS.
Third, human rights must remain
With other US payments this year,
at the core of our cooperative efforts.
We in the United States applaud
this means that the Secretariat will
At its 30th anniversary last year,
the courageous efforts underway
have the money it needs to work
Secretary Baker saluted the Inter-
throughout the region to increase
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 ourenvironmental
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
zation's traditional stance against the
nation can defend the earth in isola-
cooperation.
governmental abuse of freedom but,
tion.
Recently, OAS support of the
more particularly, to the emergence
The United States believes this
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'
And we should rise in homage to the
address those sensitivities and do
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
president in free, multi-party elec-
come.
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
brought together attorneys general
economic future and the viability of
ONUCA [United Nations Peacekeep-
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
and approve model legislation to
[information science] as an educa-
of the OAS and the UN in Nicaragua
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
international program of action for
its regional outlook and multilateral
battalion to ONUCA. At the same
education to prevent drug abuse.
experience to propose a strategy for
time, we note the absence of contri-
The United States supports
enhanced cooperation.
butions by member countries through
CICAD's vital work, including its
the OAS as such. My government
new experts group to develop model
does not have a specific proposal but
legislation to stop money laundering
would welcome a review of how we
and to seize illegal assets.
might most effectively utilize existing
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
of the organization, if it has them, are
our privileged forum for dialogue,
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
tion, when it is evident, lies precisely
Published by the United States Department
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
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.
o
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
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.
o
All four countries have agreed that economic
assistance can best be utilized in the context of
sound economic policies.
engagisph -
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
IN
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
here today knowing that while much
and fair elections require. We are
Against the Opposition
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
position has coalesced, the Sandinis-
cept their vague assurances that
Fidel Castro's Cuba, of course, that
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
Press reports detail incidents of open
Resistance lay down their arms and
the world are being repudiated by
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
opposition.
changes sweeping the rest of the
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
tion's vice presidential candidate
monitors for Nicaragua. This man-
States launched a campaign to call
Virgilio Godoy along with a group of
date includes the obligation to raise
the world's attention to the nature of
supporters were stopped by soldiers.
all incidents that violate or interfere
the gross and systematic human
Godoy took the opportunity to com-
with the principle of free and fair
rights violations that form the under-
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
tained by the army. The soldiers re-
who heads the UN monitors, to en-
the spotlight afforded by a UN hu-
sponded that the opposition had been
sure that the types of violations I
man rights investigation affords one
throwing rocks and their commander
have described are noted and raised
of the best ways to affect Castro's
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
as turbas that have been employed by
need to work very hard in the next
for Human Rights to ensure that the
the Sandinistas to cow the Nicara-
few weeks to be in a position to do
Secretary General has the details of
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
tion campaign. Our Embassy reports
ment of those human rights described
forcefully pursue his mandate.
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
tacked by turbas who have inflicted
ernments of Central America. The
what I call the unitary UN. As I
severe injuries. Sandinista officials
Central American peace process de-
have described, we need to be mind-
have not even attempted to veil
pends on the ability of the people of
ful of the interrelationships among
threats intended to prevent the oppo-
the region to express their wills
human rights, democracy, and inter-
sition from campaigning. For in-
through free and fair elections which
national peace and stability. In the
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
event occurred "there will be blood,
The United Nations has the opportu-
human rights concerns an aspect of
there will be death."
nity to make a lasting contribution to
what we seek to do throughout the
These and other incidents too nu-
the welfare of all the people of Cen-
UN system whether it is in economic
merous to mention now present a
tral America. It will require forth-
or social forums.
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.
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 panacéa, 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.
annual report an upbeat turn. The
its request for information on the killings
The friends of democracy should draw
of the Jesuits.
a sober but not defeatist conclusion from
commission "underscores its satisfaction
Those who follow the situation in El
on the re-establishment of representative
these facts. The will to improve human
democracy," a note of welcome to the new
Salvador differ over particular cases and
rights must be joined with the power to
government of Chile that my government
general characterizations. But what
secure those rights.
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
chapter notes two "conflicting tenden-
government began its term. It finds the
of the enormity of the task that lies ahead
cies"-an escalation of violence and
government ineffective in preventing,
and makes two judgments we share in
human rights violations and progress
controlling, and investigating the violence
full. It trusts that the transfer of power
toward a resumption of peace talks
and prosecuting those involved. It also
and "positive experience with the
between the government and the Fara-
perceives a lack of control over those in
exercise of political rights" will be applied
bundo Marti National Liberation Front
the security forces who, in the commis-
to the political, economic, social, and
(FMLN).
sion's view, appear to have had direct
cultural challenges ahead. And the report
involvement in a number of the violations.
The report makes a thorough-and
concludes with a reminder of the "respon-
frankly disheartening-record of events
The report deals with defects of the
sibility of the international community" to
since its last report on El Salvador. Many
judicial system as well as inconclusive
support Nicaragua's new government.
of us in this room recall that this commit-
police investigations. While detailing acts
It is perhaps proof of the commission's
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
news: the launching on November 11 of
even mention one of the most striking
the largest guerrilla offensive of the civil
[Hector] Gramajo, who accuses army dis-
contributions of the international commu-
war. Then, 5 days later, the murder,
sidents of serving the extreme right.
nity to national reconciliation in Nicara-
apparently by government forces, of six
President [Vinicio] Cerezo, during his
gua: the work of the OAS electoral ob-
Jesuit educators, their cook, and her
visit to the UN General Assembly in Sep-
servers and the OAS Verification and
daughter.
tember 1989, said that extreme right wing
Support Commission (CIAV) under the
The commission describes these
groups were responsible for kidnapings,
leadership of Secretary General [Joao
events as part of a "vicious cycle of
torture, and murder of trade unionists,
Clemente] Baena Soares. I congratulate
violence" in which the right and left,
journalists, and students and that former
Commission President [Leo] Valladares
security forces and guerrillas, share
officers of the security forces might also
for including such a reference this
blame. The violence and the abuses have
have been involved.
morning. I would add that my govern-
affected noncombatants, journalists,
The situation is grave, but the
ment fully supports the demobilization of
government officials, churchmen and
government's willingness to acknowledge
the Nicaraguan Resistance in accordance
-women, and labor unionists-every
problems is positive, and the institution-
with existing agreements and accepts the
sector of Salvadoran society.
alization of democracy has made substan-
leadership of the secretary general in
My government is convinced that the
tial gains. There is a high degree of press
supporting them.
democratically elected government of El
freedom in which even the guerrillas can
Panama. The Panama chapter
Salvador is making serious efforts to
publish at will. The government cooper-
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
notes:
Suriname. The report on Suriname is
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
The freeing of former military men
assuming office.
situation in Suriname: "First, that the
and civilians who had been detained on
The report notes many specific steps
duly elected civilian authorities have no
charges of coup plotting or otherwise
taken by the Rodriguez administration
real control over the military situation in
endangering public safety and who had, in
including:
Suriname. Second, the army is the de
most cases, been tortured;
Repeal of laws used to jail dissi-
facto power in the country."
The launching or reopening of
dents;
My own government has observed
investigations into killings under the
Judicial action against former
that the Surinamese military, whose
previous regime, including the Spadafora
officials accused of abuse and corruption;
influence had diminished following the
case;
Elimination of official obstacles to
return to elected government, has
the freedom of expression, thought, and
"reestablished itself as the dominant
The decentralization of the security
forces to ensure their compliance with the
association; and
political force in the country."
constitution; and
Clearly, conflict among different
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 reports that it has
The commission also summarizes
humanitarian conduct. Efforts to bring
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
recurrence of abuses like those described
American conventions against torture.
toward the establishment of a true
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
ments currently before the Legislative
country's major prison are still awaiting
comments. I would like to express my
Assembly, which has also been asked to
sentencing. In most cases, their trials had
congratulations to Leo Valladares
revise the nation's judicial statutes.
not been completed.
(Honduras) and Edith Marquez (Vene-
zuela) for their new positions as president
The status of detainees remains a
The report discusses legislative
problem. Panamanian courts are over-
amendments to correct this problem, as
and executive secretary of the commis-
loaded with criminal cases, and there is a
well as government requests to the OAS
sion and my government's genuine
backlog of persons awaiting sentencing.
and United Nations for human rights
gratitude to their predecessors, Oliver
Jackman (Barbados) and Edmundo
Similarly, improvement of economic and
training to police and armed forces and
social conditions for low-income Panama-
the government's proposal to amend the
Vargas (Chile). They have given us high
nians depends on overall economic
constitution in 1992 to create a stable
expectations; we pledge to cooperate to
recovery, especially reduction of high
career system for judges.
make them reality. As the Permanent
My government endorses the findings
Representative of the United States, it is
unemployment. The economic assistance
of the commission, and welcomes the
with great pride that I thank David
recently approved by the US Congress—
after considerable urging by President
positive developments in Paraguay since
Padilla, a US citizen, for his exemplary
Bush-is designed to help alleviate both
the Rodriguez government took office.
performance as acting executive secre-
problems.
We congratulate the government of
tary during the past 4 months.
Paraguay for restoring respect for the
Finally, a word about future direc-
fundamental freedoms that make a
tions. First, the commission's high
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
legislation to protect human rights, and
of Public Communication
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
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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
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
gratitude for what America has done for
headlines-of careers ruined, of families
Secretary Baker for the Forum Club,
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
"Pm 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.
Department of State's assistant secre-
It is hard for Americans to compre-
demand for drugs as well as the supply.
taries to ensure that narcotics control
hend the scale of such violence and in-
To that end, we have accepted the An-
dean leaders' invitation to sit down and
issues are fully integrated into our dip-
timidation. Let me try to put it into
lomatic efforts. To my mind, there is no
perspective. Imagine one day that a hit
discuss our mutual struggle at an An-
foreign policy issue short of war or
squad attacks the U.S. Supreme Court
dean summit in February next year.
peace which has a more direct bearing
and murders half of the justices. Imag-
We realize that as long as American
on the well-being of the American
ine our Attorney General being assassi-
demand for drugs continues, we face an-
nated by organized crime figures. And
endless, uphill battle to halt supply.
people.
As I see it, the survival of democracy
imagine a criminal organization declar-
That is why the President decided that
at home and abroad is perhaps our most
ing "absolute and total war" on our gov-
reducing the demand for drugs must be
fundamental national interest. And
ernment after assassinating a leading
at the center of our antidrug policy.
drugs are mortal enemies of democracy.
presidential candidate.
America's demand drives the spiraling
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 individual. Every person is con-
the traffickers have killed over 1,000
every kilo of cocaine buy the bullets
sidered a free and responsible citizen
public officials, 12 Supreme Court jus-
which rob Colombia of its dignity and
freedom and threaten Bolivia and Peru.
whose vote and say in public affairs is
tices, over two dozen journalists, and
essential. An individual caught in the
more than 200 judges and judicial per-
I want every user of drugs in the
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.
sponsible citizen. And in a similar way,
bia's aid by authorizing $65 million in
They act as paymasters to organized
murderers whose victims are defenders
what can happen to the individual can
emergency military assistance. Can-
happen to a nation. The drug pirates
ada, Norway, United Kingdom, Italy,
of democracy and the rule of law. They
and profiteers attack the central nerv-
Spain, and Portugal have also pledged
are accessories to criminals who poison
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
integrity of government; the right of
proposed a bold, comprehensive strat-
the land. Coca farmers have destroyed
countless acres of forest; cocaine traf-
free speech.
egy to address the cocaine problem in
Ultimately, the illegal narcotics
the hemisphere. We call it "the Andean
fickers have dumped millions of gallons
trade robs dignity and freedom not only
strategy." This strategy is nothing less
of chemicals into water supplies.
from the individual but from entire na-
than a multiyear, $2-billion American
Above all, we must be honest with
tions. Malaysia was one of the first na-
plan to provide military, economic, and
ourselves. There is nothing glorious or
admirable or honorable in the so-called
tions to declare that drug traffickers
law enforcement assistance to help the
threatened its sovereignty. Pakistan,
Andean governments as they fight co-
drug lords and kingpins. They are just
criminals-criminals of uncommon
Thailand, Jamaica, and Mexico-all
caine. Our primary goal is to attack
have come to the alarming conclusion
and dismantle the drug trafficking or-
power and uncommon brutality. No
that drug abuse is eroding their hopes
ganizations themselves. In short, to put
amount of laundering can wash the
for the future, and they are taking ac-
them out of business. We are going di-
blood off money stained by drugs.
tion to combat this insidious enemy.
rectly to the source. And that is the
Narcotics has become a big business,
Look at Colombia. No other nation
Andes, where we will support the gov-
a very big business. Recently in Los
has so bravely confronted the drug
ernments of the region in a three-part
Angeles, agents seized 20 tons of ware-
housed cocaine. If all these kilos were
lords. No other nation can afford to be
plan:
indifferent to Colombia's fate. We ap-
stacked, one on top of the other, the pile
plaud Colombia's courageous decision to
would be a mile and a half high-half
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
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
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US Department of State
Permit No. G-130
PA/PC, Mailing List
United States Department of State
Washington, D.C. 20520-6810
OFFICIAL BUSINESS
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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-
of the drug addict.
The U.S. Effort
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
Charter, " to save succeeding genera-
done a first-rate job of ensuring that nar-
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
time, it is critical for the nations of the
Our drug control strategy calls for an
that have played leading roles in prepar-
world to recall the fundamental aims that
attack on the drug problem in all its
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
dignity, justice, respect for sovereign
My government is placing greater empha-
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-
The Cartagena Summit
time. And no amount of laundering can
mestic antidrug budget has increased 67%
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
budgets.
Conclusion
A Strengthened Role
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
programs without financial backing and a
drug profiteers, that actively permits the
Washington, D.C.
February 1990
strong infrastructure with which to carry
Editor: Phyllis A. Young
This material is
in the public domain and may be reprinted
without permission; citation of this source is
appreciated.
3
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
in this area. Cocaine control is our
governments in Colombia and Peru, it will
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
has been, and will continue to be, the
help them address the full range of their
President's National Drug Control
Andes.
drug-related problems.
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
Cartagena, Colombia, in February
Andean governments to increase the ef-
FY 1990 to augment law enforcement,
signaled a new era in narcotics coopera-
fectiveness of the intelligence, military,
military, and economic resources in Co-
tion with our Andean partners. No longer
and law enforcement activities against
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
ment problem. We are working with Co-
countries, particularly by providing air
and each of the individual cooperating
lombia, Bolivia, and Peru to explore ways
mobility for both military and police
governments, implementation plans have
to strengthen law enforcement, military,
forces and making sure they are well
been prepared to ensure effective use of
intelligence, and economic cooperation,
equipped and trained and that they
the assistance.
including opportunities for expanded
cooperate in an integrated strategy. It
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
The President's Andean strategy seeks to
narcotics operations without the involve-
governments to disrupt and destroy the
bolster these countries' capabilities on all
ment of their armed forces; this is
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
countries, the countries that surround the
isolate key coca growing areas, block the
the United States. Congress has author-
Andean region, and the transit countries
shipment of precursor chemicals, identify
ized and appropriated funds for the first
through which cocaine passes.
and destroy existing labs and processing
year of this plan. For FY 1990, approxi-
The Andean strategy is a multi-
centers, control key air corridors, and
mately $230 million in economic, military,
faceted approach to the complex problem
reduce net production of coca through
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
at home. But as we work to diminish our
Our third goal is to inflict significant
1991, we are asking for $423 million,
own demand for and consumption of
damage on the trafficking organizations
including narcotics-related economic
which operate within the three source
assistance.
countries by working with host govern-
Misconceptions About Militaries' Roles
and their involvement is a sign of greater
ments to dismantle operations and
Let me deal directly with concerns which
overall national commitment in dealing
elements of greatest value to the traffick-
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 war as 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
directed toward offsetting the negative
demonstrates, military support in some
economic dislocations we know will occur.
military, as in our own country, can bring
cases can be an effective way to avoid
This assistance will, in turn, strengthen
a significant resource in the war against
duplicating a parallel military capability
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
reform. In harmony with the views of the
the so-called militarization of the US
international scale. Their ability to buy
three Andean governments, our direct
counter-narcotics effort. Like many
manpower and equipment surpasses the
economic assistance and other initiatives
slogans, the use of emotionally charged
police capability and, in some cases, calls
support economic alternatives for those
and sometimes politically motivated
into question even the military's ability to
directly involved in the cultivation of and
words like "militarization" is a gross
respond effectively. These capabilities
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
tance include crop substitution and other
or defy the sovereignty of local govern-
economic alternative activities, drug
with the complex problems of interna-
ments in a way unprecedented in our
tional narcotics.
experience.
awareness, administration of justice,
balance of payments, and export promo-
US counter-narcotics policy, there-
In the first place, the level of our
tion. The assistance reflects our conclu-
fore, should not be characterized as a
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
Cartagena, that a comprehensive,
seeks to provide legitimate governments
counter-narcotics funds requested for
intensified counter-narcotics strategy
with the tools and assistance to help
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
neither should we succumb to the
review under the US generalized system
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
Sendero Luminoso (Shining Path) of Peru
complex deep in the Colombian jungle.
We have also conducted successful
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
these groups are now becoming narcotics
continued assistance relationship. State
team is in the Andes the week of June 18
traffickers themselves, profiting from the
Department human rights reports on
to conduct seminars on the US textile
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
In such groups, we are dealing with
We have scheduled a workshop in
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.
vian government decision. And, of
the Andean strategy, we are also working
course, it will be a decision as to whether
with the international community to gain
support for Andean initiatives. The
the counter-narcotics performance of the
Further Initiatives
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-
based on the assumption of effective
narcotics efforts. I will be travelling to
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
In February, administration officials
money laundering; the United States
the military's ability to support counter-
narcotics efforts. This includes improve-
met with representatives from the
hopes to expand the number of countries
ments in riverine programs by the
European Community, Canada, and Japan
that embrace the action recommendations
Andean navies to interdict the flow of
to discuss ways we can help the Andean
of the task force to ensure that all
precursor chemicals and drugs on
countries improve their trade perform-
countries have comprehensive domestic
Bolivia's waterways.
ance.
programs against money laundering and
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
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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 S0
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-
I am pleased once again to speak to
new partnership with the growing
ment has now announced its intention
forces of freedom in Latin America.
this most influential group-pioneers
to hold free elections. This Thursday
in the private-sector effort to expand
Because the fact is, the great drama
[May 24], I will be meeting at the
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
gathering after what has been a
made for freedom this past year.
democracy in Haiti. In all of Latin
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
the world rest solely on Eastern
of Panama was preparing to steal the
we are celebrating the anniversary of
Europe-on the miraculous transfor-
election. In Nicaragua, civil war
Cuban independence. Let me say
mation that has taken place there.
raged, the Sandinistas ruled, and the
with certainty that even in Cuba, the
Our friends in Latin America have
brave men and women of the Nicara-
dream of democracy can only be
watched these historic events unfold
guan opposition were just beginning
pushed back a little, only be de-
with inspiration and awe. But also, I
the long campaign that led to this
ferred-it will never be destroyed.
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
involvement in Europe will mean a
and Panama; in South America:
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, S0 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
the balance. So let me say to the
Washington, DC
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
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
sion (CICAD), which had earlier
racy, then we must each do our
that the OAS would be deeply
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]
legislation on money laundering.
strengthen existing ones to defend
Noriega, or effective peacekeeping
and antidrug activities. Take just
On November 9, 1989, just as
human rights, to guarantee the
integrity of elections, and to establish
four examples:
public attention focused on the
opening of the Berlin Wall, the Inter-
sanctions against those who threaten
On April 18, 1990, the Sandinista
democratically elected governments
American Commission on Human
government of Nicaragua and the
through violence or through coups."
Rights (IACHR) issued a devastating
Nicaraguan Resistance agreed to a
"If you ask the United States,"
Report on the Situation of Human
cease-fire with the full participation
the Secretary said to his fellow
Rights in Panama. The OAS report
and support of the incoming
members of the OAS, "to forego
systematically documented the
Chamorro government and witnessed
unilateral initiatives and to work,
Noriega regime's abuses of human
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
between President Bush and the
Trinidad and Tobago's minister of
precedent was established at the
external affairs wrote that the OAS
Presidents of Colombia, Bolivia, and
United Nations by Senator Moynihan
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
General and Ministers of Justice from
Permanent Representatives to the
throughout the hemisphere gave
US Policy and the OAS
United Nations.] Silence is often not
concrete impetus to the war on drugs.
golden. There are cases to make,
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-
tries to adopt it as soon as possible.
association of sovereign states. No
gress, Secretary of State Baker told a
And they established an experts
matter what extraordinary changes
distinguished assemblage of demo-
group to develop model common leg-
are wrought in the world, this will
cratic leaders from Latin America
islation against money laundering and
still be a hemisphere of nation states.
and the Caribbean that "we need
illegal assets.
The OAS makes possible consulta-
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
Canal-subject to abuse and, for
Chamorro and outgoing President
outcome of the February 25 elections.
some, death at the hands of the
[Daniel] Ortega, Secretary General
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
diplomacy became evident to all when
[Javier] Perez de Cuellar negotiated
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
The Noriega case did show that
(CIAV) called for by the Central
made it impossible for the results to
the OAS could be used by member
American presidents to verify com-
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-
August 31, 1989, the eve of the
untary demobilization, repatriation,
sive of the various international
September 1 deadline established in
and resettlement of the Nicaraguan
efforts. It was supervised personally
the Panamanian constitution and
Resistance, OAS-CIAV assumed
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
power, the United States called for a
Participation in electoral observa-
Nicaragua to keep in touch with the
special session of the Permanent
tion and in the post-election transi-
many leaders involved.
Council. Acting Secretary [of State]
tion subjected OAS staff members to
The OAS established offices in all
Lawrence Eagleburger delivered a
numerous hardships, particularly in
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,
The US Mission distributed facsimi-
demoralizing 30% reduction in force.
transport, data handling capabilities,
les of the Florida indictments and
of early 1989, no better way could
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-
gua.
Human Rights
drawal of ambassadors from Panama
Secretary General Baena Soares
by many OAS members.
The independent OAS IACHR is the
informed the Permanent Council that
conscience of the hemisphere. OAS
Even so, OAS inaction was deeply
the success of the program was due to
disappointing. Part of the problem
involvement in human rights is based
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
tions without the approval of the
special grants. The Inter-American
Specialized organizations. The
Secretary General or the Permanent
Development Bank (IDB), the
OAS directly supports:
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
report with chapters on countries
Technical assistance. Respond-
the OAS on defense matters, and has
ing to a major demand of less devel-
coordinated peacekeeping operations.
with human rights problems in
general and on individual cases, as
oped members, OAS programs train
The Inter-American Defense
well as special reports. In its last 14
over 2,000 specialists annually (91,000
College (IADC) is supervised by and
years, the commission has effectively
since its inception), primarily in the
funded by the IADB. It strengthens
challenged abuses in Panama, Nicara-
US but also at 23 inter-American
military professionalism and aug-
gua, Cuba, Chile, El Salvador,
centers. The United States continues
ments US international military
Guatemala, Suriname, Haiti, and
to be the major contributor, but
training programs. The college
Paraguay, among others. The 1989
Argentina, Brazil, Mexico, and
annually trains about 60 field grade
special report on Panama was an im-
Venezuela have joined the United
officers, many of whom reach leader-
portant factor in galvanizing interna-
States as net donors. OAS feasibility
ship positions in their respective
tional public opinion against the
studies for large-scale projects in
services.
Noriega regime. The IACHR also
regional development, environment,
and education are endorsed and
The Inter-American Children's
played a key role in the release of
thousands of political prisoners in
funded by the IDB. Wider recogni-
Institute (IACI) is concerned with
Nicaragua.
tion of OAS effectiveness has at-
problems of mothers, adolescents and
tracted contributions from nonmem-
families, including the growing
On February 23, 1990, the OAS
number of "street children."
Permanent Council adopted a resolu-
bers, including Spain, Italy, Holland,
tion mandating an in situ visit on the
Israel, and France, anxious to take
The Inter-American Commis-
human rights situation in Haiti. The
advantage of the favorable cost-
sion of Women (CIM) is concerned
IACHR visited Haiti April 16-20; its
benefit ratio achieved by the OAS.
with women's rights and their
report will be part of a broad OAS
The OAS manages a major program
integration into development and
and UN effort to support elections by
of feasibility studies on modernizing
decision-making processes. CIM
the new Haitian government.
telecommunications throughout Latin
research and seminars have focused
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).
Drugs. The OAS Inter-American
(IBM) contribution of $1,500,000 (not
Drug Abuse Control Commission
including in kind contributions) has
Other organizations associated
(CICAD) was established in 1986,
helped the OAS put together a highly
with the OAS are financed outside
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
regional problems and to engage our
months is that it took place despite
neighbors on topics of hemispheric
The IICA, with resources of $34
serious underfunding. The US paid
concern.
million (1989), has worked closely
only $18 million of its 1989 assessed
Other countries are showing their
with the US Department of Agricul-
quota payment of $40 million to the
commitment to the OAS. Argentina,
ture in preventing threatening animal
OAS. (The US assessment for the
Ecuador, Mexico, Paraguay, and
and plant diseases from entering the
OAS is 66%; the United States
Venezuela are all hosting important
United States and in helping mem-
accounts for 85% of the total GNP of
meetings this year. In September
bers develop food production.
all OAS members.)
1989, Argentina paid most of its $12
The Pan American Institute for
This caused a severe cash flow
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,
testimony to the benefits of member-
grams of its own and facilitates coop-
combined with one-time reductions in
ship and will further enhance effec-
erative relationships between US
program activities. From November
tiveness.
agencies (such as the Defense Map-
1988 to March 1989, 293 employees
ping Agency and the National Ocean
either resigned voluntarily (205),
were on fixed-termed contracts
The Second Century
Service of the National Oceanic and
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
on a democratic foundation where the
providing the US Department of
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
ments are not in conflict.
with a vehicle for cooperation with
654-a 55% reduction in 15 years. At
As the OAS enters its second
other Latin American countries with
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
overwhelmingly made up of states
Finally, one organization created
largest national group among OAS
and supported by the OAS receives
that organize themselves in ways
personnel.
that are democratic. The test of
financial support largely from US
Despite these draconian cutbacks,
membership is becoming democracy
corporations and other private
arrearages and the consequent lack of
as well as geography. This is a stark
sources. The Pan American Develop-
reserves severely limit flexibility and
contrast to the situation just a
ment Foundation (PADF) is a Section
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
that is vital to today's rapidly chang-
International Development (AID)
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-
those of the countries of Eastern
The OAS and its specialized or-
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 so
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
reconcile the principle of noninter-
well as $38 million for arrears, which,
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
For some years, important issues
educational problems which cause S0
OAS charter and both of which have
been given new urgency by today's
have been considered outside the
many young people to drop out of
OAS—or not considered at all. Now
school waste human potential.
needs. Speaking at a special session
of OAS Permanent Council on April
100 years old, the inter-American
Curricula need to be redesigned and
teachers retrained. OAS multina-
27, 1990, President Carlos Andres
system is turning a corner, and there
Perez of Venezuela declared himself a
is an exciting new focus for the 1990s
tional programs in basic education
and beyond:
and education for work provide
convinced believer in "collective
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
retary of State Aronson was explicit
prime concern of the OAS.
Integration. The Caribbean,
to the Senate Foreign Relations
Central America, the Andes, the Rio
The IACHR-the most re-
Committee: "The conventional
de la Plata area-the Americas have
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
interventionism. I would argue the
to keep human rights at the center of
were despotic, S0 long as frontiers
opposite is true. Our historic mis-
the hemisphere's collective con-
meant boundary disputes, and S0 long
science.
take-when we have made mis-
as individual countries could attempt
takes-has been to fail to rally early
In the drug wars, the OAS is
to cut themselves off from progress,
and boldly and effectively to support
strengthening multilateral coopera-
integration remained a dream. The
and extend democracy in its hour of
tion and breaking new ground, most
spread of democracy gives the OAS
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-
it an inherently democratic sounding
ness that we have a common enemy
zation. But all these areas-plus the
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.
Visitors to OAS Permanent Council
Similar cooperation is foreseeable
States. All require positive, practical,
meetings sometimes comment that
in other areas:
productive, and patient contributions
if we are to deal with the issues of the
they can seem almost familial in spite
The environment. The June
of their formality. And that is
next century in a manner befitting
1990, OAS General Assembly will
another strength. Even with the
the potential of the new world.
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
Commonwealth Caribbean, OAS
Conservation." Because of the great
of State
Bureau of Public Affairs
Office
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
The OAS is the natural forum to turn
specialized conference of experts to
source is appreciated.
democracy in individual countries
develop a program of action.
into democratic solidarity as a source
Education. Democracy, economic
of hemisphere-wide strength.
development, and cultural sensitivity
require substantial investments in
6
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.
-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.
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.
###
- 2 -
THE PRESIDENT'S SEPTEMBER 16-22 TRIP TO SOUTH AMERICA:
THEMES AND RELATED MATERIAL FOR SPEECHES
I. OVERVIEW
The President's major address in Brazil and his
speeches in Uruguay, Argentina, Chile and Venezuela
will provide him an unparalleled opportunity to stress
the theme of partnerships based on the principles of
free government and free enterprise. The speeches
should highlight what we and the Latins have done to
sustain the momentum towards stronger democratic
institutions and rational economic development, and
the challenges that face us in the future. We must be
forthright, however, in telling the Latins that even
though progress has been made, there is still a great
deal to do.
Governments and electorates in the five countries the
President will visit are showing new determination and
realism in pursuing economic opening and reform. If
these reforms continue, economic progress in which all
can participate becomes an attainable goal. The
President's Enterprise for the Americas initiative is
intended to give impetus to the economic restructuring
which has begun -- to greater and lesser degrees -- in
these five countries, and to sustain and deepen this
process in tangible ways. Development is not a single
event, but a continuous process of fundamental change;
not just investment or trade reform, but a reshaping
of the whole society and its world view.
In the economic sphere, open markets not only generate
growth to the benefit of all concerned, but also offer
participation, mobility, opportunity and empowerment
to all sectors of society. An overburdened state,
trying but failing to perform the work of the private
sector, is not the agent of social justice but rather
an obstacle to its attainment.
development and to Lotin America, they are part of any
Just as change, competition and sound currencies are
essential tol and successful economy. they are to Latin
American development. This is a lesson we in the U.S.
are constantly re-learning. As the pace of
technological change grows ever more rapid, only those
economies which welcome change and actively seek out
new opportunities will prosper.
The President's initiative offers a vision of where we
should aim to go over the next decade and what forms
- 3 -
our cooperation should take. It is not a detailed,
comprehensive plan for development, nor a set of
ready-made, short-term solutions to specific
problems. Its aims to establish a long-term
partnership, a process in which the details of our new
economic relationship will be developed through
consultation and accommodation.
Attached on Tabs A through E you will find memoranda
which describe the individual circumstances affecting
each of the five speeches and proposes themes which
should be incorporated into the President's remarks.
- 4 -
TAB A
BRAZIL (Sunday, September 16 - Monday, September 17)
Suggested Venue: still undetermined, most likely a
joint session of congress in Brasilia, but possibly a
business group in Sao Paulo.
Probably Audience: members of the Brazilian Congress,
selected members of the GOB, representatives of the
diplomatic corps, business interests.
Local Color: (1) Brasilia, a starkly modern planned
city, symbolizes Brazil's pioneering vision of the
future and its potential as a world economic and
political leader. President Eisenhower, whose
centenary we celebrate this year, visited Brasilia in
1960, prior to its formal inauguration as the new
capital of Brazil; (2) Sao Paulo, Latin America's
largest industrial city, embodies the region's
potential dynamism and projection toward world markets.
Themes for the Major Address:
--
As we approach the quincentenary of Columbus'
encounter with the new world, it becomes
increasing clear that in 1992 -- if not sooner --
the rest of the world will rediscover the
Americas.
-- After more than a decade of economic stagnation
and serious social and political problems the
region now appears on the threshold of sustained
economic growth, social development and a new
level of political maturity firmly rooted in
respect for democratic processes and
human/political rights.
--
Regretably, the only anomaly in this revolution
of freedom is Cuba, which still clings to
outmoded political and economic models that put
it more and more out of step with the rest of the
hemisphere. We are confident that eventually
Cuba too will realize the depth of the changes
that are occurring all around the world and
rejoin the inter-American community as a full
partner.
--
The old idea of a Western Hemisphere that is
different, separate and aloof from the corrupting
- 5 -
influences of the Old World must now give way to
a new vision of the Americas as full and equal
partners with the industrialized nations in the
forging of a more cooperative, more peaceful,
more interdependent world for the 21st century.
With democracy largely achieved, the region now
faces the challenge of its consolidation and
deepening. This will require both economic
growth and social modernization. We are prepared
to help in this process.
--
In the face of this daunting task we have the
advantages of a young, vigorous population and
abundant natural resources.
We in the Western Hemisphere appear to be
reaching a new understanding of the proper
parameters of state authority over the individual
and the economy.
One of the most difficult steps remaining in
setting these parameters is the creation of a
sound currency and erasing the memory of
inflation. Success in this area is galvanizing
Germany's unity. Without it development in Latin
America is unlikely.
The balance between public and private sector
power will be different from country to country,
but throughout the hemisphere opportunities for
the individual to speak, act and work according
to his own conscience -- and to seek unlimited
economic horizons free from the stifling
intervention of the state -- now appear better
than they have been anytime in this century.
The Enterprise for the Americas (Iniciativa para
las Américas) announced on June 27 -- proposing
new ideas on trade, investment and debt -- is a
clear indication that the United States is ready
to be a full partner in this new American
revolution.
Brazil-Specific Themes for the Major Address:
Brazil, known for its economic miracle" in the
1960's and early '70s, is now a regional
political leader and major player in the
international economic arena.
- 6 -
-- President Collor's bold economic reform program,
which we applaud and follow with close interest,
can help serve as a catalyst in strengthening
Brazil's economy and world role.
-- With regard to the all-critical inflation hurdle,
the U.S. is prepared to provide technical
assistance and to encourage the multilateral
institutions to become involved in this area.
The challenge, however, is Brazil's.
--- The United States attaches great significance to
the 1992 U.N. -sponsored environmental conference
which will be hosted by Brazil and plans to work
closely with the GOB to insure maximum
effectiveness.
-- The U.S. endorses the establishment of an
international fund to assist less developed
countries to make the technological changes
necessary to reduce chloroflurocarbons emissions.
-- We are working with Brazil through both bilateral
and multilateral channels to address the major
threats to the world's environment and global
climate change.
-- President Collor's personal commitment to
combatting drug use will spur our joint narcotics
interdiction and education efforts.
-- Brazil and the United States share an intense
interest in the successful outcome of the Uruguay
Round of GATT.
-- As large nations with global interests, the
United States and Brazil have a common interest
in international peace and security issues.
-- We need to increase the level and frequency of
our discussions on the subject of global arms and
nuclear proliferation, particularly with regard
to regional instability.
Quotable Quotes:
(None provided by Embassy Brasilia.)
- 7 -
TAB B
URUGUAY (Tuesday, September 18)
Suggested Venue: a joint session of the Uruguayan
congress in Montevideo.
Probable Audience: members of the Uruguayan Congress,
selected members of the GOU, representatives of the
diplomatic corps.
Local Color: the Uruguay Round of the GATT was begun
here, making it particularly appropriate for the
President to note its successful implementation.
President Bush will be the first U.S. president to
visit Uruguay since Johnson participated in the
Meeting of American Chiefs of State at Punta del Este
in 1967.
Themes:
-- Two facets of the Enterprise for the Americas
initiative -- trade and investment -- are of
particular interest to Uruguay. In addition to
the successful completing of the Uruguay Round of
GATT, the U.S. is pleased that Uruguay and its
neighbors are actively considering the
elimination of reduction of barriers to free
trade through a regional trade agreement and
through strengthening of ALADI, the Latin
American Integration Association.
-- We also applaud President Lacalle's proposal for
a hemisphere capital market as a stimulus to
investment, and are encouraged by progress made
here and else where on bilateral investment
treaties.
--
President Lacalle's courageous implementation of
a wide range of structural reforms will improve
the economic environment, while other reforms
will reduce the size of the state, bring greater
stability to prices and to the currency, reform
or eliminate costly state monopolies, and
modernize labor relations to make Uruguay more
competitive on the international labor market.
--
We are also encouraged by clear signs that
Uruguay is willing to cooperate in controlling
international narcotics trafficking, particularly
money laundering and other types of criminal
financial activity.
- 8 -
Quotable Quotes:
"The economic relationship between Latin America and
the United States needs to be reconsidered. We do not
believe that the solution is more aid but rather more
trade, more investment
we would also like to point
out
that our countries are undertaking profound
transformations in their respective economies
creating in this way, a favorable climate for
investment. The restructuring of the state has been
undertaken as a necessary goal by almost all of the
American nations and it is proof of the will towards
change which guides the Latin American governments,
because we see and recognize that this is not a
one-way street. " (President Lacalle, OASGA, Asuncion,
June 1990)
le Ca
KT-Ya
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- 9 -
TAB C
ARGENTINA (Wednesday, September 19)
Suggested Venue: a joint session of the Argentine
Congress in Buenos Aires.
Probable Audience: members of the Argentine Congress,
selected members of the GOA, representatives of the
diplomatic corps.
Local Color: President Bush will be the first U.S.
President to visit Argentina since Eisenhower in
1960. It comes at a time of a 180 degree shift in
Argentine attitudes toward the world at large,
including the United States, and the causes of their
national problems. Once the eight ranking economy in
the world, Argentina now ranks 58th. President Menem
speaks openly of his friendship and admiration for
President Bush. He seeks to integrate Argentina fully
into the international community while abandoning
statist, protectionist economic policies. The
magnitude of economic reform needed is greater in
Argentina than in the other countries the President is
visiting and resistance to Menem's efforts is strong.
Themes:
-- Argentina is enjoying one of the longest periods
of constitutional rule in its recent history and
the protection offered to human and civil rights
has increased.
-- Argentina led the hemispheric move away from
military governments to democracy in the 1980's.
-- The United States supports President Menem's
courageous economic reform program, including
restructuring of the public sector, and other
policies leading to a modern, growing,
market-oriented economy.
-- Economic reform will encourage greater individual
initiative, thereby improving the prospects of
prosperity for this and future generations.
-- The increasing attention paid to the
establishment of a sound currency merits hope and
further encouragement by those who have supported
Argentina's past efforts in this area.
- 10 -
President Menem's determination to divest
monopolistic enterprises, especially the
privatization of the national telephone system,
sets an example for the other nations of Latin
America.
The Bilateral Investment Treaty which we have
signed will encourage United States investors to
join Argentines in a cooperative partnership that
will result in greater productivity, more
exports, more jobs and a return to the level of
optimism and the standard of living that
Argentina enjoyed in the past.
The Mutual Legal Assistance Treaty we have signed
is a further step forward in our close
cooperation in the figlt against narcotrafficking
and other transnational criminal activity
In this spirit of reform and modernization, the
United States welcomes Argentina's decision to
help halt the proliferation of dangerous missile
systems and to cooperate more fully with the
international community in nuclear safeguards
within the spirit of the Tlatelolco Treaty.
As President Menem's economic reform policies
develop and are implemented, they may provide the
potential for voluntary, negotiated debt and debt
service reduction as a compliment to new
commercial bank lending.
Quotable Quotes:
"To take advantage of democratic experiences to propel
economic growth and progress is the principal
crossroads and challenge for our peoples and
governments.
"We Argentines must abandon this fabled mental
colonialism that tells us that all of our problems
come from elsewhere. Because if we think that way
we'll come to the conclusion that we have no solution
within our own means, by our decisions, by our
courage. The people will do it; through the people is
how its done. People think of opportunities rather
than excuses, of possibilities rather than risks, or
new horizons rather than old dangers." (President
Menem, Congress, May 1, 1990)
- 11 -
TAB D
CHILE (Thursday, September 20)
Suggested Venue: the GOC very much wants the
President to address a joint session of the Chilean
Congress at its new headquarters in Valparaiso. This
would pose logistical and security problems.
Alternative venues are the old congress building in
Santiago, the University of Chile and the Diego
Portales Building, headquarters of the previous
military government, all of which pose political
problems.
Probable Audience: in Valparaiso, members of the
congress, selected members of the GOC and
representatives of the diplomatic corps.
Local Color: After more than 16 years of estrangement
in U.S.-Chilean relations, the President's visit will
be interpreted by most observers as a strong
endorsement for democracy and for the kind of
market-oriented economic reforms that have made
Chile's economy one of the strongest in the region.
According to an independent study, Chile has
transferred twice the value of state-owned assets to
the private sector than has Britain, and in half the
time.
Themes:
|
Latin America, like Eastern Europe, is shedding
failed political and economic ideologies and
rediscovering the power of individual citizens
seeking their own and collective interests within
a free and open society.
-- The United States joins all Chileans in
celebrating the return to democracy and renewed
respect for the sanctity of individual liberties
and is ready to play an active, positive role in
this process.
-- Chile's economic achievements serve as a guide to
economic planners in other countries. Recent
economic growth is the envy of the rest of Latin
America, fully one third of national output is
devoted to international trade, a tribute to the
openness of the economy and the productivity of
the Chilean people.
- 12 -
--
Chile's uniformly low tariffs, simplified
investment rules, efficient procedures and honest
civil servants combine to give Chile a
significant advantage in the new, more integrated
world that faces us in the 21st century.
As a result, Chile stands to benefit more from
more open international markets than any other
country in Latin America.
--
Similarly, Chile's sound, innovative management
of is foreign debt, which appearcoverwhelming
only a few years ago, has been impressive and
serves a a model for the rest of Latin America.
Through hard work and sacrifice the debt has been
reduced from 14 billion to 5 billion dollars,
making Chile the first country in the region to
regain normal access to sources of international
finance.
Quotable Quotes:
"Chileans, with a tradition of democratic
institutions, of respect for human rights, of the rule
of law, have chosen to remake their society, based on
those values which honored their country in the past
at the same time we want to seek progress and
economic development, based on an open and competitive
system, in which all creative initiatives find space
for expression." (President Aylwin, Expomin'90, May
15, 1990)
"We need to grow if we want to overcome poverty. This
requires that we stimulate savings, investments,
creative initiative and the entrepreneurial spirit.
Government policies must reconcile the spirit of
social justice and the legitimate requirement to
satisfy essential needs with the unavoidable demand
for growth and development." (President Aylwin,
Inaugural Address, March 12, 1990)
- 13 -
TAB E
VENEZUELA (Saturday, September 22)
Suggested Venue: breakfast meeting of the
Venezuelan-American Chamber of Commerce (VENAMCHAM),
at the Hilton.
Probable Audience: members of VENAMCHAM and
representatives of other appropriate Venezuelan and
U.S. organizations.
Local Color: Venezuela is one of South America's most
stable democracies, with a long tradition of free,
openly contested elections and respect for civil and
political liberties. The oil bonanza is over,
however, and Venezuelans are adjusting to the new
reality of austerity. Although this has tempered
somewhat Venezuelans' image of themselves as regional
leaders, President Perez still aspires to play a
leading role in hemisphere affairs and can be counted
on to be generally supportive of U.S. interests.
Themes:
The VENAMCHAM venue is an ideal forum for
emphasizing the U.S. role as Venezuela's largest
market and, reciprocally, our role as its
principal supplier.
The recently concluded free trade agreement with
Canada, ongoing negotiations with Mexico for a
similar accord, and the recently announced
Enterprise for the Americas initiative bode well
for economic growth in the hemisphere and the
expansion of Latin American trade to
non-traditional markets.
Venezuela, which has implemented an innovative
economic reform program which includes reduction
of trade barriers, free market discipline and
export oriented growth, is poised to take
advantage of these opportunities.
Venezuela's role in international cooperation to
eliminate narcotics production and trafficking is
also important. Although not a producing
country, we need Venezuela's help in suppressing
transshipment, the uncontrolled use of precursor
chemicals and money laundering is crucial to
regional anti-narcotics efforts.
- 14 -
Quotable Quotes:
"President Bush has thrown down a positive challenge
to us Latin Americans, to which we cannot, nor should
we, respond with the same old suspicions which have
generally fed the misunderstandings of the past. If
we think what he prooses is easy, it is not. We have
to bridge that gap between out beliefs and
understanding of Latin America's realities and the
concepts that we still hold to with regard to the role
our peoples and economies must play in the wake of the
industrialized world. Yet never has the United States
taken an initiative of such enormous importance for
the region. The dialogue we are offered opens up
paths so far not explored. " (President Perez'
Independence Day address, July 5, 1990.)
- 15 -
Drafted:
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ARA/BR: MLore
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ARA/EPC: MHarrington
ARA/PPC: DSkocz
Document SEARAPPC 8450
7/6/90
all
American Problems
By
Theodore Roosevelt
New York
Charles, Scribner's Sons
1926
address by
former Pres. T.
FOREIGN AFFAIRS
Roosevelt prior
293
to his d. and
the relations of the various civilized nations with one another.
In the western hemisphere each nation has been in the past so
trip. He was
busy developing the new resources of its own new soil that it
Montivideo on
has tended to let the representatives of Old World peoples
in
Nov. 3-4, 1913
37
have complete charge of what these resources produced in the
way of commodities in international business. This period is
THE UNITED STATES REPUBLICS AND THE SOUTH AMERICAN
now drawing to a close. We are no longer content to see all
the international business of all the American commonwealths
transacted through European hands. In particular we feel
APPRECIATE very deeply this farewell dinner given
that there should be closer business and economic relations
I
to me on the eve of my departure for South America.
between our own great business Republic, our great industrial
I am going in response to the invitations of certain
Republic, of the United States, and the republics that have
learned bodies in the three great republics, the three pros-
been growing so fast in prosperity and stability and power in
and progressive commonwealths of Brazil, the Argen- I
South America.
perous tine, and Chile. I gladly accepted the invitations when once
Our forefathers were wise and foresighted in laying the
understood that I was asked because these great democracies
foundations for our great internal development. The time
wished to hear my views on democracy, and in addition wished
has clearly arrived when we must be equally wise and fore-
to hear me, as a private citizen who once held a position of
sighted in laying the foundations for our external development.
prominence in this Republic, speak of the questions that pecul- To-
We are now a people of one hundred million. We are a
iarly concern all the peoples of the western hemisphere. it is
nation among the nations. Our forefathers could but dimly
night I wish to say a word to you on these questions and
see how great a place we were to hold; yet they builded wisely;
particularly appropriate to speak to the Progressive attitude party,
and now in our turn let us build no less wisely for our children
because that party alone is now taking the proper
and our children's children.
toward foreign questions; for our position is sound in regard
As all inhabitable parts of the globe are now known, this is
to foreign as in regard to domestic affairs; and unfortunately
pre-eminently the time for us to gain, and not release, wher-
for the last four years and a half the attitude of both the old
ever we can, a commercial footing on a "live-and-let-live"
parties in foreign affairs has been discreditable to our national true
basis; a footing that will furnish an outlet for the most char-
self-respect and to our ability to serve either our own
acteristic trait of our American men, namely, executive and or-
interests or the true interest of foreign powers.
ganizing ability in business. There is no better or more worth-
It is continually growing less and less possible for any great
while field for this than in Latin America and the Far East.
civilized nation to live purely for and by itself. Exactly as
Other nations are already keenly alive to their need for com-
steam and electricity and the extraordinary agencies of modern
industrialism have rendered more complex and more intimate
mercial outlets. Already we are behind the European coun-
tries in our trade and commerce with the countries to the
the relations of all the individuals within each nation, so the
south of us. The latest figures I have been able to obtain
same causes have rendered more complex and more intimate
show that in 1911 the sales of Mexico, the West Indies, Cen-
Address at New York, October 3, 1913.
tral and South America to the outside world aggregated over
292
FOREIGN AFFAIRS
AMERICAN PROBLEMS
295
294
best customers are those whose prosperity increases so that
one billion three hundred million dollars; while the sales of
they can get a great deal; in other words it is self-evidently
the outside world to those countries aggregated about one bil-
to the advantage of every business man to have a prosperous
lion two hundred million dollars, a credit balance to those
community with which to do business.
countries of over one hundred million dollars. And yet in
In just the same way it is to the advantage of us as a nation
the same year the sales of those countries to the United States
to see the nations with which we do business thrive, prosper,
aggregated over four hundred and fifty million dollars, while
and enormously to increase their material well-being, and
the sales of the United States to them aggregated only two
therefore their wish and their ability to enter into business
hundred and ninety million dollars, a balance against the
relations with us. If we are decent people we ought in any
United States of one hundred and sixty million dollars.
event to be glad to see prosperity come to our neighbors. But
There are many reasons why this condition should be changed,
in addition to this, if we possess an intelligent appreciation of
sang
and pre-eminent among them is the importance of more per-
our own material self-interest, we shall rejoice for our own
manent employment and better wages for those actually en-
sakes at the marvellous economic and political growth in such
gaged in raising and making the wares that we have for sale.
nations as the three I have mentioned and am about to visit,
Our relations with the other republics of this hemisphere
Brazil, the Argentine, and Chile. We could not be useful to
must necessarily be both political and economic. As, in the
them if we were not ourselves prosperous, and their usefulness
years now opening, they will certainly be closer than ever
to us in return is largely conditioned upon their prosperity.
before, it is eminently desirable that they should be on a better
The material well-being of both sides is helped by any increase
basis than ever before. Let me speak of the economic rela-
of material well-being on either side.
tions first. Fortunately, the time has gone by when it was
Don't misunderstand me. I am the last man who would
believed that a business transaction was normally beneficial to
preach the doctrine, and this is the last audience that would
one party and detrimental to the other. Exactly as no private
tolerate the doctrine, that material prosperity is or can ever be
business is healthy unless on the average both parties to the
the be-all or end-all of national life, or that international rela-
transaction are benefited, so no international business can ever
tions should be based only on material considerations. But it
be on a really flourishing basis unless it is to the advantage
is absolutely necessary that there should be a foundation of
of both the nations engaged.
material prosperity in order to achieve greatness, national or
We wish to open the countries of South America to our
international. Sane and healthy material prosperity in a man's
business, we wish to create a market for the products of our
neighbors benefits the man; and prosperity in neighboring
business men, the farmers, and wage-workers in South
countries benefits the country that deals with them. We Pro-
America. This cannot be done at all unless it is to the advan-
gressives preach within our own nation the doctrine of social
tage of the various peoples of South America to have such
consciousness, the doctrine that in the long run each of us is
products. It cannot be made a striking success unless the
helped to go up if all of us are helped to go up. So likewise
South Americans find that it is very much to their advantage
we preach the doctrine of an international social consciousness,
to deal with us, and unless they so thrive and prosper that it
the doctrine that teaches us, not a spirit of sentimentalism
will be greatly to our advantage to extend our dealings with
but with cool-headed sanity, to understand that in the long run
them. In private life a man's only customers who are worth
it is good for each nation of mankind to see the other nations
anything are those who can pay for what they get, and his
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297
of mankind go up and not down. We no more believe in
in one case as in the other the relations should be based on the
weakness in dealing with international offenders than in deal-
spirit of justice and of fair play. In the present stage of the
ing with criminals within our own limits. We no more intend
world I do not believe that any foreign policy will be perma-
to do away with the American navy and abandon the fortifica-
nently advantageous to any country, unless together with the
tion of the Panama Canal, than we intend to do away with
proper and necessary regard for its own interests it combines
the New York police. But we do intend to do all we can to
regard for the interests of the other country to which the
help all the nations of mankind, including our own, to rise,
policy applies. I do not mean that there should be any neg-
away from barbarism and savagery and the brutalities of
lecting of our own interests. In actual practice it would be
physical violence, toward an orderly self-respecting and law-
hypocritical to say that there should be such neglect, because
abiding civilization, to which brutality and fraud are as alien
no policy could be permanently maintained that did not contain
as weakness, and where justice and fair dealing are accepted
an element of benefit to our own people. But I do most em-
ideals not only as among the individuals within the nation but
phatically say that in international policy, the nation, while
in dealing with all other nations.
free from every taint of weakness, or of that foolish senti-
A concrete instance of what I mean and the way it benefits
mentality that sacrifices reality to pretense, should also show a
others by benefiting ourselves is afforded by the Panama
genuine and effective regard for the rights of others, genuine
Canal. The digging of that Canal will be a help to this coun-
heed to what I believe to be the sound principle of mutuality
try as a whole, and of course notably to the Pacific coast and
of benefit and obligation in international precisely as in internal
the Gulf and South Atlantic States. But it is almost or quite
dealings. Above all we should make no promises that we do
as great a benefit to other countries as it will be to us. I
not keep. It is dishonorable for a nation as for an individual
gravely question whether the United States itself will benefit
to break promises; and the most dishonorable way is both to
more by the building of the Canal than such countries as, for
break them and at the same time to make mere promises which
example, Chile and Australia. It will be our own fault if to
cannot and ought not to be kept. This especially applies to
the great benefit that Chile gains from speedier communication
international questions such as arbitration treaties. At this
with Europe is not also added the great benefit both to Chile
moment we are not living up to the treaties we have made, and
and to ourselves of speedier and better communication between
yet are indulging in magniloquent talk about making new
our Atlantic coast States and the coast of Chile, and indeed all
treaties, which in their turn would be promptly repudiated if
of the republics along the Pacific coast of South America. In
ever the time came to reduce them to practice. Such a course
matters of this kind our nation should copy the example of
justly exposes us to derision. It is as if in the business world
Germany. The German Government has made itself a most
a merchant repudiated his just debts, and at the same moment
efficient influence in developing markets for German merchants
announced that he would like to incur new debts which there
and business men, and our own National Government should
was no possibility of his paying. Only very silly people would
in similar fashion be turned into an instrument for developing
be taken in by or approve such conduct. So it is with our
and helping American business everywhere, but especially in
nation and the question of arbitration treaties. We already
the countries of South America.
have arbitration treaties. Let us continue them and live up to
When countries are thrown into economic relations, it is
them, and until we have done so let us remember that it is idle
inevitable that they should have political relations also, and
folly to talk of making new treaties-that is, new promises-
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AMERICAN PROBLEMS
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299
especially when these promises are themselves foolish. It is
power in the face of other nations vanished and became for the
a mean morality which breaks a promise, and then as a sub-
time being a negligible quantity, all respect for the Monroe
stitute for keeping it proposes to make a new one which would
Doctrine also vanished. European powers invaded and took
certainly in its turn be broken.
possession of American soil, and finally they actually set up a
I ask your especial attention to the Monroe Doctrine. That
foreign empire just south of us, an empire that fell as soon as
doctrine has been formulated for some eighty years, and al-
the United States again became an undivided nation.
though unformulated it was to a certain extent appreciated
In the past then, it was an absolute necessity that the United
and acted upon for eight or ten years previously, that is, ever
States should treat the Monroe Doctrine as being within its
since the time when the Latin-American colonies began to
special custodianship and to be invoked by it as regards all
assert their independence. The central thesis of the doctrine
sections of the continent. As rapidly, however, as the other
is that this hemisphere shall no longer be treated as a region
nations on this continent achieve political and social stability,
in which Old World powers shall seek territorial aggrandize-
and the economic prosperity that goes hand in hand with such
ment. There are certain necessary implications in this doctrine;
stability and power, the need for treating our country as the
such as, for example, that Old World powers shall not be per-
sole and special guardian of the Monroe Doctrine just to that
mitted to enter on a course of action which will be likely to
extent decreases. I believe that the century that is opening
lead to territorial aggrandizement on their part; and that New
will see South America, will see Latin America, so grow in
World powers shall not be upheld in wrong-doing which will
power and prosperity as to make this growth the central feature
provoke and justify such territorial aggrandizement. But these
in the growth of the world in the twentieth century, precisely
are mere necessary details of the application of the theory with
as the growth of North America was the central feature in the
which we need not at the moment concern ourselves.
growth of the civilized world during the nineteenth century.
The main thesis was that there should be no territorial ag-
As the several countries of Latin America thus grow in orderly
grandizement on this continent at the expense of or to the jeop-
strength and well-being, they will themselves naturally and
ardy of any commonwealth by Old World powers; this doctrine
inevitably assume for themselves the guardianship of the doc-
being advanced both in our interest, in the interest of our own
trine; and if, and so long as, this orderly growth continues,
safety and protection, and also in the interest of the other
our responsibility for the doctrine and the need for exercising
peoples of this hemisphere. Now no such doctrine, no such
the responsibility will gradually, step by step, cease until we
policy is worth the paper on which it is written unless there is
either share it with many others or the need for its assertion
ability to back it up. The one efficient guaranty of the Monroe
altogether vanishes. As yet such result is not within the ken
Doctrine in the past has been the more or less general accep-
of our vision for large portions of the territory in question:
tance abroad of the belief that the American people were willing
including for instance the lands and waters through which the
and able to back it up. If the United States stopped building
Panama Canal and its approaches run, where our interests are
up its navy, the Monroe Doctrine would be the emptiest of
vital, and can be defended only by a power of the first class.
empty phrases. At the time that the doctrine was promulgated
But already this result has in my judgment actually come
the only power on the western hemisphere to which foreign na-
to pass in the southern half of South America. Brazil, the
tions paid any heed at all was the United States. As soon as
Argentine, Chile, have achieved positions of such assured mate-
the United States became involved in Civil War, so that its
rial and political progress, of such political stability and power
AMERICAN PROBLEMS
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300
301
and economic prosperity, and have shown by their actions in
three countries I have already mentioned in this speech, if
reference to one another such power of efficient and unified
Chile, if the Argentine, if Brazil, had possessed the Isthmus,
effort for a just and common end, that in my judgment it is
the Canal would undoubtedly have been built under the direc-
safe to say that there is no further need for the United States
tion of the government owning the Isthmus, and with a hearty
to concern itself about asserting the Monroe Doctrine so far
Godspeed from the United States. In the actual event I was
as these powers are concerned. Their progress in all ways
finally faced by the alternative of seeing the building of the
has been so great that they neither invite attack by wrong-doing
Canal indefinitely postponed, or else of having America, in the
to others and by disorder, nor yet invite it by inability to defend
interest of the people of Panama through whose territory the
themselves. Under these conditions, the enforcement of the
Canal was to pass, in our own interest, and in the interest of the
principle of the Monroe Doctrine as far as they are concerned
nations of mankind, take hold and build it.
can be safely left to their own initiative and interest; and in
I have not the time this evening to go into details of my
this matter as in all other matters henceforth the dealings of
action. Any of you who are interested in those details will find
this country with them should be merely those of an equal deal-
them set forth in full in an article of mine that will soon be
ing with equals who are able to guard their own interests and
forthcoming. Suffice it to say that the course of events re-
who are desirous of dealing honorably with all men. In short,
luctantly forced on me the conviction that the then owners of
as regards these three great commonwealths our attitude should
the Isthmus, whose action was unanimously repudiated by the
be substantially what it is as regards the great Canadian com-
people dwelling on the Isthmus, were proceeding in bad faith
monwealth north of us. In the utterly, the well-nigh impos-
toward us and with both folly and prospective bad faith toward
sible event of any one of them being attacked by some outside
outsiders. We were faced by the likelihood of seeing a great
power, and in jeopardy of conquest, the United States with all
and formidable Old World power forced to take possession of
its strength would stand ready to offer its aid, but with no
the Isthmus and itself undertake the work of building the
thought of further interference than is implied in such action.
Canal; the alternative being that the Canal would not be built
I ask you, my hearers, to remember that such a policy as
at all. Under the circumstances, and in accordance with the
I have outlined must rest on a basis not only of good inten-
highest ethical conceptions of my duty toward this people and
tions and sincerity but also of strength. There is no mental
mankind, I acted. If I had not acted precisely as I did, and at
attitude more mischievous than the confounding of folly and
the precise time I did, there would have been no canal to-day.
weakness with virtue. I have spoken above of the Panama
and not only this country but the nations of mankind would be
Canal, and of the enormous benefits its building, now so nearly
by so much the poorer and more backward.
accomplished, will confer upon us and upon the nations of
So it is in other international matters. I do not believe in
mankind. Remember that the Canal could not have been built
the attitude this country has taken in the Far East during the
if I and those men about me ten years ago had paid heed to the
last four and a half years. But I am not now discussing that
counsels of folly and weakness masquerading as virtue. What
question. I am speaking of the affairs of this hemisphere. The
this country wished was to see that Canal built. It did not
United States has but one request to make of each of its neigh-
interfere. as long as there was a chance that it would be built
bors, the request that that neighbor shall prosper; for such
by outside effort in such shape that it would not be in any way
prosperity can only come on a basis of order, of stability, of
under the control of any non-American power. If any of the
just regard for the rights of others, and of power to insist
AMERICAN PROBLEMS
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302
303
upon one's own rights. In the long run anarchy reduces a
would be exhausted to protect them. Nor did I refuse to act at
country to impotence both abroad and at home, impotence to
all until foreign powers acted, nor either ask or accept their
do justice to the strangers within its borders, and impotence
co-operation in action; still less did I follow a course which was
to protect itself from aggression. No such condition can per-
certain to produce anarchy and make existing conditions worse,
manently endure in countries which are obviously within the
so as to force intervention. I protected the rights of our own
sphere of action of the United States. The United States is
people, while nevertheless examining their claims so carefully
disinterestedly anxious to see its neighbors do well. All it
as to insure us against protecting any of them in wrong-doing.
asks of them is that they do well, that they themselves show
I no less carefully acted in the interest of the people of San
the qualities which will enable them to grow and to prosper.
Domingo. Every step I took was carefully considered so as
But this much it must ask, and with less than this it cannot
to strengthen and not weaken the government of the country,
permanently be contented.
and to make it easier for the country to pay its debts, to main-
Mind you, the words that I now use have been made good
tain order, to preserve its integrity, and to avoid outside inter-
by my deeds while I was President of the United States. We
vention. I arranged for the administration of the custom-
had freed Cuba from a foreign yoke, and had said that we
houses under one or two trained experts, guaranteeing the
would make it an independent nation. While I was President
custom-houses against any interference. Of the amount col-
this promise was made good. We started Cuba on her career
lected forty-five per cent. was turned over to the government to
of self-government. Then there came a revolution, and an-
enable it to run, and the remaining fifty-five per cent accumu-
archy threatened the island. We interfered, restored order,
lated to pay off the various debts and the interest on the debts.
stayed in the island until it was once more started on a career
This arrangement produced peace in the island, was of im-
of stability and prosperity, and then left it so that it was again
measurable benefit to the people of the island, and it secured
an independent and sovereign republic.
justice for the strangers in the island. I at once deprived the
Again, take what happened in San Domingo. In that island
foreign powers (which were preparing to take the custom-
revolution succeeded revolution until the position became one
houses) of both the opportunity and the need for so doing,
of utter anarchy, and American interests and the lives of the
and thereby prevented any outside interference with the island.
Americans in the island were jeopardized. Remember that I
The action greatly reduced the likelihood of revolutionary dis-
never said that I would refuse to run the risk of shedding a
turbance by withdrawing the chief hope of pecuniary reward
drop of blood to protect American property, that doctrine if
from possible revolutionists. It saved us from any need of
carried out logically would mean that no policeman ought ever
military interference in the island, enabling us to withdraw our
to arrest a burglar or a pickpocket, for burglary and highway
war-ships from the waters after a very brief period, so that
robbing are only offences against property, whereas interfer-
we only had one or two custom-house officers left, these officers
ence with them undoubtedly means incurring the risk of blood-
being in the service of the native authorities. We immensely
shed. Nor did I say that all American citizens should leave the
benefited the government, not only by giving it stability, but
country, abandoning their property to the good-will of the con-
because forty-five per cent of the revenues efficiently and hon-
tending factions. My position was the direct reverse. My
estly collected by us actually surpassed the total amount that
position was that if Americans had a right to be in a country,
had formerly been collected when all in theory went to the
they could stay there, and every resource of the government
then government. Finally, it satisfied all honest creditors, and
304
AMERICAN PROBLEMS
made the dishonest creditors understand that they would not
be allowed to get a penny to which they were not entitled.
I have mentioned Panama, Cuba, and San Domingo because
the incidents took place under my administration. Not a drop
of American blood was shed in any one of the three cases, nor
38
was a drop of blood shed by any American. Absolute justice
was done in each case. Cuba, Panama, and San Domingo
INTERNATIONAL PEACE'
were all alike immensely benefited by what we did, all excuse
for interfernce in American affairs by foreign nations was
I
T is with peculiar pleasure that I stand here to-day to
removed, justice was done to all foreign nations, the rights
express the deep appreciation I feel of the high honor
of every American citizen were protected, the interests of the
conferred upon me by the presentation of the Nobel Peace
American nation were preserved, and all this was done in
Prize. The gold medal which formed part of the prize I shall
strictest compliance with the eternal laws of righteousness and
always keep, and I shall hand it on to my children as a precious
of honorable dealing as between man and man, nation and
heirloom. The sum of money provided as part of the prize by
nation.
the wise generosity of the illustrious founder of this world-
famous prize system I did not, under the peculiar circum-
stances of the case, feel at liberty to keep. I think it eminently
just and proper that in most cases the recipient of the prize
should keep for his own use the prize in its entirety. But in
this case, while I did not act officially as President of the
United States, it was nevertheless only because I was Presi-
dent that I was enabled to act at all; and I felt that the money
must be considered as having been given me in trust for the
United States. I therefore used it as a nucleus for a founda-
tion to forward the cause of industrial peace, as being well
within the general purpose of your committee; for in our
complex industrial civilization of to-day the peace of right-
eousness and justice, the only kind of peace worth having, is
at least as necessary in the industrial world as it is among
nations. There is at least as much need to curb the cruel
greed and arrogance of part of the world of capital, to curb
the cruel greed and violence of part of the world of labor, as
to check a cruel and unhealthy militarism in international rela-
tionships.
Norway, May 5, 1910.
1 Address before the Nobel Prize Committee, delivered at Christiania,
305