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Folder Title:
Anniversary-Enterprise for the Americas 6/27/91 [OA 7564]
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7
Staffed / Factcheck Copy
700-6/25 6/25
Snow/Cawley
June 25, 1991
Draft One
EAI.TS
[search E.A.I.]
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills, Minister Foxley of Chile;
Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I
could not be more pleased to have you all join me up here today.
Look at this distinguished audience!
Madigan Reilly > Add
Secretary Baker, welcome back -- for now. My good friend,
of OPIC
of the EXIM Bank
Secretary Mosbacher. Fred Zeder, John Macomber, Enrique Iglesias
of the Inter-American Development Bank. Ambassadors from the
Organization of American States, other members of the diplomatic
corps. Members of Congress -- my warmest greetings to all of you
on this historic day.
I know most of you are happy that I can't muster even warmer
greetings. 90 degrees ought to be enough for anyone. //
We've come here today to celebrate the first anniversary of
61-27-90
X
our Enterprise for the Americas Initiative. Frankly, the best
way to celebrate is to push the initiative even further.
We thought we had set some pretty ambitious goals last year,
EAI
6-27-90
when we announced the three-part EAI. We vowed to encourage free
trade, stimulate investment throughout the hemisphere, and reduce
the debt burden that threatens so many of our neighbors and
colleagues. But we may actually have set our sights too low.
w/impt benefits for our environment
Mary chaves Treas 566-8532
11 indiv.
12 now
today
I group
+ 2 indiv. tomorrow.
2
2
In just one year, we have signed a dozen agreements under
NSCR'S
EAI -- and we will announce three more today. We have concluded
[10]
Treasuryet Fact
nine separate framework agreements for trade and investment.
begun to meet
These agreements create councils charged with dismantling
same)
barriers to trade and investment. The United States already has
already in place
signed a series of agreements with a large group of our
hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa
just lastuk. wk.
Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and
the "southern cone" countries of Argentina, Brazil, Paraguay and
NSC
TP'S
Uruguay.
On the investment front, our nations have begun inviting
investors to support new business throughout the hemisphere.
Treasury Factsheet
Today, we can announce that the Inter-American Development Bank
Larry IDB Mellinger
has approved its first so-called sectoral loan -- $150 million
loan to Chile. President Iglesias, I want to thank you and
congratulate everyone at the IDB for this very important move.
Like these on way)
Under these agreements, the IDB will support efforts to replace
old mercantilist or socialist economic systems with free market
systems. Our simple goal: We want to promote the economic
reforms that help foster economic growth and encourage
environmental stewardship.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert cadres can no more manage
growth than they could manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
3
our
I'm also pleased to report that my proposal for a
Multilateral Investment Fund has gotten off to a great start.
over
tronsoft Freasury sheet
100
AAMM
Japan has pledged $100 million for each of the next five years.
willingness
France, Spain and Canada also have expressed interest in
supporting the fund. This fund, like the sectoral loans from
IDB, will help nations throw off the shackles of authoritarian or
totalitarian economic systems, and let people throughout our
hemisphere enjoy the thrills and the blessings of open economic
competition.
Pillar three of our proposal, debt reduction, also has
Aronson Art
gotten off to a rousing start. Our idea is simple: We will do
all we can to reduce the debt burden of nations that adopt
substantial, permanent economic reform.
we cont. to wk w/c. on a plan
Mcclure
Congress has agreed to reduce the debt burden of nations
implement Strong reform
liberalized
Mcclure
that liberalize their trade and investment rules, and has set
set UD a pay plan to fund
aside a fund to finance environmental projects. This ambitious,
Treasury
innovative plan already has produced results.
Today the United States will sign a debt-reduction agreement
zeductioneet
with Chile, slashing its debt under Public Law 480 by 40 percent,
to 23 million dollars.
First C. to rec. debt reduction Under EAI.
Now, let's talk about what lies ahead. As you know,
Congress recently extended the fast-track trade procedures that
enable us to deal in good faith with you -- and with Congress --
in trade negotiations. We hope to create a free trade zone that
will cover all of North America within the next few years. But
astact of Track 19-91
this trade zone -- which will embrace 360 million consumers and
4
markets that produce $6 trillion in annual output -- simply will
set the stage for something even more dramatic. The Enterprise
for the Americas initiative can link our entire hemisphere, with
its diverse cultures, workforces, creative forces.
negotiations
We already have joined forces in the GATT talks, trying to
Newkirk
pull down protectionist barriers in Europe and Asia. I cannot
stress enough the importance of reaching a GATT agreement that
will provide the foundation for worldwide free and fair trade.
Without GATT, we will have great difficulty moving forward.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, our hemisphere stands poised to
become the first fully democratic hemisphere in human history.
From the Northern tip of Alaska to the southernmost point of
Tiera del Fuego, we share common heritages. Our people can trace
their heritages to Spain, Portugal, Germany, Italy, Turkey,
China, Japan, England, the Arab world and of course, to this
continent itself. Many of your leaders have taken college
degrees here, and many of our finest experts have studied on your
soil. We share ties of culture, of blood, of common interest.
And now, as democracy sweeps the world, we share the challenge of
leadership through example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from socialist inefficiencies by building
our own commonwealth of freedom. We can show the world just how
prosperity preserves the social order -- and the land, air, and
water as well. We can show the rest of the world that
5
deregulation, private property, low tax rates and low trade
barriers can produce vast economic returns. And we can show the
rest of the world how neighbors can compete in ways that build
upon each other's strengths, rather than preying upon their
weaknesses.
Today, I pledge my full effort to uphold the United States'
work
part of the EAI bargain. I will lobby hard to ensure that we
Mcclure
contribute our $100 million share this year to the Multilateral
Investment fund, and that we work hard to reach bilateral
agreements with all the nations of this hemisphere. I also
assure you that we will spare no effort in trying to reach an
EAI
6-27-90
acceptable GATT conclusion. I assure you that we will fight for
Call on Congress TO fully fund
free and fair trade -- everywhere.
the President request in budget
for EAI help
make it a reality:
In 1876, the Brazilian Emperor Dom Pedro II visited the fulfill potential
The
of fund
United States. During a stop in St. Louis, he noticed that local
craftsmen were using only the sturdiest materials in building a
Mary P.199 199
customs house. The emperor was stunned. "But an iron building
N
would last 400 years, " he noted. "You do not mean to tell me
that there will be any custom houses in 400 years."
Unfortunately, no one understood his point. //
We meet today to pursue Dom Pedro's vision of a hemisphere
shorn of customs houses and jammed with shops and trade zones.
If we can build a hemisphere devoted to freedom, one that
encourages men and women of genius to turn their great ideas into
products, deeds, services and industries; if we can build a
hemisphere in which envy must step aside to for onrushing
6
enterprise; we can create our own New World order. We can build
a legacy of real prosperity, stability, and harmony.
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
Now, I would like to ask Minister Foxley, Minister DeFranco,
Minister Alfaro; Secretary Brady and Ambassador Hills to step
claire
X2800
forward as they sign a debt reduction agreement with Chile; a
on trade + investment
framework trade agreement with Nicaragua and a framework trade
agreement with Panama.
<fr agr on tr inv.
#
#
#
#
FYI:
Environmental
Advisory Board
may still come
A
In the last year:
9 agreements W/12 countries
8 bilat : colombia
Ecuador
chile
Honduras
costa Rica
venezuela
El Salvador
Peru
1 multi lat : Argentina
Brazil
Paraguay
uruguay
Before last year:
bilats w/ Mexico + Bolivia
16 TOTAL - 8 bilat
1 multi 1 w/ 4 is
2 old bilat (Mex, Bol.)
2 new (Pan, Nic)
Louellen Steadman, Treas.
566-2888
TO POTUS
Snow/Cawley
June 26, 1991
Draft Two
EAI.TS
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills. Minister Foxley of
Chile Minister DeFranco of Nicaragua, Minister Alfaro of Panama.
I could not be more pleased to have you all join me up here
today. And look at this audience!
My good friend, Secretary Mosbacher; Secretary Madigan,
Administrator Reilly -- it's good to see you here. Greetings
AID Administrati
also to Fred Zeder from OPIC, John Macomber of the EXIMBANK; Ron Roskens
members of Congress. This large and distinguished group of
Boskin
Scowcroft
Americans illustrates vividly our commitment to building a
better, more prosperous hemisphere.
We're also pleased to have with us Enrique Iglesias of the
Inter-American Development Bank; Ambassadors from Latin America
and the Caribbean, from the Organization of American States,
other members of the diplomatic corps. To everyone here: My
warmest greetings to you on this historic day.
I think you'll agree -- this counts as a warm greeting. //
I'll bet you're glad I didn't try for anything warmer. //
We've come here today to celebrate the first anniversary of
our Enterprise for the Americas Initiative. I can't think of any
2
better example of the way in which powerful ideals can create
surprising results.
The Enterprise for the Americas Initiative grew out of talks
between many of us gathered here. I heard many of my friends in
Central and South America talk about the importance of building a
prosperous hemisphere -- of throwing off the deadening weight of
debt and economic stagnation. We agreed to forge strong ties of
idealism and self-interest.
With the Enterprise for the Americas Initiative, we vowed to
encourage free trade, stimulate investment throughout the
hemisphere, and reduce the debt burden that threatens so many of
our neighbors and colleagues. This sounded wildly ambitious just
last year. Today, however, we think of it as a good start. //
We have made great progress toward the goal of hemispheric
8
free trade. In just one year we have signed nine bilateral
framework agreements for trade and investment: with Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Peru and
+ 2 prior w/ Mexico + Bolivia.
Venezuela. Make that eleven agreements: Today, Amb. Hills will
12
sign bilateral framework agreements with Minister DeFranco of
Nicaragua and Minister Alfaro of Panama. We also are negotiating
with Guatemala and the 13-nation, English speaking Caribbean
Community. We hope to sign these agreements soon.
Last week, Amb. Hills also joined representatives of
Argentina, Brazil, Paraguay and Uruguay in signing the Rose
Garden Agreement, the first regional framework accord under the
okiles
Frechste, USTR X635
3
Enterprise for the Americas Initiative.
Carla, you've been busy!
//
Amb. Hills and her counterparts will work together to pull
down tariff and nontariff trade barriers, protect patents and
Miles
intellectual property, strengthen investment and profit
repatriation policies. In short, they will build a solid
foundation for economic cooperation and prosperity.
But these agreements represent only one facet of the
initiative. On the investment front, our nations have begun
making the entire hemisphere more hospitable to investment. The
Inter-American Development Bank has approved its first so-called
sectoral loan -- $150 million loan to Chile. Minister Foxley and
President Iglesias completed arrangements for this loan just
today. //
President Iglesias, I want to thank you and congratulate
everyone at the IDB for this important step. Through these
loans, the IDB will help Latin America and the Caribbean
countries compete for capital. They will encourage reforms that
foster economic growth.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert cadres can no more manage
growth than they can manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
They allow poor people to become rich. They make possible
unprecedented levels of social mobility. They teach people that
4
good deeds can indeed pay off, and that the virtues of hard
study, hard work, and commitment to others really do produce
wealth.
I'm also pleased to report that our proposal for a 1.5
billion dollar Multilateral Investment Fund has gotten off to a
great start. Japan has pledged 100 million dollars for each of
the next five years. Canada, France, Portugal and Spain have
expressed interest in supporting the fund. This fund will
provide targeted support for countries that undertake the
difficult reforms necessary to encourage investment and stimulate
Mex.
free enterprise.
CR
Pillar three of our proposal, debt reduction, also has
her
gotten off to a rousing start. We will do all we can to reduce
in
the debt burden of Caribbean and Latin American neighbors who
adopt substantial, permanent economic reforms.
Four nations already have negotiated far-reaching reductions
ok Miles Fredheir USTR 55 X4-135
in commercial debt through the provisions of the Brady plan, and
other nations will take advantage of the plan as their economic
reforms take shape.
George Fulson
566 8243
Congress has agreed to reward economic reform and trade
liberalization by reducing a portion nation's debt -- the food
assistance loans contracted under Public Law 480. Congress also
supported our recommendation that the interest on remaining debt
go to fund grass-roots environmental projects. This ambitious,
innovative plan already has produced results.
5
Today the United States will sign an agreement with Chile,
slashing Chile's PL 480 debt 40 percent, to 23 million dollars.
We look forward to reaching an understanding soon on the
environmental component of this agreement.
Now, let's talk about what lies ahead. As you know,
Congress recently voted not to terminate the fast-track trade
procedures that enable us to deal in good faith with you -- and
with Congress -- in trade negotiations. Our goal is to create a
free trade zone that will cover all of North America. But this
trade zone -- 360 million consumers and markets that produce more
than $6 trillion in annual output -- will set the stage for
something even more dramatic -- a hemispheric zone of free trade.
The Enterprise for the Americas initiative can link our
nations, with their diverse cultures, workforces, creative
forces. I know some have worried that the EAI might indicate a
reduction in our commitment to the multilateral trading system.
Not so: we remain fully determined to make that system work.
Indeed, as part of the Uruguay Round, we have joined our
Latin American and Caribbean allies in trying to pull down
protectionist barriers in Europe and Asia. I cannot stress
enough the importance of reaching a successful conclusion to the
round. It can establish a basis for worldwide free and fair
trade. Without it, we will have great difficulty moving forward.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, ours has become the world's first
fully democratic hemisphere. //
6
This is no accident of history. From the Northern tip of
Alaska to the southernmost point of Tiera del Fuego, we share
common heritages. Our people can trace their roots to all the
nations of the world. We share ties of culture, of blood, of
common interest. And now, as democracy sweeps the world, we
share the challenge of leadership through example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from socialist inefficiencies by building
our own commonwealth of freedom. We can show the world just how
prosperity preserves the social order -- and the land, air, and
water as well. We can show the rest of the world that
deregulation, respect for private property, low tax rates and low
trade barriers can produce vast economic returns. We can show
the rest of the world how to compete in ways that build upon each
other's strengths, rather than preying upon weaknesses.
Today, I pledge my full effort to make the Enterprise for
the Americas Initiative a reality. I urge Congress to pass
promptly the remaining legislation necessary to enact EAI. This
includes debt-reduction authority and authority for the United
States to contribute its share to the Multilateral Investment
Fund. We will spare no effort in trying to reach an acceptable
GATT conclusion. We will fight for free and fair trade --
everywhere.
In 1876, the Brazilian Emperor Dom Pedro II visited the
United States. During a stop in St. Louis, he noticed that local
craftsmen were using only the sturdiest materials in building a
7
customs house. The emperor was stunned. "But an iron building
would last 400 years, " he noted. "You do not mean to tell me
that there will be any custom houses in 400 years."
Unfortunately, no one understood his point. //
We meet today to pursue Dom Pedro's vision of a hemisphere
shorn of customs houses and jammed with shops and trade zones.
If we can build a hemisphere devoted to freedom, one that
encourages men and women of genius to turn their great ideas into
products, deeds, services and industries; if we can build a
hemisphere in the spirit of enterprise buries the temptations of
envy, we can create our own New World order. We can build a
legacy of real prosperity, stability, and harmony -- for all our
lands.
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
Now I would like to ask Secretary Brady and Minister Foxley
to sign the debt reduction agreement for Chile -- and following
that, Ambassador Hills to sign a framework agreement for trade
and investment with Minister DeFranco of Nicaragua and Minister
Alfaro of Panama.
#
#
#
#
Snow/Cawley
June 26, 1991
Draft Two
EAI.TS
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills, Minister Foxley of Chile;
Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I
could not be more pleased to have you all join me up here today.
And look at this audience!
Undersecretary
Secretary Baker, welcome back -- for now.
My good friend,
Secretary Mosbacher; Secretary Madigan, Administrator Reilly --
it's good to see you here. Greetings also to Fred Zeder from
OPIC, John Macomber of the EXIMBANK; members of Congress. This
large and distinguished group of Americans illustrates vividly
our commitment to building a better, more prosperous hemisphere.
We're also pleased to have with us Enrique Iglesias of the
Inter-American Development Bank; Ambassadors from Latin America
and the Caribbean, from the Organization of American States,
other members of the diplomatic corps. To everyone here: My
warmest greetings to you on this historic day.
I think you'll agree -- this counts as a warm greeting. //
I'll bet you're glad I didn't try for anything warmer. //
We've come here today to celebrate the first anniversary of
our Enterprise for the Americas Initiative. I can't think of any
2
better example of the way in which powerful ideals can create
surprising results.
The Enterprise for the Americas Initiative grew out of talks
between many of us gathered here. I heard many of my friends in
Central and South America talk about the importance of building a
prosperous hemisphere -- of throwing off the deadening weight of
debt and economic stagnation. We agreed to forge strong ties of
idealism and self-interest.
With the Enterprise for the Americas Initiative, we vowed to
encourage free trade, stimulate investment throughout the
hemisphere, and reduce the debt burden that threatens so many of
our neighbors and colleagues. This sounded wildly ambitious just
last year. Today, however, we think of it as a good start. //
We have made great progress toward the goal of hemispheric
free trade. In just one year we have signed eight bilateral
framework agreements for trade and investment: with Colombia,
Chile, Costa Rica, Ecuador, El Salvador, Honduras, Peru and
Venezuela -- on top of our prior accords with Mexico and Bolivia.
Make that twelve agreements: Just today, Amb. Hills signed
bilateral framework agreements with Minister DeFranco of
Nicaragua and Minister Albaro of Panama. We also are negotiating
X
with Guatemala and the 13-nation, English speaking Caribbean
Community. We hope to sign these agreements soon.
Just last week, Amb. Hills also joined representatives of
Argentina, Brazil, Paraguay and Uruguay in signing the Rose
Garden Agreement, the first regional framework accord under the
3
Enterprise for the Americas Initiative. Carla, you've been busy!
//
Amb. Hills and her counterparts will work together to pull
down tariff and nontariff trade barriers, protect patents and
intellectual property, strengthen investment and profit
repatriation policies. In short, they will build a solid
foundation for economic cooperation and prosperity.
But these agreements represent only one facet of the
initiative. On the investment front, our nations have begun
making the entire hemisphere more hospitable to investment. The
Inter-American Development Bank has approved its first so-called
sectoral loan -- $150 million loan to Chile. Minister Foxley and
President Iglesias completed arrangements for this loan just
today. //
President Iglesias, I want to thank you and congratulate
everyone at the IDB for this important step. Through these
loans, the IDB will help Latin America and the Caribbean
countries compete for capital. They will encourage reforms that
foster economic growth.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert cadres can no more manage
growth than they can manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
They allow poor people to become rich. They make possible
unprecedented levels of social mobility. They teach people that
4
good deeds can indeed pay off, and that the virtues of hard
study, hard work, and commitment to others really do produce
wealth.
I'm also pleased to report that our proposal for a 1.5
billion dollar Multilateral Investment Fund has gotten off to a
great start. Japan has pledged 100 million dollars for each of
the next five years. Canada, France, Portugal and Spain have
expressed interest in supporting the fund. This fund will
provide targeted support for countries that undertake the
difficult reforms necessary to encourage investment and stimulate
free enterprise.
Pillar three of our proposal, debt reduction, also has
gotten off to a rousing start. We will do all we can to reduce
the debt burden of Caribbean and Latin American neighbors who
adopt substantial, permanent economic reforms.
Four nations already have negotiated far-reaching reductions
in commercial debt through the provisions of the Brady plan, and
other nations will take advantage of the plan as their economic
reforms take shape.
Congress has agreed to reward economic reform and trade
liberalization by reducing a portion nation's debt -- the food
assistance loans contracted under Public Law 480. Congress also
supported our recommendation that the interest on remaining debt
go to fund grass-roots environmental projects. This ambitious,
innovative plan already has produced results.
5
Today the United States will sign an agreement with Chile,
slashing Chile's PL 480 debt 40 percent, to 23 million dollars.
We look forward to reaching an understanding soon on the
environmental component of this agreement.
Now, let's talk about what lies ahead. As you know,
Congress recently voted not to terminate the fast-track trade
procedures that enable us to deal in good faith with you -- and
with Congress -- in trade negotiations. Our goal is to create a
free trade zone that will cover all of North America. But this
trade zone -- 360 million consumers and markets that produce more
than $6 trillion in annual output -- will set the stage for
something even more dramatic -- a hemispheric zone of free trade.
The Enterprise for the Americas initiative can link our
nations, with their diverse cultures, workforces, creative
forces. I know some have worried that the EAI might indicate a
reduction in our commitment to the multilateral trading system.
Not so: we remain fully determined to make that system work.
Indeed, as part of the Uruguay Round, we have joined our
Latin American and Caribbean allies in trying to pull down
protectionist barriers in Europe and Asia. I cannot stress
enough the importance of reaching a successful conclusion to the
round. It can establish a basis for worldwide free and fair
trade. Without it, we will have great difficulty moving forward.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, ours has become the world's first
fully democratic hemisphere. //
6
This is no accident of history. From the Northern tip of
Alaska to the southernmost point of Tiera del Fuego, we share
common heritages. Our people can trace their roots to all the
nations of the world. We share ties of culture, of blood, of
common interest. And now, as democracy sweeps the world, we
share the challenge of leadership through example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from socialist inefficiencies by building
our own commonwealth of freedom. We can show the world just how
prosperity preserves the social order -- and the land, air, and
water as well. We can show the rest of the world that
deregulation, respect for private property, low tax rates and low
trade barriers can produce vast economic returns. We can show
the rest of the world how to compete in ways that build upon each
other's strengths, rather than preying upon weaknesses.
Today, I pledge my full effort to make the Enterprise for
the Americas Initiative a reality. I urge Congress to pass
promptly the remaining legislation necessary to enact EAI
This
includes debt-reduction authority and authority for the United
States to contribute its share to the Multilateral Investment
Fund. We will spare no effort in trying to reach an acceptable
GATT conclusion. We will fight for free and fair trade --
everywhere.
In 1876, the Brazilian Emperor Dom Pedro II visited the
United States. During a stop in St. Louis, he noticed that local
craftsmen were using only the sturdiest materials in building a
7
customs house. The emperor was stunned. "But an iron building
would last 400 years, " he noted. "You do not mean to tell me
that there will be any custom houses in 400 years."
Unfortunately, no one understood his point. //
We meet today to pursue Dom Pedro's vision of a hemisphere
shorn of customs houses and jammed with shops and trade zones.
If we can build a hemisphere devoted to freedom, one that
encourages men and women of genius to turn their great ideas into
products, deeds, services and industries; if we can build a
hemisphere in the spirit of enterprise buries the temptations of
envy, we can create our own New World order. We can build a
legacy of real prosperity, stability, and harmony -- for all our
lands.
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
#
#
#
#
CAROLYNS COMMENTS
Snow/Cawley
June 25, 1991
Draft One
EAI.TS
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills, Minister Foxley of Chile;
Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I
could not be more pleased to have you all join me up here today.
Look at this distinguished audience!
Secretary Baker, welcome back -- for now. My good friend,
Add Madigan + Reilly
X
Secretary Mosbacher. 1 Fred Zeder, John Macomber, Enrique Iglesias
from OPIC
from the EXIM Bank
of the Inter-American Development Bank. Ambassadors from the
Organization of American States, other members of the diplomatic
corps. Members of Congress -- my warmest greetings to all of you
on this historic day.
[[ know most of you are happy that I can't muster even warmer
X
greetings. 90 degrees ought to be enough for anyone. //]]
We've come here today to celebrate the first anniversary of
our Enterprise for the Americas Initiative. Frankly, the best
way to celebrate is to push the initiative even further.
We thought we had set some pretty ambitious goals last year,
when we announced the three-part EAI. We vowed to encourage free
trade, stimulate investment throughout the hemisphere, and reduce
the debt burden that threatens so many of our neighbors and
X
colleagues. But we may actually have set our sights too low.
FYI:
" In the EAI announcement,
this was carefully worded
to include "with important
Set stage w/
benefits to our environment. 1)
soaring rhetoric
FYI : There are some
factual mixups w/ this #- -
some rework's needed. I'm still
working w/ Treasury, though it
may be cleared up w/ their comments.
11 separate agreements in place
all those
I group agr. in place
mentioned
2 separate agr. to be signed
at end
of #
sepurate.
2
In just one year, we have signed a dozen agreements under
EAI -- and we will announce three more today. We have concluded
the ones in line 6. 3 are The the wording same now as sounds as if theyré
nine separate framework agreements for trade and investment.
" these councils have already begun to meet ))
These agreements create councils charged with dismantling
X
Move rework the agreements
barriers to trade and investment. The United States already has
X
are already in place
signed a series of agreements with a large group of our
X
Move
hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa
X
Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and
X
mentioned in line
the "southern cone" countries of Argentina, Brazil, Paraguay and
Uruguay.
FYI just last week
On the investment front, our nations have begun inviting
investors to support new business throughout the hemisphere.
Today, we can announce that the Inter-American Development Bank
has approved its first so-called sectoral loan -- $150 million
loan to Chile. President Iglesias, I want to thank you and
congratulate everyone at the IDB for this very important move.
with agreements like this
Under these agreements, the IDB will supports efforts to replace
// Because Boliria, Jamaica, Colombia are on their way to their own IDB loans .))
old mercantilist or socialist economic systems with free market
systems. Our simple goal: We want to promote the economic
reforms that help foster economic growth and encourage
environmental stewardship.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert cadres can no more manage
growth than they could manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
3
our
I'm also pleased to report that my proposal for a
Mcclure
Multilateral Investment Fund has gotten off to a great start.
Japan has pledged $100 million for each of the next five years.
willingness
France, Spain and Canada also have expressed interest in
X
(sounds stronger .)
supporting the fund. This fund, like the sectoral loans from
IDB, will help nations throw off the shackles of authoritarian or
totalitarian economic systems, and let people throughout our
hemisphere enjoy the thrills and the blessings of open economic
competition.
Pillar three of our proposal, debt reduction, also has
gotten off to a rousing start. Our idea is simple: We will do
all we can to reduce the debt burden of nations that adopt
Brady Plan
substantial, permanent economic reform.
we'll continue to work w/ Congress on a plan
Congress has agreed( to reduce the debt burden of nations
Mcaure
implement strong economic reforms
liberalize investment
that liberalize their trade and investment rules, and has set
Treasury's
" NO fund set aside; it's a payment plan that involves environmental projects a
Fact Sheet
aside a fund to finance environmental projects.
This ambitious,
innovative plan already has produced results.
Today the United States will sign a debt-reduction agreement
X
with Chile, slashing its debt under Public Law 480 by 40 percent,
FYI very first country to receive
to 23 million dollars.
debt reduction under E.A.I.))
Now, let's talk about what lies ahead. As you know,
Congress recently extended the fast-track trade procedures that
enable us to deal in good faith with you -- and with Congress --
in trade negotiations. We hope to create a free trade zone that
will cover all of North America within the next few years. But
this trade zone -- which will embrace 360 million consumers and
4
markets that produce $6 trillion in annual output -- simply will
set the stage for something even more dramatic. The Enterprise
for the Americas initiative can link our entire hemisphere, with
its diverse cultures, workforces, creative forces.
negotiations
We already have joined forces in the GATT talks, trying to
USTR
pull down protectionist barriers in Europe and Asia. I cannot
stress enough the importance of reaching a GATT agreement that
will provide the foundation for worldwide free and fair trade.
Without GATT, we will have great difficulty moving forward.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, our hemisphere stands poised to
become the first fully democratic hemisphere in human history.
From the Northern tip of Alaska to the southernmost point of
Tiera del Fuego, we share common heritages. Our people can trace
[just used this word suggest ancestry, culture, etc]
X
their heritages to Spain, Portugal, Germany, Italy, Turkey,
x
China, Japan, England, the Arab world -- and of course, to this
not just No Am!
continent itself. Many of your leaders have taken college
need another word 1 we just trashed "experts" onp 2
x
degrees here, and many of our finest experts have studied on your
soil. We share ties of culture, of blood, of common interest.
And now, as democracy sweeps the world, we share the challenge of
leadership through example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from socialist inefficiencies by building
our own commonwealth of freedom. We can show the world just how
prosperity preserves the social order -- and the land, air, and
water as well. We can show the rest of the world that
5
deregulation, private property, low tax rates and low trade
barriers can produce vast economic returns. And we can show the
rest of the world how neighbors can compete in ways that build
upon each other's strengths, rather than preying upon their
weaknesses.
Today, I pledge my full effort to uphold the United States'
work
X
part of the EAI bargain. I will lobby hard to ensure that we
Mccure
contribute our $100 million share this year to the Multilateral
will
Investment fund and that we work hard to reach bilateral
X
agreements with all the nations of this hemisphere. I also
assure you that we will spare no effort in trying to reach an
acceptable GATT conclusion. I assure you that we will fight for
Call on Congress to fully fund the Presidents
free and fair trade -- everywhere. budget request for EAI — fulfill the potential of
the fund 1 help make EAI a reality.
In 1876, the Brazilian Emperor Dom Pedro II visited the
United States. During a stop in St. Louis, he noticed that local
craftsmen were using only the sturdiest materials in building a
customs house. The emperor was stunned. "But an iron building
would last 400 years, he noted. "You do not mean to tell me
that there will be any custom houses in 400 years. "
Unfortunately, no one understood his point. //
We meet today to pursue Dom Pedro's vision of a hemisphere
shorn of customs houses and jammed with shops and trade zones.
If we can build a hemisphere devoted to freedom, one that
encourages men and women of genius to turn their great ideas into
products, deeds, services and industries; if we can build a
hemisphere in which envy must step aside to for onrushing
6
enterprise; we can create our own New World order. We can build
a legacy of real prosperity, stability, and harmony.
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
Now, I would like to ask Minister Foxley, Minister DeFranco,
Minister Alfaro; Secretary Brady and Ambassador Hills to step
forward as they sign a debt reduction agreement with Chile; a
on trade + investment
framework trade agreement with Nicaragua and a framework trade
agreement with Panama.
#
#
#
#
FYI Environmental Advisory Board
announcement Still TBD
may need to Stick it in later.
JUN CO The 12:03
P.3/3
Reduction of Chile's PL-480 Debt
under the Enterprise for the Americas Initiative
The National Advisory Council (NAC) has recently recommended a 40
percent reduction in Chile's PL-480 debt to the United States.
This would reduce Chile's PL-480 debt from approximately $39
million to approximately $23 million. The agencies represented on
the NAC agreed that Chile's sound macroeconomic policies, stable
and receptive foreign investment regime, and good relations with
commercial banks qualify Chile for debt reduction under the
Enterprise for the Americas Initiative. We expect to conclude an
agreement with Chile early next week. Chile will be the first
country to receive debt reduction under the EAI.
June 19, 1991
TO be Signed Thursday, 6/27.
Larry Meleinger - IDB
Inv Sec. Loan
$150 M Chile In Se. Diform Lozan
Signed before Rg
IDB ba approved 6/19
signed earlier today
by PM Forley
Fold proberent torrid ad
of of LEG 8
ENTERPRISE FOR THE AMERICAS: INITIATING A NEW ERA OF
HEMISPHERIC COOPERATION
President Bush advanced the Enterprise for the Americas Initiative
last year in support of the new commitments of our neighbors in
Latin America and the Caribbean to democracy and economic reform.
The Initiative proposes action in three areas of vital interest to
our neighbors -- trade, F estment, and debt.
Trade
The prospect of a hemispheric free trade system has been met
with enthusiasm from leaders throughout the region.
With the support of Congress for fast-track negotiating
authority, we will be able to move toward that objective.
We have begun work on the first step toward a hemispheric free
trade system through the North American Free Trade Agreement
negotiations with Mexico and Canada.
We are also working with other countries in Latin America and
the Caribbean to begin to reduce barriers to trade.
--
Nine framework agreements on trade and investment have
been concluded since the EAI was announced.
Framework agreements are now in place with Mexico,
Bolivia, Colombia, Ecuador, Chile, Honduras, Costa
Rica, Venezuela, El Salvador, Peru, and a group of
countries composed of Argentina, Brazil, Uruguay,
and Paraguay.
--
The Councils created by these agreements to discuss
barriers to trade and investment have begun to meet.
Latin American and Caribbean countries are anxious to advance
free trade and are accelerating their efforts to reduce
barriers and expand opportunities for trade between their
countries as well as with the United States.
Investment
The Inter-American Development Bank (IDB) has taken the lead
in helping Latin America and the Caribbean to become more
competitive in attracting capital for growth.
A new sector lending program will help countries liberalize
their investment regimes and compete for capital.
The first such investment sector loan, a $150 million
loan for Chile, was approved by the IDB Board on June 19.
2
--
Bolivia, Jamaica, and Colombia are also well along in the
process of negotiating such loans.
--
Other countries -- including Uruguay and Costa Rica --
are also seeking the IDB's support through investment
sector loans.
The President's innovative proposal to establish a
Multilateral Investment Fund to provide additional, targeted
support for investment reforms has gained broad support from
other creditor governments.
--
Japan has pledged $100 million per year for five years in
grant resources to the Fund, which will be administered
by the IDB.
--
Other creditor governments -- France, Spain, and Canada
-- have indicated a willingness to provide resources.
--
This Fund will, for example, support efforts to privatize
government-owned industry, finance worker retraining
programs, and help small entrepreneurs gain access to
capital.
Debt
By reducing debt owed to the United States Government by
countries implementing strong economic reform programs, we can
provide significant support for reform efforts and help
countries restore confidence in their economies.
Congress has authorized the reduction of PL-480 debt of Latin
American and Caribbean countries implementing strong economic
reform programs, including investment liberalization.
--
PL-480 debt constitutes $1.7 billion of the $12 billion
owed to the United States by Latin American and Caribbean
countries.
In authorizing this debt reduction, Congress set up a
framework for interest payments on reduced debt to be made ,in
local currency and used to fund grass roots environmental
projects.
Chile is the first country to benefit from debt reduction
under the Initiative.
--
Chile qualified for debt reduction on the basis of its
outstanding economic reform record and its recent
commitment to pursue additional investment reforms with
the support of the Inter-American Development Bank.
--
The debt reduction agreement signed today reduces Chile's
PL-480 debt by 40%, from $39 million to $23 million.
3
Critical Next Steps
The process of creating a hemispheric system of free trade
will take a number of years, but it must begin now.
--
Negotiations will begin in earnest over the next few
months on the North American Free Trade Agreement. Chile
may also be a candidate for the negotiation of a Free
Trade Agreement within the next two years.
--
The Trade and Investment Councils established by
framework agreements will be meeting to monitor trade and
investment relations and to identify opportunities for
expanding trade and investment through liberalization and
other appropriate means.
-
Framework agreements will likely be concluded with
additional countries, such as Nicaragua, Panama, and the
CARICOM group under the leadership of Jamaica.
We want to support countries' efforts to attract capital, but
they themselves must take action to become more competitive.
---
The Inter-American Development Bank stands ready to help
countries identify ways to improve their investment
climate through sector loans.
---
The Multilateral Investment Fund can step in to provide
critical additional support for these difficult steps.
This Fund must be adequately endowed to fulfill its
potential.
We depend on the support of Congress as well as
other creditor governments to bring this about.
For Latin America and the Caribbean to benefit from
significant bilateral debt reduction in support of economic
reforms, Congress must act.
--
Authorizing legislation is necessary to allow reduction
of AID debt and the sale of a portion of Eximbank and CCC
loans.
--
Full funding of the request in the President's budget for
the EAI is also vital.
In fiscal year 1992, this involves $310 million, in
addition to the $100 million for the Multilateral
Investment Fund.
NSC (?)
POINTS TO BE MADE FOR EAST ROOM MEETING
TO CELEBRATE FIRST ANNIVERSARY OF THE
ENTERPRISE FOR THE AMERICAS INITIATIVE BY THE PRESIDENT
--
Acknowledgements:
--
One year ago today, many of us met in this room. At that
time, I offered some proposals in the areas of trade,
investment, and debt. I set forth a vision of a hemisphere
of free peoples and free markets -- a hemisphere of
democracy with a free trade area stretching from Alaska in
the North to Tierra del Fuego in the south.
--
I made this proposal because I believed that this hemisphere
had a unique opportunity to work closely together -- to
share ideas and proposals that would consolidate our
democratic achievements and move us toward greater
prosperity.
-- Frankly, although I hoped for a positive reception, I was
not prepared for the overwhelming response that the EAI
received. The phone calls and other messages I received
from other leaders in this hemisphere were both inspiring
and reassuring.
-- This anniversary, therefore, offers us an opportunity to
take stock of what we have achieved. Equally important, it
serves as a spur to further action.
-- The signing ceremonies today demonstrate beyond doubt that
we have made progress in each of the three areas. We are
particularly pleased that the Congress last year passed the
debt reduction authorization in the Farm Bill. This enabled
us to sign the FIRST agreement with Chile today. This agreement
Signal by Minutes Foxlay of Chila AM accomplishnaps
BRADY is A FIRST. 17 RECOURS Chrises MAJOR accomp
2
-- For this, Chairman Kika de la Garza and Chairman Dante
Fascell deserve our special vote of thanks. Their support
is the demonstration of bipartisanship and statesmanship
that we need to make a reality of the EAI.
-- We must also take note of the role of the Inter-American
Development Bank, which has today signed the very first
Investment Sector Loan agreement with Chile. The IDB under
the leadership of Enrique Iglesias has been a strong
supporter of the EAI, and we thank him and the IDB for its
support. We look forward to doing a great deal more with
him.
- Of course, the trade and investment framework agreements
have been one of the brightest spots of the EAI. The two
with NICARAGUA AND PANAMA.
agreements signed today / make a total of eleven signed in the
last twelve months. Just last week, during the visit of
President Collor of Brazil, we signed "The Rose Garden
Agreement" -- a multilateral framework agreement with
Argentina, Brazil, Paraguay, and Uruguay.
-- As we look with resolution and optimism to the future, we
know that much more remains to be done. I have instructed
all my senior advisers to work actively with the Congress to
secure the passage of the rest of the EAI legislation. We
would like to see this happen as soon as possible.
-- We are just now beginning the negotiations with Canada and
Mexico on the North American Free Trade Agreement (NAFTA).
Again, I must note the bipartisan spirit shown by Senator
Bentsen of the great state of Texas and by Chairman Dan
Rostenkowski. Without their leadership, the extension of
3
the fast track authority for the NAFTA negotiations would
not have been possible.
--
We know the NAFTA negotiations will be arduous and complex.
But we are confident that the result will be a good one for
all our countries, and for the whole hemisphere. We will
produce an agreement which our Congress will support, and
which will make possible further advances along the road to
a hemisphere of free trade.
--
[Finally, as we take stock of the last year, I am aware that
my EAI speech also contained ideas on how to use the
interest on official debt for environmental purposes.
Putting this all together has been a slower process than I
would have liked. However, today I am prepared to announce
the names of the members of the Environment for the Americas
Board which Congress authorized last fall. They are:
]
--
[My instruction to them is simple; there is plenty to be
done to enhance our environment, but it must always be done
with a spirit of respect and cooperation.]
--
All of us know that there is a new spirit of cooperation in
our hemisphere. The Americas are our common homeland, and
our peoples are united by close bonds of culture, language,
family, as well as by our commitment to democracy. The EAI
is an effort to identify opportunities to enhance our common
well-being. Together our nations can continue to do great
things.
CH. 10
DOM PEDRO
THE MAGNANIMOUS
Second Emperor of Brazil
By
MARY WILHELMINE WILLIAMS
Professor of History, Goucher College
CHAPEL HILL
THE UNIVERSITY OF NORTH CAROLINA PRESS
1937
at the Château d' Eu
Copy 2
TOURING THE UNITED STATES OF AMERICA
199
the Emperor to Ford's Opera House, where they both were so
charmed with Mary Anderson in "The Lady of Lyons" that
they asked her to come to their box after the play. That box
was renamed "The Imperial."³⁹
On Sunday, May 14, the Brazilian travelers left early for
St. Louis, making a few short stops on the way. The first was
at Cincinnati, where during part of a day Dom Pedro followed
a varied program which included visits to an art museum, a fac-
tory for making surgical instruments, and a pork-curing plant.
The party reached Louisville on May 16, where the Empress
went to a hotel. The Emperor, with two members of his suite,
took a special train to see Mammoth Cave. He found his un-
usual height a handicap in getting about there, but during the
three hours allotted he explored the cavern as far as Green
River. Later he remarked that Mammoth Cave, like much else
he had seen in America, was not pretty, but magnificent.⁴
The next forenoon the Brazilian tourists reached St. Louis,
where Dom Pedro seems to have been franker in his criticisms
than before, possibly because his English was increasing in
fluency. When he saw the customs house, then being built, he
expressed surprise that a sensible people should erect such a
massive and costly structure on a mud foundation, and he added
that an iron building would have done very well and would
have been much cheaper. Informed that the American people
built for remote posterity, he was reported to have replied:
"But an iron building would last 400 years, and you do not
mean to tell me that there will be any custom houses in 400
years."⁴¹ Did the philosophical sovereign of Brazil foresee a
golden age when tariff walls should be no more?
He disapproved also of St. Louis's insane asylum, for its
lack of proper heating and bathing facilities, and its system of
personal restraint. It would be better, he pointed out, to place
violent patients in separate cells and have them free from
2
The Sun, May 15, 1876.
60 Dom Pedro in U. S.
41 Ibid.
This story is from the Dono Pedro visit of 1876=(our centenniae)
= (115 yrs . ago)
Administration of George Bush, 1990 / June 27
e important
Nomination of George F. Murphy, Jr.,
querque to ensure the protection of serious-
of UNHCR.
To Be Inspector General of the United
ly threatened ancient Pueblo Indian and
ommissioner
States Information Agency
Spanish rock art. Cost sharing will be an
of Vietnam-
June 27, 1990
important component of the success of this
issue of po-
joint effort, and I look forward to a success-
ts in the
The President today announced his inten-
ful partnership.
restated the
tion to nominate George F. Murphy, Jr., to
S. 286 also will expand the existing 365-
t asylum in
be Inspector General of the U.S. Informa-
acre Pecos National Monument into the
untary repa-
tion Agency. He would succeed Anthony J.
5,865-acre Pecos National Historical Park.
rent condi-
Gabriel.
This will allow for expanded protection and
the United
Since 1988 Mr. Murphy has served as
recreation programs in an area rich in cul-
touch with
Deputy Director for the U.S. Arms Control
tural resources.
issue of pre-
and Disarmament Agency in Washington,
I wholeheartedly support the measures
Asia.
DC. Prior to this, he served as a consultant
contained in S. 286 because they will
to the nuclear industry, 1986-1987; director
ensure the protection of rich natural and
of the Senate National Security Office,
cultural resources within the State of New
1977-1986; executive director of the Joint
Mexico that are now seriously threatened.
Committee on Atomic Energy, 1975-1977;
1 Barbecue
deputy director of the Joint Committee on
George Bush
Atomic Energy, 1968-1975; and a profes-
The White House,
sional staff member on the Joint Committee
June 27, 1990.
you. Thank
on Atomic Energy, 1958-1968. In addition,
turned it on
Mr. Murphy worked for the Central Intelli-
Note: S. 286, approved June 27, was as-
gence Agency, 1950-1958.
Mr. Murphy graduated from Harvard
signed Public Law No. 101-313.
ybody how
of you-we
College (A.B., 1949). He was born May 1,
ums, 4 gold
1924, in Boston, MA. Mr. Murphy served in
one of the
the U.S. Army Air Corps, 1942-1946. He is
untry and a
married, has two children, and resides in
Remarks Announcing the Enterprise for
Bethesda, MD.
And we are
the Americas Initiative
nk you for
June 27, 1990
ice.
e welcome,
Thank you all very much for coming to
Statement on Signing a Bill Protecting
the White House, and it is my pleasure to
Natural and Cultural Resources in
welcome so many distinguished guests with
; wonderful
New Mexico
such strong interests in the vital Latin
to have you
Members of
June 27, 1990
American and Caribbean region. Let me
recognize the many members of the diplo-
are delight-
I take great pleasure in signing into law
matic corps that are here and extend to you
-a good, re-
S. 286, an Act to establish the Petroglyph
a warm welcome-from Latin America,
night at the
National Monument and the Pecos National
particularly, and the Caribbean, Europe,
ot of work
Historical Park in New Mexico, and to re-
Japan. Members of our Cabinet-Nick
far as we're
solve various New Mexico land issues.
Brady and Secretary Baker, Carla Hills, Sec-
'ennsylvania
West of Albuquerque, New Mexico, the
retary Mosbacher-delighted you're here.
elighted you
major landscape feature is the West Mesa,
Chairman of the Council of Economic Ad-
es at home,
marked by a 17-mile long basalt escarpment
visers, Mike Boskin, is here. Bill Webster,
1 Campbell.
and five volcanic cones. Within the area are
welcome. And of course, we're delighted to
an estimated 15,000 to 17,000 petroglyphs,
see Alan Greenspan, Chairman of the Fed-
which are designs carved or pecked into
eral Reserve Board, here and then an old
r. President.
the rock. Establishment of the Petroglyph
friend, Barber Conable, of the World Bank,
National Monument will provide an excel-
and Richard Erb, from the IMF. And Ricky
lent opportunity to form a strong partner-
Iglesias, an old friend of the Bushes, and we
p.m. on the
ship among the Federal Government, the
welcome him, of the IDB, and so many
State of New Mexico, and the City of Albu-
leading lights in the business and financial
1009
ways that support the positive changes
now taking place in the hemisphere. We
formulated a three-point trade plan to en
must forge a genuine partnership for free-
courage the emerging trend toward free
market reform.
market reform that are now gathering
Back in February, I met in Cartagena
forces in the Americas.
[Colombia] with heads of the three Andean
First, as we enter the final months of the
nations, and I came away from that meet-
current Uruguay round of the world trade
1010
Administration of George Bush, 1990 / June 28
e set up
New World. And we trace our origins, our
of the proposed rescissions are contained in
e taken
shared history, to the time of Columbus'
the attached report.
voyage and the courageous quest for the
he most
advancement of man. Today the bonds of
George Bush
our common heritage are strengthened by
y nation
The White House,
the love of freedom and a common commit-
eing. As
ment to democracy. Our challenge, the
June 28, 1990.
ricas Ini-
challenge in this new era of the Americas, is
engthen
to secure this shared dream and all its fruits
Note: The attachment detailing the pro-
hisphere.
for all the people of the Americas-North,
posed rescissions was printed in the "Feder-
example,
Central, and South.
al Register" of July 6.
reements
nations
The comprehensive plan that I've just
will also
outlined is proof positive the United States
al trusts,
is serious about forging a new partnership
with our Latin American and Caribbean
restruc-
Statement on the Japan-United States
1 curren-
neighbors. We're ready to play a construc-
Trade Negotiations
tive role at this critical time to make ours
onmental
June 28, 1990
the first fully free hemisphere in all of histo-
ry. Thank you all for coming and God bless
Last year the United States and Japan
er a pow-
the peoples of the Americas. Thank you
launched a new cooperative endeavor in
: natural
very, very much, indeed.
economic policy called the Structural Im-
ve share.
Arctic to
pediments Initiative. This initiative is de-
Belize to
signed to address underlying structural
Note: The President spoke at 2:48 p.m. in
problems in both of our economies with the
izon, we
the East Room at the White House. In his
we hold
goal of contributing to more open and com-
opening remarks, he referred to Secretary of
er of our
petitive markets and to the reduction of
the Treasury Nicholas F. Brady; U.S. Trade
payments imbalances. A joint working
et reform
Representative Carla A. Hills; Secretary of
group was formed to identify and solve
economic
Commerce Robert A. Mosbacher; William
these problems. Over the past year, these
rms, and
H. Webster, Director of Central Intelligence;
discussions have demonstrated the construc-
answer, a
Barber B. Conable, Jr., President of the
tive and cooperative spirit which character-
ourden of
World Bank, which is also known as the
izes the relationship between our two coun-
m.
International Bank for Reconstruction and
tries.
that the
Development; and Richard D. Erb, Deputy
essed this
Managing Director of the International
The joint report of the SII working group
shift our
Monetary Fund. The President also referred
has just been issued in Tokyo, following up
to the Group of 24, the industrialized de-
an interim report issued in April. I welcome
ca; but I
mocracies that have pledged support for eco-
and endorse this joint report. Both coun-
y, as I've
nomic and political reform in Poland and
tries have identified structural impedi-
n Central
bean and
Hungary.
ments, taken initial corrective actions, and
made commitments to take further steps to
lose sight
resolve a wide range of structural problems.
opportu-
We expect that the structural policy actions
nisphere.
to be taken will have a positive effect on
eaders of
Message to the Congress Reporting
our economies, encouraging open and com-
nocracies
Budget Rescissions
petitive markets, promoting sustained world
them also
June 28, 1990
economic growth, contributing to a reduc-
and eco-
tion in global payments imbalances, and en-
rica. Our
To the Congress of the United States:
hancing the quality of life in both Japan and
veen the
In accordance with the Impoundment
the United States. Although our efforts on
be and in
Control Act of 1974, I herewith report
SII are bilateral, the effects will be benefi-
eight proposed rescissions totalling
cial for the entire world.
ohere will
$327,375,000.
I particularly welcome the clear commit-
f an epic
The proposed rescissions affect programs
ment by Japan to reduce further its current
erica, our
of the Department of Defense. The details
account surplus and view the SII process as
1013
June 25, 1991
MEMORANDUM
TO:
TONY SNOW
FROM:
CAROLYN CAWLEY
RE:
ENTERPRISE FOR THE AMERICAS REMARKS
Basic Info
Date:
June 27 -- Thursday
Time:
4:00 p.m.
Place:
Rose Garden
names
Acknowledgements
On stage:
Secretary Brady w/ FM of Chile
Ambassador Hills w/ FM's of Nicaragua + Panama
In audience:
Secretaries Baker and Mosbacher
Fred Zeder of OPIC
John Macomber of EXIM Bank
50 foreign ambassadors and all of the
ambassadors to the OAS (some overlap there)
Announcements
--
At the conclusion of the remarks, announce signings:
O
Brady/FM of Chile -- a debt reduction agreement
Hills/FM of Panama -- a framework trade agreement
Hills/FM of Nicaragua
--
"
"
-- FYI: possibility of another: announcement of an
Environmental Advisory Board (another facet of
the Enterprise for the Americas Initiative).
The holdup is due to the fact that one of the proposed
members withdrew his name -- Personnel is working
furiously to clear someone in time for the event.
4:00 on Thursday.
-- Also, you may want to mention a new investment sector
loan agreement between the IDB and Chile. It's obviously
not a government initiative, but it is a facet of the
E.A.I. Let me know if you're interested in using
this and I can further info from IDB.
Other
-- Factsheets on the agreements to come from OCA.
-- See bullets from Treasury (through OCA) -- came
down on Friday.
-- See bullets from NSC -- came down on Friday.
Southern Common Market
-- Will be implemented for all 4 countries by Jan. 1, '95.
('94 for Argentina + Brazil; '95 for Paraguay + Uruguay.)
E.A.I & GATT
-- See June 27, 1990 speech unveiling E.A.I.
From USTR: "The Uruguay Round is tremendously important
to the success of E.A.I. -- if we don't get a reduction
in trade barriers in all areas, it will be very difficult
to move forward with FTA's anywhere. Success in GATT
is crucial to the spirit of the E.A.I. The point we need
to emphasize is the lower barriers mean greater access
across the board and we all benefit." (( Apparently this
point hasn't been stressed strongly enough, and USTR
would really like us to emphasize it. ))
Contacts:
Claire Sechler -- OCA -- 2800
Miles Frechette -- USTR -- X 6135
10B, ite.
John Mellinger -- IDB -- 623-1031
10B
Larry
SNOW/CAWLEY
JUNE 25, 1991
DRAFT ONE
EAI.TS
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills, Minister Foxley of Chile;
Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I
could not be more pleased to have you all join me up here today.
Look at this distinguished audience!
Secretary Baker, welcome back -- for now. Secretary
Mosbacher, you helped make much of this celebration possible.
I
Fred Zeder, John Macomber, ambassadors from the Organization of
American States, other members of the diplomatic corps; President
Enrique Iglesias of the Inter-American Development Bank; members
of Congress -- my warmest greetings to all of you on this
historic day.
I know most of you are happy that I can't muster even warmer
greetings. 90 degrees ought to be enough for anyone. //
We've come here today to celebrate the first anniversary of
our Enterprise for the Americas Initiative. Frankly, the best
way to celebrate is to push the initiative even further.
We thought we had set some pretty ambitious goals last year,
when we announced the three-part EAI. We vowed to encourage free
trade, stimulate investment throughout the hemisphere, and reduce
2
the debt burden that threatens so many of our neighbors and
colleagues. But we may actually have set our sights too low.
In just one year, we have signed a dozen agreements under
EAI -- and we will announce three more today. We have concluded
nine separate framework agreements for trade and investment.
These agreements create councils charged with dismantling
barriers to trade and investment. The United States already has
signed a series of agreements with a large group of our
hemispheric friends: Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Honduras, Mexico, Peru, Venezuela and
the "southern cone" countries of Argentina, Brazil, Paraguay and
Uruguay.
On the investment front, our nations have begun inviting
investors to support new business throughout the hemisphere.
Today, we can announce that the Inter-American Development Bank
has approved its first so-called sectoral loan -- $150 million
loan to Chile. President Iglesias, I want to thank you and
congratulate everyone at the IDB for this very important move.
Under these agreements, the IDB will support efforts to replace
old mercantilist or socialist economic systems with free market
systems. Our simple goal: We want to promote the economic
reforms that help foster economic growth and encourage
environmental stewardship.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert cadres can no more manage
3
growth than they could manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
I'm also pleased to report that my proposal for a
Multilateral Investment Fund has gotten off to a great start.
Japan has pledged $100 million for each of the next five years.
France, Spain and Canada also have expressed interest in
supporting the fund. This fund, like the sectoral loans from
IDB, will help nations throw off the shackles of authoritarian or
totalitarian economic systems, and let people throughout our
hemisphere enjoy the thrills and the blessings of open economic
competition.
Pillar three of our proposal, debt reduction, also has
gotten off to a rousing start. Our idea is simple: We will do
all we can to reduce the debt burden of nations that adopt
substantial, permanent economic reform.
Congress has agreed to reduce the debt burden of nations
that liberalize their trade and investment rules, and has set
aside a fund to finance environmental projects. This ambitious,
innovative plan already has produced results.
Today the United States will sign a debt-reduction agreement
with Chile, slashing its debt under Public Law 480 by 40 percent,
to 23 million dollars.
Now, let's talk about what lies ahead. As you know,
Congress recently extended the fast-track trade procedures that
enable us to deal in good faith with you -- and with Congress --
in trade negotiations. We hope to create a free trade zone that
4
will cover all of North America within the next few years. But
this trade zone -- which will embrace 360 million consumers and
markets that produce $6 trillion in annual output -- simply will
set the stage for something even more dramatic. The Enterprise
for the Americas initiative can link our entire hemisphere, with
its diverse cultures, workforces, creative forces.
We already have joined forces in the GATT talks, trying to
pull down protectionist barriers in Europe and Asia. I cannot
stress enough the importance of reaching a GATT agreement that
will provide the foundation for worldwide free and fair trade.
Without GATT, we will have great difficulty moving forward.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, our hemisphere stands poised to
become the first fully democratic hemisphere in human history.
From the Northern tip of Alaska to Tiera del Fuego, we share
people
common heritages. Our leaders] can trace their heritages to
Spain, Portugal, Germany, Italy, Turkey, China, Japan, England,
the Arab world -- and of course, to this continent itself. Many
of your leaders have taken college degrees here, and many of our
finest experts have studied on your soil. We share ties of
culture, of blood, of common interest. And now, as democracy
sweeps the world, we share the challenge of leadership through
example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from socialist inefficiencies by building
our own commonwealth of freedom. We can show the world just how
5
prosperity preserves the social order -- and the land, air, and
water as well. We can show the rest of the world that
deregulation, private property, low tax rates and low trade
barriers can produce vast economic returns. And we can show the
rest of the world how neighbors can compete in ways that build
upon each other's strengths, rather than preying on their
weaknesses.
Today, I pledge my full effort to uphold the United States'
part of the EAI bargain. I will lobby hard to ensure that we
contribute our $100 million share this year to the Multilateral
Investment fund, and that we work hard to reach bilateral
agreements with as many of you as we can. I also assure you that
we will spare no effort in trying to reach an acceptable GATT
conclusion. I assure you that we will fight for free and fair
trade -- everywhere.
In 1876
One hundred fifteen years ago the Brazilian Emperor Dom
II
Pedro visited the United States. During a stop in St. Louis, he
noticed that local craftsmen were using only the sturdiest
materials in building a customs house. The emperor was stunned.
"But an iron building would last 400 years, = he noted. "You do
not mean to tell me that there will be any custom houses in 400
years. " Unfortunately, no one understood his point. //
We meet today to pursue Dom Pedro's vision of a hemisphere
shorn of customs houses and jammed with shops and trade zones.
If we can build a hemisphere devoted to freedom, one that
encourages men and women of genius to turn their great ideas into
6
products, deeds, services and industries; if we can build a
hemisphere in which envy must step aside to for onrushing
enterprise; we can create our own New World order. We can build
a legacy of real prosperity, stability, and harmony.
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
#
#
#
#
R
Now we'll sign
OFFICE OF THE
UNITED STATES TRADE REPRESENTATIVE
WASHINGTON
Claire- -
Conect names 8 2
hade ministers:
ROBERTO ALFARO
min. of Commerce
Industry
Panama
* * *
SILVIO DE FRANCO
Min. of Economics
Nicarigue
06/25/91 13:38
202 623 3212
IDB US
1
001
INTER-AMERICAN DEVELOPMENT BANK
WASHINGTON, D.C. 20577
91 JUN 25 P2: 42
EXECUTIVE DIRECTOR
CABLE ADDRESS
INTAMBANC
United States
FACSIMILE COVER SHEET
DATE: 6/25/91
NUMBER OF PAGES TO FOLLOW: 2
TO: MS- CAROLINE CAWLEY
WHITE HOUSE
ADDRESSEE'S FAX NUMBER: 456-6218
ADDRESSE'S CONFIRMATION NUMBER: L
FROM: CARRY K. MELLINGER
I.D.B.
SENDER'S FAX NUMBER: 623-3612
SENDER'S CONFIRMATION NUMBER: (202) 623-1031
COMMENTS/SPECIAL INSTRUCTIONS:
06/25/91
13:38
202 623 3212
IDB US
002
-2-
including a grace period of five years.
The Enterprise for the Americas Initiative, proposed in June 1990 by United
States President George Bush, includes creation of a hemispheric free trade zone,
support for private investment and reduction of bilateral U.S.-Latin American
debt.
"I am very pleased that, in the month of the first anniversary of the
launching of the Enterprise for the Americas Initiative, the IDB has approved the
first loan within the goals of this initiative to support the investment system
in Chile," said IDB President Enrique V. Iglesias during the course of
considering the project.
Will be in audience on Thursday
"It is symbolic that this first IDB action should be for Chile, which leads
in the process of economic reform and modernization in Latin America," he said.
"This loan is a model of institutional changes aimed at supporting, among other
innovative objectives, the small and medium-scale entrepreneur, deepening the
process of modernization of the Chilean financial system--particularly the stock
exchanges--and facilitating the use of private capital in the field of
infrastructure and in association with public enterprises," noted the IDB
president.
IDB Info
[This "part of the press release
announcing IDBS initiative
for chile. ]
Ethnic Backgrounds
Panama
Spanish
Mestizo
West Indies
Indian (native)
Other Central American countries
Spanish
Turks
Arabs
some Chinese and Japanese
Indian (native)
Andean countries -- Venezuela, Colombia, Ecuador, Peru, Bolivia
Spanish
Italian
German
Portuguese
Arab
Indian (native)
clear
Make it LA welcomen supports it bec it
recision that
we share the fature
to the Brazilian Congress. Ive highlighted
Attached is a copy of POTUS remarks
some "shared + common heritoge" language.
free, seo, melting pots,
what we can mean
EAI has captured LA imag
to each :- future
Enaudi
belongs to us =
Why?- fright post
sur common
what matters is future
\
the New
th its what we have
chosen
People
the future belongs to us
Administration of George Bush, 1990 / Dec. 3
se bilater
first, that Iraq has committed naked and
Remarks to a Joint Session of the
y opinion
unprovoked aggression against Kuwait, and
Congress in Brasilia, Brazil
e do not
second, that Kuwait's status as a sovereign
December 3, 1990
edium of
state must be restored. The only way that
Kuwait's sovereignty can be restored is for
Mr. President of the National Congress
action by
the occupying Iraqi troops to leave Kuwait.
and Mr. President of the Chamber of Depu-
bilize the
This position has been embodied in nu-
ties; and to our two most articulate speak-
lea which
merous resolutions of the United Nations
ers, Senator Tito and Deputy Fiuza; and
I consum-
Security Council. The community of Latin
Mr. Acting President of the Supreme Court;
ble price
American and Caribbean States spoke out
esteemed Papal Nuncio and members of
elf would
strongly in condemnation of the invasion of
the diplomatic corps; Mr. Archbishop; Hon-
indamen-
Kuwait and in support of the sanctions that
orable Ministers of State and Governors of
general
the United Nations imposed. Argentina has
the Federal District; and honorable Depu-
cient and
sent a force of two ships to the Gulf to
ties and Senators: It is a privilege, it is an
arket for
cooperate with the multinational force, an
honor to join you in this great hall of de-
action which we applaud.
mocracy.
President
My thoughts today could have no better
The United States is not eager to see
e produc-
forum than this National Congress; my
d such as
armed conflict in the Gulf. As President, I
words, no better audience than the people
ordered American forces to the area to
in order
of Brazil. We meet at an extraordinary
ieve that
block Iraqi aggression and to support the
moment in our shared history, a time of
ilable for
demands of the international community
serious challenges and important choices
es which
for restoration of Kuwait's sovereignty. We
that calls for mutual respect, candor, and
es. There
have not rushed to use force, preferring to
collective will. I've met with many Latin
ea, and I
give the international sanctions a chance to
and Caribbean leaders. And beyond any
sue with
work and to let the Iraqi leadership see
single issue that we've discussed, all of us
hen I am
clearly that they have the whole world ar-
have been galvanized by a new era of hope
rayed against them.
and opportunity throughout the Americas,
However, for the international communi-
especially here in Brazil.
sis
ty's sanctions to be credible, they must be
By pioneering bold new economic re-
in Amer-
backed up with the possibility of coercion.
forms and consolidating its democracy,
Saddam
Those who rule by force frequently under-
Brazil today is poised to enter the 21st cen-
e against
stand only the language of force. The
tury as a leader among nations. That is a
plomatic
United States, acting in concert with count-
tribute to a leader whose friendship and
ou reject
less other countries, has taken actions to
vision I value and respect, a man who rep-
ensure that Saddam Hussein understands
resents a new generation of democratic
that the international community can
leadership now sweeping across Latin
just re-
America, your dynamic new President, Fer-
1, during
indeed use coercion against him if he re-
nando Collor de Mello. President Collor has
), let me
mains unwilling to understand the voice of
spoken eloquently of Brazil's rightful place
following
reason and diplomacy. Force is not our pre-
at the table of the First World, and I agree.
Hussein
ferred option, but it is a real option. Our
I believe it is time, in fact, to end the false
it, occu-
preference is for Saddam Hussein to order
distinctions between the First World and
then an-
his troops out of Kuwait, and thereby make
Third World that have too long limited po-
0 exist-
possible the restoration of full Kuwaiti sov-
litical and economic relations in the Ameri-
to Iraq.
ereignty.
cas. Let us instead speak of the New World.
flood of
This hemisphere has always found
n troops
strength in diversity. After all, here I stand,
: looting
Note: The questions were submitted by El
addressing Portuguese speakers in English,
seizing
Mercurio of Chile, Estado de São Paulo of
because of an Italian sailing on behalf of
ck with
Brazil, El Pais of Uruguay, La Nación of
Spain five centuries ago. What we hold in
Argentina, and El Nacional of Venezuela.
common transcends borders and translates
al com-
The Office of the Press Secretary issued the
into any language. The nations of the Amer-
remises:
press release on December 3.
icas all struggled and gained independence
1971
Dec. 3 / Administration of George Bush, 1990
from the old ways of the Old World, ended
its freedom. I talked about a new common-
the injustice of slavery and colonialism, and
wealth of freedom based on four key princi-
built republics of promise and renewal
ples. This hemisphere already shares these
around the dignity and the power of the
convictions: an unshakable belief in the dig-
individual and the rule of law.
nity and rights of man, the conviction that
Now, as we approach the 500th anniver-
just government derives its power from the
sary of Columbus' discovery of Americas
people, the belief that men and women ev-
and the arrival of Cabral's Portuguese fleet
erywhere must be free to enjoy the fruits of
in Brazil, this is our moment to chart the
their labor, and four, that the rule of law
course for the New World, a course of free-
must govern the conduct of nations. Every
dom, a course of democracy, a course of
nation that joins this commonwealth of free-
prosperity. We've all witnessed in wonder
dom advances us one step closer to a new
the dawn of democracy in Eastern Europe.
world order. We must persist until this vic-
But in the Americas, we, too, have seen
tory for freedom and democracy is won
extraordinary political and economic
completely.
change that is transforming the face of this
It is also within our power to make this
hemisphere-nowhere more so than right
hemisphere the largest free-trading partner-
here, no more so than in the great nation of
ship of sovereign nations in the world.
Brazil. The changes you are carrying out in
From the northernmost reaches of Canada
your economy-reducing the size of the
to the tip of Cape Horn, we see a future
state, privatizing enterprises, combating in-
flation, and liberalizing trade-are the keys
where growing opportunity, the power of
to growth and prosperity in a global econo-
technology, and the benefits of prosperity
my of the 21st century, whose outlines we
are developed and shared by all. Change
already see today. I am here to tell you that
will not come easily. Economies now de-
you are not only on the right path but the
pendent on protection and state regulation
United States wants you to succeed and
must open to competition. The transition,
supports your efforts every step of the way.
for the time being, will be painful. Many in
I believe that we've just begun to press
the Americas will have to make serious ad-
forward toward the real promise of the
justments to compete with Southeast Asia
Americas.
and to take advantage of the European
Territories may end at borders, but man-
market after 1992. But we are confident
kind's capacity for progress knows no
that solutions will be found-by Brazilians,
bounds. Continents may end at the water's
by Chileans, by Venezuelans-by all of the
edge, but human potential knows only
Americas.
those limits set by human imagination. The
And the results-growing economies and
Americas' role in the world is not defined
sound currencies-will bring unprecedent-
by geography; it is defined by its people
ed prosperity and growth for all our citizens
and its ideals. I truly believe that we are
to share. That was the vision of the Enter-
approaching a new dawn in the New
prise for the Americas Initiative that we
World.
announced last June. And Deputy Fiuza, I
Our thinking must be bold; our will, reso-
listened very carefully to your strong
lute. Our challenge now is to hew out of a
speech in this regard, and I thank you for
wilderness of competing interests a new
those frank and forceful comments. The ini-
kind of opportunity in the Americas. To ful-
tiative calls for a major hemispheric effort
fill the New World's destiny, all of the
to unify the New World in the three key
Americas and the Caribbean must embark
areas of trade, investment, and debt.
on a venture for the coming century: to
In trade, our first priority should be to
create the first fully democratic hemisphere
promote long-term growth. And the most
in the history of mankind, the first hemi-
effective first step is the successful conclu-
sphere devoted to the democratic ideal-to
sion of the Uruguay round, now in its final
unleash the power of free people, free elec-
stages in Brussels. An end to export subsi-
tions, and free markets.
dies on agricultural goods and new open-
Two weeks ago in Czechoslovakia, I
ings for developing-country exports mean
spoke to a people that had paid dearly for
new market opportunities and a higher
1972
ENTERPRISE FOR THE AMERICAS: INITIATING A NEW ERA OF
HEMISPHERIC COOPERATION
President Bush advanced the Enterprise for the Americas Initiative
last year in support of the new commitments of our neighbors in
Latin America and the Caribbean to democracy and economic reform.
The Initiative proposes action in three areas of vital interest to
our neighbors -- trade, investment, and debt.
Trade
The prospect of a hemispheric free trade system has been met
with enthusiasm from leaders throughout the region.
With the support of Congress for fast-track negotiating
authority, we will be able to move toward that objective.
We have begun work on the first step toward a hemispheric free
trade system through the North American Free Trade Agreement
negotiations with Mexico and Canada.
We are also working with other countries in Latin America and
the Caribbean to begin to reduce barriers to trade.
Nine framework agreements on trade and investment have
been concluded since the EAI was announced.
Framework agreements are now in place with Mexico,
Bolivia, Colombia, Ecuador, Chile, Honduras, Costa
Rica, Venezuela, El Salvador, Peru, and a group of
countries composed of Argentina, Brazil, Uruguay,
and Paraguay.
The Councils created by these agreements to discuss
barriers to trade and investment have begun to meet.
Latin American and Caribbean countries are anxious to advance
free trade and are accelerating their efforts to reduce
barriers and expand opportunities for trade between their
countries as well as with the United States.
Investment
hav?
The Inter-American Development Bank (IDB) has taken the lead
in helping Latin America and the Caribbean to become more
competitive in attracting capital for growth.
A new sector lending program will help countries liberalize
their investment regimes and compete for capital.
The first such investment sector loan, a $150 million
loan for Chile, was approved by the IDB Board on June 19.
2
Bolivia, Jamaica, and Colombia are also well along in the
process of negotiating such loans.
Other countries -- including Uruguay and Costa Rica --
are also seeking the IDB's support through investment
sector loans.
The President's innovative proposal to establish a
Multilateral Investment Fund to provide additional, targeted
support for investment reforms has gained broad support from
other creditor governments.
--
Japan has pledged $100 million per year for five years in
grant resources to the Fund, which will be administered
by the IDB.
--
Other creditor governments France, Spain, and Canada
-- have indicated a willingness to provide resources.
--
This Fund will, for example, support efforts to privatize
government-owned industry, finance worker retraining
programs, and help small entrepreneurs gain access to
capital.
Debt
By reducing debt owed to the United States Government by
countries implementing strong economic reform programs, we can
provide significant support for reform efforts and help
countries restore confidence in their economies.
Congress has authorized the reduction of PL-480 debt of Latin
American and Caribbean countries implementing strong economic
reform programs, including investment liberalization.
:
PL-480 debt constitutes $1.7 billion of the $12 billion
owed to the United States by Latin American and Caribbean
countries.
In authorizing this debt reduction, Congress set up a
framework for interest payments on reduced debt to be made ,in
local currency and used to fund grass roots environmental
projects.
Chile is the first country to benefit from debt reduction
under the Initiative.
--
Chile qualified for debt reduction on the basis of its
outstanding economic reform record and its recent
commitment to pursue additional investment reforms with
the support of the Inter-American Development Bank.
The debt reduction agreement signed today reduces Chile's
PL-480 debt by 40%, from $39 million to $23 million.
3
Critical Next Steps
The process of creating a hemispheric system of free trade
will take a number of years, but it must begin now.
:
Negotiations will begin in earnest over the next few
months on the North American Free Trade Agreement. Chile
may also be a candidate for the negotiation of a Free
Trade Agreement within the next two years.
:
The Trade and Investment Councils established by
framework agreements will be meeting to monitor trade and
investment relations and to identify opportunities for
expanding trade and investment through liberalization and
other appropriate means.
-- Framework agreements will likely be concluded with
additional countries, such as Nicaragua, Panama, and the
CARICOM group under the leadership of Jamaica.
We want to support countries' efforts to attract capital, but
they themselves must take action to become more competitive.
--
The Inter-American Development Bank stands ready to help
countries identify ways to improve their investment
climate through sector loans.
The Multilateral Investment Fund can step in to provide
critical additional support for these difficult steps.
This Fund must be adequately endowed to fulfill its
potential.
We depend on the support of Congress as well as
other creditor governments to bring this about.
For Latin America and the Caribbean to benefit from
significant bilateral debt reduction in support of economic
reforms, Congress must act.
:
Authorizing legislation is necessary to allow reduction
of AID debt and the sale of a portion of Eximbank and CCC
loans.
--
Full funding of the request in the President's budget for
the EAI is also vital.
In fiscal year 1992, this involves $310 million, in
addition to the $100 million for the Multilateral
Investment Fund.
Administration of George Bush, 1990 / June 27
the important
Nomination of George F. Murphy, Jr.,
querque to ensure the protection of serious-
k of UNHCR.
To Be Inspector General of the United
ly threatened ancient Pueblo Indian and
Commissioner
States Information Agency
Spanish rock art. Cost sharing will be an
ue of Vietnam-
June 27, 1990
important component of the success of this
rall issue of po-
joint effort, and I look forward to a success-
ents in the
The President today announced his inten-
ful partnership.
it restated the
tion to nominate George F. Murphy, Jr., to
S. 286 also will expand the existing 365-
be Inspector General of the U.S. Informa-
acre Pecos National Monument into the
first asylum in
tion Agency. He would succeed Anthony J.
5,865-acre Pecos National Historical Park.
voluntary repa-
Gabriel.
This will allow for expanded protection and
current condi-
Since 1988 Mr. Murphy has served as
recreation programs in an area rich in cul-
that the United
Deputy Director for the U.S. Arms Control
tural resources.
e in touch with
and Disarmament Agency in Washington,
I wholeheartedly support the measures
the issue of pre-
DC. Prior to this, he served as a consultant
contained in S. 286 because they will
east Asia.
to the nuclear industry, 1986-1987; director
ensure the protection of rich natural and
of the Senate National Security Office,
cultural resources within the State of New
1977-1986; executive director of the Joint
Mexico that are now seriously threatened.
Committee on Atomic Energy, 1975-1977;
sional Barbecue
deputy director of the Joint Committee on
George Bush
Atomic Energy, 1968-1975; and a profes-
The White House,
sional staff member on the Joint Committee
June 27, 1990.
hank you. Thank
on Atomic Energy, 1958-1968. In addition,
Mr. Murphy worked for the Central Intelli-
eally turned
Note: S. 286, approved June 27, was as-
gence Agency, 1950-1958.
Mr. Murphy graduated from Harvard
signed Public Law No. 101-313.
everybody
College (A.B., 1949). He was born May 1,
for all of you
1924, in Boston, MA. Mr. Murphy served in
40 albums,
the U.S. Army Air Corps, 1942-1946. He is
wards,
one
starried, has two children, and resides in
Remarks Announcing the Enterprise for
our country
Betherda, MD.
the Americas Initiative
here.
And
n. Thank
June 27, 1990
formance
Thank you all very much for coming to
re
quite
on Signing a Bill Protecting
the White House, and it is my pleasure to
ly.
and Cultural Resources in
welcome so many distinguished guests with
this
Mexico
all
such strong interests in the vital Latin
lighted
1990
American and Caribbean region. Let me
the
recognize the many members of the diplo-
to
and
pleasure in signing into law
matic corps that are here and extend to you
ra
here-
Act to establish the Petroglyph
a warm welcome-from Latin America,
n
autiful
and the Pecos National
particularly, and the Caribbean, Europe,
in
New Mexico, and to re-
got
Japan. Members of our Cabinet-Nick
Mexico land issues.
lead
Brady and Secretary Baker, Carla Hills, Sec-
a.
New Mexico, the
retary Mosbacher-delighted you're here.
feature is the West Mesa,
Chairman of the Council of Economic Ad-
long basalt escarpment
visers, Mike Boskin, is here. Bill Webster,
Within the area are
welcome. And of course, we're delighted to
17,000 petroglyphs,
see Alan Greenspan, Chairman of the Fed-
interved or pecked into
eral Reserve Board, here and then an old
of the Petroglyph
friend, Barber Conable, of the World Bank,
provide an excel-
and Richard Erb, from the IMF. And Ricky
strong partner-
Government. the
Iglesias, an old friend of the Bushes, and we
the City of Albu-
welcome him, of the IDB, and so many
leading lights in the business and financial
1009
June 27 / Administration of George Bush, 1990
communities. To all of you, then, a wel-
ing convinced that the U.S. must review it
come.
approach not only to that region but to
In the past 12 months, every one of us,
Latin America and the Caribbean as a
from the man in the White House to the
whole. And I asked Treasury Secretary
man on the street, has been fascinated by
Brady to lead a review of U.S. economic
the tremendous changes, the positive
policy towards this vital region, to make a
changes, taking place around the world.
fresh assessment, if you will, of the prob-
Freedom has made great gains not just in
lems and opportunities we'll encounter in
Eastern Europe but right here in the Amer-
the decade ahead. And that review is now
icas; and we've seen a resurgence of demo-
complete, and the results are in, and the
cratic rule, a rising tide of democracy,
need for new economic initiatives is clear
never before witnessed in the history of this
and compelling.
beloved hemisphere. And with one excep-
All signs point to the fact that we must
tion, Cuba, the transition to democracy is
shift the focus of our economic interaction
moving towards completion, and we can all
towards a new economic partnership be-
sense the excitement that the day is not far
off when Cuba joins the ranks of world de-
cause prosperity in our hemisphere de-
mocracies and makes the Americas fully
pends on trade, not aid. And I've asked you
free.
here today to share with you some of the
With one exception, that's the case. But
ideas, some of the ways we can build a
the political transformation sweeping the
broad-based partnership for the nineties-to
rest of Latin America and the Caribbean
announce the new Enterprise for the Amer-
has its parallel in the economic sphere.
icas Initiative that creates incentives to re-
Throughout the region, nations are turning
inforce Latin America's growing recogni-
away from the statist economic policies that
tion that free-market reform is the key
stifle growth and are now looking to the
sustained growth and political stability.
power of the free market to help this hemi-
The three pillars of our new initiative are
sphere realize its untapped potential for
trade, investment, and debt. To expand
progress. A new leadership has emerged,
trade, I propose that we begin the process
backed by the strength of the people's man-
of creating a hemispherewide free trade
date, leadership that understands that the
zone; to increase investment, that we adopt
future of Latin America lies with free gov-
measures to create a new flow of capital
ernment and free markets. In the words of
into the region; and to further ease the
Colombia's courageous leader, Virgilio
burden of debt, a new approach to debt in
Barco-President Barco: "The long-running
the region with important benefits for our
match between Karl Marx and Adam Smith
environment.
is finally coming to an end" with the "rec-
Let's begin with trade. In the 1980's,
ognition that open economies with access to
trade within our hemisphere trailed the
markets can lead to social progress."
overall pace of growth in world trade. One
For the United States, these are welcome
principal reason for that: overrestrictive
developments, developments that we're
trade barriers that wall off the economies of
eager to support. But we recognize that
our region from each other and from the
each nation in the region must make its
United States at great cost to us all. These
own choices. There is no blueprint, no one-
barriers are the legacy of the misguided
size-fits-all approach, to reform. The pri-
notion that a nation's economy needs pro-
mary responsibility for achieving economic
tection in order to thrive. The great eco-
growth lies with each individual country.
nomic lesson of this century is that protec-
Our challenge in this country is to respond
tionism still stifles progress and free mar-
in ways that support the positive changes
kets breed prosperity. To this end, we've
now taking place in the hemisphere. We
formulated a three-point trade plan to en
must forge a genuine partnership for free-
courage the emerging trend toward free
market reform.
market reform that are now gathering
Back in February, I met in Cartagena
forces in the Americas.
[Colombia] with heads of the three Andean
First, as we enter the final months of the
nations, and I came away from that meet-
current Uruguay round of the world trade
1010
Administration of George Bush, 1990 June 27
ist review it
Stalks, I pledge close cooperation with the
growth and a higher standard of living in
egion but to
nations of this hemisphere. The successful
Latin America and, right here at home,
ibbean as a
completion of the Uruguay round remains
new markets for American products and
ry Secretary
the most effective way of promoting long-
more jobs for American workers.
.S. economic
term trade growth in Latin America and
Promoting free trade is just one of three
n, to make a
the increased integration of Latin nations
key elements in our new Enterprise for the
of the prob-
into the overall global trading system. Our
Americas Initiative. And our second pillar is
encounter in
aim in the Uruguay round is free and fair
increased investment.
eview is now
trade, and through these talks we are seek-
The competition for capital today is
in, and the
ing to strengthen existing trade rules and to
fierce, and the key to increased investment
tives is clear
expand them to areas that do not now have
is to be competitive, to turn around the
agreed rules of fairplay. And to show our
conditions that have discouraged both for-
hat we must
commitment to our neighbors in Latin
eign and domestic investment-reduce the
ic interaction
America and the Caribbean, we will seek
regulatory burden, clear away the thicket of
"tnership be-
deeper tariff reductions in this round on
bureaucratic barriers that choke off Latin
nisphere de-
products of special interest to them.
America's aspiring entrepreneurs.
ve asked you
Second, we must build on the trend we
In one large Latin city, for instance, it
some of the
see toward free markets and make our ulti-
takes almost 300 days to cut through the
can build a
mate aim a free trade system that links all
redtape to open a small garment shop. In
e nineties-to
of the Americas: North, Central, and South.
another country, the average overseas caller
for the Amer-
And we look forward to the day when not
has to make five phone calls to get through,
entives to re-
only are the Americas the first fully free,
and the wait for a new telephone line can
ving recogni-
democratic hemisphere but when all are
be as long as 5 years. And that's got to
is the key to
equal partners in a free trade zone stretch-
stability.
ing from the port of Anchorage to the
change.
Investment reform is essential to make it
initiative are
Tierra del Fuego.
easier to start new business ventures and
To expand
I'm announcing today that the U.S. stands
ready to enter into free trade agreements
make it possible for international investors
n the process
le free trade
with other markets in Latin America and
to participate and profit in Latin American
the Caribbean, particularly with groups of
markets. In order to create incentives for
that we adopt
ow of capital
countries that have associated for purposes
investment reform, the United States is pre-
of trade liberalization. And the first step in
pared to take the following steps:
her ease the
ch to debt in
this process is the now-announced free
First, the United States will work with
nefits for our
trade agreement with Mexico. We must all
the Inter-American Development Bank to
recognize that we won't bring down bar-
create a new lending program for nations
riers to free trade overnight; changes so far-
that take significant steps to remove im-
1 the 1980's,
reaching may take years of preparation and
pediments to international investment. The
e trailed the
tough negotiations. But the payoff in terms
World Bank could also contribute to this
-Id trade. One
of prosperity is worth every effort, and now
effort.
overrestrictive
is the time to make a comprehensive free
And second, we propose the creation of a
economies of
trade zone for the Americas our long-term
new investment fund for the Americas. This
and from the
goal.
fund, administered by the IDB, could pro-
us all. These
And third, I understand that some coun-
vide up to $300 million a year in grants in
he misguided
tries aren't yet ready to take that dramatic
response to market-oriented investment re-
ny needs pro-
step to a full free trade agreement. And
forms in progress in privatization. The U.S.
he great eco-
that's why we're prepared to negotiate with
intends to contribute $100 million to the
is that protec-
and free mar-
any interested nation in the region bilateral
fund, and we will seek matching contribu-
framework agreements to open markets
tions from Europe and Japan.
is end, we've
and develop closer trade ties. Such agree-
But in order to create an attractive cli-
le plan to en
ments already exist with Mexico and Boliv-
mate for new investment, we must build on
toward free
la. Framework agreements will enable us to
our successful efforts to ease the debt
ow gathering
move forward on a step-by-step basis to
burden. That's the third pillar of this new
eliminate counterproductive barriers to
Enterprise for the Americas Initiative.
months of the
trade and towards our ultimate goal of free
Many nations have already undertaken
le world trade
trade. And that's a prescription for greater
painful economic reforms for the sake of
1011
June 27 / Administration of George Bush, 1990
future growth, but the investment climate
nature swaps in countries that have set up
remains clouded, weighted down by the
such programs. These actions will be taken
heavy debt burden. Under the Brady plan,
on a case-by-case basis.
we are making significant progress. The
One measure of prosperity and the most
agreements reached with Mexico and Costa
important long-term investment any nation
Rica and Venezuela are already having a
can make is environmental well-being. As
positive impact on investment in those
part of our Enterprise for the Americas Ini-
countries. Mexico, to take just one example,
tiative, we will take action to strengthen
has already seen a reversal of the destruc-
environmental policies in this hemisphere.
tive capital flight that drained so many
Debt-for-nature swaps are one example,
Latin American nations of precious invest-
patterned after the innovative agreements
ment resources. That's critical. If we restore
reached by some Latin American nations
confidence, capital will follow.
and their commercial creditors. We will also
As one means of expanding our debt
call for the creation of environmental trusts,
strategy, we propose that the IDB add its
where interest payments owed on restruc-
efforts and resources to those of the Inter-
tured U.S. debt will be paid in local curren-
national Monetary Fund and the World
cy and set aside to fund environmental
Bank to support commercial bank debt re-
projects in the debtor countries.
duction in Latin America and the Caribbe-
These innovative agreements offer a pow-
an, and as in the case of World Bank and
erful new tool for preserving the natural
IMF, IDB funds should be directly linked to
wonders of this hemisphere that we share.
economic reform.
From the vistas of the unspoiled Arctic to
While the Brady plan has helped nations
the beauties of the barrier reef off Belize to
reduce commercial bank debt, for nations
the rich rain forests of the Amazon, we
with high levels of official debt-debt owed
must protect this living legacy that we hold
to governments rather than private finan-
in trust. For an increasing number of our
cial institutions-the burden remains heavy.
neighbors, the need for free-market reform
And today, across Latin America, official
is clear. These nations need economic
debt owed to the U.S. Government amounts
breathing room to enact bold reforms, and
to nearly $12 billion, with $7 billion of that
this official debt initiative is one answer, a
amount in concessional loans. And in many
way out from under the crushing burden of
cases, the heaviest official debt burdens fall
debt that slows the process of reform.
on some of the region's smallest nations,
I know there is some concern that the
countries like Honduras and El Salvador
revolutionary changes we've witnessed this
and Jamaica.
past year in Eastern Europe will shift our
That's a problem we must address today.
attention away from Latin America; but I
As the key component in addressing the
want to assure all of you here today, as I've
region's debt problem, I am proposing a
assured many democratic leaders in Central
major new initiative to reduce Latin Amer-
and South America and the Caribbean and
ica and the Caribbean's official debt to the
Mexico, the United States will not lose sight
United States for countries that adopt
of the tremendous challenges and opportu-
strong economic and investment reform
nities right here in our own hemisphere.
programs with the support of international
And indeed, as we talk with the leaders of
institutions.
the G-24 about the emerging democracies
Our debt reduction program will deal
in Europe-I've been talking to them also
separately with concessional and commer-
about their supporting democracy and eco-
cial types of loans. On the concessional
nomic freedom in Central America. Our
debt, loans made from AID or Food for
aim is a closer partnership between the
Peace accounts, we will propose substantial
Americas and our friends in Europe and in
debt reductions for the most heavily bur-
Asia.
dened countries. And we will also sell a
Two years from now, our hemisphere will
portion of outstanding commercial loans to
celebrate the 500th anniversary of an epic
facilitate these debt-for-equity and debt-for-
event: Columbus' discovery of America, our
1012
Administration of George Bush, 1990 / June 28
at have set up
New World. And we trace our origins, our
of the proposed rescissions are contained in
S will be taken
shared history, to the time of Columbus'
the attached report.
voyage and the courageous quest for the
and the most
advancement of man. Today the bonds of
George Bush
ent any nation
our common heritage are strengthened by
well-being. As
the love of freedom and a common commit-
The White House,
e Americas Ini-
ment to democracy. Our challenge, the
June 28, 1990.
to strengthen
challenge in this new era of the Americas, is
to secure this shared dream and all its fruits
Note: The attachment detailing the pro-
is hemisphere.
for all the people of the Americas-North,
posed rescissions was printed in the "Feder-
one example,
Central, and South.
al Register" of July 6.
ve agreements
erican nations
The comprehensive plan that I've just
rs. We will also
outlined is proof positive the United States
nmental trusts,
is serious about forging a new partnership
ed on restruc-
with our Latin American and Caribbean
Statement on the Japan-United States
n local curren-
neighbors. We're ready to play a construc-
Trade Negotiations
environmental
tive role at this critical time to make ours
es.
the first fully free hemisphere in all of histo-
June 28, 1990
ry. Thank you all for coming and God bless
its offer a pow-
Last year the United States and Japan
the peoples of the Americas. Thank you
ng the natural
launched a new cooperative endeavor in
very, very much, indeed.
that we share.
economic policy called the Structural Im-
oiled Arctic to
pediments Initiative. This initiative is de-
ef off Belize to
signed to address underlying structural
Note: The President spoke at 2:48 p.m. in
e Amazon, we
problems in both of our economies with the
the East Room at the White House. In his
y that we hold
goal of contributing to more open and com-
opening remarks, he referred to Secretary of
number of our
petitive markets and to the reduction of
the Treasury Nicholas F. Brady; U.S. Trade
market reform
payments imbalances. A joint working
Representative Carla A. Hills; Secretary of
eed economic
Commerce Robert A. Mosbacher; William
group was formed to identify and solve
d reforms, and
H. Webster, Director of Central Intelligence;
these problems. Over the past year, these
discussions have demonstrated the construc-
one answer, a
Barber B. Conable, Jr., President of the
hing burden of
World Bank, which is also known as the
tive and cooperative spirit which character-
reform.
International Bank for Reconstruction and
izes the relationship between our two coun-
tries.
icern that the
Development; and Richard D. Erb, Deputy
witnessed this
Managing Director of the International
The joint report of the SII working group
will shift our
Monetary Fund. The President also referred
has just been issued in Tokyo, following up
to the Group of 24, the industrialized de-
an interim report issued in April. I welcome
America; but I
mocracies that have pledged support for eco-
and endorse this joint report. Both coun-
e today, as I've
ders in Central
nomic and political reform in Poland and
tries have identified structural impedi-
Caribbean and
Hungary.
ments, taken initial corrective actions, and
made commitments to take further steps to
11 not lose sight
resolve a wide range of structural problems.
S and opportu-
We expect that the structural policy actions
n hemisphere.
to be taken will have a positive effect on
the leaders of
Message to the Congress Reporting
our economies, encouraging open and com-
g democracies
Budget Rescissions
petitive markets, promoting sustained world
g to them also
June 28, 1990
economic growth, contributing to a reduc-
cracy and eco-
tion in global payments imbalances, and en-
America. Our
To the Congress of the United States:
hancing the quality of life in both Japan and
between the
In accordance with the Impoundment
the United States. Although our efforts on
Europe and in
Control Act of 1974, I herewith report
SII are bilateral, the effects will be benefi-
eight proposed rescissions totalling
cial for the entire world.
emisphere will
$327,375,000.
I particularly welcome the clear commit-
sary of an epic
The proposed rescissions affect programs
ment by Japan to reduce further its current
of America, our
of the Department of Defense. The details
account surplus and view the SII process as
1013
JUN 20 '91 12:02
P.2/3
ENVIRONMENT FOR THE AMERICAS BOARD
Creation
Still TBD
The Environment for the Americas Board was created by Congress in
legislation authorizing the reduction of PL-480 debt under the
Enterprise for the Americas Initiative (Title VI of the
Agricultural Trade Development and Assistance Act of 1954, as
amended by section 1512 of Public Law 101-624).
Composition
Under the statute, the Board is to be composed of five
representatives of the U.S. Government and four representatives
from "private, non-governmental environmental, community
development, scientific, and academic organizations with experience
and expertise in Latin America and the Caribbean." The statute
requires one of the U.S. Government representatives to chair the
Board.
In an Executive Order issued on March 19, 1991, the President
designated that the five U.S. Government members of the Board shall
be representatives from the Department of the Treasury, the
Department of State, the Environmental Protection Agency, the
Agency for International Development, and the Inter-American
Foundation. Other appropriate agencies may also attend the
meetings and participate in the activities of the Board.
The representative from the Department of the Treasury will chair
the Board; the representative from the Department of State will be
the vice chairperson; and the representative from the EPA will
serve as secretary of the Board.
The four private nongovernmental organization members of the Board
are to be chosen subsequently by the President.
Function
The activities of the Board are threefold:
advising the President on negotiation of environmental
framework agreements committing other governments to dedicate
local currency interest payments on their reduced PL-480 debt
to grass roots environmental projects;
ensuring that appropriate local bodies to administer the local
currency funds for the environment are established; and
reviewing prospective annual programs and retrospective annual
reports developed by the local body in each country.
: 6-24-91 ; 4:50PM ;
nrni=.a-
202400021018 I
SENT BY:
United States Department of State
31 JUN 24 P5: 11
Washington, D.C. 20520
DATE June 24
FACSIMILE TRANSMITTAL SHEET
PLEASE DELIVER TO:
NAME
Tony Snow
OFFICE
ROOM NO.
TELEPHONE NO.
456-6218
3
NUMBER OF PAGES ATTACHED
FROM:
NAME
Brown Bernie monson
OFFICE
TELEPHONE NO. 647-5780
COMMENTS:
; 6-24-91 ; 4:50PM ;
nrni=:a-
6
SENT BY:
One year ago today, I announced my Enterprise for the
Americas Initiative. The EAI was not developed in isolation
in Washington. It was born out of an authentic and a
continuing dialogue from which I have benefited enormously
as President with the leaders of Latin America and the
Carribbean.
At the hemispheric summit I attended in San Jose in
October 1989, at the Cartejena summit the following
February, and at the countless meetings I have participated
in with leaders of the Americas I heard both a common hope
expresed and a common concern.
My fellow heads of state told me that they want to
replace the "lost decade" of the 1980's with a decade of
renewed hope and economic growth in the 1990's in which all
of the citizens of the hemisphere, particularly the poor,
can share. They said they are committed to strip away the
barriers to trade and investment and growth that have
shackled the energies of their citizens for too long and
open their economies to new opportunities.
They urged the United States to help build this more
hopeful future--not with massive assistance programs--but
with renewed support for trade, investment, and debt
reduction. But they also expressed the fear that the United
States might somehow turn its attention and energies
elsewhere in the world and ignore the Americas at this
moment of maximum challenge and opportunity.
My friends as long as I am President, the United States
will never make that historic mistake. Just the opposite. As
a nation, we are re-engaging with our friends and partners
in the Americas as never before.
For this generation of leaders in the Americas, north
and south, share a common vision. Together, we are building
something the world has never seen before: the first
completely democratic hemisphere. At the General Assembly of
the OAS held earlier this month in Santiago, for the first
time in history, every nation chose its government through
free and fair elections. Cuba, alone, stands isolated
against the democratic tide.
But our common vision is broader still. For we are also
building a new relationship among the developed and
developing nations throughout the Americas, an authentic
SENT BY:
; 6-24-91 ; 4:51PM ;
nrNi=:a-
2024500210,# s
partnership in which trade is free from Alaska to Tierra del
Fuego--a partnership in which new prosperity, growth, and
rising incomes, --can help all our citizens share in the
fullness of life to the best of their abilities.
My Enterprise for the Americas Initiative was a
concrete response to the hopes and dreams I heard during my
first year as President from the leaders of this hemisphere.
One year after its announcement, I am pleased to say we are
well on the way to making this vision a reality.
We have embarked, with the support of Congress, on
historic negotiations to create a North American Free
Trading zone uniting the 360 citizens of Canada, Mexico, and
the United States. This vision of free trade has
re-energized the age-old dream of economic integration
throughout the Americas.
One week after my EAI announcement, the leaders of the
southern cone announced they would cut in half their
deadline for negotiating a common market uniting Brazil
date
Artengina, Paraguay, and Uruguay, now scheduled for 199
Just last week, during President Collor de Mello's State
Visit, Ambassador Carla Hills and the foreign ministers of
the four southern cone nations signed " The Rose Garden
Agreement" the first regional Framework Agreement on Trade
and Investment under the EAI. Since last June, we have
negotiated bilateral Framework Agreements on Trade and
Investment with: Chile, Ecuardo, Peru, Venezuela, Colombia,
Honduras, Costa Rica, and El Salvador. Today, we will sign
agreements with
A regional agreement with
Caricom--the Carribbean Community--is well on its way as
well. And the nations of the Andean Pact have pledged to
establish a common external tariff by 1992.
On the investment front, we are making major progress
also. Under EAI, we proposed to create a new, $1.5 billion
Multi-Lateral Investment Fund in the Inter-American
Development Bank to assist nations in the Americas
streamline and reform their investment regimes. I am proud
to report today that we are well on our way to meeting that
commitment. Japan has pledged to contribute $500 million
over the next five years. Canada, France,
(check with
Treasury for full list) have also pledged to participate.
And the Congress has agreed to my request for full funding
in fiscal 1992. Today, we witness the first investment loan
under IDB to Chile whose economic reforms and performance
offer a model of hope and achievement to all nations in the
hemisphere.
SENT BY:
; 6-24-91 ; 4:52PM ;
hrNl=:a-
2024565218;# 4
We are moving as well on the third pillar of the
EAI--reduction of official debt. Under the Brady Plan, four
nations--Mexico, Venezuela, Costa Rica, and Uruguay have
already negotiated far-reaching reductions in their debt
burdens with their commercial creditors. As other nations in
the region make progress on economic reform, we expect they
too will benefit under the Brady Plan. Now under EAI, the
nations of the hemisphere can also reduce their burden of
official debt and turn their interest payment into local
resources to restore their natural environment. Today, we
sign the first debt reduction agreement under the EAI. It
(describe details, including environmental project, if
known).
We are now moving forward on all three pillars of the
EAI--trade, investment, and debt reduction. But I want that
pace to accelerate. I hope the leaders of the Congress give
this initiative their full support. A growing prosperous
Latin American and the Carribbean is a natural market for
American exports of manufactured goods and agricultural
products. Thus, the Enterprise for the Americas Initiative
also means new jobs and rising incomes for the citizens of
the United States. It merits and needs the full support of
the Congress, particularly my proposals for reducing debt.
For those who believe in both political and economic
freedom this is a moment of historic opportunity and new
hope in the Americas. I am determined to seize that
opportunity and to see those hopes fulfilled, and on this
first anniversary of the Enterprise for the Americas
Initiative, I believe we are on our way. Thank you.
SENT BY:
; 6-21-91 ; 1:10PM ;
hrNI=:a-202 395 6926
# 2
Aronsin
I don't know who this came from
One year ago today, I announced my Enterprise for the
Americas Initiative. The EAI was not developed in isolation
in Washington. It was born out of an authentic and a
continuing dialogue from which I have benefited enormously
as President with the leaders of Latin America and the
Carribbean.
At the hemispheric summit I attended in San Jose in
October 1989, at the Cartejena summit the following
February, and at the countless meetings I have participated
in with leaders of the Americas I heard both a common hope
expresed and a common concern.
My fellow heads of state told me that they want to
replace the "lost decade" of the 1980's with a decade of
renewed hope and economic growth in the 1990's in which all
of the citizens of the hemisphere, particularly the poor,
can share. They said they are committed to strip away the
barriers to trade and investment and growth that have
shackled the energies of their citizens for too long and
open their economies to new opportunities.
They urged the United States to help build this more
hopeful future--not with massive assistance programs--but
with renewed support for trade, investment, and debt
reduction. But they also expressed the fear that the United
States might somehow turn its attention and energies
elsewhere in the world and ignore the Americas at this
moment of maximum challenge and opportunity.
My friends as long as I am President, the United States
will never make that historic mistake. Just the opposite. As
a nation, we are re-engaging with our friends and partners
in the Americas as never before.
For this generation of leaders in the Americas, north
and south, share a common vision. Together, we are building
something the world has never seen before: the first
completely democratic hemisphere. At the General Assembly of
the OAS held earlier this month in Santiago, for the first
time in history, every nation chose its government through
free and fair elections. Cuba, alone, stands isolated
against the democratic tide.
But our common vision is broader still. For we are also
building a new relationship among the developed and
developing nations throughout the Americas, an authentic
SENT BY:
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partnership in which trade is free from Alaska to Tierra del
Fuego--a partnership in which new prosperity, growth, and
rising incomes, --can help all our citizens share in the
fullness of life to the best of their abilities.
My Enterprise for the Americas Initiative was a
concrete response to the hopes and dreams I heard during my
first year as President from the leaders of this hemisphere.
One year after its announcement, I am pleased to say we are
well on the way to making this vision a reality.
We have embarked, with the support of Congress, on
historic negotiations to create a North American Free
Trading zone uniting the 360 citizens of Canada, Mexico, and
the United States. This vision of free trade has
re-energized the age-old dream of economic integration
throughout the Americas.
One week after my EAI announcement, the leaders of the
southern cone announced they would cut in half their
deadline for negotiating a common market uniting Brazil,
Artengina, Paraguay, and Uruguay, now scheduled for 199_.
Just last week, during President Collor de Mello's State
Visit, Ambassador Carla Hills and the foreign ministers of
the four southern cone nations signed " The Rose Garden
Agreement" the first regional Framework Agreement on Trade
and Investment under the EAI. Since last June, we have
negotiated bilateral Framework Agreements on Trade and
Investment with: Chile, Ecuardo, Peru, Venezuela, Colombia,
Honduras, Costa Rica, and El Salvador. Today, we will sign
agreements with
A regional agreement with
Caricom-- the Carribbean Community--is well on its way as
well. And the nations of the Andean Pact have pledged to
establish a common external tariff by 1992.
On the investment front, we are making major progress
also. Under EAI, we proposed to create a new, $1.5 billion
Multi-Lateral Investment Fund in the Inter-American
Development Bank to assist nations in the Americas
streamline and reform their investment regimes. I am proud
to report today that we are well on our way to meeting that
commitment. Japan has pledged to contribute $500 million
over the next five years. Canada, France,
(check with
Treasury for full list) have also pledged to participate.
And the Congress has agreed to my request for full funding
in fiscal 1992. Today, we witness the first investment loan
under IDB to Chile whose economic reforms and performance
offer a model of hope and achievement to all nations in the
hemisphere.
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;# 4
We are moving as well on the third pillar of the
EAI--reduction of official debt. Under the Brady Plan, four
nations--Mexico, Venezuela, Costa Rica, and Uruguay have
already negotiated far-reaching reductions in their debt
burdens with their commercial creditors. As other nations in
the region make progress on economic reform, we expect they
too will benefit under the Brady Plan. Now under EAI, the
nations of the hemisphere can also reduce their burden of
official debt and turn their interest payment into local
resources to restore their natural environment. Today, we
sign the first debt reduction agreement under the EAI. It
(describe details, including environmental project, if
known).
We are now moving forward on all three pillars of the
EAI--trade, investment, and debt reduction. But I want that
pace to accelerate. I hope the leaders of the Congress give
this initiative their full support. A growing prosperous
Latin American and the Carribbean is a natural market for
American exports of manufactured goods and agricultural
products. Thus, the Enterprise for the Americas Initiative
also means new jobs and rising incomes for the citizens of
the United States. It merits and needs the full support of
the Congress, particularly my proposals for reducing debt.
For those who believe in both political and economic
freedom this is a moment of historic opportunity and new
hope in the Americas. I am determined to seize that
opportunity and to see those hopes fulfilled, and on this
first anniversary of the Enterprise for the Americas
Initiative, I believe we are on our way. Thank you.
SNOW/CAWLEY
JUNE 25, 1991
DRAFT ONE
EAI.TS
PRESIDENTIAL STATEMENT: ENTERPRISE FOR THE AMERICAS INITIATIVE
THURSDAY, JUNE 27, 1991
4:00 P.M.
ROSE GARDEN
Secretary Brady, Ambassador Hills, Minister Foxley of Chile;
Minister DeFranco of Nicaragua, Minister Alfaro of Panama; I
could not be more pleased to have you all join me up here today.
And out in the audience, we have an incredibly distinguished
group. Secretary Baker, welcome back -- for now. Secretary
Mosbacher -- another famous Texan. Fred Zeder, John Macomber,
ambassadors from the Organization of American States, other
members of the diplomatic corps; President Enrique Iglesias of
the Inter-American Development Bank -- my warmest greetings to
all of you on this historic day.
I know most of you are happy that I can't muster even warmer
greetings. 90 degrees ought to be enough for anyone.
We've come here today to celebrate the first anniversary of
our Enterprise for the Americas Initiative. Frankly, the best
way to celebrate is to push the initiative even further.
We thought we had set some pretty ambitious goals last year,
when we announced the three-part EAI. We vowed to encourage free
trade, stimulate investment throughout the hemisphere, and reduce
the debt burden that threatens so many of our neighbors and
Now, I've just given a very cursory review of the past year
Let's talk about what lies ahead. As you know, Congress recently
extended the fast-track trade procedures that enable us to deal
in good faith with you -- and with Congress -- in trade
negotiations. We hope to create a free trade zone that will
cover all of North America within the next few years. But this
trade zone -- which will embrace 360 million consumers and
markets that produce $6 trillion in annual output -- simply will
The
set the stage for something even more dramatic an Enterprise
for the Americas initiative that can link our entire hemisphere,
with its diverse cultures, workforces, creative forces.
Together, we can build prosperous, zesty, interesting lives
for ourselves and our descendants.
We already have begun working together to achieve several
goals crucial to that end. We have worked together in trying to
pull down protectionist barriers in Europe and Asia, particularly
in the present round of GATT talks. I cannot stress enough the
importance of reaching a GATT agreement that will provide the
foundation for worldwide free and fair trade.
We have worked together to establish Trade and Investment
Councils in 14 countries, and I hope we will move forward to
build them throughout the hemisphere in the coming years. We
have seen Argentina, Brazil, Paraguay and Uruguay form a common
market, which will unite by January 1, 1995.
We live in an extraordinary place at an extraordinary time.
With the sad exception of Cuba, our hemisphere can boast of an
istoric distinction. We stand on the verge of becoming the
first fully democratic hemisphere in human history.
From the Northern tip of Alaska to Tiera del Fuego, we share
common heritages. Our leaders can trace their heritages to
Spain, Portugal, Germany, Italy, Turkey, China, Japan, England,
the Arab world -- and of course, this continent itself. Many of
your leaders have taken college degrees here, and many of our
finest experts have studied on your soil. We share ties of
culture, of blood and of common interest. And now, as democracy
sweeps the world, we share the challenge of leadership through
example.
We can lead the way to a world freed from suspicion, from
mercantilist barriers, from silly socialist inefficiencies by
building our own commonwealth of freedom. We can show the world
just how prosperity preserves the social order -- and the land,
air, and water. We can show the rest of the world that
deregulation, private property, low tax rates and low trade
barriers can produce vast economic returns. And we can show the
rest of the world how neighbors can compete in ways that build
upon each other's strengths, rather than preying on their
weaknesses.
Today, I pledge my full efforts to uphold the United States'
part of the EAI bargain. I will lobby hard to ensure that we
contribute our $100 million share this year to the Multilateral
Investment fund, and that we work hard to reach bilateral
agreements with as many of you as we can. I also assure you that
we will spare no effort in trying to reach an acceptable GATT
conclusion. I assure you that we will fight for free and fair
trade -- everywhere.
One hundred fifteen years ago the Brazilian Emperor Dom
Pedro visited the United States. During a stop in St. Louis, he
noticed that local craftsmen were using only the sturdiest
materials in building a customs house. The emperor was stunned.
"But an iron building would last 400 years, he noted. "You do
not mean to tell me that there will be any custom houses in 400
years." Unfortunately, no one understood his point. //
We meet today to rectify that wrong, and to pursue Dom
Pedro's vision of a hemisphere shorn of customs houses, and
hemisphere jammed with shops and trade zones. If we can build a
hemisphere devoted to freedom, one that encourages men and women
of genius to turn their great ideas into products, deeds,
services and industries; if we can build a hemisphere in which
Enterprese shoves aside the impulse of Envy
envy must step aside to for enrushing enterprise; we can create
our own New World order. We can build a legacy of real
prosperity harmony stability@
We have worked miracles in one year; let us shape a
revolution in the next. Together, we can make our hemisphere
freedom's first and best home. Thank you, and God bless you.
#
#
#
#
colleagues. But as ambitious as those goals seem, we may
actually have set our sights too low.
Consider: In just one year, we have signed a dozen
agreements under EAI -- and we will announce three more today.
We have concluded nine separate framework agreements for trade
-
create councils Charged of
and investment. These agreements/councils will help dismantlé
So for the U.S. has reached accord
the barriers to trade and investment between the United States
with
and a large group of our hemispheric friends: Bolivia, Brazil,
Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras,
Mexico, Peru, Venezuela and the "southern cone" countries of
Argentina, Brazil, Paraguay and Uruguay.
On the investment front, we have begun inviting investors to
explore the possibilities of supporting new business throughout
the hemisphere. Today, we can announce that the Inter-American
Development Bank has approved its first so-called sectoral loan -
- $150 million loan to Chile. President Iglesias, I want to
thank you and congratulate everyone at the IDB for this very
important move. Under these agreements, the IDB will support
efforts to replace old mercantilist or socialist economic systems
with free market systems. Our simple goal: We want to promote
the economic reforms that help foster economic growth and
encourage environmental stewardship.
For years the world experimented with the fantasy that
councils of experts could "manage" economies. The utter failure
of communism demonstrated that expert councils can no more manage
growth than they could manage the weather. Free markets reward
people who have ideas -- not just those who have connections.
If talks continue on their present course, we soon may be
ready to announce IDB sectoral loans for Uruguay and Costa Rica
as well.
I'm also pleased to let you know that my proposal for a
Multilateral Investment Fund -- in effect, an international fund
designed to stimulate economic growth throughout the Americas --
also has gotten off to a great start. Japan has pledged $100 million
for each of the next five years. France, Spain and Canada also
have expressed interest in supporting the fund. This fund, like
the sectoral loans from IDB, will help nations throw off the
shackles of authoritarian or totalitarian economic systems, and
let people throughout our hemisphere enjoy the thrills and the
blessings of open economic competition.
Pillar three of our proposal, debt reduction, also has
gotten off to a rousing start. Our idea is simple: We will do
all we can to reduce the debt burden of nations that adopt
substantial, permanent economic reform.
Congress has agreed to reduce the debt burden of nations
that liberalize their trade and investment rules, and has set
aside a fund to finance environmental projects. This ambitious,
innovative plan already has produced results.
Today the United States will sign a debt-reduction agreement
with Chile, slashing its debt under Public Law 480 by 40 percent,
to 23 million dollars. The government of Chile has undertaken
ambitious market reforms and has liberalized its investment
policies in accordance with PL 480 guidelines.
GRIST FOR ENTERPRISE FOR
Tho Masperts The speech -NSC
POINTS TO BE MADE FOR EAST ROOM MEETING
TO CELEBRATE FIRST ANNIVERSARY OF THE
ENTERPRISE FOR THE AMERICAS INITIATIVE BY THE PRESIDENT
-- Acknowledgements:
--
One year ago today, many of us met in this room. At that
time, I offered some proposals in the areas of trade,
investment, and debt. I set forth a vision of a hemisphere
of free peoples and free markets -- a hemisphere of
democracy with a free trade area stretching from Alaska in
the North to Tierra del Fuego in the south.
--
I made this proposal because I believed that this hemisphere
had a unique opportunity to work closely together -- to
share ideas and proposals that would consolidate our
democratic achievements and move us toward greater
prosperity.
Frankly, although I hoped for a positive reception, I was
not prepared for the overwhelming response that the EAI
received. The phone calls and other messages I received
from other leaders in this hemisphere were both inspiring
and reassuring.
This anniversary, therefore, offers us an opportunity to
take stock of what we have achieved. Equally important, it
serves as a spur to further action.
The signing ceremonies today demonstrate beyond doubt that
we have made progress in each of the three areas. We are
particularly pleased that the Congress last year passed the
debt reduction authorization in the Farm Bill. This enabled
us to sign the agreement with Chile today.
2
--
For this, Chairman Kika de la Garza and Chairman Dante
Fascell deserve our special vote of thanks. Their support
is the demonstration of bipartisanship and statesmanship
that we need to make a reality of the EAI.
We must also take note of the role of the Inter-American
Development Bank, which has today signed the very first
Investment Sector Loan agreement with Chile. The IDB under
the leadership of Enrique Iglesias has been a strong
supporter of the EAI, and we thank him and the IDB for its
support. We look forward to doing a great deal more with
him.
of course, the trade and investment framework agreements
have been one of the brightest spots of the EAI. The two
agreements signed today make a total of eleven signed in the
last twelve months. Just last week, during the visit of
President Collor of Brazil, we signed "The Rose Garden
Agreement" -- a multilateral framework agreement with
Argentina, Brazil, Paraguay, and Uruguay.
As we look with resolution and optimísm to the future, we
know that much more remains to be done. I have instructed
all my senior advisers to work actively with the Congress to
secure the passage of the rest of the EAI legislation. We
would like to see this happen as soon as possible. I Note That
MANY mambres 4, Congrass who have TAHIN A deep intenst in
We are just now beginning the negotiations with Canada and
Mexico on the North American Free Trade Agreement (NAFTA).
Again, I must note the bipartisan spirit shown by Senator
Bentsen of the great state of Texas and by Chairman Dan
tim ml 305 245H 300 me win 2100
Rostenkowski. Without their leadership, the extension of
3
the fast track authority for the NAFTA negotiations would
not have been possible.
We know the NAFTA negotiations will be arduous and complex.
But we are confident that the result will be a good one for
all our countries, and for the whole hemisphere. We will
produce an agreement which our Congress will support, and
which will make possible further advances along the road to
a hemisphere of free trade.
[Finally, as we take stock of the last year, I am aware that
we
my EAI speech also contained ideas on how to use the
IF
interest on official debt for environmental purposes.
Putting this all together has been a slower process than I
Support
would have liked. However, today I am prepared to announce
the names of the members of the Environment for the Americas
Board which Congress authorized last fall. They are:
]
[My instruction to them is simple; there is plenty to be
done to enhance our environment, but it must always be done
with a spirit of respect and cooperation.]
All of us know that there is a new spirit of cooperation in
our hemisphere. The Americas are our common homeland, and
our peoples are united by close bonds of culture, language,
family, as well as by our commitment to democracy. The EAI
is an effort to identify opportunities to enhance our common
well-being. Together our nations can continue to do great
things.
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2
GRIST FURSNTERPRISE
Photo Copy Preservation
Roa The AMERICAS PESCA
FRom STATE
One year ago today, I announced my Enterprise for the
Americas Initiative. The EAI was not developed in isolation
in Washington. It was born out of an authentic and a
continuing dialogue from which I have benefited enormously
as President with the leaders of Latin America and the
Carribbean.
At the hemispheric summit I attended in San Jose in
October 1989, at the Cartejena summit the following
February, and at the countless meetings I have participated
in with leaders of the Americas I heard both a common hope
expresed and a common concern.
My fellow heads of state told me that they want to
replace the "lost decade" of the 1980's with a decade of
renewed hope and economic growth in the 1990's in which all
of the citizens of the hemisphere, particularly the poor,
can share. They said they are committed to strip away the
barriers to trade and investment and growth that have
shackled the energies of their citizens. for too long and
open their economies to new opportunities.
They urged the United States to help build this more
hopeful future--not with massive assistance programs- but
with renewed support for trade, investment, and debt
reduction. But they also expressed the fear that the United
States might somehow turn its attention and energies
elsewhere in the world and ignore the Americas at this
moment of maximum challenge and opportunity.
My friends as long as I am President, the United States
will never make that historic mistake. Just the opposite. As
a nation, we are re-engaging with our friends and partners
in the Americas as never before.
For this generation of leaders in the Americas, north
and south, share a common vision. Together, we are building
something the world has never seen before: the first
completely democratic hemisphere. At the General Assembly of
the OAS held earlier this month in Santiago, for the first
time in history, every nation chose its government through
free and fair elections. Cuba, alone, stands isolated
against the democratic tide.
But our common vision is broader still. For we are also
building a new relationship among the developed and
developing nations throughout the Americas, an authentic
ENT BY:
; 6-21-91 ; 1:10PM ;
hrNI=:a-202 395 6926
:# 3
Photo Copy Preservation
partnership in which trade is free from Alaska to Tierra del
Fuego--a partnership in which new prosperity, growth, and
rising incomes, can help all our citizens share in the
fullness of life to the best of their abilities.
My Enterprise for the Americas Initiative was a
concrete response to the hopes and dreams I heard during my
first year as President from the leaders of this hemisphere.
One year after its announcement, I am pleased to say we are
well on the way to making this vision a reality.
We have embarked, with the support of Congress, on
historic negotiations to create a North American Free
Trading zone uniting the 360 citizens of Canada, Mexico, and
the United States. This vision of free trade has
re-energized the age-old dream of economic integration
throughout the Americas.
One week after my EAI announcement, the leaders of the
southern cone announced they would cut in half their
deadline for negotiating a common market uniting Brazil,
Artengina, Paraguay, and Uruguay, now scheduled for 199_.
Just last week, during President Collor de Mello's State
Visit, Ambassador Carla Hills and the foreign ministers of
the four southern cone nations signed # The Rose Garden
Agreement" the first regional Framework Agreement on Trade
and Investment under the EAI. Since last June, we have
negotiated bilateral Framework Agreements on Trade and
Investment with: Chile, Ecuardo, Peru, Venezuela, Colombia,
Honduras, Costa Rica, and El Salvador. Today, we will sign
agreements with
A regional agreement with
Caricom--the Carribbean Community-- is well on its way as
well. And the nations of the Andean Pact have pledged to
establish a common external tariff by 1992.
On the investment front, we are making major progress
also. Under EAI, we proposed to create a new, $1.5 billion
Multi-Lateral Investment Fund in the Inter-American
Development Bank to assist nations in the Americas
streamline and reform their investment regimes. I am proud
to report today that we are well on our way to meeting that
commitment. Japan has pledged to contribute $500 million
over the next five years. Canada, France,
(check with
Treasury for full list) have also pledged to participate.
And the Congress has agreed to my request for full funding
in fiscal 1992. Today, we witness the first investment loan
under IDB to Chile whose economic reforms and performance
offer a model of hope and achievement to all nations in the
hemisphere.
SENT BY
; 6-21-91 ; 1:11PM ;
hrNI=:a-202 395 6926
:# 4
Photo Copy Preservation
We are moving as well on the third pillar of the
EAI--reduction of official debt. Under the Brady Plan, four
nations--Mexico, Venezuela, Costa Rica, and Uruguay have
already negotiated far-reaching reductions in their debt
burdens with their commercial creditors. As other nations in
the region make progress on economic reform, we expect they
too will benefit under the Brady Plan. Now under EAI, the
nations of the hemisphere can also reduce their burden of
official debt and turn their interest payment into local
resources to restore their natural environment. Today, we
sign the first debt reduction agreement under the EAI. It
(describe details, including environmental project, if
known).
We are now moving forward on all three pillars of the
EAI--trade, investment, and debt reduction. But I want that
pace to accelerate. I hope the leaders of the Congress give
this initiative their full support. A growing prosperous
Latin American and the Carribbean is a natural market for
American exports of manufactured goods and agricultural
products. Thus, the Enterprise. for the Americas Initiative
also means new jobs and rising. incomes. for the citizens of
the United States. It merits and needs the full support of
the Congress, particularly my proposals for reducing debt.
For those who believe in both political and economic
freedom this is a moment of historic opportunity and new
hope in the Americas. I am determined to seize that
opportunity and to see those hopes fulfilled, and on this
first anniversary of the Enterprise for the Americas
Initiative, I believe we are on our way. Thank you.
Enterprise for the Americas Event:
Panamanian Minister of Trade:
Alfaro
Nicaraguan Minister of Foreign Trade:
DeFranco
Chilean Minister of Finance:
Foxley