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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13761 Folder ID Number: 13761-014 Folder Title: Anniversary-Enterprise for the Americas 6/27/91 [OA 7564] Stack: Row: Section: Shelf: Position: G 26 21 4 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: ; 6-21-91 ; 1:10PM ; hrNI=:a-202 395 6926 :# 3 partnership in which trade is free from Alaska to Tierra del Fuego--a partnership in which new prosperity, growth, and rising incomes, --can help all our citizens share in the fullness of life to the best of their abilities. My Enterprise for the Americas Initiative was a concrete response to the hopes and dreams I heard during my first year as President from the leaders of this hemisphere. One year after its announcement, I am pleased to say we are well on the way to making this vision a reality. We have embarked, with the support of Congress, on historic negotiations to create a North American Free Trading zone uniting the 360 citizens of Canada, Mexico, and the United States. This vision of free trade has re-energized the age-old dream of economic integration throughout the Americas. One week after my EAI announcement, the leaders of the southern cone announced they would cut in half their deadline for negotiating a common market uniting Brazil, Artengina, Paraguay, and Uruguay, now scheduled for 199_. Just last week, during President Collor de Mello's State Visit, Ambassador Carla Hills and the foreign ministers of the four southern cone nations signed " The Rose Garden Agreement" the first regional Framework Agreement on Trade and Investment under the EAI. Since last June, we have negotiated bilateral Framework Agreements on Trade and Investment with: Chile, Ecuardo, Peru, Venezuela, Colombia, Honduras, Costa Rica, and El Salvador. Today, we will sign agreements with A regional agreement with Caricom-- the Carribbean Community--is well on its way as well. And the nations of the Andean Pact have pledged to 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 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. SENT BY: ; 6-21-91 ; 1:10PM ; hrNI=:a-202 395 6926 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