Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
323153646
label
Asia Society 11/12/91 [OA 8317] [1]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
323153646
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
4fda6873267b5943
ocrText
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: 13780 Folder ID Number: 13780-001 Folder Title: Asia Society 11/12/91 [OA 8317][1] Stack: Row: Section: Shelf: Position: G 26 21 7 5 THE WHITE HOUSE WASHINGTON November 8, 1991 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: DAVID DEMAREST FROM: TONY SNOW SUBJECT: ASIA SOCIETY DINNER I. SUMMARY On Tuesday, November 12, at 7:35 p.m., at the Waldorf- 20 Astoria in New York City, you will deliver remarks (14 minutes, on prompter) to an audience of approximately 800 people at the Asia Society's 1991-92 Annual Dinner. The audience will consist primarily of business leaders, scholars, and diplomats. You will be introduced by Asia Society Chairman and former Deputy Secretary of State John Whitehead. II. DISCUSSION Your remarks highlight the future of U.S.-Asia relations and assert our continued commitment to the Asia-Pacific region. In particular, you offer reassurances regarding matters of trade, security and democracy. Snow/Nix Asia Draft One Two November I, 1991 8 oopy PRESIDENTIAL ADDRESS: THE ASIA SOCIETY WALDORF-ASTORIA HOTEL NEW YORK, NEW YORK TUESDAY, NOVEMBER 12, 1991 7:30 P.M. 35 [INTRODUCTORY ACKNOWLEDGMENTS -- Chairman John Whitehead and wife, Nancy; President Robert Oxnam; and Vice Chairman Peter Aaron] As you know, I have just returned from a trip to Rome and the Hague. There, I worked and other Western leaders worked to build a post Cold-War world characterized by mutual security, democracy, individual liberty, free enterprise, and unfettered international trade. I want to talk about those same topics tonight, but with the accent on Asia. But first, for audiences here and in Asia, I think it's important to discuss once again why we will not travel to the region later this month. As President, I must serve the entire nation in the domestic and foreign arenas. Sometimes those obligations clash. Congress could not complete its work on schedule this year, forcing me to remain in Washington indefinitely -- and also forcing us to postpone our important trip to the Asia Pacific region. Make no mistake, however: I will not turn my back on my responsibility to do the nation's business here and abroad, and 2 in times of economic pain, I certainly will not give up an opportunity to work with our allies to create new markets, new jobs and new opportunities for American workers. I will not surrender a chance to help our agricultural industries, our manufacturing industries and our service industries by building greater bonds of trade and commerce. And I certainly will not permit us to retreat into a kind of Fortress America, which will doom us to irrelevance and poverty. I remain deeply committed to building closer ties with our the Asia Pacific region. Although much of our Nation's heritage comes from Europe, our future points equally toward Asia. Asia has transformed itself in the space of a generation into the most rapidly growing region on the face of the earth. Asia-Pacific nations enjoyed staggering real economic growth in the decade of the Eighties: The Australian economy grew 41 percent; Japan's grew nearly 52 percent; Malaysia almost 60 percent; Hong Kong, 89 percent; Singapore, 93 percent; Taiwan, 116 percent and South Korea, 150 percent. The Asia-Pacific region has become, our largest and fastest growing trade partner. We conduct more than 300 billion dollars worth of two-way trade annually. Together, we generate nearly half the world's GNP. American firms have invested more than 61 billion dollars in the region, and that figure will grow. Asians have invested more than 95 billion dollars in the United States. In everything from automobiles to microchips, from baseball to ties of mutual interest Australian rules football, our grow closer each day. A T 4 between America and Indochina, we soon will place an ambassador in Vientiane. The government of South Korea has moved quietly to build better ties with its neighbor to the North, while boldly challenging the North to abandon its nuclear weapons program, which threatens regional peace. We welcome bilateral efforts among the Japanese, Soviets, Chinese and Koreans to reduce the tensions caused by North Korea's unsafeguarded nuclear program, and we will continue our own efforts. But we also will deter aggression by maintaining a significant military presence in the South. We have worked closely with Japan in the area of foreign aid: we are the world's two foremost providers of such aid. We also cooperate on matters of development assistance, environmental protection, trade, arms control, refugees and regional peace. The Japanese have joined us in trying to lead the Soviet Union and Eastern Europe toward free enterprise. They have supported more than 50,000 U.S. military forces in Japan with 3 billion dollars in annual host nation contributions. Japan contributed nearly 13 billion dollars to the multinational forces for the Gulf War, 10 billion dollars of which went to the United States. This required new taxes, but Japan chose the right course in supporting the coalition against aggression. Australia casts a shadow far larger than its population and size would suggest. It always has served as a trustworthy ally 3 A few years ago, it was a cliche to refer to the 20th Century as the American Century and the 21st as the Pacific Century. I don't have a crystal ball, but I'm willing to bet that the 21st Century will take a somewhat different form. I predict that America will remain the world's greatest economic, political, military and moral power. But at the same time the nations of the Asia Pacific region, having risen with our help, will join us as equal partners in building democracy and freedom. We'd be here forever if I tried to tick off our interests and activities, country-by-country. So instead I will address the three central issues in our relationships with the nations of the region: security, democracy, and trade. In the area of security, Asia's variety has spawned a diverse set of political and strategic alliances. Our custom- made agreements provide a strong foundation for future security. Let me give you a few examples. The ASEAN Nations, Japan, Australia and the U.N. Security Council's permanent members forged a Cambodian peace process that promises free elections in a nation previously rent by tyranny and genocide. This promise of peace opens the final chapter of the Indochina conflict. We envision normal relations with Vietnam as soon as we resolve our concerns about Cambodia and the problem of POW/MIAs. Today, I am happy to announce that we will upgrade our relations with Laos. In an apt sign of the healing process between America and Indochina, we soon will place an ambassador in Vientiane. 5 and defender of democracy, and it increasingly serves as an indispensable link to Asia and the Pacific. We can help ensure future peace in the region and defend our interests through a range of military arrangements. Bilateral alliances, access agreements and Five-Power defense arrangements give us the flexibility we need. While we must adjust our force structure in the region to reflect post Cold War realities, we must not ignore the important tensions that remain: in Korea; in Burma, where socialist check despotism holds sway, despite the heroic efforts of freedom fighters like Nobel Laureate Aung San Suu Kyi; in China and other communist regimes that resist the worldwide movement toward political pluralism -- and that sometimes lend comfort, support and even dangerous weapons to our adversaries. Fortunately, the key to future stability in the region lies not with arms, but with ballots. Democracy has swept across Asia, just as it has liberated other previously enslaved parts of our world. I have mentioned some of the exceptions: Burma, China, North Korea, Vietnam. Many, many others have accepted democracy's call. The United States will support democracy wherever it can, understanding that nations adopt political freedom in their own ways, in manners consistent with their histories and cultures. After decades of uncertainty, the future seems full of hope, and even the intransigent few seem likely to join the rest of the world in building a commonwealth of freedom. 6 This brings us to the third focal point, and a crucial ingredient in a stable, free society: economic prosperity. No nation can ignore the incredible vitality of this region or afford to. The United States will remain engaged with the Asia Pacific because we must -- and because we want to. Yes, we disagree on important trade issues, but the key players in the region have committed themselves to the cause of free and fair trade because our fates have become inextricably linked. Contrary to the opinions of some in this country, free trade requires efforts by all parties involved. The Asia Pacific N Economic Cooperation Group encourages growth and trade. The Uruguay Round of GATT talks remains the single most important vehicle for advancing the cause of free trade and fending off the scourge of protectionism. We call upon Japan to work with us in breaking down old barriers to trade and opening up markets in manufacturing, services and agriculture -- for all our benefit. Too often, trade disputes bring out the worst in people. Japan-bashing has become a minor sport in the United States, and some in Japan have become equally scornful of the United States. Both our nations must reject those who would rather seek n scapegoats that pursue lasting prosperity. The fact is that Japan, which nearly half a century ago became a focal point of American hatred, has become one of our closest and most treasured allies. We continue working with our Japanese allies to open agricultural, financial and manufacturing markets, and in creating opportunities for businesses of both 7 nations. I especially look forward to spending time with my old friend, Prime Minister Miyazawa -- significantly, a man steeped in Western and Eastern culture, and superbly equipped to build bridges of culture and trade between our two great Nations. Our Structural Impediments Initiative talks have helped lower barriers to trade and investment, but we need to give those talks new life and advance the cause of liberalization. The United States can no more afford to close its doors to the Asia Pacific Region than Asian nations can afford to close their doors to us. Our regions have become the most powerful engines for economic growth on earth. Together, we can build an even more prosperous and spectacular future -- but only if we set aside petty pride and take up the tough, rewarding task of promoting worldwide economic liberty. We seek no trade blocs; we oppose new trade barriers. We seek a vibrant international economic system that unites markets on every continent. We in the United States also must take a hard look at ourselves and pursue measures to improve our own economy. We levy an unacceptably high effective tax rate on capital gains. We subject our own entrepreneurs to incredible pressure. Our allies want us to unchain our innovators -- and so do I. We run an enormous and growing budget deficit, which seems to serve no greater purpose than to inflame political divisions within our own country. We must take purposeful action to reduce that deficit, while nourishing the seeds of economic growth. 8 We must modernize our banking industry; strengthen the competitiveness of our industrial base. We must work with our allies to build a stable and sound monetary regime. And perhaps most important of all, we must build human capital. We have an obligation to prepare future generations for life in the 21st Century. The integrated global economy will demand more of us than it ever has before, and our schools must meet that challenge. We have seen in recent years that technological change can do much more than make our lives more comfortable. It can sweep away the debris of totalitarianism, and forge the foundation for lasting liberty. We live in an age of liberation technology, and no technology does more for the cause of freedom than the means of mass communications. We may carp about what we see on the evening news, but information media have done more to destroy despotism than weapons ever could. No nation can import high- tech conveniences but shut off information and ideas. No wall is high enough and no government sufficiently despotic to shut off what some call a revolution of electrons. As we compete with our allies in this area, we must remember that information feeds intellect, and the better our children's educational preparation, the freer this world will become. Let me close today by summarizing our general approach to relations with Asia. Our administration sees six keys to promoting lasting peace in the Asia-Pacific region: 9 Progressive trade liberalization / Security cooperation / A shared commitment to democracy and human rights / Educational and scientific innovation / Respect for the environment / And an appreciation of our distinct cultural heritages. Americans have always looked to the horizons for their destiny, even from our earliest days. We have grown great because we have welcomed people from every continent and country, and we have tried to make use of their distinct talents, while constructing a common culture. As children, many of us traced our fingers along a globe, to distant lands our ancestors called home. We felt special then, feeling part of two worlds -- one, of an old and important culture; the other, the American life of freedom and opportunity. Today, our Asian population is growing more rapidly than any other, and immigrants from every Asian island and country have enriched all our lives. Our Administration is proud to have more Asian-Americans than any previous administration, and two women of Asian descent serve in top administration positions: Elaine check Chao, as director of the Peace Corps, and Pat Saiki, the administrator of the Small Business Administration. America's genius lies in its openness, its tolerance, and its diversity. Today, we celebrate that diversity, and celebrate the prospect that in years to come, we will develop with our Asian friends even greater ties of trade and culture. We will teach them, and they shall teach us. And together, we will fight 10 to build a world united in its determination to help men and women make the most of themselves. I look forward to traveling soon to Asia, to advance these important principles, and to create work opportunities for tens of thousands of American workers and businesses. The notion that we can separate domestic and foreign policy rests upon the stubborn fantasy that we can live as an isolated island surrounded by a changing and developing world. In that way lies national suicide and international chaos. We tried isolationism once, and we ended up fighting two bloody world wars. We tried economic isolationism -- protectionism -- and we helped set off a worldwide depression. As President, I will continue building ties with our allies, because those ties mean peace at home and jobs for American men and women. I want to thank the Asia Society for its vital contributions to the cause of peace, prosperity and understanding. I look forward to your help as I seek to build closer bonds of affection and interest with the peoples of the vast, marvelous, varied Asia-Pacific region. Thank you. May God bless our Asian-Pacific friends and the United States of America. # # # # NOV- 7-91 FRI 14:25 0 P.01 91 NOV 7 P Pl: 34 OFFICE OF FINANCE & TRADE INFORMATION U.S. Department of Commerce International Trade Administration Room 2815 Washington, D.C. 20230 TEL NO. (202) 377-5145 FAX NO. (202) 377-4614 Number of Pages (Including Cover Page) 7 Recipients Name MIcheLLE NIX Department/Firm WhiteHouse Speech Writing Office Phone 202/456-7750 Fax 202/456-6218 Comments Sender Vera Hartman Date 11/7/91 Senders Phone No 202/377-4211 Have A Nice Day FRI P.02 -11- - Table 2 U.S. Total Exports to Individual Countries, 1984-90 (Domestic and Foreign Merchandise, F.B.B.: Millions of Dollars) 1989/1990 Change 1984 1985 1986 1987 1988 1989 1990 $ % WORLD 1/ 223,999 218,828 227,159 254,122 322,426 363,812 393,893 30,082 8.3% SPECIAL CATEGORY 6/ 4,975 5,446 4,364 5,422 5,339 NA NA UNDOCUMENTED EXPORTS TO CANADA 5,253 6,036 10,179 6,429 10,648 15,959 NA MISCELLANEOUS 71 1,226 (116) (231) 1,333 208 394 241 DEVELOPED COUNTRIES 8/ 141,274 140,126 151,693 165,429 206,915 234,669 256,885 22,216 9.5% Cenada 51,777 53,287 55,512 59,814 71,622 78,809 83,866 5,057 6.4% Japan 23,575 22,631 26,882 28,249 37,725 44,494 48,585 4,091 9.2% Australia 8/ 4,793 5,441 5,551 5,495 6,973 8,331 8,535 204 2.4% New Zealand 8/ 708 727 881 819 940 1,117 1,133 16 1.4% South Africa 2,265 1,205 1,158 1,281 1,688 1,659 1,732 73 4.4% Western Europe 58,156 56,836 61,710 69,772 87,967 100,259 113,034 12,775 12.7% European Community (EC-12) 8/ 50,635 49,067 53,222 60,629 75,864 86,424 98,086 11,661 13.5% Belgfum/Luxembourg 5,301 4,918 5,399 6,189 7,410 8,522 10,448 1,926 22.6% Denmark 605 706 758 893 969 1,051 1,311 261 24.8% France 8/ 6,037 6,096 7,216 7,943 9,970 11,579 13,652 2,073 17.9% Germany 9,221 9,123 10,628 11,802 14,457 16,956 18,752 1,796 10.6% Greece 456 498 430 402 655 697 765 67 9.7% Ireland 1,354 1,342 1,434 1,810 2,183 2,483 2,539 56 2.3% Italy 8/ 4,375 4,625 4,838 5,530 6,775 7,215 7,987 772 10.7% Netherlands 7,554 7,269 7,847 8,217 10,117 11,364 13,016 1,652 14.5% Portugal 961 695 638 581 749 925 922 (2) -0.3% Spain 2,561 2,524 2,615 3,148 4,215 4,796 5,208 413 8.6% United Kingdom 12,210 11,273 11,418 14,114 18,364 20,837 23,484 2,647 12.7% Non-EC Europe 8/ 7,522 7,769 8,488 9,143 12,102 13,834 14,948 1,114 8.1% Austria 375 441 464 549 746 873 873 1 0.1% Cyprus 74 45 54 65 116 109 129 21 19.2% Finland 350 438 381 514 761 969 1,126 157 16.2% Gibraltar 4 13 32 4 6 2 32 30 ... Iceland 51 38 60 84 97 179 232 53 29.7% Malta 23 26 24 97 101 48 45 (2) -5.2% Norwey 8/ 859 666 937 842 929 1,037 1,281 244 23.5% Sweden 1,542 1,925 1,871 1,894 2,700 3,138 3,404 265 8.4% Switzerland 8/ 2,562 2,288 2,976 3,151 4,196 4,911 4,944 33 0.7% Turkey 1,249 1,295 1,160 1,482 1,850 2,003 2,253 250 12.5% Yugoslavia 432 595 528 461 530 499 566 67 13.4% Other Non-EC Europe 8/ NA NA NA NA 70 67 63 (4) -5.5% DEVELOPING COUNTRIES 2/ 8/ 74,418 71,671 70,637 81,691 106,722 117,766 127,448 9,682 8.2% Western Hemisphere 3/ 29,683 31,019 31,077 34,979 43,859 49,080 54,077 4,997 10.2% Mexico 11,992 13,635 12,392 14,582 20,628 24,982 28,375 3,393 13.6% South America 11,050 11,022 11,950 13,036 15,112 14,479 15,612 1,133 7.8% Argentina 900 721 944 1,090 1,054 1,039 1,179 140 13.5% Bolivia 106 120 112 140 148 145 139 (6) -4.4% Brazil 2,640 3,140 3,885 4,040 4,266 4,804 5,062 258 5.4% Chile 805 682 823 796 1,066 1,414 1,672 258 18.2% Colombia 1,450 1,468 1,319 1,412 1,754 1,924 2,038 114 5.9% Ecundor 655 591 601 621 681 643 680 38 5.8% Falkland Islands 0 0 S 6 0 1 0 (0) -64.6% French Gufana 72 114 25 124 283 270 271 1 0.3% Guyane 51 43 47 60 67 78 76 (2) -2.8% Paraguay 64 99 171 183 194 167 307 140 83.4% Peru 751 496 693 814 795 695 778 83 12.0% Suriname 100 86 84 72 93 140 157 17 12.3% Uruguay 80 64 100 92 99 134 145 11 8.2% Venezuela 3,377 3,399 3,141 3,586 4,612 3,025 3,107 82 2.7% FRI " - 12 Toble 2--Continued U.S. Total Exports to Individual Countries, 1984-90 (Domestic and Foreign Merchandise, F.8.9.; Millions of Dollars) 1984 1985 1986 1989/1990 Change 1987 1988 1989 1990 $ % Caribbean Basin Initiative Ctry 6,528 6,199 6,595 7,185 7,937 Bahamas 9,419 9,973 555 554 5.9% 786 761 Afr 782 740 772 Barbados 801 241 29 3.8% 173 147 All 132 160 180 Belize 162 53 (18) -10.1% 56 59 An: 72 103 101 106 Cayman Islands 5 5.1% 78 75 Bci 83 127 104 204 Costs Rica 185 423 (19) -9.1% 422 Bo 483 582 696 882 992 Dominican Republic 110 12.4% 646 742 Br 921 1,142 1,359 El Salvador 1,645 1,658 13 0.8% 426 445 Bu 518 390 483 520 556 Guatemala 36 6.9% 377 405 Bui 400 480 590 662 759 Guyana 97 14.7% 51 43 Car 47 60 67 78 76 Haiti (2) -2.8% 419 Cel 396 387 459 475 472 478 Honduras 6 1.2% 322 Ch 308 363 418 476 515 563 Jamaica 48 9.4% Col 495 404 457 601 762 1,006 944 Leeward & Windward Islands (62) -6.2% Col 209 199 225 238 297 372 390 Netherlands Antilles 18 4.9% 648 Dj 427 398 507 528 539 744 Niceragua 205 38.1% 112 Eg' 42 3 3 6 2 68 Panama 66 757 Eq 675 711 742 637 723 867 Suriname 143 19.8% Etl 100 86 84 72 93 140 157 Trinidad & Tobago 17 12.3% Fr 601 504 532 361 326 563 430 Turks & Cafcos Islands (133) -23.7% Gol 16 12 15 15 33 46 39 (7) -14.2% Go Gh Other Western Hemisphere 264 292 272 309 341 417 349 (68) -16.3% Gu Bermuda 225 258 236 261 281 354 255 (99) -28.0% IV French West Indies 38 28 34 44 57 59 88 29 49.0% Xe Greenland 2 6 2 3 4 4 6 2 40.5% Le St. Pierre & Miquelon 0 0 0 0 0 0 0 0 158.2% Li Li East Asia NICs 17,723 16,918 18,290 23,547 34,816 38,429 40,741 2,312 6.0% Ma Hong Kong 3,062 2,786 3,030 3,983 5,687 6,291 6,840 549 8.7% Ma Korea, South 5,983 5,956 6,355 8,099 11,232 13,459 14,399 940 7.0% Ha Singapore 3,675 3,476 3,380 4,053 5,768 7,344 8,019 675 9.2% Mo Taiwan 5,003 4,700 5,524 7,413 12,129 11,335 11,482 148 1.3% Mo Mo Other Asia 41 9,074 7,611 7,809 8,447 11,174 12,719 14,918 2,199 17.3% Mo Afghanistan 7 3 8 8 6 5 4 (1) -10.9% No Bangladesh 303 219 165 193 258 282 181 (100) -35.5% Ni Brunel 34 51 202 93 74 63 143 80 126.3% NI Burms 16 10 16 8 11 5 20 15 324.7% RW India 1,570 1,642 1,536 1,463 2,500 2,458 2,486 29 1.2% $c Indonesia 1,216 795 946 767 1,059 1,247 1,897 650 52.1% Sc Macao 2 1 3 5 7 11 8 (3) -29.9% si Malaysia 1,856 1,539 1,730 1,897 2,141 2,870 3,425 554 19.3% So Nepal 4 7 8 56 64 9 10 1 9.2% St Pakistan 1,092 1,042 830 733 1,090 1,134 1,143 9 0.8% Su Philippines 1,766 1,379 1,363 1,599 1,878 2,202 2,472 270 12.2% Sw South Asia NEC 3 2 1 4 1 3 1 (2) -64.2% To Sri Lanka 92 73 66 77 122 143 137 (6) -4.1% To Thailand 1,113 849 936 1,544 1,962 2,288 2,991 703 30.7% Tu Us Middle East 11,133 9,709 8,415 9,502 10,814 11,126 11,198 72 0.7% Vc Bahrain 145 107 194 205 280 489 We 718 230 47.0% Iran 162 74 34 54 81 55 Za 166 111 201.9% Iraq 664 427 527 683 1,157 2: 1,169 732 (437) -37.4% Isreel (incl Gaza) 2,194 2,580 2,239 3,130 Zi 3,244 2,828 3,201 373 13.2% Jordan 299 377 332 365 368 380 309 (71) -18.7% Kuwait 635 551 657 505 Oth 683 853 401 (453) -53.0% Lebanon 286 141 106 97 123 94 At 98 4 4.8% Neutral Zone 8/ NA NA NA NA 0 5 #: 1 (4) -80.4% Oman 168 160 160 171 129 No 170 163 (7) -4.2% Qatar 84 64 62 76 98 P; 100 115 14 14.3% Saudi Arabia 5,564 4,474 3,449 3,373 Sc 3,776 3,574 4,035 461 12.9% Syria 104 106 59 93 Tr 84 91 150 59 64.6% United Arab Emirates 695 596 493 619 705 We 1,238 998 (240) -19.4% Yemen Arab Republic 131 51 101 131 Or 86 80 111 31 38.5% 7-91 FRI 14:27 32 U.S BILATERAL TRADE BITH SELECTED COUNTRIES, 1982-84 (Doasstic and Foreign Herchandise Exports, FAS; General Imports, CIFI Millions of Dollars) U.S. EXPORTS U.S. IMPORTS TRADE BALANCE 11 1982 1983 1984 1982 1983 1984 1982 1983 1984 WORLD 212,275 200,538 217,898 254,884 269,878 341,177 (42,609) (69,340) (123,289) DEVELOPED COUNTRIES 122,679 122,974 135,884 146,998 157,895 208,557 (24,323) (34,921) (72,673) Canada 33,720 38,244 46,524 46,792 52,546 66,911 (13,072) (14,302) (20,387) Japan 20,966 21,894 23,575 39,932 43,559 60,371 (10,966) (21,665) (36,796) Australia 4,535 3,954 4,793 2,552 2,422 2,899 1,983 1,532 1,894 New Zealand 897 620 706 870 828 880 27 (208) (172) South Africa 2,368 2,129 2,265 2,048 2,099 2,577 320 30 (312) Western Europe 60,189 56,132 58,019 54,806 56,442 74,921 5,382 (310) (16,902) European Community 47,932 44,311 46,976 42,509 45,879 60,266 5,423 (1,568) (13,290) Belgius/Luxeebourg 5,229 5,049 5,301 2,502 2,510 3,287 2,727 2,539 2,014 Deneark 732 649 605 956 1,126 1,518 (224) (477) (913) France 7,110 5,961 6,037 5,815 6,308 8,316 1,295 (347) (2,479) Germany, West 9,291 8,737 9,084 12,503 13,229 17,810 (3,212) (4,492) (8,726) Greece 721 503 456 260 256 383 461 247 73 Ireland 983 1,115 1,354 592 582 674 401 533 480 Italy 4,616 3,908 4,375 5,656 3,819 8,504 (1,040) (1,911) (4,129) Retherlands 8,604 7,767 7,554 2,652 3,149 4,329 5,952 4,618 3,225 United Kingdom 10,645 10,621 12,210 13,541 12,900 15,044 (2,896) (2,279) (2,834) Mon-EC Europe 12,256 11,821 11,043 12,297 10,563 14,655 (41) 1,258 (3,612) Austria 371 371 375 515 468 760 (144) (97) (385) Finland 489 413 350 447 544 857 42 (131) (507) Norway 950 813 859 2,047 1,432 2,004 (1,097) (619) (1,145) Portugal 838 1,212 961 308 308 519 530 904 442 Spain 3,589 2,915 2,561 1,639 1,689 2,627 1,950 1,226 (66) Sweden 1,639 1,581 1,542 2,092 2,549 3,426 (403) (968) (1,884) Switzerland 2,707 2,960 2,362 2,394 2,552 3,199 313 408 (637) Yugaslavia 494 572 432 391 424 $27 103 148 (95) DEVELOPING COUNTRIES 21 82,538 72,186 74,418 104,089 107,867 126,730 (21,551) (35,681) (52,312) Western Hemisphere $/ 33,591 25,725 29,683 39,559 43,525 50,020 (5,768) (17,800) (20,337) Mexico 11,817 9,082 11,992 15,770 17,019 18,267 (3,933) (7,937) (6,275) South America 15,256 10,519 11,051 15,407 17,093 22,461 (151) (6,574) (11,810) Argentina 1,298 965 900 1,222 939 1,041 72 26 (141) Brazil 3,423 2,557 2,640 4,643 5,381 8,273 (1,220) (2,824) (5,633) Bolivia 99 102 106 113 172 159 (14) (70) (53) Chile 925 729 805 729 1,053 871 196 (324) 1561 Colombia 1,903 1,514 1,450 083 1,058 1,253 1,020 456 197 Ecuador 928 597 655 1,227 1,520 1,803 (399) (923) (1,148) Paraguay 78 36 64 41 34 44 37 2 20 Peru 1,117 900 751 1,150 1,204 1,402 (33) (304) (651) Uruguay 190 86 80 265 390 576 (75) (304) (496) Venezuala 5,206 2,811 3,377 4,957 5,173 6,820 249 12,362) (3,443) Caribboan Basin 6,498 6,032 6,526 8,529 9,557 9,491 (2,031) (3,505) (2,963) Bahaoas 590 452 555 1,086 1,74& 1,218 (496) (1,294) (663) Barbados 155 195 242 109 205 256 46 (10) (14) Belize 64 36 53 38 29 48 26 7 5 Cayean Islands 73 67 78 16 10 6 57 57 72 Casta Rice 330 382 423 421 453 544 1911 (71) (121) Dominican Republic 664 632 646 669 855 1,067 (S) (223) (421) El Salvador 292 365 426 333 362 406 (41) 3. 20 Guatemala 390 316 377 364 404 479 24 (68) (102) Guyana 5& 36 51 79 76 98 (23) (40) (37) Haill 299 366 419 326 351 394 (27) 15 25 Honduras 275 299 322 426 435 450 (151) (136) (129) Jacaice 468 452 495 323 307 415 143 145 80 Netherlands Antilles 660 553 648 2,186 2,367 2,112 (1,526) (1,814) Micaragua (1,464) 110 132 112 98 109 69 20 23 43 Panasa 839 748 757 289 S78 365 550 $70 392 Suriname 128 117 100 68 69 112 60 48 (12) Trinidad 1 Tobago 894 728 601 1,667 1,357 1,411 (773) (629) (810) Turbe 1 falens Islands D P.05 7-91 - FRI 14:27 0 33 U.S BILATERAL TRADE WITH SELECTED COUNTRIES, 1982-84 (cont.) (Domestic and Fareign Merchandise Exports, FAS, General teports, CIF: Millions of Dollars) U.S. EXPORTS U.S. IMPORTS TRADE BALANCE 1/ 1982 1983 1984 1982 1983 1984 1982 1983 1984 East Asian NICs 15,563 16,915 17,722 23,767 29,561 39,135 (8,204) (12,646) (21,413) Hong Kong 2,453 2,564 3,062 5,895 6,825 8,099 (3,442) (4,261) (5,837) Singapore 3,214 3,759 3,674 2,274 2,969 4,121 940 790 (447) South Korea 5,529 5,925 5,983 6,011 7,657 10,027 (482) (1,732) (4,044) Taiwan 4,367 4,667 5,003 9,587 12,110 16,088 (5,220) (7,443) (11,085) Other Asia 4/ 9,397 9,012 9,076 11,840 14,187 16,60% (2,443) (5,175) (7,525) India 1,598 1,828 1,570 1,522 2,334 2,737 76 (506) (1,167) Indonesia 2,025 1,466 1,216 4,509 5,657 5,867 (2,484) (4,191) (4,651) Malaysia 1,736 1,684 1,856 1,959 2,205 2,825 (223) (521) (969) Pakistan 700 812 1,092 181 183 268 519 629 824 Philippines 1,854 1,807 1,766 1,956 2,159 2,622 (102) (352) (856) Thailand 915 1,063 1,112 956 1,035 1,426 (41) 28 (314) Middle East 15,950 13,796 11,133 12,437 7,492 8,555 3,513 6,304 2,578 Iran 122 190 162 612 1,167 730 (490) (977) (568) Iraq 846 $12 664 42 61 129 804 451 535 Israel 2,271 2,017 2,194 1,208 1,300 1,809 1,063 717 385 Saudi Arabia 9,026 7,903 5,564 7,860 3,840 4,009 1,166 4,063 1,555 United Arab Emirates 1,101 864 695 2,139 342 1,278 (1,038) 322 (583) Africa 7,769 6,487 6,562 16,486 13,102 12,419 (8,717) (6,615) (5,857) Algerin 909 594 520 2,792 3,815 3,371 (1,883) (3,221) (3,251) Angola 158 91 103 724 748 1,053 (566) (857) (950) Congo 69 16 12 676 859 1,054 (607) (843) (1,042) Egypt 2,875 2,813 2,704 569 325 182 2,306 2,488 2,522 Ivory Coast 96 62 64 326 371 499 (230) (310) (435) Kenya 98 69 74 77 TO 69 21 (1) 5 Moroeco 396 440 526 51 34 39 345 406 487 Nigeria 1,295 864 577 2,274 3,883 2,606 (5,979) (3,019) (2,029) CENTRALLY PLANNED ECONOMIES 5/ 6,557 5,080 7,216 3,671 3,955 5,738 2,886 1,133 1,478 China 2,912 2,173 3,004 2,502 2,477 3,381 410 (304) (377) USSR 2,587 2,003 3284 247 374 600 2,340 1,629 2,684 Eastern Europe 1,017 898 904 915 1,100 1,752 102 (212) (848) Bulgaria 106 66 44 31 30 31 75 36 13 Czechoslovakie 84 59 58 68 68 96 16 (9) (38) Sereany, East 223 139 137 59 64 167 164 75 1301 Hungary 68 110 98 145 172 242 (77) (62) (154) Poland 295 324 318 229 209 244 66 115 74 Roeanta 224 186 249 380 553 969 (156) (367) (720) NOTEs Export data include special category or silitary type goods for world, country, and regional aggregations. Because of rounding, country and regional aggregations in this table may differ slightly from values in other published sources. Adjustments to the export and import values for Spain, Portugal, and USSR (and the associated regional aggregations) have been made for 1982-1993 to agree with the 1984 Cansus definitions of these countries. 1/ Parentheses indicate negative entries. 2/ Excluding Cuba, Laos, and Cambodia or Kampuchea. 31 Excluding Cuba. 4/ Excluding Laos and Cambodia or Kampuches. S/ Including Cuba, Laos, and Casbodia or Kaspuches. 1 R I 1 4 : 2 0 06 GDP at Constant Prices 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 99bp X Colculated from Indexes 1.9 1.6 2.4 4.7 3.7 2.9 3.5 4.3 3.2 World 001 4.9 4.0 4.2 3.7 - 4.7 3.6 4.2 3.3 1.1 1.4 -.2 2.6 4.7 3.5 2.8 3.3 4.4 3.2 2.3 Industrial Countries 110 4.7 5.3 2.5 -.2 1,9 -2.5 3.6 6.6 3.5 2.8 3.4 4.4 2.5 1.0 United States 111 4.9 6.2 3.6 4.6 3.9 1.5 3.7 -3.2 3.2 6.3 4.8 3.3 4.0 4.4 3.0 .9 Canada* 156 4.0 .9 3.5 3.6 2.3 3.7 -.1 .6 7.4 4.8 2.4 4.3 3.5 4.5 1.2 Australia 193 Japan* 158 4.2 4.8 5.0 5.6 3.5 3.4 3.4 2.8 4.3 5.1 2.7 4.3 6.3 4.7 5.7 .1 :-2,7 -.3 2.6 1.1 4.9 .4 2.9 5.0 1.2 2.5 .5 -1.3 1.3 New Zealand 196 14.6 4.5 .1 4.7 2.9 -.3 1.1 2.0 1.4 2.5 1.2 2.0 3.9 4.0 4.6 Austria 122 5.8 .3 2.8 1,7 X3.7 -.9 .8 .3 2.3 .6 2.0 2.6 4.5 4.0 Bolgium 124 6.5 1.6 1.5 3.5 -.4 -.9 3.0 2.5 4.4 4.3 3.6 -.6 -.2 1.3 Denmark 128 1 ,I 2.2 7.3 5.3 1.6 3.6 3.0 3.1 3.3 2.1 4.0 5.4 5.2 I Finland 172 4.2 3.2 3.3 3.2 1.6 1.2 2.5 .7 1.3 1.9 2.5 2.2 3.8 3.7 2.8 France 132 5.5 2.6 3.4 4.0 1.0 .1 -1.1 1.9 3.1 1.8 2.2 1.5 3.7 3.8 4.5 Germany 134 6.4 3,4 6.7 3.7 1.7 .1 .4 .4 2.7 3.1 1.4 -.5 4.1 2.8 Greoce 174 176 2.8 11.6 5.9 5.0 I-4.2 4.1 1.5 -4.7 3.5 3.0 7.5 9.1 -1.2 -3.2 .1 Iceland* 1.4 8.2 7.2 3.1 3.1 3.3 12.3 -.3 4.4 2.5 -.4 4.4 3.9 5.9 Ireland 178 6.3 3.7 3.7 6.0 14.2 .6 .2 1.0 2.7 2.6 2.9 3.1 4.1 3.0 2.0 Italy 136 2.5 2.6 4.6 4.0 2.9 .5 1.5 2.4 5.7 3.9 3.4 Luxembourg 137 5.2 2.4 2.0 2.5 1.0 -,7 -1.5 1.7 2.9 2.9 1.5 .9 2.2 4.3 Nothorlands 138 6.8 3.6 4.5 -12.4 I-7.2 .9 .3 3.9 3.8 18.1 4.2 2.0 -.5 4 1,8 Nerway 142 6.9 5.6 3.4 6.2 4.8 .3 3.2 -.3 -1.6 3.3 4.3 Portugal 182 3.0 3.3 1.8 .2 1.5 -.2 1.2 1.8 1.8 2.3 13.3 5.6 5.2 4.8 3.7 Spain 184 1.1 -1.6 1.8 3.8 11.7 -1.0 1.1 2.8 4.0 2.2 2.2 2.5 2.9 2.0 .5 Sweden 144 -.8 2.4 .6 2.4 4.4 1.4 -.9 1.0 1.8 3,7 2.9 2.0 2.9 3.5 2.6 Switzerland 146 3.7 1.0 3.9 2.3 -1.9 -1.1 1.3 3.7 1.8 4.1 4.0 4.6 3.9 1.9 .7 United Kingdom 112 5.6 5.4 4.1 5.0 4.5 2.0 1.0 1.8 4.5 4.3 3.3 4.0 3.6 3.2 Developing Countries 200 4.7 3.5 -.2 2.1 5.4 -1.3 8 -1.4 .8 4.5 2.3 1.3 6.6 3.6 Africa 605 4.3 5.7 2.8 5.0 110.9 5.8 10.8 -2.0 4 2.5 -3.2 Benin 638 16.5 2.3 18.3 12.1 14.0 8.7 -2.3 24.0 20.0 8.1 8.0 10.2 9.0 13.5 Botswana 616 1.7 4.4 2.2 -1.2 1.6 13.1 Burkina Faso 748 7.9 12.4 -1.1 12.0 7.9 10.9 -.4 3.1 -.1 11.7 3.8 4.1 3.7 1.5 3.9 Burundi 618 1.9 5,7 10.4 11.2 14.2 17.1 7.6 6.8 7.5 8.1 Cameroon 622 -1.5 -7.4 -5.0 26.0 -2.7 -5.6 Chad 628 6.6 -7.2 5.5 -9.1 I-3.4 -4.5 7.7 -7.2 -.2 5.7 5.4 Gambia, The 648 3.5 2.3 8.5 -3.2 - -1.8 -7.2 .7 2.6 5.1 5.2 4.8 6.2 Ghana 652 7.0 9.4 10.8 3.7 5.6 3.8 2.9 .5 1.8 4.3 7.2 5.9 6.0 4.6 Kenya 664 4.0 -.8 4.0 4.4 -4.7 I-4.4 2.3 -2.1 -.6 - -2.2 Liberia 668 -4.0 3.4 -2.6 9.8 .8 -8.6 -1.8 .8 12.2 2.3 Madagascar 674 6.2 4,3 8.3 3.3 -.4 -5.2 2.8 3.5 4.4 4.5 1.1 2.2 3.3 4.1 4.8 Malawl 676 116.7 6.6 3.8 3.5 -10.1 5.9 15.5 .4 4.8 6.9 9.7 110.2 6.8 4.2 6,6 Mauritius 684 7.0 6.5 3.4 4.5 13.4 -2.8 9.6 -.6 4.3 6.3 8.4 -2.6 10.4 2.2 Morocco 686 10.9 8.1 -7.3 2.5 5.3 I-8.4 -.3 -5.4 -5.1 9.4 3.1 -.5 9.9 5.3 Nigoria 694 1.8 5.2 9.8 9.4 -3.6 2.5 I4.1 6.0 -4.2 4.4 5.5 -.5 .5 -5.7 -.1 Rwanda 714 -2.7 -3.9 10.1 -5.0 -5.2 20.6 2.6 -4.6 3.8 4.6 Sonogal 722 7.9 16.7 15.0 -3.1 -6.6 -1.5 -1.7 8.0 10.3 .8 5.0 4.2 Soychelles 718 3.0 1.4 .3 7.4 3.0 6.2 11.6 +1.4 1.4 I-2.7 -2.4 5.5 1 Sierra Leone 724 1.5 - 2.9 13.2 10.2 2.2 -.4 -1.8 5.2 -1.2 - 2.1 4.1 2.1 -9 South Africa 199 9.9 14.5 -4.4 6.9 .4 -1.2 3.1 2.0 9.1 Swaziland 734 16.6 2.8 2.9 1.2 .8 -1.1 1.3 -.4 2.5 -2 .4 3.9 4.1 Tanzania 738 -.5 5.6 110.1 5.4 1.9 -3.5 -3.8 .7 1.3 3.1 3.4 1.5 Togo 742 8.2 4.9 6.2 7.2 9.4 16.5 -.5 4.7 5.7 5.7 -1.4 5.5 1.5 3.5 7.3 Tunisla 744 .7 1.6 -5.5 -11.0 -3.4 13.9 5.7 7.4 -8.5 2.0 .3 6.4 7.2 6.6 Uganda 746 -5,2 .8 -5.3 .3 2.4 2.9 -3.0 1.3 2.7 2.5 2.7 2.6 2.2 .6 Zaire 636 4.3 -4.8 .6 -3.0 3.0 6.2 -2.3 -2.0 -.4 1.6 .6 -.2 Zambia 754 -.8 -5.7 -2.5 2.8 11.4 12.6 3.2 1.6 -1.8 6.0 2.9 -1.3 3.5 Zimbabwe 698 2.3 7.7 9.2 3.8 5.9 6.0 5.5 7.8 7.5 6.6 6.4 7.3 8.3 6.9 Asia 505 12.3 1.3 6.5 4.6 1.3 6.8 .8 3.6 4.2 3.7 4.7 4.0 2.6 Bangladesh 513 10.0 5.3 8.0 7.0 3.7 10.2 17.8 3.3 Bhutan 514 -3.0 7.8 12.3 7.0 6.4 4.9 8.3 9.8 13.5 13.1 7.9 10.3 China, People's Rep. 924 1.8 -3.5 1.8 12.0 -1.7 6.0 -1.1 -4.0 8.4 -5.1 8.3 -6.1 .8 12.5 FIJI 819 1.5 8.2 6.6 -4.8 16.5 6.3 3.7 7.4 3.7 6.2 4.8 4.5 9.4 5.0 India 534 6.9 8.8 7.8 6.3 9.9 7.9 2.2 14.2 7.0 2.5 5.9 4.1 6.5 7.4 Indonesia 536 13.2 110.9 9.7 7.4 -2.0 6.7 7.3 11.8 9.4 6.9 12.4 12.0 11.5 6.2 9.0 Korea 542 11.6 7.8 6.7 9.3 7.4 6.9 5.9 6.3 7.8 -1.0 1.0 5.4 -.1 18.6 Malaysia 548 17.9 -5.4 19.3 27.2 13.6 8.7 8.9 8.7 9.2 Maldives 556 6.1 6.0 X6.5 5.2 7.9 6.4 5.6 4.4 5.6 3.2 -1.1 -4.0 -11.4 7.4 Myanmar 518 4.4 3.0 4.4 2.4 -2.3 8.3 3.8 -3.0 9.7 6.1 4.3 3.9 7.8 2.3 2.0 Nepal 558 4.6 3.8 8.0 4.8 8.7 I6.9 6.5 6.8 5.1 7.6 5.5 6.5 7.6 5.0 5.3 Pakistan 564 -1.6 I-4,3 8.6 1.8 -2.3 11.1 8 13.4 -1.0 3.6 4.8 2.6 3.1 1.4 Papua New Guinea 853 8.0 6.1 5.5 6.3 15.2 3.2 3.6 1.9 -7.6 -7.4 3.4 4.8 6.3 5.9 2.1 Philippinos 566 17.5 7.8 8.6 9.3 9.7 9.6 6.9 8.2 8.3 -1.7 2.0 9.4 11.1 9.2 8.3 Singapore 576 6.7 -1.1 3.9 8.3 2.6 -2.2 -5.1 Solomon Islands 813 4.4 3.8 7.4 6.1 5.7 5.5 -15.7 15.0 5.1 5.0 4.3 1.5 2.7 2.3 6.2 Sri Lanka 524 9,4 9.9 10.4 5.3 4.8 6.3 4.1 7.3 7.1 3.5 4.9 9.5 13.2 12.0 10.0 Thailand 578 8 4.8 1.9 1.9 15.8 14.0 14.8 5.8 44.1 5.6 Tonga 866 1991 International Financial Statistics Yearbook 161 7-91 FRI 1 : 2 % Change over the Previous year GDP at Constant Prices 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 99bp X Calculated from Indexes 5.8 7.6 1.9 4.8 .8 2.7 2.4 .9 4.4 1.7 4.4 2.8 1.1 Europe 170 £18.0 15.8 7.6 9.9 5.9 3.1 6.3 5.3 8.8 14.7 3.8 7.0 8.5 7.2 5.7 Cyprus 423 3.6 7.6 4.4 2.7 1.2 2.9 2.8 .7 2.7 -.3 1.5 4.0 4.6 Hungary 944 17.0 12.2 11.2 10.5 7.0 3.3 2.3 -.6 .9 2.6 4.0 4.2 8.7 Malta 181 4.0 6.1 5.9 --1 2.4 .8 -.5 -5.8 Romania* 968 7.7 7.0 -2.9 2.6 -1.1 4.1 4.6 3.3 6.0 5.1 8.1 7.4 3.4 Turkey* 186 3.9 8.0 6.9 7.0 2.3 1.4 .5 -1.0 2.0 .5 3.6 -1.0 -2.0 Yugosiavia 188 14.3 3.6 -4.6 6.2 .3 2.2 -2.5 3.7 2.4 2.7 -2.6 .3 .9 Middle East 405 23.7 14.7 8.1 -1.1 16.6 -5.5 -7.7 7.5 5.3 -2.7 7 -.9 6.7 Bahrain 419 6.4 6.0 12.1 9.1 16.4 6.2 5.3 5.8 Egypt 469 18.3 7.6 -21.1 -9.3 -13.9 7.9 14.4 10.3 3.3 4.2 -8.4 -1.1 -4.8 Iran, I.R. of 429 3.7 -21.4 13.6 24.0 13.2 4.5 1.1 2.8 2.3 3.8 13.7 5.9 2.7 1.6 5.1 Israel 436 21.2 16.4 14.8 4.5 17.6 9.8 5.6 2.5 1.4 14.1 9.2 3.5 1.2 -5.7 -5.6 Jordan 439 6.6 -2.4 7.2 13.7 -20.4 -18.9 -11.8 7.9 5.2 -4.3 8.5 -4.0 3.5 Kuwait 443 16.0 17.7 17.7 4.6 5.7 17.0 11.5 16.0 16.7 13.8 3.3 -3.7 6.1 1.1 Oman 449 15.1 6.0 6.7 10.1 7.9 1.6 -10.7 -.1 -2.2 -4.0 5.6 -1.4 7.6 .2 Saudi Arabia 456 8.9 -1.4 17.9 3.6 12.0 9.5 2.1 1.4 -4.1 6.1 -4.5 1.6 11.3 Syrlan Arab Rep 463 15.0 17.4 -2.3 24.9 26.4 2.8 -8.3 -2.7 4.5 -2.4 -21.2 3.5 -.2 10.6 United Arab Emirates 466 11.0 5.1 8.3 6.5 15.7 5.8 5.3 6.6 3.4 4.5 9.4 4.3 Yemen Arab Rep. 473 6.1 4.0 4.5 6.7 5.7 -,3 -1.6 -2.7 3.4 3.3 3.6 3.7 7 .2 Western Hemisphere 205 9.5 7.7 7.2 4.1 2.6 2.1 4.9 7.7 8.4 8.8 7.6 6.2 Antigua and Barbuda 311 -.2 -3.3 7.3 1.5 -6.7 -5.0 2.9 2.5 -4.4 5.6 12.5 -2.7 -4.4 4.3 3.7 4.9 7.9 Argentina 213 4.4 -1.9 -5.0 .4 3.6 1.0 4.7 Barbados 316 6.1 4.2 13.4 .2 -1.4 1.0 -4.4 -6.6 -.3 -2 -2.9 2.1 2.7 2.5 Bolivia 218 9.7 2.9 5.0 6.8 91 -4.4 .6 -3.4 5.3 7.9 7.5 3.6 -.1 3.2 Brazil 223 3.5 9.9 8.2 8.3 7.8 5.5 -14.1 -7 6.4 2.5 5.6 5.7 7.4 10.0 Chile 228 4.7 4.2 8.5 5.4 4.1 2.3 .9 1.6 3.4 3.1 5.8 5.4 3.7 3.6 4.2 Colombia 233 5.5 8.9 6.3 4.9 .8 -2.3 -7.3 2.9 8.0 .7 5.5 4.8 3.4 5.7 3.8 Costa Rica 238 6.7 5.0 2.1 4.5 6.1 4.1 1.6 4.6 .3 -2.6 3.2 7.9 .7 4.1 -5.1 Dominican Republic 243 9.2 6.5 6.6 5.3 4.9 3.9 1.2 -2.8 4.2 4.3 3.1 -6.0 11.2 .2 Ecuador 248 4.0 6.1 6.4 -1.7 -8.7 -8.3 -5.6 .8 2.3 2.0 .6 2.7 1.6 1.1 3.4 El Salvador 253 9.0 5.7 8.1 2.4 1.2 2.1 5.3 1.2 5.1 5.4 5.5 6.0 Grenada 328 7.4 7.8 5.0 4.7 3.7 7 -3.5 -2.6 .5 -.6 .1 3.5 3.9 4.0 3.5 Guatemala 258 2.9 1-4.8 -1.7 -11.7 1.6 -.3 -10.4 -9.3 2.1 1.0 .2 6 -3.0 -4.8 -6.2 Guyans 336 6.4 .5 4.9 7.6 7.3 -2.9 -3.4 .8 .3 .2 1.0 .1 1.2 7 -.1 Haiti 263 10.5 10.4 8.3 6.3 1.3 1.5 -2.0 -.2 2.8 3.5 2.8 5.2 5.2 2.8 -1 Honduras 268 -6.3 -2.4 .7 -1.8 -5.7 2.6 1.2 2.3 -.9 -4.6 1.7 6.2 1.5 4.6 Jamaica 343 4.2 3.4 8.3 9.2 8.3 7.9 -.6 -5.3 3.7 2.7 -3.7 Mexico 273 5.2 8.4 -7.8 -26.4 4.5 5.4 -.8 4.6 -1.6 -4.1 -1.0 -7 1.7 1.1 9.8 Nicaragua 278 4.5 15.1 4.2 5.5 .4 -.4 4.7 3.4 2.3 -15.6 -.9 3.4 Panama 283 17.0 10.9 11.4 11.4 11.4 8.7 -1.0 -3.0 3.1 4.0 - 4.3 6.2 6.2 3.3 -3 Paraguay 288 -1.7 14.3 4.9 5.2 -.2 -12.7 5.8 2.2 9.2 8.3 -8.3 -11.9 -4,3 Poru 293 1.2 3.0 4.1 5.0 6.0 5.8 2.1 St. Lucia 362 10.3 2.8 10.0 4.6 4.2 6.2 8.1 6.1 4.9 .8 St. Vincent 364 16.5 11.3 -1.9 84.2 -8.6 7.1 -4.2 -3.9 -1.9 2.0 .8 -6.2 8.2 3.9 Suriname 366 6.4 9.1 10.0 3.6 10.4 4.5 4.0 I-9.2 -6.2 -5.6 -12.9 7.3 -3.4 -.2 1.2 5.3 Trinidad and Tobago 369 4.0 6.2 6.0 1.9 -9.4 -5.9 -1.5 .3 7.5 5.9 ,5 1.5 8.8 Uruguay 298 6.7 2.1 1.3 -2.0 -.3 .7 -5.6 I-1.4 1.4 6.3 4.5 6.2 -7.8 5.7 Venezuola 299 Memorandum Items 12.6 7.4 -4.1 4.5 1.6 .5 -1.5 1.1 1.7 2.4 -1.1 .4 2.5 2.2 3.9 4.9 6.2 Oil Exporting Countries 999 5.2 5.5 2.5 1.7 2.0 5.4 4.9 4.7 5.3 4.1 3.5 Non-Oil Developing Countries 201 1985-100 Indexes 77.3 80.4 83.7 86.8 88.5 89.9 89.9 92.1 96.4 100.0 102.9 106.5 111.1 114.6 World 001 78.9 81.7 85.1 87.9 88.9 90.1 89.9 92.2 96.6 72.6 100.0 102.8 106.2 110.9 114.4 117.0 Industrial Countries 110 76.5 79.7 83.6 87.5 89.2 90.1 91.7 95.8 87.1 100.0 103.3 107.5 111.4 115.0 90.2 Developing Countries 200 90.0 91.9 96.8 95.5 96.3 94.9 95.7 100.0 56.0 102.3 103.6 110.5 114.4 Africa 605 60.3 65.9 68.4 72.4 76.7 80.9 87.2 93.8 100.0 76.6 106.4 114.1 123.6 132.2 Asia 505 82.4 84.0 88.0 88.7 91.1 93.3 94.2 87.4 98.3 100.0 104.4 107.3 108.5 90.6 Europe 170 86.4 91.7 92.0 94.1 80.0 91.7 95.0 97.4 100.0 97.4 97.7 98.6 83.2 Middle East 405 86.9 92.7 98.1 97.7 96.2 93.6 96.8 100.0 103.6 107.4 108.2 108.5 Western Hemisphore 205 7-91 FRI 14:30 Table 25 U.S. Merchandise Trade with the East Asian NIC's, 1980-87 (Domestic and foreign exports, P.a.s.; General imports, c.i.f.) (Millions of dollars) EXPORTS Hanufactured Products Agri- High Auto- Total cultural Total Tech, 1/ motive 1980 14,741 3,468 9,948 4,514 216 1981 15,059 3,738 9,789 4,315 174 1982 15,563 3,289 10,537 4,532 169 1983 16,914 3,664 11,241 5,709 187 1984 17,723 3,672 12,050 6,384 175 1985 16,918 3,160 11,673 6,262 158 1986 18,290 3,007 13,038 6,606 221 1987 23,547 3,743 17,020 8,365 419 IMPORTS Manufactured Products Agri- High Auto- Textiles, Total cultural Total Tech. motive Apparel 1980 18,805 355 18,143 4,685 184 4,833 1981 22,057 356 21,293 5,486 205 5,634 1982 23,767 361 22,981 5,876 340 5,970 1983 29,561 404 28,713 8,191 $08 6,927 1984 39,135 446 38,058 11,191 700 9,291 1985 41,880 449 40,487 11,134 837 9,777 1986 49,106 435 47,816 13,638 1,713 10,691 1987 61,283 460 59,768 17,676 3,309 12,261 BALANCE Manufactured Products Agri- High Auto- Total cultural Total Tech, motive 1980 -4,064 3,113 -8,195 -171 32 1981 -6,998 3,382 -11,503 -1,171 -31 1982 -8,204 2,928 -12,444 -1,344 -171 1983 -12,647 3,260 -17,472 -2,482 -321 1984 -21,412 3,225 -26,008 -4,807 -525 1985 -24,962 2,710 -28,814 -4,872 -679 1986 -30,816 2,572 -34,779 -7,022 -1,492 1987 37,735 3,283 -42,748 -9,311 -2,890 1/ Based on U.S. Department of Commerce DOC-3 definition: excludes special category exports. Source: U.S. Department of Commerce, Bureau of the Census. NOV- 7-91 FRI 14:30 P.09 Table 24 U.S. Merchandise Trade with Mexico. 1980-87 (Domestic and Foreign exports, f.a.s.; General imports, c.i.f.) (Millions of dollars) EXPORTS Manufactured Products Agri- High Auto- Total cultural Total Tech. 1/ motive 1980 15,145 2,503 11,668 3,016 1,527 1981 17,789 2,438 14,421 3,858 2,050 1982 11,817 1,159 9,189 2,440 1,254 1983 9,082 1,945 6,496 2,229 835 1984 11,992 2,039 9,082 2,965 1,496 1985 13,635 1,692 10,846 3,308 2,030 1986 12,392 1,098 10,424 3,267 1,907 1987 14,582 1,212 12,245 3,826 2,212 IMPORTS Manufactured Products Agri- High Auto- Textiles, Total cultural Total Tech. motive Apparel 1980 12,774 1,099 4,321 1,545 354 307 1981 14,013 1,143 5,259 1,776 490 313 1982 15,770 1,172 5,331 1,786 705 222 1983 17,019 1,269 6,328 2,186 1,322 251 1984 18,267 1,297 8,246 2,736 1,902 344 1985 19,392 1,456 9,163 2,895 2,840 370 1986 17,558 2,044 10,625 3,295 3,308 483 1987 20,520 1,899 13,861 4,153 4,723 603 BALANCE Manufactured Products Agri- High Auto- Total cultural Total Tech. motive 1980 2,371 1,404 7,347 1,471 1,173 1981 3,776 1,295 9,162 2,082 1,560 1982 -3,953 -13 3,858 654 549 1983 -7,937 676 169 43 -487 1984 -6,275 742 836 229 -406 1985 -5,757 236 1,683 413 -810 1986 -5,166 -946 -201 -28 -1,401 1987 -5,938 -687 -1,616 -327 -2,511 Note: Manufactured products include SITC 5-9. 1/ Based on U.S. Department of Commerce DOC-3 definition; excludes special category exports. Source: U.S. Department of Commerce, Bureau of the Census. Snow/Nix Asia Draft Two November 8, 1991 PRESIDENTIAL ADDRESS: THE ASIA SOCIETY WALDORF-ASTORIA HOTEL NEW YORK, NEW YORK TUESDAY, NOVEMBER 12, 1991 7:35 P.M. [INTRODUCTORY ACKNOWLEDGMENTS -- Chairman John Whitehead and wife, Nancy; President Robert Oxnam; and Vice Chairman Peter Aaron] As you know, I have just returned from a trip to Rome and the Hague. There, I worked and other Western leaders worked to build a post Cold-War world characterized by mutual security, democracy, individual liberty, free enterprise, and unfettered international trade. I want to talk about those same topics tonight, but with the accent on Asia. But first, for audiences here and in Asia, I think it's important to discuss once again why we will not travel to the region later this month. As President, I must serve the entire nation in the domestic and foreign arenas. Sometimes those obligations clash. Congress could not complete its work on schedule this year, forcing me to remain in Washington indefinitely -- and also forcing us to postpone our important trip to the Asia Pacific region. Make no mistake, however: I will not turn my back on my responsibility to do the nation's business here and abroad, and 2 in times of economic pain, I certainly will not give up an opportunity to work with our allies to create new markets, new jobs and new opportunities for American workers. I will not surrender a chance to help our agricultural industries, our manufacturing industries and our service industries by building greater bonds of trade and commerce. And I certainly will not permit us to retreat into a kind of Fortress America, which will doom us to irrelevance and poverty. I remain deeply committed to building closer ties with the Asia Pacific region. Although much of our Nation's heritage comes from Europe, our future points equally toward Asia. Asia has transformed itself in the space of a generation into the most rapidly growing region on the face of the earth. Asia-Pacific nations enjoyed staggering real economic growth in the decade of the Eighties: The Australian economy grew 41 percent; Japan's grew nearly 52 percent; Malaysia almost 60 percent; Hong Kong, 89 percent; Singapore, 93 percent; Taiwan, 116 percent and South Korea, 150 percent. The Asia-Pacific region has become our largest and fastest growing trade partner. We conduct more than 300 billion dollars worth of two-way trade annually. Together, we generate nearly half the world's GNP. American firms have invested more than 61 billion dollars in the region, and that figure will grow. Asians have invested more than 95 billion dollars in the United States. In everything from automobiles to microchips, from baseball to 3 Australian rules football, our ties of mutual interest grow closer each day. A few years ago, it was a cliche to refer to the 20th Century as the American Century and the 21st as the Pacific Century. I don't have a crystal ball, but I'm willing to bet that the 21st Century will take a somewhat different form. I predict that America will remain the world's greatest economic, political, military and moral power. But at the same time the nations of the Asia Pacific region, having risen with our help, will join us as equal partners in building democracy and freedom. We'd be here forever if I tried to tick off our interests and activities, country-by-country. So instead I will address the three central issues in our relationships with the nations of the region: security, democracy, and trade. In the area of security, Asia's variety has spawned a diverse set of political and strategic alliances. Our custom- made agreements provide a strong foundation for future security. Let me give you a few examples. The ASEAN Nations, Japan, Australia and the U.N. Security Council's permanent members forged a Cambodian peace process that promises free elections in a nation previously rent by tyranny and genocide. This promise of peace opens the final chapter of the Indochina conflict. We envision normal relations with Vietnam as soon as we resolve our concerns about Cambodia and the problem of POW/MIAs. Today, I am happy to announce that we will upgrade our relations with Laos. In an apt sign of the healing process 4 between America and Indochina, we soon will place an ambassador in Vientiane. The government of South Korea has moved quietly to build better ties with its neighbor to the North, while boldly challenging the North to abandon its nuclear weapons program, which threatens regional peace. We welcome bilateral efforts among the Japanese, Soviets, Chinese and Koreans to reduce the tensions caused by North Korea's unsafeguarded nuclear program, and we will continue our own efforts. But we also will deter aggression by maintaining a significant military presence in the South. We have worked closely with Japan in the area of foreign aid: we are the world's two foremost providers of such aid. We also cooperate on matters of development assistance, environmental protection, trade, arms control, refugees and regional peace. The Japanese have joined us in trying to lead the Soviet Union and Eastern Europe toward free enterprise. They have supported more than 50,000 U.S. military forces in Japan with 3 billion dollars in annual host nation contributions. Japan contributed nearly 13 billion dollars to the multinational forces for the Gulf War, 10 billion dollars of which went to the United States. This required new taxes, but Japan chose the right course in supporting the coalition against aggression. Australia casts a shadow far larger than its population and size would suggest. It always has served as a trustworthy ally 5 and defender of democracy, and it increasingly serves as an indispensable link to Asia and the Pacific. We can help ensure future peace in the region and defend our interests through a range of military arrangements. Bilateral alliances, access agreements and Five-Power defense arrangements give us the flexibility we need. While we must adjust our force structure in the region to reflect post Cold-War realities, we must not ignore the important tensions that remain: in Korea; in Burma, where socialist despotism holds sway, despite the heroic efforts of freedom fighters like Nobel Laureate Aung San Suu Kyi; in China and other communist regimes that resist the worldwide movement toward political pluralism -- and that sometimes lend comfort, support and even dangerous weapons to our adversaries. Fortunately, the key to future stability in the region lies not with arms, but with ballots. Democracy has swept across Asia, just as it has liberated other previously enslaved parts of our world. I have mentioned some of the exceptions: Burma, China, North Korea, Vietnam. Many, many others have accepted democracy's call. The United States will support democracy wherever it can, understanding that nations adopt political freedom in their own ways, in manners consistent with their histories and cultures. After decades of uncertainty, the future seems full of hope, and even the intransigent few seem likely to join the rest of the world in building a commonwealth of freedom. 6 This brings us to the third focal point, and a crucial ingredient in a stable, free society: economic prosperity. No nation can ignore the incredible vitality of this region -- or afford to. The United States will remain engaged with the Asia-Pacific because we must -- and because we want to. Yes, we disagree on important trade issues, but the key players in the region have committed themselves to the cause of free and fair trade because our fates have become inextricably linked. Contrary to the opinions of some in this country, free trade requires efforts by all parties involved. The Asia-Pacific Economic Cooperation Group encourages growth and trade. The Uruguay Round of GATT talks remains the single most important vehicle for advancing the cause of free trade and fending off the scourge of protectionism. We call upon Japan to work with us in breaking down old barriers to trade and opening up markets in manufacturing, services and agriculture -- for all our benefit. Too often, trade disputes bring out the worst in people. Japan-bashing has become a minor sport in the United States, and some in Japan have become. equally scornful of the United States. Both our nations must reject those who would rather seek scapegoats than pursue lasting prosperity. The fact is that Japan, which nearly half a century ago became a focal point of American hatred, has become one of our closest and most treasured allies. We continue working with our Japanese allies to open agricultural, financial and manufacturing markets, and in creating opportunities for businesses of both 7 nations. I especially look forward to spending time with my old friend, Prime Minister Miyazawa -- significantly, a man steeped in Western and Eastern culture, and superbly equipped to build bridges of culture and trade between our two great Nations. Our Structural Impediments Initiative talks have helped lower barriers to trade and investment, but we need to give those talks new life and advance the cause of liberalization. The United States can no more afford to close its doors to the Asia-Pacific Region than Asian nations can afford to close their doors to us. Our regions have become the most powerful engines for economic growth on earth. Together, we can build an even more prosperous and spectacular future -- but only if we set aside petty pride and take up the tough, rewarding task of promoting worldwide economic liberty. We seek no trade blocs; we oppose new trade barriers. We seek a vibrant international economic system that unites markets on every continent. We in the United States also must take a hard look at ourselves and pursue measures to improve our own economy. We levy an unacceptably high effective tax rate on capital gains. We subject our own entrepreneurs to incredible pressure. Our allies want us to unchain our innovators -- and so do I. We run an enormous and growing budget deficit, which seems to serve no greater purpose than to inflame political divisions within our own country. We must take purposeful action to reduce that deficit, while nourishing the seeds of economic growth. 8 We must modernize our banking industry; strengthen the competitiveness of our industrial base. We must work with our allies to build a stable and sound monetary regime. And perhaps most important of all, we must build human capital. We have an obligation to prepare future generations for life in the 21st Century. The integrated global economy will demand more of us than it ever has before, and our schools must meet that challenge. We have seen in recent years that technological change can do much more than make our lives more comfortable. It can sweep away the debris of totalitarianism, and forge the foundation for lasting liberty. We live in an age of liberation technology, and no technology does more for the cause of freedom than the means of mass communications. We may carp about what we see on the evening news, but information media have done more to destroy despotism than weapons ever could. No nation can import high- tech conveniences but shut off information and ideas. No wall is high enough and no government sufficiently despotic to shut off what some call a revolution of electrons. As we compete with our allies in this area, we must remember that information feeds intellect, and the better our children's educational preparation, the freer this world will become. Let me close today by summarizing our general approach to relations with Asia. Our administration sees six keys to promoting lasting peace in the Asia-Pacific region: 9 Progressive trade liberalization / Security cooperation / A shared commitment to democracy and human rights / Educational and scientific innovation / Respect for the environment / And an appreciation of our distinct cultural heritages. Americans have always looked to the horizons for their destiny, even from our earliest days. We have grown great because we have welcomed people from every continent and country, and we have tried to make use of their distinct talents, while constructing a common culture. As children, many of us traced our fingers along a globe, to distant lands our ancestors called home. We felt special then, feeling part of two worlds -- one, of an old and important culture; the other, the American life of freedom and opportunity. Today, our Asian population is growing more rapidly than any other, and immigrants from every Asian island and country have enriched all our lives. Our Administration is proud to have more Asian-Americans than any previous administration, and two women of Asian descent serve in top administration positions: Elaine Chao, as director of the Peace Corps, and Pat Saiki, the administrator of the Small Business Administration. America's genius lies in its openness, its tolerance, and its diversity. Today, we celebrate that diversity, and celebrate the prospect that in years to come, we will develop with our Asian friends even greater ties of trade and culture. We will teach them, and they shall teach us. And together, we will fight 10 to build a world united in its determination to help men and women make the most of themselves. I look forward to traveling soon to Asia, to advance these important principles, and to create work opportunities for tens of thousands of American workers and businesses. The notion that we can separate domestic and foreign policy rests upon the stubborn fantasy that we can live as an isolated island surrounded by a changing and developing world. In that way lies national suicide and international chaos. We tried isolationism once, and we ended up fighting two bloody world wars. We tried economic isolationism -- protectionism -- and we helped set off a worldwide depression. As President, I will continue building ties with our allies, because those ties mean peace at home and jobs for American men and women. I want to thank the Asia Society for its vital contributions to the cause of peace, prosperity and understanding. I look forward to your help as I seek to build closer bonds of affection and interest with the peoples of the vast, marvelous, varied Asia-Pacific region. Thank you. May God bless our Asian-Pacific friends and the United States of America. # # # # A.I.D. APRE/ASIA TEL : 202-647-3517 Nov 08,91 11:03 No .006 P.01 It NOV 8 A10:26 AUTOMATIC FACSIMILE TRANSMISSION DATE: 11/7 TO: Michelle Nixon FROM: Mike Crosswell (Name) (Name) (Office Symbol) (Office Symbol) (Room, Building) (Room, Building) # 456-6218 4567750 647-3517 647 3517 6479933 (Telephone) (Telephone) Destination Fax Telephone Number: Sender Fax Telephone Number: 456 6218 647 3517 Total Pages (including this cover sheet): 4 MESSAGE: 14220 A.I.D. APRE/ASIA TEL 202-647-3517 Nov 08,91 11:04 No. 006 P.02 World Development Report 1990 Table 3.7 Poverty, economic growth, and recession Observed Simulated Annual growth Length reduction reduction of mean income of period in poverty in poverty or expenditure Country and period (years) (percentage points)* (percentage points)b (percent) Long-run growth Indonesia (1970-87) 17 41 35 3.4 Thailand (1962-86) 24 33 30 2.7 Pakistan (1962-84) 22 31 26 2.2 Brazil (1960-80) 20 29 34 5.1 Malaysia (1973-87) 14 23 19 4.0 Singapore (1972-82) 10 21 19 6.4 Costa Rica (1971-86) 15 21 22 3.5 Colombia (1971-88) 17 16 8 1.1 India (1972-83) 11 11 10 1.0 Sri Lanka (1963-82) 19 10 8 0.9 Morocco (1970-84) 14 9 1 0.2 Short-run recession Costa Rica (1983-86) 3 12 13 10.9 Indonesia (1984-87) 3 11 9 5.0 India (1977-83) 6 7 2 0.8 Malaysia (1984-87) 3 1 -1 -0.7 Pakistan (1979-84) 5 1 4 1.2 Colombia (1978-88) 10 -1 -1 -1.2 Côte d'Ivoire (1985-86) 1 -1 -5 -5.4 China (1985-88)c 3 -4 5 6.7 Brazil (1981-87) 6 -5 1 0.9 Venezuela (1982-87) 5 -5 -6 -4.5 Thailand (1981-86) 5 -6 0 0.0 Costa Rica (1977-83) 6 -7 -8 -3.4 Yugoslavia (1978-87) 9 -7 -12 -2.9 Poland (1978-87) 9 -14 -17 -1.2 a. Absolute change in the headcount index on the basis of the definition of absolute poverty in the specific country. b. The simulation assumes that the inequality of income remains unchanged. c. Rural only. of growth as well as its rate is thus an important average percentage increase in income in all coun- determinant of changes in poverty. tries except Brazil and Costa Rica, where inequality As the lower part of Table 3.7 shows, in the 1980s worsened. In Brazil the poor nevertheless enjoyed the link between growth and poverty reduction is a substantial increase in income; in Costa Rica they still there, but it is weaker than before. By and suffered a loss. In general, therefore, the poorest large, economic growth reduces poverty and eco- of the poor participated fully in economic growth. nomic decline increases it. Fluctuations in inequal- No simple pattern emerged during the 1980s. In ity, however, were larger in the 1980s. In Malaysia, about half the countries the very poor suffered for example, poverty decreased even though mean more, or advanced less, than the average citizen. income also declined. This suggests that external In Colombia, for example, mean income for the shocks or important policy changes can alter the entire population fell by 11 percent between 1978 incidence of poverty by way of changes in the in- and 1988, whereas for the poorest tenth it fell by equality of income, whereas in more stable periods more than 20 percent. In contrast, the poorest economic growth is the dominant influence on households in other countries did much better poverty. than the rest of the population. In Malaysia aver- Would the conclusion that growth reduces pov- age incomes fell by 2 percent between 1984 and erty change if attention were shifted from the poor 1987, but the mean incomes of the poorest actually to the very poor? The country-specific poverty increased by 9 percent. lines used in this analysis define 20 to 50 percent of These conclusions shed some light on the differ- the population as poor. If we turn to the poorest ing experience of the countries identified in Table tenth of the population, we find that in periods of 3.5. Economic growth was clearly important-in stable growth this group enjoyed a larger-than- the two countries that experienced the fastest re- 48 I.D. APRE/ASIA TEL 202-647-3517 Nov 08,91 11:04 No. 006 P.03 A weakness in this assessment is the lack of reli- suggest that progress in reducing poverty has able data for Sub-Saharan Africa. The discussion probably been slowest in that region. Even assum- of diverging trends in Chapter 1 and the evidence ing that the distribution of income did not worsen of stagnant consumption per capita in Figure 3.1 between 1965 and 1985, the number of Africans in Table 3.2 Changes in selected indicators of poverty Average Number income Headcount of poor shortfall Length A index (millions) (percent) of period First Last First Last First Last Country and period (years) year year year year year year Brazil (1960-80)4,b 20 50 21 36.1 25.4 46 41 Colombia (1971-88)* 17 41 25 8.9 7.5 41 38 Costa Rica (1971-86)* 15 45 24 0.8 0.6 40 44 India (1972-83) 11 54 43 311.4 315.0 31 28 Indonesia (1970-87) 17 58 17 67.9 30.0 37 17 Malaysia (1973-87)" 14 37 15 4.1 2.2 40 24 Morocco (1970-84) 14 43 34 6.6 7.4 46 36 Pakistan (1962-84) 22 54 23 26.5 21.3 39 26 Singapore (1972-82) 10 31 10 0.7 0.2 37 33 Sri Lanka (1963-82)* 19 37 27 3.9 4.1 35 29 Thailand (1962-86)*,b 24 59 26 16.7 13.6 35 Note: This table uses country-specific poverty lines. Official or commonly used poverty lines have been used when available. In other cases the poverty line has been set at 30 percent of mean income or expenditure. The range of poverty lines, expressed in terms of expenditure per household member and in PPP dollars, is approximately $300-$700 a year in 1985 except for Costa Rica ($960), Malaysia ($1,420), and Singapore ($860). Unless otherwise indicated, the table is based on expenditure per household member. The headcount index is the percentage of the population below the poverty line. The average income shortfall is the mean distance of consumption or income of the poor below the poverty line, as a proportion of the poverty line. a. Measures for this entry use Income rather than expenditure. b. Measures for this entry are by household rather than by household member. Box 3.1 Development in a Javanese village The story of Balearjo, an East Javanese village of almost shoes were commonplace. Most villagers had radios, 4,000 people, shows what declining poverty means for and some even had television sets. More than 90 per- individuals. The village is about eight kilometers from cent of the houses were made of colorfully painted the town of Gondanglegi and is connected to the out- brick and stucco, with partial cement floors. Furnish- side world by bumpy but passable dirt roads. Although ings were more extensive and included chairs and ta- Balearjo is still somewhat poorer than its neighbors, bles bought from stores. Literacy had improved dra- research conducted in 1953 and 1985 shows that the matically thanks to two primary schools, one financed lives of Its inhabitants improved greatly in the inter- by the village and the other by the central government. vening years, Rice yields increased dramatically, from 2 Travel outside the village was common, and knowl- tons to 6 tons of paddy per hectare for the wet season edge of national events, provided through hourly radio crop, and the wage for a day's work increased from 2 broadcasts, was widespread. In 1953 villagers relied on kilograms of rice in 1953 to nearly 4 kilograms in 1985. homemade kerosene lamps that provided little illumi- In 1953 the village would have been considered poor nation, but by 1982 electric power lines had reached by most definitions. Rice was available for only four Balearjo, and by 1985 many households had electric months; the diet for the rest of the year consisted of light. corn and, when that ran out, cassava. Clothes were Such burdensome activities as rice pounding and worn until they were in tatters, and few people had shoulder transport had disappeared, relieving women shoes. A typical house was made of thatch and bam- of some of their most exhausting tasks. Higher incomes boo, with an earthen floor. Furnishings were sparse had led to demands for new products and services and and uncomfortable. Few villagers could read, and few hence to more productive work, such as construction, had traveled any distance from the village. A daily pa- trade, and small manufacturing. Growing specializa- per brought from a nearby town supplied the only out- tion was also evident: houses in 1953 were constructed side news. by the owners with the help of neighbors, but by 1985 By 1985 things had changed. Rice was available most of the work was done (and done better) by full- throughout the year. Clothing was much better, and time carpenters. 41 I.D. APRE/ASIA TEL 202-647-3517 Nov 08,91 11:04 No 006 P.04 Saharan Africa) but that less progress had been countries that have done much worse than re- made up to 1985 in extending health care to the gional averages indicate. In Pakistan the net enroll- poor. Further expansion in coverage will mainly ment ratio has hardly improved in the past twenty benefit the poor. years-it was only 43 percent in 1985-and an esti- Regional averages mask the tremendous mated 36 percent of the population lacks access to achievements that some countries have made in health care. providing social services to their populations. Co- Recently, concern has centered on the effect of lombia, where mortality for children under 5 fell the recession of the early 1980s on the provision of from 135 per thousand in 1965 to 42 per thousand social services to the poor. In Sub-Saharan Africa by 1985, and Costa Rica, where 95 percent of the and Latin America, the two regions worst affected population has access to primary health care, show by recession, roughly half the countries for which what can be done. Even in regions with poor over- information is available experienced substantial all performance, some countries have managed to declines in real per capita spending on education make great strides. Botswana, for example, has and health. The social indicators for the early achieved universal primary enrollment, and its un- 1980s, however, tell a somewhat less gloomy story, der 5 mortality rate fell from 165 to 70 per thousand at least in Latin America. during the past two decades. The sheer scale of the Figure 3.2 shows that progress in under 5 mor- improvements in these countries suggests that the tality and primary school enrollment rates contin- poor must have participated in the overall ued into the 1980s in most of the developing progress. At the other end of the spectrum are world. Progress was least in the region with the Table 3.3 Changes in poverty in the 1980s Average Number income Headcount of poor shortfall Length index (millions) (percent) of period First Last First Last First Last Country and period (years) year year year year year year Brazil (1981-87)* 6 19 24 23.1 33.2 China (1985-88)*.b 3 10 14 79.2 101.3 25 24 Colombia (1978-88)* 10 24 25 6.0 7.5 36 38 Costa Rica (1977-83)* 6 29 36 0.6 0.9 44 39 Costa Rica (1983-86)a 3 36 24 0.9 0.6 39 44 Côte d'Ivoire (1985-86) 1 30 31 3.1 3.3 33 26 India (1977-83) 6 50 43 324.9 315.0 29 28 Indonesia (1984-87) 3 28 17 45.4 30.0 24 17 Malaysia (1984-87)* 3 15 14 2.3 2.2 26 24 Pakistan (1979-84) 5 21 20 17.1 18.7 19 19 Poland (1978-87)* 9 9 23 3.3 8.6 Thailand (1981-86) 5 20 26 9.5 13.6 27 35 Venezuela (1982-87)* 5 12 16 1.9 3.0 26 31 Yugoslavia (1978-87) 9 17 25 3.8 5.7 Note: See note to Table 3.2 for definitions. The range of poverty lines, expressed in terms of expenditure per household member and in PPP dollars, is approximately $300-$700 a year in 1985 except for Costa Rica ($960) and Malaysia ($1,420). a. Measures for this entry use income rather than expenditure. b. Rural only. c. Measures for this entry are by household rather than by household member. Table 3.4 Have social services reached the poor in developing countries? Latin Sub- Europe, Middle America All Saharan East South East, and and the developing Indicator (1985) Africa Asia Asia North Africa Caribbean countries Percentage of nonpoor in population 53 79 49 75 81 67 Primary net enrollment rate (percent) 56 96 74 88 92 84 Percentage of children immunized 47 73 43 63 65 58 43 Asia Society Acknowledgements ON STAGE WITH POTUS AND FLOTUS: Chairman John Whitehead and wife, Nancy President Robert Oxnam [OX-num] Vice Chairman Peter Aaron [AIR-un] (Other Vice Chairman Ward Woods will not be there) AMONG THE 800-900 AUDIENCE MEMBERS WILL BE: Ambassadors from approximately 30 Asia-Pacific countries PER ADVANCE AND PER ASIA SOCIETY -- NO MEMBERS OF CONGRESS OR CABINET MEMBERS ATTENDING AT THIS POINT (11/8/91, 5:30 p.m.) SECOND PROOF JOBNAME: UPDATE PAGE: I SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs17303/team3/foreignaff/3184/baker Copies Chardor Paal OCT 25 1991 Patters FINAL James A. Baker, III FYI PROOF Don AMERICA IN ASIA: EMERGING ARCHITECTURE FOR A PACIFIC COMMUNITY I n Asia as in Europe we are in the midst of the first transformation of the international system this century that is not the direct result of global conflagration. This rare moment presents us with new possibilities for reshaping international relationships in Asia to meet the challenges of the post-Cold War world. President Bush's trip to East Asia marks a point in time when disparate historical lines are intersecting: the commem- oration of the fiftieth anniversary of the attack on Pearl Harbor; the end of the U.S.-Soviet confrontation; and the prospect of laying to rest the Vietnam War eΓa. The end of 1991 should see the closing off of several tragic, defining episodes of the American experience in Asia and open a new chapter of U.S. engagement in the region as we approach the 21st century. I have presented elsewhere the administration's ideas about the new post-Cold War architecture of the Euro-Atlantic community.¹ But America's destiny lies no less across the Pacific than the Atlantic. We have fought three major wars over the past half-century in the Asia-Pacific theater. U.S. economic involvement and defense commitments in the region have been-and remain-defining realities. We also have large and growing interests in the human and material development of the region, as well as in its security. Our success in forging a new international system will require sustained engagement in this diverse and dynamic part of the world, just as it does in Europe and the Americas. The global trends that are reshaping Europe and the Soviet Union have also been at work in the Asia-Pacific region: the 'See James A. Baker. III, "A New Europe, A New Adanticism: Architecture for a New Era," speech to the Berlin Press Club, Dec. 12, 1989; and "The Euro-Atlantic Architecture: From West to East," speech to the Aspen Institute. Berlin, Germany, June 18, 1991. James A. Baker, III is Secretary of State. JOBNAME: UPDATE PAGE: 2 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker 2 FOREIGN AFFAIRS bankruptcy of communism as an economic and political sys- tem; a movement toward democracy and market-oriented economics; global economic integration of markets for trade, capital and information; and the emerging recognition that transnational challenges in such areas as narcotics, the envi- ronment and migration are important components of a com- prehensive approach to security. At the same time the dark countertrends that President Bush pointed to in his September 1991 speech to the U.N. General Assembly are also evident in Asia: the reemergence of ethnic rivalries, nationalist aspira- tions and territorial or political disputes which were sup- pressed during the Cold War years. II These global factors for change are playing themselves out in Asia amid the region's particular historical, cultural and political circumstances. In contrast to central and eastern Europe and the U.S.S.R., where change has been driven by the failure of a system of political economy, much of the ferment in Asia is a product of the region's unique and dramatic economic success. Barely twenty years ago East Asia was engulfed in war and great-power confrontation, burdened with poverty and challenged by insurgent communist move- ments. Our trade with the region in the early 1970s was less than that with Latin America. But the subsequent two decades brought unrivaled prog- ress. Throughout the 1980s East Asia led the world in the innovations of a new economic age. Japan emerged as an economic superpower. New industrial economies of South Korea, Taiwan, Hong Kong and Singapore achieved rapid high-technology growth. China opened economically. And the Philippines, Korea and Taiwan each took strides toward democracy. As a result the combined economies of East Asia are now roughly equal in size to that of the United States. International political developments have also contributed to a more positive environment. These include the Sino-Soviet rapprochement, the opening of Soviet relations with the Republic of Korea, the admission to the United Nations of both Korean states, the birth of a democratic Mongolia and a political resolution of the Cambodia conflict based on a U.N. settlement plan. The latter. if realized. will bring a new era of peace to Indochina. JOBNAME: UPDATE PAGE: 3 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaf/3184/baker AMERICA IN ASIA 3 For all the region's progress, however, some legacies of the past could impede a promising future. The heavily armed standoff on the Korean peninsula is still one of the world's most dangerous flashpoints, a confrontation now intensified by the ominous threat of nuclear proliferation. In Burma the tyranny of a brutal military dictatorship endures, despite the clear expression of popular will in the elections of 1990 for civilian democratic government. China, along with the other residual communist regimes in Asia, continues to resist dem- ocratic political reform. And despite President Gorbachev's historic visit to Tokyo last April, the dispute over Japan's Northern Territories remains an impediment to a major improvement in Soviet-Japanese relations. These Asian realities-the elements of a promising future and the difficult remnants of times past-now shape the challenges before us. The successes of our policies and those of our friends in the region mean that many of our partners have also become robust economic competitors. Allies such as Ja- pan, South Korea and Australia have become important political and economic players in the emerging international system. Given the challenges and opportunities we now face in Asia, a viable architecture for a stable and prosperous Pacific com- munity needs to be founded on three pillars. First, we need a framework for economic integration that will support an open global trading system in order to sustain the region's economic dynamism and avoid regional economic fragmentation. Sec- ond, we must foster the trend toward democratization so as to deepen the shared values that will reinforce a sense of com- munity, enhance economic vitality and minimize prospects for dictatorial adventures. Third, we need to define a renewed defense structure for the Asia-Pacific theater that reflects the region's diverse security concerns and mitigates intra-regional fears and suspicions-a prerequisite for maintaining the sta- bility required for continuing economic and political progress. III In formulating American policy toward the Asia-Pacific region, we should recognize our historical and continuing interests. Since 1784, when the merchant ship Empress of China sailed for Canton from New York, the United States has consistently pursued an open door approach to the Asia- Pacific region. Our interest has resided in maintaining com- JOBNAME: UPDATE PAGE: 4 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff3184/baker 4 FOREIGN AFFAIRS mercial access and preventing the rise of any single hegemonic power or coalition hostile to the United States and its allies and friends. In today's world a shared focus and the development of an active partnership among the nations of the Pacific Rim are essential to the success of the emerging global system. The Asia-Pacific region is now America's largest trading partner. America's trans-Pacific commerce is now more than $300 billion in annual two-way trade-nearly one-third larger than that across the Atlantic. The United States exports more to Thailand than to the Soviet Union, more to Indonesia than to central and eastern Europe and more to Singapore than to Spain or Italy. Moreover, U.S. firms have invested more than $61 billion in the region, with over $95 billion of Asian investments in the United States. Our closest bond to Asia is the growing number of Asian- Americans, some seven million strong, who are America's fastest growing group of immigrants. There are more Laotians today in the United States than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These people, along with hundreds of thousands of other Asian- Americans-Chinese, Japanese, Vietnamese, Cambodians, Koreans, Thai and Samoans among them-enrich our society, strengthen our engagement with the region and give us a growing mutuality of interests in an emerging Asia-Pacific community. What has fostered stability and secured economic dynamism in East Asia for the past four decades is a loose network of bilateral alliances with the United States at its core. Our military presence, our commitment, our reassurance has con- stituted the balancing wheel of an informal, yet highly effec- tive, security structure that emerged after World War II and endured throughout the Cold War years. To visualize the architecture of U.S. engagement in the region, imagine a fan spread wide, with its base in North America and radiating west across the Pacific. The central support is the U.S.-Japan alliance, the key connection for the security structure and the new Pacific partnership we are seeking. To the north, one spoke represents our alliance with the Republic of Korea. To the south, others extend to our treaty allies-the Association of Southeast Asian (ASEAN) coun- tries of the Philippines and Thailand. Further south a spoke extends to Australia-an important, staunch economic, polit- ical and security partner. Connecting these spokes is the fabric JOBNAME: UPDATE PAGE: 5 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 5 of shared economic interests now given form by the Asia- Pacific Economic Cooperation (APEC) process. Within this construct, new political and economic relationships offer ad- ditional support for a system of cooperative action by groups of Pacific nations to address both residual problems and emerging challenges. This system has been successful precisely because its flexi- bility has respected the vast geographic expanse, political and cultural diversity, as well as the geopolitical realities of East Asia and the Pacific. Unlike Europe there has been no single threat commonly perceived throughout the region. Instead, there is a multiplicity of security concerns that differ from country to country and within the subregions of this vast area. Today the overlay of U.S.-Soviet competition has been removed from Asia, so the enduring diversity of regional interests and security concerns stand out with even greater clarity. What was a secondary aspect of our Cold War-era security presence is becoming the primary rationale for our defense engagement in the region: to provide geopolitical balance, to be an honest broker, to reassure against uncer- tainty. Our forward-deployed military presence and bilateral de- fense ties to Japan, South Korea, the allies within ASEAN and Australia are widely accepted as the foundation of Asia's security structure. Yet in the post-Cold War world, the en- hanced capabilities of our allies and friends-and new security challenges-require adjustments in our force structure, de- fense activities and in the means of sustaining regional stabil- ity. Asian security increasingly is derived from a flexible, ad hoc set of political and defense interactions. Multilateral ap- proaches to security are slowly emerging. As we have seen in the Cambodian peace process, the combined efforts of the ASEAN countries, Japan, Australia and the U.N. Security Coun- cil's Permanent Five have tailor-made a conflict-resolution process. A semiofficial forum on the contested islands of the South China Sea, hosted recently by Indonesia, also reflects such an ad hoc, multilateral approach. Guaranteeing stability on the Korean peninsula may increasingly assume a multilat- eral form-a solution suited to the character of the problem. At this stage of a new era we should be attentive to the possibilities for such multilateral action without locking our- JOBNAME: UPDATE PAGE: 6 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker 6 FOREIGN AFFAIRS selves in to an overly structured approach. In the Asia-Pacific community, form should follow function. IV While Asian security concerns have a diverse, decentralized character, burgeoning intra- and trans-Pacific trade and in- vestment provide areas of broad common interest. Commerce offers the most natural approach to fostering greater regional cohesion. This is why the United States and 11 other Pacific basin economies came together two years ago to initiate the APEC process. We see APEC as an important mechanism for sustaining market-oriented growth, for advancing global and regional trade liberalization and for meeting the new chal- lenges of interdependence. The APEC agenda is expansive. It includes, for example, assessment of regional needs in tele- communications, human resource development, energy, trade and investment, marine resources and tourism, among others. APEC is as much the hallmark of American engagement in the region as are U.S. security ties. Indeed, one could draw a 21st-century Pacific analogy from a nineteenth-century expe- rience: the development of the American continent. As the pattern of expansion and influence in the American West was determined by the location of telegraph lines and railroads, so the infrastructural links we are building across the Pacific in areas such as telecommunications and transportation will shape the economic and political character of the region and our ties to it. With the anticipated addition to APEC'S membership of China, Hong Kong and Taiwan at November's third ministe- rial meeting in Seoul, APEC'S potential as a major trans-Pacific forum is becoming a reality. The efforts of APEC'S ten working groups are laying a solid foundation of economic cooperation on a broad range of issues.² APEC is ready to emerge as a key forum that can forge the greater sense of Asia-Pacific commu- nity needed to meet the challenges of the post-Cold War world. Let me also leave no doubt about what APEC is not: it is not a regional economic bloc. To the contrary, it is a product 'APEC's ten working groups are: trade promotion, expansion of investment and technol- ogy transfers, human resource development, regional energy cooperation, marine resource conservation, telecommunications, transportation, data, tourism and fisheries. In addition APEC has begun regional trade liberalization discussions. JOBNAME: UPDATE PAGE: 7 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 7 of-and catalyst for-economic integration and trade liberal- ization. These developments will not cut off the Asia-Pacific community from the rest of the globe. In fact, by stressing the gains that have been made from open multilateral policies, and by enhancing economic efficiency, APEC should help the Pacific region contribute to a more open trading system. APEC'S outlook is inclusive, not exclusive. APEC'S members include a number of the great trading nations and offer excellent investment opportunities. The intent of the APEC participants is to overcome barriers and inefficiencies within the region while working for a more open global system. Similarly, the emerging North American Free Trade Area will support both APEC and the global, multilateral systems for trade and financial flows. Unlike a customs union, NAFTA will not establish common barriers to those outside. Rather it will lower barriers among its participants-a governmental re- sponse to the accelerating economic integration already taking place among neighbors. Heightened integration and efficiency will increase the productivity of the U.S., Mexican and Cana- dian economies. Growth will bring expanding markets for Asian traders and investors, thus strengthening, not weaken- ing, trans-Pacific economic links. Indeed, I believe Mexico views the NAFTA as a vehicle for better integrating its formerly autarkic economy into the global system; more efficient pat- terns of trade and investment with the United States and Canada will strengthen Mexico's ties with a competitive world economy, not weaken them. This view is supported by Mexi- co's recent membership in the Pacific Economic Cooperation Council (PECC) and its interest in participating in both APEC and the Organization for Economic Cooperation and Devel- opment. Of course the logic of regional integration is more widely applicable. Indeed, Thailand's proposal for an ASEAN free trade area is a welcome initiative that could strengthen ASEAN and, by stimulating ASEAN growth, also reinforce U.S.-ASEAN economic relations. The economic future of the United States depends on strong ties with all the regions of the world. As a nation generating some 24 percent of the world's GNP, we cannot operate effectively or efficiently through any other strategy. This is why the United States has demonstrated an unwavering commitment to advancing the General Agreement on Tariffs and Trade (GATT) through the Uruguay Round. It is also why JOBNAME: UPDATE PAGE: 8 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 os1/303/team3/foreignaff/3184/baker 8 FOREIGN AFFAIRS we are seeking to complement that effort through a network of initiatives designed to reduce market barriers and support a more open, competitive and growth-oriented system. The NAFTA, the Enterprise for the Americas Initiative, the U.S.- European Community declaration, our trade enhancement initiative for the emerging central and east European democ- racies, our agreements with ASEAN and APEC each reflect our customized attempts to reach out to all major markets, not to exclude any of them. Each initiative is tailored to meet special circumstances and to maintain momentum for liberalization by pressing forward simultaneously on a large number of fronts. Our logic is that gains from increasing trade and investment are not calculated according to any zero-sum formula-instead, greater compe- tition leads to efficiencies and growth that benefit the system as a whole. This is a logic that will profit the dynamic economies of Asia, especially if they join with us to reduce barriers that threaten political support for a liberalized global trading system. The natural partner of market-oriented economics is polit- ical pluralism. The public accountability that is the hallmark of democratic political systems is also the best check against tyranny and aggression. As the history of the past two centu- ries demonstrates, democratic nations rarely engage in armed conflict against each other. Not long ago some argued that democratic politics were unsuited to Asian cultures and tradi- tions. Yet the political developments of the past decade in the Philippines, South Korea and Taiwan demonstrate that eco- nomic growth naturally tends to promote democratization. Perhaps most remarkably, the powerful appeal of the dem- ocratic ideal is evident in Mongolia's rejection of its Leninist past and its turn to political pluralism and economic reform. Once the oldest communist government in Asia, Mongolia is the first Asian communist state to purposefully undertake the challenge of a democratic transition. In sharp contrast, the democratic ideal has been brutally thwarted in Burma. The socialist military regime, by suppress- ing the results of its own 1990 election, has betrayed the people in their quest for representative government. This denial of the expressed will of the Burmese people will leave Burma mired in isolation and stagnation until the military leadership reverses its repressive policies and transfers author- ity to the elected civilian leaders of the country. The awarding JOBNAME: UPDATE PAGE: 9 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 9 of this year's Nobel Peace Prize to Aung San Suu Kyi will give the Burmese people hope that the world is not ignoring their plight. China, Vietnam and Laos have embarked on a course of market-oriented economic reform while retaining a Leninist monopoly of political power. But economic reform can be sustained only when it is accompanied by political reform. The tragic violence at Tiananmen Square in 1989 was a reflection of the social and political pressures generated by a decade of rapid economic expansion unaccompanied by concurrent po- litical transformation. Democratic reform in China and Vietnam, as well as in North Korea, would have a major impact on the character of international relations in Asia. As generational change unfolds in all three of what might be called "Confucian-Leninist" societies, the interplay between economic expansion and the striving for political reform can only become more pro- nounced. V Our ability to help realize the economic and security archi- tecture of the Asia-Pacific community we envisage will rest in no small measure on the successful management of a number of critical relationships with our allies, friends and regional groups. Our ties with Japan, South Korea, ASEAN and Australia are the stabilizing and strengthening spokes in the fan. U.S.-Japan Relations The keystone of our engagement in East Asia and the Pacific is our relationship with Japan. Nothing is more basic to the prosperity and security of the region, and indeed to the effectiveness of the post-Cold War system, than a harmonious and productive U.S.-Japan relationship. But U.S.-Japan relations have changed profoundly over the past decade. Our dealings have become more equal, and their form and substance must now be adjusted to reflect this reality if we are tn address the sources of tension. I see four basic, interrelated elements as necessary to accomplish this adjust- ment. First, the foundation of our relationship-the U.S.-Japan security alliance-must be strengthened. We have been pleased with our growing security cooperation with Japan. Japan is continuing to progress toward fulfilling our agreed- JOBNAME: UPDATE PAGE: 10 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff/3184/baker 10 FOREIGN AFFAIRS upon division of defense roles and missions. Japan's ability to secure its air and sea lanes out to 1,000 miles from its shores, the growing interoperability and joint training of our forces- along with generous host nation support, which will increase to 73 percent of the non-salary costs for our forward-deployed forces-are a major contribution to the stability of the region. One area which requires greater cooperation, however, is the goal of a more balanced two-way flow of defense-related technology, as codified by our 1983 Memorandum of Under- standing. Second, we must work to reduce the economic tensions in our increasingly interdependent relationship. The $140 billion in annual two-way trade, the investment and the burgeoning network of private sector linkages between the world's two largest and most technologically advanced economies under- score the importance of this aspect of our relations. A solid, balanced economic foundation, with open markets on both sides, is needed if we are to sustain and advance our partnership-one now of truly global dimensions. This re- quires greater market-opening efforts by Japan, a more com- petitive U.S. economy and an intensification of the detailed economic dialogue we have begun in the Structural Impedi- ments Initiative. Removing the impediments to external ad- justment and building more balanced economic ties-thus creating fair opportunities for traders and investors-are essential to the new harmony we seek. The SII talks could assume a particularly important role in this process of economic adjustment. Two nations, recognizing the extensive interconnection of their respective economies, have agreed to analyze and pursue microeconomic adjust- ments in order to harmonize an economic relationship vital to each other and to global economic growth. This makes the SII a microeconomic complement to the Group of Seven leading industrialized nations (G-7), which is designed to improve the coordination of macroeconomic policies among highly inter- dependent economies. For its part, the United States is enhancing its competitive- ness, as is evident in an 87 percent increase in its exports to Japan since 1987. This export expansion reflects, in part, Japan's removal of structural barriers to market access for goods, services and investment. But many aspects of the Japanese economy are still constricted by exclusionary busi- ness practices, to the detriment of new players in the market- JOBNAME: UPDATE PAGE: 11 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 11 place-both foreign and Japanese-and of the Japanese con- sumer. And at home we still have much work to do-from further reducing the cost of capital to American business to encouraging more aggressive marketing of U.S. products abroad-if we are to carry out our part of the SII equation. Third, we must fulfill the promise of the global partnership called for by the president at the Palm Springs summit last year. As democracies and market-oriented economies that together generate nearly 40 percent of the world's GNP, the United States and Japan have the potential to marshal unri- valed resources in support of a better future-if our foreign policies are effectively coordinated. On issues from the Uru- guay Round to reform in central and eastern Europe, from preserving the environment to Third World debt relief, we must engage together globally. For the international system to work, leading powers must lead. This is the lesson we learned from our own reluctance to play an active role in world affairs in the period between the two world wars. This is why today we seek to build a global partnership with Japan-with Tokyo assuming a greater lead- ership role in a system from which it derives significant benefits. Our broadly convergent interests have already led us to pursue similar policies on many issues. We are committed to developing better consultative mechanisms in order to give greater synergy to our foreign policies. Finally, we must deepen our understanding of each other's culture. Japanese youth must be introduced to more about American life and values. Fast-food, rock and rap music and Hollywood style are one image we project in the modern world, but America has much else to offer. Similarly, more Americans must gain knowledge of, and appreciation for, Japan's rich history and traditions-in particular, they should learn the Japanese language. The recently created Abe Fund offers one important opportunity to expand a host of ex- changes and interactions-intellectual, scientific, cultural and people-to-people-needed to deepen our mutual appreciation and ability to work together. U.S.-Korean Relations Another pillar of our engagement in the Pacific is our alliance with the Republic of Korea. South Korea's economic and political achievements rival those of Japan. Economically the R.O.K. has converted itself from a poor agricultural society JOBNAME: UPDATE PAGE: 12 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaf/3184/baker 12 FOREIGN AFFAIRS devastated by the war into the world's thirteenth largest economy. Its industry is now on the cutting edge of high-tech growth. Within a generation South Korea's per-capita income has trebled. And its success in building democratic institutions and the accomplishments of Nordpolitik in forging new inter- national relationships underscore the significance of our firm support for the R.O.K. over the past four decades. South Korea's dynamism helps us meet the challenge of transforming what has been primarily a military alliance into a more equal political, defense and economic partnership. This is the logic of the U.S. force restructuring now under way, of Seoul's increased support of our defense presence there, of our economic dialogue and enhanced political consultations. South Korea's success is all the more remarkable as it has been achieved in the face of unrelenting military and political confrontation with North Korea. Indeed the very real danger of nuclear proliferation on the Korean peninsula is now the number one threat to stability in the Asia-Pacific community. North Korea's repeated failure to meet its international obligations under the Nuclear Nonproliferation Treaty- requiring it to implement full-scope International Atomic Energy Agency safeguards inspection of its nuclear facilities— has raised serious questions about its intentions. Widespread suspicions about a nuclear weapons program cannot enhance North Korea's security. President Bush's recent initiative in withdrawing worldwide U.S. tactical nuclear weapons renders Pyongyang's preconditions for fulfilling its NPT obligations more specious than ever. Yet, as important as the NPT regime is, we have seen in the case of Iraq that even IAEA safeguards cannot ensure that a maverick regime will not seek to acquire a nuclear weapons capability. The only firm assurance against nuclear prolifera- tion in Korea is a credible agreement by both Seoul and Pyongyang to abstain from the production or acquisition of any weapons-grade nuclear material on the Korean peninsula. The key to reducing tensions on the peninsula-and ulti- mately to the reunification of Korea-is an active North-South dialogue. The Koreans themselves must traverse the road to peace and reunification. President Roh Tae Woo's initiatives to advance the free flow of trade, people and communications between North and South are important steps in this direction. For real progress to occur, a climate of trust and confidence must he established. The recent admission of both Koreas tn JOBNAME: UPDATE PAGE: 13 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 13 the United Nations and the ongoing prime ministerial talks are hopeful signs that the last glacier of the Cold War in Asia is at last beginning to melt. For our part, we are prepared to enhance our dealings with Pyongyang as the Democratic People's Republic meets its responsibilities as a global citizen. There is potential for European-style confidence-building measures and, ultimately, Conventional-Forces-in-Europe- type arms reduction on the Korean peninsula. As in Europe, large and heavily armed ground forces confront each other across a clearly demarcated demilitarized zone. Korea is a place in East Asia where arms control initiatives seem partic- ularly timely. The process of reconciliation and, eventually, reunification on the Korean peninsula need to be based on Korean initia- tives; yet the four major powers-the United States, Soviet Union, China and Japan-have important interests that inter- sect there. As the North-South dialogue progresses, we will formula explore the possibilities for a forum for the two Koreas and the four major powers in Northeast Asia that will support the dialogue, help in the easing of tensions, facilitate discussion of common security concerns and possibly guarantee outcomes negotiated between the two Koreas. U.S.-Southeast Asian Relations Our relations with the countries of the Association of Southeast Asian Nations are at the core of our engagement in this dynamic subregion. Over the last fifteen years, we have built an impressive structure of economic, political and secur- ity cooperation with our ASEAN colleagues. Indeed, just fifteen years ago many feared that countries such as Thailand, Ma- laysia and Indonesia would become "dominoes" in a commu- nist assault on Southeast Asia. Today the talented, industrious people and market-oriented economies of the ASEAN states are setting global standards for development. ASEAN today is America's fifth largest trading partner, rival- ing U.S. commerce with Germany; and America is ASEAN'S largest export market. ASEAN was a leader in launching the Uruguay Round of the GATT, and we look to ASEAN for support in successfully completing the current negotiations. We have worked hard to keep ASEAN at the core of our efforts at regional economic integration, and we will continue to do so. In the political realm a decade of cooperative efforts with ASEAN has led to the successful conclusion of a comprehensive JOBNAME: UPDATE PAGE: 14 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff/3184/baker 14 FOREIGN AFFAIRS agreement to end the conflict in Cambodia. In the wake of the Paris Conference we look to the building-under U.N. auspic- es-of a just and durable peace in Cambodia. This should make possible a new era in Southeast Asia, including the integration of Cambodia, Vietnam and Laos into the main- stream of the region. The culmination of the Cambodian peace process-free and fair elections, the installation of a legitimate government in Phnom Penh, along with substantial resolution of our POW/MIA concerns-will finally provide a durable basis for the United States to normalize relations with Vietnam, Cambodia and Laos. Two of ASEAN'S members, the Philippines and Thailand, are also bilateral treaty allies. Today there is much uncertainty about the future of our military presence in the Philippines. I want to emphasize two points in. this regard: our overriding concern is to sustain good relations with a democratic and economically resurgent Philippines. And second, regardless of the future of our military presence at Subic Bay, our security engagement in Southeast Asia will remain undiminished, even if realized through other arrangements. We are exploring ways to enhance defense cooperation with our friends throughout the subregion in order to sustain an adequate security presence on a more diversified basis. The base-access agreement reached earlier this year with Singapore is a reflection of our commitment to sustaining a defense capability in Southeast Asia-as well as of the region's wide- spread desire for an active U.S. security presence. U.S. Australian Relations Australia is the southernmost spoke in the fan I described earlier, serving as the southern anchor for our links across the Pacific. Moreover, Australia is a bridge between Southeast Asia and the South Pacific island states. Canberra's activism in both global and regional affairs-from efforts to rid the world of chemical weapons to elimination of agricultural subsidies via the Cairns group in the GATT-demonstrates its importance as an ally. In its contributions to the Cambodian peace process, and in its role of honest broker and catalyst for development in the South Pacific, Australia plays a vital part in regional affairs. In addition, Canberra has been an important bridge to New Zealand, as we have sought to encourage policy changes in Wellington that will make possible a reactivation of the ANZUS JOBNAME: UPDATE PAGE: 15 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaff/3184/baker AMERICA IN ASIA 15 alliance. President Bush's nuclear disarmament initiative has created a favorable context that we hope will elicit a positive response from New Zealand. China The tragic violence at Tiananmen Square in the summer of 1989 shattered the bipartisan consensus in the United States— carefully constructed over two decades by five administra- tions-for engagement with China. Rebuilding that consensus is in our national interest, but it is proving to be a daunting task. Looking back over more than 150 years of American con- tacts with China-since the time of the first missionaries and traders-our views of China have oscillated between extremes of fascination and confrontation. Indeed the influence of the missionary experience in China-evident in the work of nov- elists, scholars and diplomats-has shaped our romantic per- ception of this land and its people. We have admired China's exotic culture and its hard-working and long-suffering people. When the Chinese seemed to adopt our principles-either religious or secular-we enthusiastically welcomed them into the fold. But when periodic upheavals led to disappointment and frequently bloodshed, Americans felt the anger of rejec- tion-of a conversion that failed. Even in recent years, no foreign event seemed to capture the American public's interest and excitement more than the effort in the 1980s to reform China's Soviet-style economy and to open up the country to the modern world. And then, overnight, our hopes for a new, democratic China turned to revulsion at the sight of tanks crushing unarmed students. The subsequent advance of political reform in the Soviet Union has made China's setback all the more poignant. We cannot forget those who were halted by a backlash of fear, but we will not help the eventual success of their cause by again turning our backs on China. The pendulum of U.S. relations with China must stop its sharp swings. China is home for almost a quarter of mankind. We cannot simply wish away their problems. That is why President Bush has pursued a policy of engage- ment toward the People's Republic. We can eventually solve our problems with China only if we maintain the ability to make our case to the Chinese. Our agenda is open for all, Chinese and American, to see. We want to protect human JOBNAME: UPDATE PAGE: 16 SESS: 4 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker 16 FOREIGN AFFAIRS rights and advance liberty. We want to counter the threat of nuclear and missile proliferation. We want free and fair trade that benefits both countries and the region. Our ideals and values must be an essential part of our engagement with China. We will fight against political repres- sion and religious persecution. Yet political liberty is not easily or long separated from economic freedom. As President Bush pointed out at Yale University in June, no nation has yet discovered a way to import the world's goods and services while stopping foreign ideas at the border. It is in our interest that the next generation in China be engaged by the Informa- tion Age, not isolated from global trends shaping the future. That is why we believe it is important to maintain China's most-favored-nation trading status. MFN has been a critical catalyst in the growth of our bilateral ties and in the overall expansion of China's foreign trade during the 1980s to more than $100 billion annually. MFN has also facilitated develop- ment of a large market-oriented sector-in Guangdong prov- ince it now exceeds the state sector. This engagement has led to the integration of China's coastal provinces with Hong Kong, Taiwan and the global economy. Of course, if China is to become fully drawn into the world economic system it must further deregulate its economy, adopt the transparency needed to enter the GATT and protect foreign intellectual property rights. Resolving these issues-and addi- tional ones on our bilateral economic agenda, such as market access and the export of prison-labor products-can only be pursued through a policy of active engagement. Finally, China's international role spans a growing range of global and regional issues affecting our interests: from con- cerns about missile and nuclear proliferation, to cooperation in the gulf crisis, to resolving regional conflicts. This under- scores the need for sustained engagement with China on issues of common concern. Our recent experiences in working with Beijing on the Cambodian peace process and in reducing tensions on the Korean peninsula suggest that our engage- ment can produce results. In sum we need to recognize that China is in a time of transition. An anachronistic regime has alienated us by lashing out, by seeking to repress an irrepressible spirit. A return to hostile confrontation will not help the people of China nor serve our national interests. The only sensible course is to move ahead with our agenda, secure improvements where JOBNAME: UPDATE PAGE: 17 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 7bs1/303/team3/foreignaf/3184/baker AMERICA IN ASIA 17 possible and create the context for managing the change that will come some day. The U.S.S.R. in Asia Any discussions of the future of the Asia-Pacific region would be incomplete without mention of the Soviet Union and Russia, which have interests in Asia as well as in Europe. Increasingly we see the Russian Republic taking a more active role in the Asia-Pacific region. And despite the turmoil in the U.S.S.R, Moscow has been playing an increasingly positive role in the region. Soviet cooperation on Cambodia and in the Persian Gulf, as well as the normalization of relations with South Korea, illustrate the potential for new forms of cooper- ation on Asian issues between Washington and Moscow. Yet Soviet forces in the Far East still remain large, and market reforms that are the prerequisite for participation in the Asian economic miracle have yet to be implemented in the Soviet Union. No nation that spends 20 percent or more of its GNP on the military can expect to compete economically in the dynamic Asian region. We welcome the growing interest in forging new economic ties between Soviet Asia and the nations of the Pacific Rim. The opening of Vladivostok, the establishment of a free trade zone at Nakhodka and resolution of the Northern Territories issue are important steps that can pave the way for greater participation in the Asia-Pacific community. As Soviet market reforms take shape, the potential for economic exchange with the market-oriented economies of the Pacific Rim will un- doubtedly grow. In this regard I am pleased to welcome Soviet membership in the semi-official Pacific Economic Cooperation Council. VI President Bush's trip to East Asia and the Pacific highlights our hopes for the future of this promising region. Sustaining American engagement in East Asia and the Pacific is vital to U.S. interests-not just in the region, but to the international system we are trying to forge. Our defense commitments remain at the core of the Asia-Pacific security structure, but they will evolve to reflect new circumstances and partnerships based on the enhanced capabilities of our allies and friends. Supporting democratic trends and helping to shape a frame- JOBNAME: UPDATE PAGE: 18 SESS: 3 OUTPUT: Thu Oct 24 13:36:31 1991 /bs1/303/team3/foreignaff/3184/baker 18 FOREIGN AFFAIRS work for economic integration are key policy goals which will enhance the sense of Asian-Pacific community. Yet we cannot fully enter the future while still burdened by legacies of the Cold War eΓa, particularly the military confron- tation on the Korean peninsula and the dispute over the Northern Territories. Moving from the Korean armistice to a stable peace and advancing Soviet-Japanese bilateral ties to make possible a peace treaty would be major steps in tran- scending those legacies. Only when true peace comes to Cambodia, when all the states of Indochina have normal relations with the rest of the world, when Korea is unified on terms acceptable to all Koreans and when the Northern Territories are returned to Japan can we finally turn a new page in the history of the Asia-Pacific region. For the next millennium to be one of the Pacific, a strong sense of community must emerge based on shared prosperity and common values. The agenda and architecture I have discussed here hold the promise of building that sense of community. By accommodating Asia's diversity in security, uniting around shared principles and interests, and forging the economic ties that bind the region, our vision can be realized and a new trans-Pacific partnership achieved. ASIA SOCIETY CONTACTS NSC Doug Paal x5746 Trade -- DOC Christina Lucyk 377-5527 (China) ; Kevin Boyd (speechwriter for Dr. Dustenberger 377-5853; Ed Leslie (Japan) 377-2425; Peter Cashman, 377-5853 Asia Society (212) 288-6400 Heather Steliga Chen, Janet Gilman Census Bureau, Vern Jarvis 514-2648 re immigration stats Services of Mead Data Central, Inc. PAGE 2 1ST STORY of Level 2 printed in FULL format. Copyright 1991 American Demographics, Inc. American Demographics October, 1991 SECTION: Pg. 26 LENGTH: 3090 words HEADLINE: We're All Minorities Now BYLINE: by Martha Farnsworth Riche; Martha Farnsworth Riche is director of policy studies at the Population Reference Bureau in Washington, D.C. BODY: * Racial and ethnic diversity increases the differences between urban, rural, rich, and poor Americans. Children are most likely to be nonwhite or Hispanic, but the aging of diversity will have profound effects on consumer markets in the 1990s. Businesses can respond by using consumer information to unite diverse niches into profitable markets. The United States is undergoing a new demographic transition: it is becoming a multicultural society. During the 1990s, it will shift from a society dominated by whites and rooted in Western culture to a world society characterized by three large racial and ethnic minorities. All three minorities will grow both in size and share, while the still-significant white majority will continue its relative decline. Whites represent eight in ten Americans, the 1990 census found, down from nine in ten as recently as 1960. Subtract white Hispanics, and you discover that only about three out of four Americans are non-Hispanic whites. During the 1980s, the U.S. received 6 million legal immigrants, up from 4.2 million during the 1970s and 3.2 million during the 1960s. Few immigrants now are of European origin. Immigrants also tend to have more children than the non-Hispanic white population, as do Hispanics and blacks. Together, these two factors are boosting the share of minorities in the population. These trends are also creating diversity within the minority population. According to the Census Bureau, the 1990 census missed 1 in 20 blacks and Hispanics. Nevertheless, it gives an accurate picture of the rapid growth in their numbers. In 1990, 12 percent of Americans identified themselves as black, 9 percent as Hispanic origin (some of whom are also black), 8 percent as Asian or Pacific Islander, 1 percent Native Americans, and 4 percent "other.' The first three groups will continue to grow faster than the white population. AS each group grows, diversity within them will grow too. These trends signal a transition to a multicultural society. If you count men and women as separate groups, all Americans are now members of at least one minority group. Without fully realizing it, we have left the time when the nonwhite, non-Western part of our population could be expected to assimilate to the dominant majority. In the future, the white Western majority will have to do some assimilation of its own. LEXIS'NEXIS'LEXIS NEXIS Services of Mead Data Central, Inc. PAGE 3 1991 American Demographics, Inc., October, 1991 Government will find that as minority groups grow in size relative to one another, and as the minority population gains on the dwindling majority, no single group will command the power to dictate solutions. The debate over almost any public issue is likely to become more confrontational. Reaching a consensus will require more cooperation than it has in the past. The new demographic transition may be particularly difficult for business because it parallels an equally momentous economic transition. As the economy moves away from manufacturing and phys-ical skills and toward services and knowledge skills, a real danger emerges. The economic transition is increasing inequality in both incomes and opportunities. This inequality happens within and across racial and ethnic groups, and it has the potential to polarize both consumers and employees. DIVERSITY DIFFERENCES Immigration will add more Americans in the 1990s than it did in the 1980s, due to legislation enacted in 1990. The Immigration and Naturalization Service projects that legal immigration will exceed 700,000 per year starting in 1992. That compares with 600,000 immigrants per year as recently as the late 1980s. Illegal immigration will push the total even higher. The 1990 law will also increase diversity among immigrants -- notably at the upper end of the income scale. It allows people who have no family here to immigrate if they have highly prized work skills, or if they are ready to make a significant business investment. The law nearly tripled the number of visas (to 140,000 a year) for engineers and scientists, multinational executives and managers, and other people with skills in demand. This includes 10,000 visas a year for investor immigrants who will put at least $ 1 million into the economy and create ten jobs. (The entrance fee drops to $ 500,000 in rural areas and areas of high unemployment.) Immigrants tend to join their peers, and their peers tend to live in large coastal cities. California, New York, Texas, Florida, Illinois, and New Jersey are expected to get three of every four new immigrants, who will be joining already-large minority populations in those states. In California, non-Hispanic whites will become a minority within the next two decades. Central cities are still the front line for processing immigrants into society, and native-born minorities and older immigrants are also moving into suburban areas. Asians are most likely to integrate into white suburbs. Suburban blacks are still relatively segregated, according to research by Richard D. Alba and John R. Logan of the State University of New York at Albany. Hispanics fall somewhere in between. These locational patterns ensure that multiculturalism will evolve unevenly across the country. As a result, many states and cities will become increasingly unlike the rest of the country. Multiculturalism is not monolithic, either. The difference among Hispanic subgroups has been well documented; Cuban Americans are an economic and political dynasty in Miami, but no similar clout exists for Puerto Ricans in New York or Chicanos in Texas and California. One-quarter of the Hispanic population in 1990 was the product of immigration during the 1980s, if you include the children of immigrants. And 43 percent of Hispanics are LEXIS'NEXIS'LEXIS'NEXIS Services of Mead Data Central, Inc. PAGE 4 1991 American Demographics, Inc., October, 1991 immigrants from the 1970s and 1980s, according to Jeffrey Passel and Barry Edmonston of the Washington, D.C.-based Urban Institute. Differences are even more pronounced in the fast-growing Asian American population. Passel and Edmonston report that 43 percent of the Asian American population in 1990 came from immigration during the 1980s, and 70 percent from immigration during the 1970s and 1980s. In 1970, the Asian American population was dominated by the Japanese. In 1980, the top group was the Chinese. Thanks to new immigration, the 1990 census found the Filipino American population had grown almost as large as the Chinese American population, and both grew far beyond Americans of Japanese origin. Both the Asian Indian and the Korean populations now rival the Japanese population in size. Different patterns of childbearing also play a role in creating a more diverse society. Fertility rates are still higher for minority groups than they are for non-Hispanic whites. In 1988, Hispanic women had the highest rate, with 96 children per 1,000 women aged 15 to 44. Black women had a rate of 87 per 1,000, compared with 63 per 1,000 for white women. As a result, two-thirds of minority families had children in 1990, compared with fewer than half on non-Hispanic white families. Hispanic and nonwhite women will still have higher fertility rates in the 1990s, primarily because they come from younger populations, according to Juanita Tamayo Lott, president of a Washington, D.C. consulting firm. But these rates should diminish as these populations age. Nonwhite and Hispanic fertility rates should resemble white rates by the mid-21st century, she says. The trend is clear. If current conditions continue, the United States will become a nation with no racial or ethnic majority during the 21st century. This may happen as early as 2060, according to demographer Leon Bouvier of the Center for Immigration Studies. THE AGING OF DIVERSITY The engine driving the diversity trend is the relative youth of minority populations. In 1988, non-Hispanic whites were older than any minority group, with a median age of 31.4 years. Hispanics were the youngest, with a median age of 24 years. Blacks were second youngest, at 25.6, while "other" races (mainly Asians) had a median age of 27. The median age is increasing for all racial and ethnic groups, but Hispanics and blacks will remain younger than non-Hispanic whites. According to Census Bureau projections, non-Hispanic whites will have a median age of 41.4 years in 2010. That's ten years older than the median age for blacks is 2010 (31.4 years) and 12 years older than for Hispanics (29.3). "Other" races will have a median age of 35.6. As a result, different age groups are becoming multicultural at different rates. In 2000, 72 percent of Americans will be non-Hispanic white, according to Decision Demographics, a Washington, D.C. consulting firm. But fewer than two in three children will be non-Hispanic white. Non-Hispanic whites will account for 63 percent of children under age 8, 65 percent of children aged 8 to 13, and 66 percent of children aged 14 to 17. In contrast, nearly 80 percent of Americans aged 45 or older will be non-Hispanic white. Multicultural milestones show up first in the youngest ages. LEXIS'NEXIS'LEXIS'NEXIS Services of Mead Data Central, Inc. PAGE 5 1991 American Demographics, Inc., October, 1991 These differences in the composition of age groups combine with differences in life expectancy to make the elderly population disproportionately white. However, with the notable exception of black men, the gap in life expectancy between whites and nonwhites has been narrowing. All these trends will eventually increase the multicultural character of the older population. Multiculturalism is seeping into every aspect of American society, including language. The battle to make English the official language of the United States seems to have fizzled out, as Spanish-speaking Americans make it clear that they intend to retain their native language. As a result, many English-speaking Americans are discovering with a shock that they cannot communicate when visiting certain sections of California, Florida, or Texas. Bilingual signs and forms are becoming commonplace in many parts of the country. Next spring, the Census Bureau will release the first data on "linguistically isolated" households. These are households in which no member aged 5 or older reported speaking English "very well." The numbers of such households did not merit a separate tabulation in previous censuses. But the 1990 census found 23 million households that spoke a language other than English at home. It also found 10 million households that had a less-than-adequate command of English. These numbers will be considerably larger in the 1990 count, thanks to immigration, according to Census Bureau demographer Paul Siegel. Other factors are influencing the evolution of racial and ethnic identities. More and more Americans are of mixed parent-age, and they are demanding to be recognized as multiracial. Communications technologies are also changing the way people identify with their ethnic roots. For example, African films are gaining a significant audience here, particularly among African Americans. VCRs, fax machines, and other new technologies create important opportunities for cultural exchange in both directions. At the same time, it reduces the impetus for immigrants to assimilate into the "mainstream." More than ever, the way for minorities to gain broader opportunities in American society is to get a college education. But relative to whites, college enrollment rates actually declined for blacks and Hispanics during the 1980s. As educational attainment becomes increasingly important to individual success, differences in educational attainment will produce sharply different socioeconomic profiles for different racial and ethnic groups. This trend could create a population polarized by both race and economic opportunity. Whites and Asians could increasingly dominate high-income high-status occupations, leaving blacks and Hispanics with low-income low-status occupations. Even if employment discrimination suddenly ceased to exist, the lower educational attainment of minorities would keep many of them from entering newly opened doors. Poorly educated young black men are already shut out of the broader society; nearly one in four of those aged 20 to 29 is behind bars or on probation or parole. As America participates increasingly in the world economy, business leaders could use a multicultural work force as a powerful competitive edge. But the opportunities will not be distributed equally among different racial and ethnic groups. The challenge is to maximize our comparative advantage in the world LEXIS'NEXIS'LEXIS NEXIS Services of Mead Data Central, Inc. PAGE 6 1991 American Demographics, Inc., October, 1991 economy while still offering upward mobility to all Americans. Asian/ Pacific American other white black Hispanic Islander Indian races 0 to 9 74.8% 15.0% 12.6% 3.3% 1.1% 5.9% 10 to 19 75.1 15.1 11.6 3.3 1.1 5.9 20 to 29 77.3 13.1 11.5 3.3 0.8 5.5 30 to 39 79.9 12.0 8.9 3.3 0.8 4.0 40 to 49 82.9 10.4 7.1 3.1 0.7 2.9 50 to 59 84.4 10.1 6.4 2.6 0.6 2.3 60 to 69 87.4 8.8 4.8 1.9 0.5 1.5 70 to 79 89.3 7.9 3.5 1.4 0.4 0.9 80 or older 90.4 7.5 3.2 1.0 0.3 0.8 All ages 80.3 12.1 9.0 2.9 0.8 3.9 Note: Hispanics may be of any race: therefore, the percentages do not total to 100. Source: 1990 census data HOW BUSINESS CAN RESPOND "The typical consumer-citizen of California in the late 1990s may be a 38-year-old professional who does Zen meditation. At home, she listens to Celtic folk music because her grandparents were Scottish. But she spends her vacations in northern Mexico to study Tarahumara culture, after picking up a taste for ranchero music," says Paul Saffo, who follows technology for the Institute for the Future in Menlo Park, California. In a multicultural society, businesses thrive by finding common ground across racial and ethnic groups. Businesses that try to target each group separately will be stunted by prohibitive marketing costs. Others will meet this challenge by helping multicultural consumers mix and match their lifestyles. Multicultural consumers will take discrete cultural pieces and mix them into custom-tailored wholes. Another common need is information and entertainment that explains the world to multicultural consumers from their point of view. Last year, a widely publicized journalism study faulted young Americans for their ignorance of important news figures and news events. But given their increasingly multicultural nature, it's no surprise that today's youth had little interest or knowledge in what was going on in Eastern Europe, but were up-to-the-minute on developments in South Africa. * Consumer information and entertainment businesses are going to have to reposition both their content and their advertising to appeal to today's multicultural youth as they become tomorrow's multicultural adults. * See. "What's News with You," American Demographics, November 1990, page 2. Education is a major common need. The educational establishment has not adequately responded to the multicultural challenge, and that creates an opportunity for business. Communications technology is building a new common ground for an increasingly multicultural population. We saw this during recent events in China and in Eastern Europe. We are going to see more of it as technological evolution lets our most recent arrivals keep close contact with their roots instead of LEXIS'NEXIS'LEXIS`NEXIS Services of Mead Data Central, Inc. PAGE 7 1991 American Demographics, Inc., October, 1991 cutting them off. These developments create new opportunities for consumer businesses that can unlock culture from its origin and allow others to share in it. One example is the Japanese adoption of the Wild West, as Tokyo executives import log cabins from Montana and vacation on American dude ranches. As the world's first multicultural society, the United States is uniquely positioned to both understand and profit from the emerging global culture. All this means that consumers are becoming simultaneously part of a global culture and a local community. It also means that these ties are based on common interests. Moreover, technology increasingly allows Americans to switch readily and frequently from one viewpoint to another. The marketer's new challenge is to find not only the right person with the right message but also to find them at the right moment. Some of those moments will be global moments, as everyone in the world watches a soccer match, or a war. Some will be culturally specific moments, as Muslims or other groups share a moment that is invisible to everyone else. Some will be purely and simply local. But in every case, the common ground will be interests, concerns, and lifestyles. Without necessarily realizing it, businesses have been preparing to meet this challenge by building detailed consumer information systems. Combined with attitude and behavior research, these systems can efficiently unite niches into markets. The systems' geographic specificity will extend marketing efficiency by allowing marketers to pay attention to the geographic variations in diversity. For example, a Nissan television campaign featured a multicultural design team engineering cars "for the human race." The tag line made sense nationally, because it was broadly targeted image advertising. More directly targeted messages have to identify their audiences more closely. An ad that takes a multicultural society as a given is right for Los Angeles, but it might strike a strange note in rural Indiana. Retailers can use locally based information systems to efficiently target specific demographic and market segments. Mark London is president and CEO of Equity Properties in Chicago, a firm that remodels and re-leases shopping centers whose trade areas have changed significantly. He recently analyzed an anchor store that was doing badly in a repositioned Miami mall. The store managers hadn't understood two crucial concepts. First, upscale Hispanic women don't have the same fashion preferences as other upscale women. Second, they don't have the same preferences as other Hispanic women. When the store learned to feature upscale Hispanic fashions, sales rebounded. On every dollar bill is the phrase E pluribus unum, "from diversity comes unity." If this fundamental American belief can survive, our country will become a microcosm of an increasingly interdependent world. America can still offer hope to other countries, and to all of its citizens. But it can only work if we meet the multicultural challenge. GRAPHIC: Photo, no caption, JON REIS (PHOTOP ROBERT ACETO (HAND COLORING) LEXISNEXIS'LEXIS NEXIS Snow/Nix Asia Draft Three November 11, 1991 PRESIDENTIAL ADDRESS: THE ASIA SOCIETY WALDORF-ASTORIA HOTEL NEW YORK, NEW YORK TUESDAY, NOVEMBER 12, 1991 7:35 P.M. Thank you very much, John [Whitehead]. John has served this country with great distinction over the years, and it's great to join him -- and his wife Nancy -- this evening. It's also a pleasure to see Asia Society President Robert Oxnam, and vice Chairman, Peter Aaron. To you, and to the distinguished men and women in this audience, greetings --- and my thanks for this opportunity to speak with you on topics of great concern to us Called Callina all. 5:08 As you know, I have just returned from Rome and the Hague. worked There, I worked and other Western leaders to build a post Cold- War world characterized by mutual security, democracy, individual liberty, free enterprise, and unfettered international trade. I want to talk about those topics tonight, with the accent on Asia. But first, for audiences here and in Asia, I think it's important to discuss once again why I will not travel to the region later this month. As President, I must serve the entire nation in the domestic and foreign arenas. Sometimes those obligations clash. When we planned our trip, Congress had planned to adjourn early in this month. Now the members say they 2 will wrap up by November 22, but who knows? We will reschedule the trip, but I will not leave while Congress is wrapping up a session: It can commit too much mischief in times like that. Frankly, I don't mind telling you that I just don't feel comfortable leaving Congress home alone. // Make no mistake, however: I will not turn my back on my responsibility to do the nation's business here and abroad, and in times of economic pain, I certainly will not give up an opportunity to work with our allies to create new markets, new jobs and new opportunities for American workers -- in agriculture, in manufacturing and in service industries. And I certainly will not permit us to retreat into a kind of Fortress America, which will doom us to irrelevance and poverty. The notion that we can separate domestic and foreign policy rests upon the stubborn fantasy that we can live as an isolated island surrounded by a changing and developing world. We tried isolationism, and we ended up fighting two bloody world wars. We tried economic isolationism -- protectionism -- and we helped set off a worldwide depression. I remain deeply committed to building closer ties with the Asia Pacific region. Although much of our Nation's heritage comes from Europe, our future points equally toward Asia. Asia has transformed itself in the space of a generation into the most rapidly growing region on the face of the earth. Asia-Pacific nations enjoyed staggering real economic growth in the decade of the Eighties: The Australian economy grew 41 3 percent; Japan's grew nearly 52 percent; Malaysia almost 60 percent; Hong Kong, 89 percent; Singapore, 93 percent; Taiwan, 116 percent and South Korea, 150 percent. The Asia-Pacific region has become our largest and fastest growing trade partner. We conduct more than 300 billion dollars worth of two-way trade annually. Together, we generate nearly half the world's GNP. American firms have invested more than 61 billion dollars in the region, and that figure will grow. Asians have invested more than 95 billion dollars in the United States. In everything from automobiles to microchips, from baseball to Australian rules football, we grow closer each day. A few years ago, it was fashionable to refer to the 20th Century as the American Century and the 21st as the Pacific Century, as if we were engaged in some long-term competition with our Asian allies. I don't see it that way. The United States will remain large and powerful, but in years to come, we will deepen our partnership with our Asian friends in building democracy and freedom. We'd be here forever if I tried to tick off our interests and activities, country-by-country. So instead I will address the three central issues in our relationships with the nations of the region: security, democracy, and trade. In the area of security, Asia's variety has spawned a diverse pattern of political and strategic cooperation. Our custom-made agreements and relationships provide a strong foundation for future security. 4 Let me give you a few examples of how we seek to build the peace. The ASEAN Nations, Japan, Australia and the U.N. Security Council's permanent members recently forged a Cambodian peace process that promises free elections in a nation previously rent by tyranny and genocide. Just yesterday, for the first time in 16 years, we sent an accredited diplomat to Cambodia, to participate in the peacemaking arrangements. The conflict in Indochina has preoccupied this nation for years. Finally, we have entered into a period of healing and constructive cooperation. We will work step-by-step to resolve the painful issues left by that war. We envision normal relations with Vietnam as the logical conclusion of a step-by- step process that begins by resolving the problems in Cambodia and by addressing thoroughly, openly and conclusively the status of American POW-MIAs. Today, I am happy to announce that we will upgrade our relations with Laos, and that, we soon will place an ambassador in Vientiane. The Republic of Korea has moved to build better ties with North Korea while boldly challenging the North to abandon its menacing nuclear weapons program, which threatens regional peace. We welcome recently organized efforts involving us, the Japanese, Soviets, Chinese and Koreans to bring North Korea's nuclear program under international supervision. Meanwhile, we will maintain our conventional military presence in the South as long as the people want or need us. 5 In laying the foundation for peace through our global partnership, we have worked closely with Japan in the area of foreign aid: we are the world's two foremost providers of such aid. We also cooperate on development assistance, environmental protection, trade, arms control, refugees and regional peace. The Japanese have joined us in trying to lead the Soviet Union and Eastern Europe toward free enterprise. They support more than 50,000 U.S. military forces in Japan with 3 billion dollars in annual host nation contributions. Japan contributed nearly 13 billion dollars to the multinational forces for the Gulf War, 10 billion dollars of which went to the United States. This required new taxes -- a very tough thing for any politician to ask of working people -- but Japan deserves praise for choosing the right course. To the South, Australia casts a shadow far larger than its population and size would suggest. It takes justifiable pride in its long tradition of defending democracy, and its economic, political and cultural presence helps unite the Asia-Pacific region with the rest of the world. We can help ensure future peace in the region and defend our interests through a range of military arrangements. Bilateral alliances, access agreements and Five-Power defense arrangements give us the flexibility we need. While we must adjust our force structure to reflect post- Cold-War realities, we also must protect our interests and allies. In this light, we cannot afford to ignore the important 6 sources of instability: in North Korea; in Burma, where socialist despotism holds sway, despite the heroic efforts of freedom fighters like Nobel Laureate Aung San Suu Kyi; in China and other states that resist the worldwide movement toward political pluralism -- and that sometimes support our adversaries, even by contributing to the proliferation of dangerous weapons. Fortunately, the key to future stability in the region lies not with arms, but with ballots. Democracy has swept across Asia -- with some notable exceptions, such as Burma, China, North Korea, and Vietnam. Yet we remain engaged in the region, and especially in China. If we retreat from the challenge of building democracy, we will have failed many who have worked hard, even died, for the cause. The United States will support democracy wherever it can, understanding that nations adopt political freedom in their own ways, in manners consistent with their histories and cultures. After decades of uncertainty, the future seems full of hope, and even the intransigent few seem likely to join the rest of the world in building a commonwealth of freedom. This brings us to the third focal point, and a crucial ingredient in a stable, free society: economic prosperity. No nation can ignore the incredible vitality of this region --- or afford to. Yes, we disagree on some important trade issues, but we also recognize a more important fact: Our fates and values have become linked forever. 7 Contrary to the opinions of American protectionists, free trade requires efforts by all parties involved. Too often, trade disputes bring out the worst in people. Japan-bashing has become a minor sport in the United States, and some in Japan have become equally scornful of the United States. Both our nations must reject those who would rather seek scapegoats than tackle their own problems. We've made a good start: The Asia-Pacific Economic Cooperation Group encourages growth and trade. The Uruguay Round of GATT talks remains the single most important vehicle for advancing the cause of free trade and fending off the scourge of protectionism. We call upon Japan and Korea to work with us in breaking down old barriers to trade and opening up markets in manufacturing, services and agriculture. Our Structural Impediments Initiative talks have helped lower barriers to trade and investment, but we need to give those talks new life and create a better climate in Japan for U.S. businesses. The fact is that Japan, which nearly half a century ago became a focal point of American hatred, has become one of our closest and most treasured allies. I enjoyed a warm and constructive relationship working with Prime Minister Kaifu, and I look forward to spending time with my old friend, Prime Minister Miyazawa -- significantly, a man steeped in Western and Eastern culture, and superbly equipped to build bridges of culture and trade between our two great Nations. Together, we can build an even more prosperous and spectacular future -- but only if we take up the tough, rewarding 8 task of promoting worldwide economic liberty: no trade blocs; no new trade barriers. We seek a vibrant international economic system that unites markets on every continent. We in the United States also must strengthen our economy. We levy an unacceptably high effective tax rate on capital gains. Germany levies no capital gains tax. The complicated Japanese tax averages about 1 percent. This puts our own entrepreneurs and venture capitalitsts at a huge and shameful disadvantage. We run an enormous and growing budget deficit, which seems to serve no greater purpose than to inflame political divisions within our own country. We must take purposeful action to reduce that deficit, while nourishing economic growth. To compete internationally we must modernize our banking industry and make our industrial base more competitive. We must work with our allies to build a stable and sound monetary regime. Perhaps most important, we must build human capital. We have an obligation to prepare future generations for life in the 21st Century. The integrated global economy will demand more of us than ever before, and our schools must meet that challenge. Technological change can do much more than make our lives more comfortable. It can sweep away totalitarianism and forge the foundation for lasting liberty. We live in an age of liberation technology, and no technology does more for the cause of freedom than the means of mass communications. No wall is high enough and no government sufficiently despotic to shut off what some call a revolution of electrons. As we compete with our 9 allies in this area, we must remember that information feeds intellect, and good information fosters freedom. Let me close by summarizing our general approach to relations with Asia. Our administration sees six keys to promoting lasting peace in the Asia-Pacific region: Progressive trade liberalization / Security cooperation / A shared commitment to democracy and human rights / Educational and scientific innovation / Respect for the environment / And an appreciation of our distinct cultural heritages. Americans have always looked to the horizons for their destiny, even from our earliest days. We have grown great because we have welcomed people from every continent and country, and we have tried to make use of their distinct talents, while constructing a common culture. Today, we celebrate that diversity, and celebrate the prospect that in years to come, we will develop with our Asian friends even greater ties of trade and culture. I look forward to traveling soon to Asia, to advance these important principles, and to expand market opportunities for tens of thousands of American workers and businesses. As President, I will continue building ties with our allies, because those ties mean peace at home and jobs for American men and women. I want to thank the Asia Society for its vital contributions to the cause of peace, prosperity and understanding. I look forward to your help as I seek to build closer bonds of affection 10 and interest with the peoples of the vast, marvelous, varied Asia-Pacific region. Thank you. May God bless our Asian-Pacific friends and the United States of America. # # # # United States Information Agency CONFIDENTIAL ATTACHMENT Washington, D.C. 20547 USIA November 6, 1991 MEMORANDUM FOR: Mr. Robert A. Snow Deputy Assistant to the President for Communications and Director of Speechwriting FROM: David I. Hitchcock DIH Director Office of East Asian and Pacific Affairs SUBJECT: Public Affairs Background for the President's Visit to East Asia Greta Morris and I appreciated the opportunity to meet with you and members of your staff last Monday to discuss the President's upcoming visit to East Asia. As promised during that meeting, I am enclosing the following background material which may be useful to you and your colleagues in preparing the President's public remarks: 1. A memo on the Public Affairs Aspects of the President's Visit to East Asia which was originally sent to Richard Solomon on September 20. The memo lists themes to be addressed in public fora and program suggestions for the visits to Japan, Korea and Australia. 2. A memorandum prepared by the Counselor for Public Affairs of our embassy in Tokyo discussing public affairs issues for the President's visit (especially the comments on page one). 3. Telegrams from our embassies in Seoul and Canberra outlining public affairs themes and activities for the visit. These cables and the Tokyo memo formed the basis of the September 20 paper (item number 1) and provide additional background. 4. A cable from our embassy in Singapore with themes and a notional schedule for the President's visit. 5. A list of previous speakers, including Bob Hawke and Brian Mulroney, in the Singapore Lecture Series which the President is scheduled to address. UNCLASSIFIED UPON REMOVAL OF CLASSIFIED ATTACHMENTS CONFIDENTIAL ATTACHMENT RML 11/01/04 - 2 - 6. A cable from Manila suggesting that the President's remarks at Pearl Harbor mention the attack on U.S. forces (including Filipinos) in the Philippines which occurred the same day as the attack on Pearl Harbor. 7. Some "local color" suggestions for the President's remarks in Japan, including a Haiku by Japan's most famous, 17th century poet, Basho. 8. A cable on East Asian perceptions of the U.S. as seen by PAOs at our October regional conference in Singapore. If you have questions on any of the enclosed material, or need additional information, please do not hesitate to call me (619-4829) or East Asia Policy Officer Greta Morris. We welcome the opportunity to assist you on this important visit. Despite the postponement of the President's trip we are sending you these papers now, since they should eventually be useful to your staff. In addition here are two excellent opinion cables just in from Seoul and Tokyo which may also be of interest to you. CONFIDENTIAL ATTACHMENT