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Originally Processed With FOIA(s): foia Number: 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: Davis, Mark, Files Subseries: Subject File, 1989-1991 OA/ID Number: 13873 Folder ID Number: 13873-001 Folder Title: Mexico-South America / Mexican Speech, 11/90 Stack: Row: Section: Shelf: Position: G 19 2 6 6 POTUS VISIT TO MEXICO: FACT SHEET -POTUS notified the Congress on Sept. 25 that the U.S. and Canada intended to negotiate a free trade agreement (FTA) (gradual elimination of trade barriers) -U.S. and Mexico share a 2000 mile border, one of the longest bi- lateral borders in the world. -Trade between our two nations is expected to swell to an all- time high of 60 billion this year. -Mexico is our third largest trading partner and third largest export market- behind only Canada and Japan. -Total U.S. direct investment totals over 5.5 billion, and total Mexico investment over 1 billion. -Increased U.S. exports means more jobs: every 1 billion of exports generates roughly 22,000 U.S. jobs. -A GATT agreement is near completion. -the trend towards greater trade cooperation between our nations has been spurred in recent years by a General Agreement on Tariffs and Trade in 1986, the U.S./Mexico Framework Agreement in 1987, and the Trade and Investment Facilitation Agreement in 1989. -Recently, Secretary Mosbacher and Mexican Secretary of Commerce and Industrial Development Serra established the Joint Committee for Investment and Trade (JCIT) -U.S. exports to Mexico were up 20% in 1989 to $25 billion. Imports grew by 17% to $27 billion. -In '89, 82% of U.S. exports to Mexico and 72% of imports were manufactured good. -total trade between the two nations has risen by 75% since 1986. -Mexico recently concluded a new debt agreement with international creditors; this will free resources for continued economic modernization and increased imports. -Mexico's economy has continued to improve throughout 1989 and '90, with the Gross Domestic Product growing by 3% over this time. Employment has been rising. Furthermore, since the signing of the Economic Solidarity Pact ("the Pact") was announced in December of 1987, public sector deficit has been declining, and the annual inflation rate has fallen from 160% in 1987, to 52% in 1988, to 20% in 1989. The 1990 figure is expected to be something like 25-27%. -Mexico has been helping alleviate the oil crisis in the past few weeks, increasing its exports by 100,000 barrels/day over this time. & MEXICO annershiptor Grovin A Message to U.S. Exporters From Secretary of Commerce Robert Mosbacher An exciting new era in U.S.-Mexico relations is beginning as President Bush formally notified Congress on Sept. 25 of his intent to enter free trade nego- tiations with Mexico. This issue of Business America is devoted to the evolving commercial cli- mate in Mexico. I strongly encourage you to take a close look at the magazine-and at the Mexican market. Economic reforms in Mexico are rapidly translating into growth for Mexico and business opportunities for U.S. exporters and investors. President Bush has said of our relations with Mexico, "Together we've improved opportunities for bilateral trade and investment and nurtured our environment." A free trade agreement would continue to improve our economic relations and foster substantial rewards for the United States and Mexico. The U.S. Department of Commerce, with its Mexico division, 67 domestic field offices, and three commercial offices in Mexico, stands ready to help you take advantage of this new U.S.-Mexico partnership. 2 Business America, October 8, 1990 11 30 16:26 003 / SIGNATURE UNITED STATES DEPARTMENT OF COMMERCE Office of the Secretary Washington 00 20230 of STATES REVISED 11/8/90 6:00 PM INVITATION STATUS SECRETARIAL/PRESIDENTIAL MEXICAN FTA MEETING ACCEPTS Maurice Greenberg Chairman, President and CEO AMERICAN INTERNATIONAL GROUP, INC. 212/770-7000 Heinz Prechter Chairman ASC INC. 313/246-0201 Riley Bechtel President and CEO BECHTEL GROUP, INC. 415/768-1234 Kay R. Whitmore Chairman, President and CEO EASTMAN KODAK COMPANY 716/724-4000 Trammell Crow Chairman TRAMMELL CROW COMPANIES 214/979-5110 Robert J. Stempel Chairman and CEO GENERAL MOTORS CORPORATION 313/556-5000 Thomas H. Cruikshank Chairman and CEO HALLIBURTON COMPANY 214/978-2600 Sam E. Barshop Chairman, President and CEO LA QUINTA MOTOR INNS INC. 512/366-6000 Gary Jacobs President LAREDO NATIONAL BANK 11/09/90 16:26 004 PAGE TWO ACCEPTS (Continued) Robert Day Chairman TRUST COMPANY OF THE WEST 213/683-4000 Jerry K. Pearlman Chairman and President ZENITH ELECTRONICS CORPORATION 708/391-7000 REGRETS William W. Adams Chairman and President ARMSTRONG 717/397-0611 WORLD INDUSTRIES, INC. James K. Baker Chairman and CEO ARVIN INDUSTRIES, INC. 812/379-3000 William D. Ruckelshaus Chairman and CEO 713/870-8100 BROWING-FERRIS INDUSTRIES, INC. Edgar S. Woolard, Jr. Chairman and CEO E.I. 302/774-1000 DUPONT DE NEMOURS AND COMPANY Ken Lay Chairman, President and CEO ENRON CORP. 713/853-6161 John F. Welch, Jr. Chairman and CEO GENERAL ELECTRIC COMPANY 203/373-2211 Edwin L. Artzt Chairman and CEO THE PROCTER AND GAMBLE COMPANY 513/983-1100 Document No. 90 OCT 23 A WHITE HOUSE STAFFING MEMORANDUM DATE: 11/23/90 NOON TODAY ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: SIX SPEECHES FOR STATE VISIT TO MEXICO ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH CARD UNTERMEYER CICCONI ROGERS DEMAREST WINSTON FITZWATER PINKERTON GRAY BOSKIN HAGIN HOLIDAY REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than NOON TODAY, Friday, November 23, with a copy to my office. Thank you. RESPONSE: OMB Phone in comments NB James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 0000269 THU 22 NOU 90 19:41 PG.01 PRESIDENTIAL REMARKS: CASINO MEETING MONTERREY, MEXICO TUESDAY, NOVEMBER 27, 1990 11:45 A.M. Secretary Serra, Secretary Mosbacher, Mrs. Hills, friends. Thank you, Mr. President, for that kind introduction and for the warm friendship that has grown between our families and our countries. You know, forty-seven years ago, the last American President to visit Monterrey, Franklin Roosevelt told of his hopes that one day every Mexican and American President would feel at "liberty to visit each other just as neighbors visit each other"-- just as neighbors talk things over and get to know one another." Today, that dream of a special relationship between the United States and Mexico is no longer a dream. It is as real as the spirit and drive, the compassion and courage of this great Mexican President and his people. Bernal Diaz, a great 16th Century writer, once wrote of Mexico "that never in the world would there be discovered other lands such as these." The Mexico of 1990 lives up to that early vision. Yours is a land of beauty and the boundless energy of a creative people. It is a land of optimism and a land of infinite opportunity. You are a nation proud of yesterday and hopeful for the future, and it is a future the United States wants to share. 0000269 THU 22 NQU 90 19:42 PG.02 2 It is easy to see why Mexico is so strong- and why the relationship between our two nations has never been more important or interrelated. Today, more people are crossing the borders joining our countries than ever before - crossing legally and establishing strong social, cultural and economic ties. Today, our governments are working closely to win the war on drugs -- a war that takes a terrible toll on the lifeblood of both Mexico and the United States. And our efforts are beginning to pay off as we see more illegal drugs seized than ever before. We also see more and more universities on both sides of the border developing exchange programs as we work to encourage intellectual achievement and better understanding between our peoples. And we have committed ourselves to protect our environment. But it is difficult to imagine any theme more vital than the one you are discussing this morning -- how the private sector can create and expand the economic resources that sustain our relationship as a whole. I can tell you that I am convinced that the most important step we can take together as nations and as two peoples with drive and determination is the passage of a Free Trade Agreement between the United States and Mexico. You know that free trade means more jobs and productivity for both Mexicans and Americans. You understand the economic importance of the United States; and America, too, realizes the economic importance of Mexico. Consider that Mexico is now 0000269 THU 22 NOV 90 19:43 PG.01 Casino 3 America's third-largest trading partner -- $52 billion in trade in 1989, and this year's number should be even higher. Since every billion dollars of exports creates roughly 25,000 jobs, more cooperation means more prosperity for more people. I know there is no blueprint; no one size fits-all approach to progress and reform. Each nation in this region must decide how best to achieve economic growth. But it was President Salinas who said in his recent State of the Union Address, "Mexico doesn't want to the be a third world nation. It wants to be a first world nation. He understands that prosperity in this hemisphere depends on trade not aid. Already, your automotive, electronic, tourism and other industries have shown world-class productive capability and when you grow, we grow. A Mexico that wants to get out and compete has selling power, but it also has buying power. That's good for Mexico and good for America. Negotiating a Free Trade Agreement won't be easy. We will hear criticism -- just as we did when we negotiated the Free Trade Agreement with Canada. But we should remember what trade liberalization can and already has done. In 1988, Mexico entered the GATT-- and bilateral trade duio soared to $52 billion -- up $17 billion from the year before, phoned in The bond industry took hold and reached growth rates of 20 percent a year, creating half-a-million jobs. Virtually, everyone favors free trade, but not everyone has the vision to make it a reality. I believe Mexico and the United States do -- 0000269 THU 22 NOU 90 19:44 PG.01 4 and I ask you not only to help make it happen but to make it succeed. Both our peoples can then look to a future of peace and prosperity. A proud future for two nations sharing not just common borders -- not just common ideals but a friendship that last generations. Thank you for your kindness and a truly wonderful visit. Thanks to my good friend President Salinas -- and God bless the great nation of Mexico. # # # 11/23 - Don Johnson (NSC) - (merico speak) - -hatel -typ CEOS - of both cantrier - 14 from each counts? -8-9 a.m. -5-6 minute - deject - we are unity to FTA there tye can play migh dein mrs at 23y -to sund - red to build could on wer Centre - print S wh in 5 you - full unit. to effect -Call on the to help out -F TA - will he goodfu all jegelar crate July, geputation, prite sets due purjects - - 50 b. in made in 1989- -pey full - real you help -unh army bardy, his dry pyle fun hith step 1 - male into had in Cagree - FOCUS - the Meths to CB, an the - very purely, very 5 but - agarela, me jeatil- Legger uroqual sene myr 1 ness worlds -- to state my absolute and unequivocal commitment to the Federal Trade Agreement. III This precedent-setting, bilateral compact is a tremendously exciting proposition that will be good for all our peoples. It will bring a dynamic new future of prosperity for our countries. What could be a more powerful idea than a two-nation committment to creating jobs and business opportunities by involving the private sector? 111 There is one aboslutely crucial element for the FTA's success. And that is you. You can play a major role in making this work. 11 You can play a major role in our nations' economic futures. For the FTA to succeed, we must build a coalition of cooperation that will bridge our borders. 111 The FTA has my full committment -- and that of the Mexican government. Now we need the same from you. We need the top businessmen from both countries to show their unconditional enthusiasm for this venture. And we need to hear your voices of support in the halls of Congress, too. 11 The FTA matters deeply to the U.S. I pledge to do all I can to make it a dramatic success. And I do so trusting that all of you will be behind me. Abraham Lincoln left legacies of powerful words which have been adopted and admired by both our countries. Something he said struck me as relevant to the work we are beginning -- together -- today. This great man of the people said: "Towering genius disdains a beaten path. It seeks regions hitherto unexplored. "\\ We're looking toward the FTA to lead us -- all of us -- as we venture together into more unexplored regions of economic creativity. Thank you, good luck, and God Bless our countries. (Hinchliffe) November 23, 1990 2 p.m. CEO PRESIDENTIAL REMARKS: AMERICAN-MEXICAN CEO BREAKFAST Tuesday, November 27, 1990 Monterrary, Mexico Thank you for that warm welcome. I'm glad to be here, among friends who understand the very special bond our two countries share. 11 You know, there's something else we share, too: a trad- ition where people turn their backs on work, close their eyes and go to sleep. You call it a "siesta." We call it "Congress." III I've always felt a kinship with Mexico -- I spent so much of my life just over the border, in Texas. But I tell you, coming here now feels different. There's a kind of excitement in this country today -- and it's made up of pride in your very real accomplishments -- confidence in your strength -- and optimism that says: "bring on the future, we're ready, we can't wait.' " 111 We want to share that future with you. As we share so much already. Together, we've improved opportunities for bilateral trade and investment -- spurred by our agreements in 1986, 87 and 89. As a result, trade between our nations is expected to swell to an all-time high of $60 billion this year. 11 Mexico is our third largest trading partner and third largest export market: as a matter of fact, trade between our countries has risen by 75% since the first of those agreements was signed four years ago. U.S. businesses have invested over $5.5 billion in Mexico; and it has invested over $1 billion in our country. 11 And this is going to increase. I am delighted to have this opportunity to meet with you -- the leaders of our nations' busi- # # # # our Commerce secretaries have recently established the Joint Committee for Investment and Trade. We're excited to watch -- and learn from -- the growth of your economy. The GDP has grown 3% in just a year; employment has risen; and in two years the inflation rate has fallen from 160% to 20%. I recall President Salinas' pledge in his recent State of the Union address: "Mexico doesn't want to be a third world nation. It wants to be a first world nation." Well, already under his gifted leadership, economic reforms here have rapidly translated into growth for Mexcio and business opprortunities for U.S. exporters and investors. We see lessons accomplished here that we want to tell the world about. With courage and political determination Mexico has stared down the threat of economic collapse and has wrestled that crisis into control. We know it wasn't easy. Tax reform and cuts in spending can be difficult at first. But now your country's budget is for all intetnsna nd purposes balanced. What a tremendous example. And at the same time you have reversed tracks and moved from protectionist view of trade to becoming one of the most open ecnomics in the world. You've reduced importa barriers and have become a world player in industries like computer chips, satellite components, teleivision, and cars. And by liberalizing regulations, you have opened up to foreign capital in a broad- based way. And one more dramatic point: Mexico has always met its payments on foreign debt. This dependability has encouraged bond market financing of new understakings in this country. THE WHITE HOUSE Uh WASHINGTON October 28, 1990 MEMORANDUM TO: DAVID DEMAREST CHRISS WINSTON SPEECHWRITER/RESEARCHER TO BE ASSIGNED FROM: CAROLYN CAWLEY SUBJECT: PREADVANCE TO MONTERREY, MEXICO President Bush will be traveling to Monterrey, Mexico November 26 -27, 1990. Mrs. Bush and Secretary Baker will accompany him. The proposed schedule is as follows: November 26, 1990 11:45 a.m. Arrive Monterrey, Mexico. Welcomed by Foreign Minister Solano 12:00 p.m. Helicopter departure to Agua Leguas, hometown of President Salinas 12:30 p.m. Meet President and Mrs. Salinas at an informal arrival 12:50 p.m. Rodeo demonstration at the local corral 1:45 p.m. Barbecue for the townspeople hosted by President Salinas. 5000 attendees expected. Very brief remarks -- Hello, thank you for the hospitality, etc. 3:15 - Downtime and private meetings 5:00 p.m. 5:00 p.m. Depart for Monterrey 5:30 p.m. POTUS and President Salinas arrive Monterrey for official arrival ceremony with full honors 5:40 - Government Palace -- they'll be received by 6:30 p.m. thousands of citizens in the Plaza. Firework displays and brief remarks by both Presidents. 6:30 p.m. End of official day November 27, 1990 9:00 a.m. Private One on One Meetings between the two Presidents. Photo opportunities. 9:20 a.m. Expanded bilateral meetings 10:40 a.m. City Theatre ---- 15 minutes of remarks by each President. 1400 attendeees representing a cross section of the citizens of Monterrey. 11:45 a.m. Casino Monterrey --- join the end of a meeting between Mexican business leaders hosted by Secretary Mosbacher and Trade Representative Hills. 250 attendees. Very brief remarks. 12:30 - Palacio Gobierno - Dedication Ceremony for a 12:45 p.m. new Mexican - American Studies Institute. Very brief remarks. 1:00 - Palacio Gobierno -- Official Luncheon. 150 2:05 p.m. attendees. Toasts. 2:30 p.m. Arrive Airport 2:45 p.m. Depart Monterrey, Mexico for Andrews AFB PREADVANCE NOTES -- MONTERREY, MEXICO Contacts: Bob Earle, Embassy PAO (Mexico City) Bob Gibbons, US Consulate in Monterrey On economics: Paul Trivelli, US Embassy in Mexico City Don McConnell, US Embassy in Mexico City Notes of Interest: The Agua Leguas Rodeo and Barbecue: Agua Leguas means "Far Waters". It is President Salinas' ancestral home. It's located about 1 1/2 hours from Monterrey by car. Extremely rural small town. The town square is about all there is. The BBQ is expected to draw 5,000 people, many of whom will be Mexican children. This is really down home entertainment by President Salinas -- any remarks should acknowledge POTUS' pleasure at having been invited to this small town, the wonderful hospitality, etc. Draw on the years he spent in Texas etc. The BBQ plaza is down the street one half block from the Salinas home. -- Benito Juarez is known as the Father of Mexico. The dedication ceremony room at the Palace is named for him. -- You may also want to check up on Octavio Paz, recent Nobel Prize winner for literature. I was told he is very popular with the Mexican people and also very quotable for POTUS. -- A major landmark in Monterrey is Saddle Mountain. It does resemble a saddle and is visible from virtually everywhere. See photos. -- Note that Monterrey is a very small city that is far from everything else in Mexico. It's flat, but surrounded by hills. The countryside around it is almost desert-like, strewn with sagebrush and tumble weed. The land between Monterrey and Agua Leguas is virtually unpopulated, except for shack once in a great while. Monterrey is located in "Estado de Nuevo Leon" the state of the new lion. (check this translation!) Though it's far from everything else, Monterrey is Mexico's #2 industrial center. It's the home of a group of 10 conglomerates in steel, glass, and beer. The story says two guys decided to produce beer and decided they should also produce the bottles, then the caps, etc. All of Mexico's major brands of beer are made here. It's boom came in the 1890's with the railroad, though it has been a trading center since the 16th century. -- The national symbol, seen in all the government buildings including the facade above the podium for the Palace/ firework speeches is: an eagle landing on a cactus. It is an Aztec symbol for the founding of Mexico. --- I was told that FDR was the last US President to visit Monterrey, in April 1943. Reagan visited Y Mexico, though not Monterrey. Check on Bush's visits as VP. - You may want to look into Lincoln quotes for these speeches. I saw several quotations of his displayed in various buildings, though they were in Spanish and I didn't have time to write them down. The City Theatre is a very modern structure. The main auditorium, site of the speeches, is gray and black and fairly nondescript. It's mainly used for performing arts. There are two tiers of seats, just like any performance hall. Palacio Gobierno is a huge and magnificent structure at one end of a major plaza. The plaza has a big fountain in the center and has 4 statues of historical figures. See photos. The mountains in the distance appear larger than life. The two Presidents will appear on the front steps of the Palace and will make brief remarks there following a fireworks display. Palacio Gobierno Luncheon. Luncheon for 100-150 guests. It will be held either in an open courtyard or an enclosed one topped with stained glass. Salon de Benito Juarez. Room for the dedication ceremony for the Mexican-American Studies Institute. The program is a joint venture between the University of Nuevo Leon/ the Monterrey Technical Institute and US Universities. I couldn't find anyone to tell me more. Best to check with Bob Earle, PAO at the Embassy in Mexico City! United States Information Service (mbass) of the United States of 647-8386 Me.ru. 01 USIS November 8, 1990 MEMORANDUM TO: ARA - Ms. Salley Grooms Cowal ARA - Mr. Richard Howard FROM: CPAO - Robert L. Earle Ri SUBJECT: Draft Presidential Public Remarks and State Luncheon Toast I have prepared drafts for all the President's public remarks during the State visit, including "contingent" remarks for various sites where he may or may not be asked to speak. All these texts have been cleared by the Ambassador and Country Team. The attached drafts are presented in the order in which I expect they will be delivered. They are: CONTINGENT PRESIDENTIAL REMARKS SHOULD ARRIVAL STATEMENT BE NECESSARY AT MONTERREY AIRPORT CONTINGENT PRESIDENTIAL REMARKS IF ARRIVAL CEREMONY IS HELD AT AGUALEGUAS DRAFT PRESIDENTIAL REMARKS AT FIESTA FOLLOWING CHARREADA IN AGUALEGUAS DRAFT PRESIDENTIAL REMARKS ON STEPS OF GOVERNOR'S PALACE DRAFT PRESIDENTIAL REMARKS ON RECEIVING KEYS TO MONTERREY DRAFT PRESIDENTIAL REMARKS ON CREATION OF U.S. - MEXICO COMMISSION ON EDUCATIONAL AND CULTURAL EXCHANGE DRAFT PRESIDENTIAL REMARKS FOR USE AT MEETING WITH BUSINESSMEN IN MONTERREY CASINO DRAFT PRESIDENTIAL TOAST AT STATE LUNCHEON DRAFT PRESIDENTIAL STATEMENT FOR USE, IF NECESSARY AT MONTERREY AIRPORT DEPARTURE CEREMONIES Attachments DRAFT PRESIDENTIAL STATEMENT FOR USE, IF NECESSARY AT MONTERREY AIRPORT DEPARTURE CEREMONIES NOVEMBER 27, 1990 President Salinas, Governor Trevino, friends and neighbors: 1 leave Monterrey more firmly convinced than ever before that Mexico and the United States are seizing every opportunity to prepare our bilateral relationship for the global competition of the 1990s. In my talks with President Salinas, we agreed on the need to advance both the Uruguay Round of GATT and our biloterol Free Trade Agreement as expeditiously as possible. There's no time to lose in modernizing our economic cooperation and putting it to work in creating Jobs, raising productivity, and facilitating cost-effective - investments. A strong Mexico is good for the United States, a strong United States is good for Mexico, and free trade Is a sure path to greater prosperity for us both. 2 At the same time, we discussed ways to ensure that our societies are as healthy as our economies are dynamic, The war against drugs, educational and environmental cooperation, and close coordination all along our 2,000 mile border are ways to reach this goal. President Salinas, your leadership has done $0 much to make a strengthened partnership between Mexico and the United States possible. Your for-sighted commitment to modernization, eloquently expressed in your recent State of the Nation address, points the way to biloterol cooperation that simply is better than ever, My impression these lost two days persuade me that 0 new Mexico is in the making. Monterrey's industrial resilience, Agualeguas' heart, and Nuevo Leon's energy give Mexico's future unique promise. Our relationship, our hemisphere, and our world are sure to be the benficiaries of your success. Barbara and I thank you and Cecello for your wonderful hospitality, and we look forward to receiving you both when we next meet in the United States. Thank you very much. DRAFT PRESIDENTIAL TOAST AT STATE LUNCHEON NOVEMBER 27, 1990 President Solinas, If 1 may, I would like to raise my glass to you In thanks for your friendship, your counsel and your commitment to a stronger relationship between our two countries. When we first met in Houston in 1988, neither of us had assumed office, but both of us were fully aware of the challenges we would face in giving this relationship leadership and direction. Speaking for the United States, no country is more important to us than Mexico, Our southwest bears the imprint of your culture. You are our third largest trading partner. Twelve million Americans call Mexico their madre patrio, and challenges such as conflict in Central America and powerful narco-traffickers in the Andes test our will and our wisdom. Yet in Houston and in our five meetings since then, you olways have brought Mexico's perspective into positive focus, pointing the way to the kind of communication and cooperation that has benefitted us both so much. is 2 Perhaps no gesture of Mexico's goodwill and Interest has been more expressive than the magnificent exhibition, "Mexico: Thirty Centuries of Splendour," now on display at the Metropolitan Museum of Art in New York, Now we are on the verge of negotiating an historic Free Trade Agreement which will be the symbol of how for our two countries have come in learning to understand, trust, and work with one another, This agreement will unleash powerful energies in both our economies. Countless new ventures will emerge. Jobs, higher-standards of living, and greater productivity will make us both more competitive on the global scene. Mr. President, a relationship between two countries that are so different will olways be a challenge, but your penetrating insight Into our common interests and losting friendship has radically altered its terms for the better. - 3 - In your second State of the Nation address, you emphasized Mexico's determination to reach out to global change and seek to embrace it. Without minimizing uncertainty, you saw fresh hope. Without ignoring risks, you celebrated new freedoms, Mr. President, I share you views and celebrate them myself. We are not on an easy poth, but 1 firmly believe we are on the right one, and there is no one with whom I would rother travel It than with you and the Mexican people. I roise my glass to the great leader of o great nation, President Carlos Solinas de Gortari, DRAFT PRESIDENTIAL REMARKS ON STEPS OF GOVERNOR'S PALACE November 26, 1990 President Salinas, Governor Trevino, Mayor Rizzo, friends and neighbors: Thank you for your worm words of welcome. It's wonderful to be in Mexico, and it's wonderful to be in Monterrey. As 1 look out at this beautiful Macro Plazo, 1 realize that I stand before Mexico's greatest heroes. Hidalgo and Morelos, who set this greot nation on the road to Independence, Juorez and Escobedo, who defined and defended the principles of Justice and freedom that guide the Mexican state even to this day. President Carlos Salinas de Gortori, who is modernizing Mexico within its own cherished framework of values and beliefs. And the Mexican people themselves, oll of you here tonight, who have helped create this great city of Monterrey, this great state of Nuevo Leon, and this great country of Mexico. - 2 . I come here myself to show the enormous respect the people of the United States have for your dynamism and vigor, We are all As know, I am a Texan, 0 neighbor near at hand. And I think the time I've spent under the big sky down here Westerners you who came to these once barren lands two scek our gives me all the more reason to admire your vision and fortunes, to develop our wilderness ad to shape on values. your accomplishments. When Franklin Delano Roosevel come to Monterrey in 1943 to meet with President Avila Camacho, Texos and Mexico were quiet parts of the globe, for away from the center stage of a world at war. West to Texas Re When my wife Barbara and I come south after the war WUS OVET, we never imagined that forty years later we would be visiting 0 border that might well be colled the frontier of the future. Yet that is the splendid course history has taken. Mexico and the United States ore on the move. And in our consultations President Salinas and I are discussing how we con go even further in building a stronger relationship. full of exciting new Ideas and oppor tunities. - 3 . We want to see If we can advance the idea of free trade, $0 vital to der creating Jobs and prosperity in your economy and our own. We want to consult on how we can put on end to the scourge of drugs, $0 threatening to our youth, We have a precious environment to Subrits protect and future generations to educate--these are themes we must address as well. And of course there Is 0 changing and in some cases troubled world beyond our borders. What can each of us do to make peace and prosperity the foundations of a new world order? The reconstruction of Central America, the peaceful restoration of the legitimote government of Kuwoit, and the successful conclusion of world trade tolks under GATT are 0 few of the themes topics we olreody have begun to discuss. What we seek, to put it simply, is a world that looks like the U.S. -Mexico relationship itself--oriented towards cooperation, communication, and respectful partnership in seizing the mony opportunities that lie before us. Looking out at you and the statues of your great men, it's clear to me that history is on our side. Abundant moral reserves give US direction and give US courage. And in President Salinas, I know I have the kind of friend who will answer any challenge with the same ideals that move me and the people of the United States. Hard work, total candor and full respect will be our guides as we Join together in building a stronger Mexico, a stronger United States, and 0 better world. Thank you for your warm reception, God bless you all, and vivo Mexico: DRAFT PRESIDENTIAL REMARKS AT FIESTA FOLLOWING CHARREADA IN AGUALEGUAS November 26, 1990 President and Mrs. Salinas: Let me Just say how delighted Barbara and I are to be here In your home town of Agualeguas and to be oble to spend the kind of informal time together we shared at Comp Dovid last year, To Mayor Reynaldo Canoles Vela, and the people of Agualeguas: Let me Just say how thrilled we are to Join you, and how deeply grateful we ore for your wonderful hospitality. It's obvious to me where your President gets his special touch and why he is so close to the needs and feelings of the people of Mexico. He comes from the people right here in Agualeguas, and he hos never lost his roots in the smoll town family values of community and family. There trust here, and wormth and some of the bes horsemanship I've seen In years. - 2 - As 1 look around this pretty plaza, I realize this is a glimpse of Mexico I'll never forget. Mr. President, thank you so much for having us here among your family and friends. CONTINGENT PRESIDENTIAL REMARKS IF FORMAL ARRIVAL CEREMONY IS HELD AT AGUALEGUAS November 26, 1990 President and Mrs. Salinas, Mayor Reynaldo Canales Vela, friends, and neighbors: I come here today to carry on a tradition established by many presidents before us. Mexico and the United States are neighbors, close neighbors, and we have things to talk about. Like two sides of those beautiful mountains we see in the distance, we have risen up on the some continent and come together to build 0 vost relationship -- broad and solid at the base, weathered in places but strengthened by time, and arching upwards, geographico Our people, our cultures, our difficulties and our occomplishments all have brought US together. Monaging so much Interaction effectively always has been 0 chollenge, and It has never been more important to meet that challenge than today our In monymond and frequent talks with President Sulinos since Solinas It we both were elected, I think we have established a new our clority In this relationship -- about the problems we want to see solved, and the opportunities we think ought to be CONTINGENT PRESIDENTIAL REMARKS SHOULD ARRIVAL STATEMENT BE NECESSARY AT MONTERREY AIRPORT November 26, 1990 Foreign Minister Solana, friends and neighbors: I wont to soy first of all how pleased I am to be here in Mexico to consult with President Salinas and to hear the views of his closest advisors. This regular exchange of visits reflects the permonent importance Mexico has for the people of the United States, There's so much we con do together to ensure the health, welfare and prosperity of our societies and economies. At the top of the agenda rank Issues like free trode, the wor against drugs, education and the environment. They all require coreful assessment to sustain the kind of exciting moni toring progress we have seen in the U.S.-Mexico relationship over the last two years, attention And I know that's the kind of assessment they'll get. I'm proud to say that President Salinas and I have come to share a frank and open diologue on the full range of bilaterol and International issues. - 2 - In the next two days I look forward to spending time with him here in the part of the country he and his family call home. In the process, I'm sure that 1 will get to know Mexico and the Mexican people better, too, and that, most assuredly, is all to the good. Communication is the key to facing the many challenges that lie chead of us. It's the surest way I know of to strengthen an overwhelmingly positive bilateral partnership--a partnership based not Just on common interests but also on the friendship, candor and mutual respect that bind our two great nations so closely together. Thank you very much. DRAFT PRESIDENTIAL REMARKS FOR USE AT MEETING WITH BUSINESSMEN IN MONTERREY CASINO November 27, 1990 Secretary Serra, Secretary Mosbacher, friends and neighborsi We're making important progress In every dimension of our relationship with Mexico. More people cross the border than ever before. More illegal drugs are being seized than ever before. More universities are developing exchange programs than ever before. And more is being done between us to protect our precious environment -- up here along the border and as for south as the Lacondon tropical forest. But it is difficult to imagine any theme more important than the one you are discussing here this morning. You in the private sector create the economic resources that sustain our relationship as a whole, and that's why the negotiation of a Free Trade Agreement between Mexico and the United States is so vital. - 2 - Free trode means Jobs, investments, productivity and prosperity. I know you in Mexico have long understood the economic importance of the United States. Now we see Just as clearly the economic importance of Mexico. For US you are our number three trading partner in all the world. $52 billion dollars last year and the numbers are rising this year towards a total that is even higher. Since we calculate that every billion dollars of exports creates 25,000 Jobs, we are talking about major contributions to the welfore of many, many Mexicons and Americans. of Ua ww cup In his recent State of the Notion address, President Salinas soid Mexico doesn't want to be a third world nations it wonts to be a first world notion. Well, that's what we wont for Mexico, too, and that's what we see happening. In your automotive, electronic tourism and other industries, you have world-closs productive capabilities. More than that, you've got youth, drive, and dreams on your side. And we think that's good for us both -- 0 Mexico that wants to get out and compete, a Mexico with purchasing power and a Mexico with selling power, - 3 - When the economic crisis hit Mexico hard in the early 1980s, our southwest border suffered. Fortunately, the principle works the same way in reverse. You grow, we grow. As we enter into the process of negotiating 0 Free Trade Agreement, I know that many of you will be as burdened by worries as you are buoyed up by plans. And we'll hear criticisms, Just as we did when we negotiated the Free Trade Agreement with Canada. But let's look at what trade liberalization already has done for us, Mexico enters GATT, and bilateral trade soars from $35 billion in 1987 to the $52 billion 1 Just cited in 1989. The in-bond industry takes hold and reaches growth rates of 20% a year, creating a half a million Jobs, There's a worldwide consensus in favor of free trade, but not everyone has the vision to make it happen. I think Mexico and the United States do have that vision, and we will be looking to you, far-sighted businesspeople, not only to make it happen, but to make it succeed. Thank you very much. DRAFT PRESIDENTIAL REMARKS ON CREATION OF U.S. - MEXICO COMMISSION ON EDUCATIONAL AND CULTURAL EXCHANGE November 27, 1990 President Salinas: This agreement, creating the U.S. - Mexico Commission on Educational and Cultural Exchange, is 0 major step forward for us oll. It will help us develop the future leaders we need to sustain the policy advances our two governments are working $0 hard to achieve. Further, it will bring our two societies closer together in new and creative ways, generating fresh approaches to our evolving cultural and intellectual realities. I cannot think of a better symbol of our friendship than a binational commission that is directed by a board drawn from the private and public sectors alike. This guarontees that the right questions olways will be asked, and the best answers olways will be given. Thank you very much. Sally Shelton-Colby What We Could Learn From Mexico The sad spectacle of the U.S. political lead- the equivalent of three Gramm-Rudmans. U.S. ership's fruitless negotiations over the past Would that our government could achieve even several months-or is it years now?-to re- one. duce the country's increasingly hard-to-finance The United States runs chronic trade defi- budget deficit has prompted some observers to cits, and protectionist sentiment, especially in talk about the "Latinamericanization" of the Congress, is strong. The most recent manifes- U.S. economy. They refer, presumably, to tation, coming on the heels of many others, is Latin America's unhappy experience for almost the textile bill. Though vetoed by the president, a decade with huge external debt, large budget it reflects a political consensus in this country BY ED FISCHER FOR THE ROCHESTER POST BULLETIN deficits fueled by too much spending and too that certain sectors, both industrial and agricul- few taxes, and closed economies protecting tural, still need to be protected. Compared with inefficient local industry. Indeed, this character- a decade ago, restraints on U.S. imports have Mexico, on the other hand, is moving head- Without doubt, Mexico's strong presidency ization of the U.S. economy seems uncomfort- doubled. At least 20 percent of U.S. imports long toward opening up to foreign capital. It and relatively weak congress have made these are limited by some form of non-tariff barrier, has long dramatically liberalized foreign invest- dramatic reforms somewhat easier than they ably apt. thus not only depriving the consumer of cheap- ment regulations, even permitting foreign capi- However, at least one Latin American coun- would be in a society like the United States', er imports but also subsidizing noncompetitive tal into the heretofore sacrosanct petrochemi- try stands out as a model of economic modern- where a powerful Congress can and does stand ization, and the United States would do well to industry. cal, telecommunications, steel and banking up to the White House. But the explanation sectors. Crude-oil production and even electric- emulate its commitment to budget and tax Mexico, on the other hand, has dramatically behind Mexico's success and the United States' ity may well open up in the near future. In reform. Mexico-yes, Mexico-has demon- reduced import barriers, transforming itself failure lies less in the nature of their political addition, billions of dollars of Mexican and strated greater courage, foresight and political from one of the most closed economies in the systems than in the nature of their leadership. foreign capital are flooding into Mexican trea- will to tackle its economic problems than has its world to one of the most open. Non-oil exports sury notes and into the Mexican stock market, President Carlos Salinas, against consider- more powerful neighbor to the north. And it is have quadrupled, and Mexico has become a one of the world's fastest-growing. As contrast able odds, has stood up to those in his country, now beginning to enjoy the fruits of those world-class producer of automobiles, automo- ed with the troubled American exchanges, the including those in his own party who wanted to endeavors. tive parts, televisions, computer chips and Mexican bourse grew by 94 percent in dollar keep Mexico from modernizing. While Mexico Obviously the countries are vastly different satellite and aircraft components. terms in 1988, 68 percent in 1989 and 21 still has daunting problems, Salinas has gone in terms of their economic power. Neverthe- Foreigners are losing confidence in our in- percent so far this year. much farther than the United States in correct- less, they share startlingly similar problems, ability to solve our budget and trade problems. It should be kept in mind that while carrying ing structural imbalances in the economy. Pres- which Mexico has done a better job of solving. They are now investing considerably less in the out these far-reaching and painful reforms, ident Bush and the leaders of Congress can After a long spending spree, Mexico's budget United States, making it much more difficult Mexico never missed a payment on the debt learn a lesson from our neighbor to the south. deficit soared to 18 percent of gross domestic for us to finance the world's largest national owed to its external creditors. Global financial product by 1982. Through a combination of debt-that is, our own. At the same time, markets are finally recognizing the seriousness The writer, a deputy assistant secretary of gut-wrenching cuts in spending and far- sentiment in the United States, especially in and irreversibility of Mexico's policies, and for reaching tax reform, Mexico's budget today is the first time in almost a decade, the bond state for Mexico from 1977 to 1979, is a Congress, is shortsightedly moving toward re- essentially in balance. Mexico delights in point- stricting foreign investment, just when we need markets are voluntarily financing development consultant to U.S. and Japanese ing out, accurately, that it has put into effect it most. projects there. corporations and banks on Latin America. Post 11-21-90