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Latin American Trip [OA 4424] [2]
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Latin American Trip [OA 4424] [2]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Mary Kate Grant Subject Files
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George H.W. Bush Presidential Records
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Speechwriting, White House Office of
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Grant, Mary Kate, Files
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Latin American Trip [2]
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19
2
7
6
Oct. 3 / Administration of George Bush, 1989
Appointment of J. Brian Gaffney as a
and they're educational, they're political,
Member of the Board of Directors of
they're economic, they're environmental.
the Federal National Mortgage
And our ties rest on respect, maturity, and
Association
communication, consultation. And the
October 3, 1989
values that we cherish links our cultures:
values of faith, family, and respect for tradi-
The President today announced his inten-
tion.
tion to appoint J. Brian Gaffney to be a
As a young man, Mr. President, you did
member of the Board of Directors of the
study in the United States. And you know
Federal National Mortgage Association for a
us well, and you came to understand our
term ending on the date of the annual
meeting of the stockholders in 1990. He
ties. And I, too, revere them. For, as a
would succeed Al Cardenas.
Texan, I've lived many years side-by-side
Since 1960 Mr. Gaffney has served as a
with Mexico and know and appreciate your
partner with the law firm of Gaffney, Pease
beautiful country and its wonderful people.
and DiFabio in New Britain, CT.
Such understanding, I think, leads to trust,
Mr. Gaffney graduated from the Universi-
and such trust can lead to progress. Speak-
ty of Notre Dame (B.A., 1955) and Fordham
ing of trust, I trust that you dried out from
University (LL.B., 1958). He was born
the golf cart tour of Camp David on
March 25, 1933, in New Britain, CT. Mr.
Sunday. [Laughter] There was a true down-
Gaffney served in the U.S. Army, 1959-
pour. President and Mrs. Salinas came up
1963. He is married, has six children, and
there in the mountains. But I was anxious
resides in New Britain, CT.
for the President to look around, so he and
I set out on a golf cart in this driving rain.
Barbara was convinced that I had just dealt
a severe blow to Mexican-United States re-
lations. [Laughter] It is this kind of trust
Toasts at the State Dinner for President
that I'm talking about. For, from its earliest
Carlos Salinas de Gortari of Mexico
days, your administration has acted as our
neighbor and equal partner, and known
October 3, 1989
that by applying our resources to common
President Bush. To President and Mrs.
problems we can ensure a richer life for all.
Salinas and honored guests and ladies and
Now, let us determine to do more. And
gentlemen, Barbara and I are just delighted
let us increase bilateral trade and achieve
to welcome you to the White House. Your
economic growth. Let's expand cooperation
country, sir, has often extended to us that
and enhance investment opportunity. And
kindness for which Mexico is so famous.
let us support democracy in our hemi-
And tonight, we are honored to have you
sphere, and thus, regional security and sta-
both here.
bility. We must also reaffirm our commit-
We first met last November, sir, in Hous-
ment to combating narcotics; that is both a
ton, Texas. We met, if I might add this
national priority and a hemispheric crusade.
personal note, the day after your Harvard
And I thank you, sir, for your fantastic coop-
football team fell to the mighty men of
eration in this regard. For unless we defeat
Yale. It seemed at the time like an inauspi-
drug use and trafficking, we will help rob
cious start, somehow. But we've learned
our children of their very dreams.
anew how special the relationship-you're
There's an ancient proverb which goes:
trying to get even-{laughter}-the rela-
"God guides whom he wills to a straight
tionship between Mexico and the United
path." Mr. President, let our path be
States can be, this relationship which has
straight and true, affirming all that which
been, and continues to be, bound by so
unites us, and so enrich this generation and
many ties. And we've become good friends.
all the generations to come. In that spirit, I
And those ties, of course, include our 2,000-
ask all of you, our guests here this evening,
mile border and billions of dollars in trade,
to rise and raise your glasses to Mexican-
1498
Administration of George Bush, 1989 / Oct. 3
American friendship, to a better world for
ing and solidarity he has shown which en-
our children and all children, and to the
abled us to reach a successful outcome to
health and happiness of our friend and col-
this important process so essential for our
league, the President of Mexico, and Mrs.
growth.
Salinas.
In Mexico, we are determined to modern-
President Salinas. President George
ize our country. We Mexicans are seeking
Bush, Mrs. Barbara Bush, ladies and gentle-
the best way to mobilize the full potential
men, dear friends, I would like at this
of social energy, of groups, and of regions.
dinner to express my gratitude to the
Despite a severe economic crisis, we have
people and Government of the United
not succumbed to apathy or despair. With
States for the warmth they have shown to-
strong institutions we are currently striving
wards the Mexican delegation which I head.
to regain our growth and to continue trans-
I have found in President George Bush a
forming our economic structures and ren-
friend who is not only worthy of esteem,
ovating our political practices. Rights and
but also an outstanding leader who, in the
responsibilities are now becoming a salient
short time he has been in office, has man-
aged to give a new thrust to the United
feature of all social activities, the economy,
States and to national relations based on the
and politics. The needs and dreams of Mexi-
human understanding that is the legacy of
cans, especially those of modest means,
freedom handed down by the Founding Fa-
demand this major transformation.
thers of this great Republic.
Trade exchanges worldwide have intensi-
We Mexicans, President Bush, have been
fied significantly with the shortening of dis-
witnesses to your willingness to engage in
tances. Accordingly, exchanges between our
frank, open, and substantive dialog. This has
countries are increasingly dynamic and di-
been a good starting point for embarking
versified. Trade offers an extraordinary po-
on a different phase in our bilateral rela-
tential for mutual benefits and for growth,
tion. The same applies to the Congressmen
which is essential for my country. Few
and officials with whom we have held fruit-
economies have opened up as much and as
ful talks on both sides of the border that
rapidly as Mexico's. A similar opening up of
have led to improved understanding be-
the American market would not only repre-
tween our peoples.
sent reciprocal treatment but a stimulus to
I have come to the United States with the
our new friendship. A renewed period of
intention of establishing a new relationship
gradual growth will enable us to assign re-
of friendship. Free of myths and mistrust, I
sources to investment, to the strengthening
have come determined to stress common
of the domestic market, and to the genera-
points of view and shared ideals, to pave
tion of employment for the one million
the way for a mutually respectful united
young people who currently demand it. My
and solitary progress as neighbors towards
aim is for all Mexicans to find work in
the future. We are aware of the historical
Mexico. However, the differences between
difficulties that we have had in our relations
our economies attracts Mexican labor to
and of the problems that are still pending.
contribute to the development of the
Nevertheless, we are sure that the time has
United States. We can do much to abolish
come to derive mutual benefits from the
mistreatment of workers on both sides of
advantages of the border that joins us,
the border and to ensure respect for their
thereby strengthening the identity of each
dignity.
nation at a time of profound worldwide
My government views the in-depth fight
changes.
against drug trafficking as a tireless battle.
In Mexico, we are presently experiencing
We have not hesitated to resort to political
a time of renewed social optimism. On con-
will and economic resources to put an end
cluding an important stage in the process of
to the international crime. Many Mexican
renegotiating the foreign debt a few
lives have been lost in this struggle. We
months ago, we provided Mexicans with a
know, however, that stamping out the traf-
new horizon for progress. I extend my grat-
fic in drugs is a matter of national security
itude to President Bush for the understand-
to us, of preserving the health of our youth
1499
Oct. 3 / Administration of George Bush, 1989
and the basic principle of international soli-
Statement by Press Secretary Fitzwater
coming
darity in the face of an evil that affects us
on Economic Assistance for Poland and
in FY
all. No one can feel untouched by it as long
Hungary
already
as there are teenagers trapped in addiction
October 4, 1989
We
while their families look on helplessly.
trade
Bilateral cooperation between our coun-
The world has watched with wonder as
Congre
tries will be enriched by concrete actions
Poland has moved-swiftly and peacefully-
access
undertaken by both Governments to halt
to form a new government under Prime
Prefere
environmental pollution on our common
Minister Mazowiecki, the first non-Commu-
seas Pr
border, to make joint progress in restoring
nist government in Eastern Europe in more
to oper
the purity of the air and water in both terri-
than 40 years. We salute Prime Minister
18, the
tories, and to engage in common efforts to
Mazowiecki, President Jaruzelski, Solidarity
grant
protect the tropical forests that are the
leader Lech Walesa, and so many other dis-
Nation
lungs of the world. Allow me to add, Mr.
tinguished Polish leaders for their courage
the Hu
President, that with this cooperation re-
and wisdom in helping bring about a new
tion le
garding the environment and to halt envi-
beginning for Poland.
We h
ronmental pollution, that will enable the
From the very start of this administration,
tivity o
children in Mexico to paint the sky blue
President Bush has taken the lead in sup-
the U.S
again and to find the stars in the sky.
porting reform in Poland and Hungary. At
should
Out of culture, a valiant history-invinci-
Hamtramck, Michigan, in April, on the day
and Hu
ble in the face of adversity-has been
of the signing of the roundtable agreement
to thos
forged. It is the source of our self-assurance,
in Poland, the President announced a set of
hosted
our identity, in opening our doors to the
measures to open U.S. markets and encour-
he urge
world and participating in its transforma-
age private sector loans and investments. In
vate S€
tion. By strengthening ourselves as an inde-
July, he visited Poland and Hungary and
educato
pendent nation in today's interdependent
spoke before the Polish Parliament, as well
gaged i
world, cooperation between us will prosper
as to a massive gathering at the Solidarity
change
and our relation as neighbors will become
monument in Gdansk. He announced a fur-
Dole V:
the new friendship of the coming decade.
ther comprehensive package of assistance
an agre
measures to support Poland's economic and
assistan
President Bush, Mrs. Bush, you have
political regeneration, a package which took
labor fi
given us a cordial welcome. In it, we see
account of the fact that Poland did not yet
Secreta
the spirit that sums up what has always ex-
have its new government or its new eco-
mission
isted between our peoples: the hope of
nomic policies in place. He announced a
and Am
sharing an era of mutual benefits, of explor-
similar program during his visit to Hungary,
crete p
ing areas of agreement, and of working side
which is also embarked on a promising path
investm
by side to shape a future of mutual prosper-
of political and economic reform. A few
of expa
ity. By joining our efforts, our two Govern-
days later, at the Paris economic summit,
redevel
ments can more clearly hear the wise, gen-
the President proposed and our summit
The C.
erous voice of the men and women who
partners agreed to a plan for concerted
past 2
give meaning to this meeting.
Western action to encourage and assist eco-
our effo
President Bush, in this new stage of re-
nomic reform and democratic change in
in the la
spect and friendship, let us join now in a
Poland and Hungary.
promise
toast to the strength of Mexico and of the
In early September, the administration
democra
United States; to a hemisphere with peace,
submitted to Congress a comprehensive leg-
beginnir
democracy, and development; to the begin-
islative proposal that would create a $100
toward
ning of a new friendship that inspires us to
million enterprise fund for Poland and a
unprece
live up to the expectations of our peoples;
$25 million fund for Hungary, as well as a
attempt
labor initiative and an environmental initia-
and to your own well-being and that of
state-cor
tive together totaling $20 million. In addi-
your-family.
system
tion to this $145 million proposal, and other
mocracy
initiatives taken by reprogramming existing
Polish (
Note: President Bush spoke at 8:11 p.m. in
resources, we have offered $100 million in
Mazowi
the State Dining Room at the White House.
emergency food aid to Poland in the
public ti
1500
United States
Information
Service
(ARDES) of the United States of AIRTRE
ME.RU. 01
USIS
November 8, 1990
MEMORANDUM TO:
ARA - Ms. Salley Grooms Cowal
ARA - Mr. Richard Howard
FROM:
CPAO - Robert L. Earle R-
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
aniots
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 TOAST AT STATE LUNCHEON
NOVEMBER 27, 1990
President Solinos, 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 potrio, and chollenges 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.
- 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-standords 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 on easy path, but I firmly believe
we are on the right one, and there is no one with whom I
would rather travel It than with you and the Mexican
people.
I raise my glass to the great leader of a great nation,
President Carlos Salinas de Gortari,
CONTINGENT PRESIDENTIAL REMARKS SHOULD ARRIVAL STATEMENT
BE NECESSARY AT MONTERREY AIRPORT
November 26, 1990
Foreign Minister Solana, friends and neighbors:
I wont to say first of all how pleased I am to be here In
Mexico to consult with President Salinos 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 trade, the war
against drugs, education and the environment. They all
require coreful assessment to sustain the kind of exciting
progress we have seen in the U.S.-Mexico relotionship over
the last two years.
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 dialogue on the full range of
bilateral 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 I 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 on overwhelmingly positive bilateral
portnership--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.
CONTINGENT PRESIDENTIAL REMARKS
IF FORMAL ARRIVAL CEREMONY IS HELD AT AGUALEGUAS
November 26, 1990
President and Mrs. Solinas, 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.
Our people, our cultures, our difficulties and our
accomplishments all have brought us together. Managing so
much interaction effectively olwoys has been 0 chollenge,
and it has never been more important to meet that
challenge than today.
In my mony and frequent talks with President Salinos since
we both were elected, I think we have established a new
clority in this relationship -- about the problems we want
to see solved, and the opportunities we think ought to be
- 2 .
seized. Progress, concrete measures taken across the
breadth of our immense relationship, is what each of us
seek.
That's the agenda for our discussions the next two days:
building prosperity through a Free Trade Agreement,
cooperating in the war against drugs, working together on
educational exchanges and the environment, and consulting
on the grave crisis that confronts us all in the Persion
Gulf.
By beginning these talks here in President Salinas' home
town, it seems to me that we are rooting our exciting
plans for the future in the right soil -- the soil of
fomily and community values.
Mr. President, as we flew here this afternoon, I could not
help thinking how similar this lonesome Mexican grassland
is to the great expanses of Texas on the other side of the
border. From the eagle's eye view, whether it's the Aztec
Eogle or the American bold eagle, it all looks like home.
It's on honor and 0 privilege to be here os your guest.
Thank you very much.
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 David
lost year,
To Mayor Reynoldo Canales Velo, and the people of
Agualeguas:
Let me Just say how thrilled we are to Join you, and how
deeply grateful we are 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
has never lost his roots in the smoll town family values
of community and family.
There's trust here, and warmth, and some of the best
horsemanship I've seen in years.
- 2 -
As I look around this pretty plaza, I realize this is 0
glimpse of Mexico I'll never forget.
Mr. President, thank you so much for having us here among
your family and friends.
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 MacΓo Plazo, 1 realize that
I stand before Mexico's greatest heroes.
Hidalgo and Morelos, who set this great 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.
Salinas de Gortori, who is modernizing
President Mexico within/its Carlos own the cherished fromework framework of its our 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 dynomism and vigor,
As you know, I am a Texan, 0 neighbor near at hand. And I
think the time I've spent under the big sky down here
gives me all the more reason to admire your vision and
your accomplishments.
When Franklin Delano Roosevelt 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 ot war.
So when my wife Barbara and I come south after the war was
over, we never imagined that forty years loter we would be
visiting U 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 are on the move. And in our
consultations President Salinas and I are discussing how
we can go even further in building 0 stronger relationship
full of exciting new Ideas and opportunities,
- 3 -
We want to see If we can advance the idea of free trade,
$0 vital to our 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, so threatening to our
youth. We have a precious environment to protect and
future generations to educate--these are themes we must
address as well.
And of course there is a 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 Centrol America, the
peaceful restoration of the legitimote government of
Kuwoit, and the successful conclusion of world trade talks
under GATT are 0 few of the themes 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 many 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.
- 4
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 a better world.
Thank you for your warm reception, God bless you oll, and
vivo Mexico!
DRAFT PRESIDENTIAL REMARKS ON RECEIVING KEYS
TO MONTERREY
November 26, 1990
Mayor Rizzo:
It is an honor to accept the keys to the City of
Monterrey, a great capital of industry, technology,
scholarship and culture.
Monterrey's spirit and energy are the essence of Mexicon
modernization and creativity.
For you and your fellow citizens, whot can be dreamed can
be accomplished, and what can be imagined can be forged.
With that approach to the future, you are the best friends
I and the people of the United States could ever have,
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 a major step forward
for US all. 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 reolities.
I cannot think of 0 better symbol of our friendship than a
binational commission that is directed by a boord drawn
from the private and public sectors alike.
This
guarantees that the right questions olways will be asked,
and the best answers olways will be given.
)-)
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
neighbors:
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 negotiotion of a Free Trade Agreement between Mexico
and the United States is so vital.
- 2 -
Free trade 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 welfare of many, many Mexicons and
Americans.
In his recent State of the Nation address, President
Salinas said Mexico doesn't wont to be a third world
notions it wants to be a first world nation.
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-class productive capabilities,
More than that, you've got youth, drive, and dreams on
your side, And we think that's good for us both -- a
Mexico that wonts to get out and compete, a Mexico with
purchosing 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 a Free Trade
Agreement, I know that many of you PROGRESS(?) 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 I 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, for-sighted businesspeople, not
only to make it happen, but to make it succeed.
Thank you very much.
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 bilaterol relationship for the
global competition of the 1990s.
In my tolks 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.
- ? -
At the some 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 gool.
President Solinas, 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 last two days persuade me that a 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
benficiories of your success.
Barbara and I thank you and Cecelio 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 SPEECH
Sally D.A.S. grooms-Colule
Dick Howard
MONTERREY, MEXICO
647-9894
November 27, 1990
Introduction
President Salinas, distinguished guests, friends and neighbors:
As I stand before you today, my mind is full of images that
perhaps only my heart can understand.
I see the small town of Agualeguas on the border of our two great
countries, and I feel the pulse of a Mexico that is alive with
rich rhythms: the motion of the charreada, the music of the
mariachis.
Zocolo
I see too the grand plaza of Monterrey, and I am swept up in waves
of friendship: faces alight with emotion, voices that resonate
with joy.
Mr. President, in the span of just a few short hours, your entire
nation -- from the small town folk to the crowds of the great city
-- has told me with its welcome what you told me in five simple
words: Mi casa es su casa.
-2-
And for that Barbara and I will always be deeply grateful. No
guests could be offered a warmer reception than the one you, your
wonderful wife, Cecilia, and your fellow citizens have extended to
us here in your home state of Nuevo Leon.
What we have seen is nothing less than the dynamism of a
borderland that has never been more alive. And much of this
dynamism, Mr. President, owes its energy to you.
The world, as we all know, is a watchful place, and President
Carlos Salinas de Gortari has caught its attention with reforms
that are as exciting as they are thoughtful. The modernization of
Mexico he has launched marries an historic reality -- a great,
legendary country -- with what is certain to be an equally
historic future. As the President said in his state of the union
message, "we want to harness the new winds of change that are
blowing beyond our borders."
Mexico is fortunate to have a leader with a vision of the 21st
century who is guiding his nation safely, proudly and wisely
towards that new world whose outlines we are already beginning to
see.
(
Where on the face of this earth is change, positive change,
more evident than in Mexico? What other country has dropped its
-3-
barriers to trade so far, restructured its debt so intelligently,
privatized so much state industry, and built so much of its
national budget around investment in the future?
From the depths of a grave financial crisis, President Salinas,
his fellow leaders, and the Mexican people showed the tenacity and
courage that can only be found in the greatest of nations. Mexico
transcended a devastating earthquake, and it throttled inflation.
And Mexico did more: it rekindled growth, and that fire now burns
as bright as the future of this industrious land.
Historians will detail all the complex factors that contributed to
this renaissance, but one thing is certain: these advances were
achieved at a critical time. Mexico's achievements are exactly
the right answer for a world that is radically different from the
one we have known for the last fifty years.
When President Roosevelt came to Monterrey to consult with
President Avila Camacho in 1943, a global war raged. We were
allies in a struggle against totalitarianism that required every
last resource the free world had to offer.
That war came to one kind of a conclusion in 1945. And another
war, a colder one, reached its end in 1989. Yet even as the
challenges we face evolve, the nature of our partnership as
friends, neighbors and colleagues endures and grows. When
-4-
President Roosevelt came to Monterrey in 1943 it was, he noted,
the first meeting between the presidents of Mexico and the United
States in 34 years. This is already the sixth time President
Salinas and I have met since we were elected two years ago. And I
can assure you that we plan to maintain this pace in our remaining
time in office. The spirit of Houston lives. The spirit of
Monterrey will sustain us.
We are two great countries, respectful of one another's past and
values, who occupy a central place in each other's present and
future. And the world we now live in is one of economic and
technological competition, the struggle to protect our youth from
drugs and our environment from degradation, and the advance of
democracy and human rights.
Part I "Modernizing Our Economic Relationship"
As we meet here today, we are on the eve of not just one, but two,
major advances in the system of international trade to bring our
people food, shelter, jobs, and opportunities for a better life.
Working together, we can and must press for the successful
conclusion of the Uruguay Round of GATT. The critical moment is
now. As GATT members, and as two of the world's largest
economies, we must insist on a simple point. If the global
economy is truly as inter-dependent as our experts say, so must be
its rules.
-5-
Countries in Europe, North America, Asia and elsewhere all must
compete on the same playing field. More importantly, they all
must have a chance to play. Trade distorting subsidies and
artificial barriers create winners and losers before the game
begins. Establishing fairness and openness is what the Uruguay
Round must achieve. This, I know, is something Mexico believes as
firmly the United States. And this, of course, is the basis for
our resolve to seek a Bilateral Free Trade Agreement.
We have, after all, seen with our own eyes what trade
liberalization can do. Since Mexico entered GATT and lowered its
tariffs, our two-way trade has boomed. From $37 billion in 1987,
it appears headed for $55 billion or better in 1990. The
maquiladora industry alone -- one of the most successful
international trade experiments in history -- now boasts of over
1700 plants that make these enterprises Mexico's second largest
generator of foreign exchange.
A Free Trade Agreement is not designed simply to exploit each
other's markets. Our aim is more ambitious. Our aim is economies
that work together in complementary ways. Our aim is efficiency.
In today's interdependent world economy that means we want to
ensure that Mexico and the United States produce goods and
services that are competitive in global markets as well as our
-6-
own. To do that, we need all the benefits of an FTA, including
the liberalized flow of investments that will boost our
productivity and create more jobs.
Those jobs, I might add, are not the same kind of menial labor our
predecessors, Presidents Roosevelt and Avila Camacho, were
discussing in 1943. Go to some of the leading automotive or
electronics plants found here in Northern Mexico, and you will see
standards that are not excelled anywhere in the world. That's the
kind of quality the world demands, and that's the kind of quality
U.S. and Mexican workers can provide.
I look forward to the day when you and I will meet to sign our
names to a free trade agreement that writes a new page in North
American history. An agreement which capitalizes in a just and
equitable way on the human and natural resources provided by our
two vibrant nations.
If we can succeed in these tasks, and I know we can, think what
our example can do for our hemisphere as a whole. In my
"Enterprise for the Americas" initiative, I sketched out a vision
of free trade from Canada to Tierra del Fuego. Mexico's support
-- her involvement -- is critical to welding our hemispheric
productive capabilities together.
-7-
As your great Nobel-prize poet Octavio Paz recently wrote, "Mexico
has been, and is, a boundary between peoples and
civilizations
Boundaries, however, are not only disjunctive
obstacles, they are also bridges." Let our efforts be the
keystone, then, in an arch that joins many great nations together,
with the freedom to trade, the freedom to compete, lifting that
keystone as high as our imaginations will take us.
Part II "Building Bilateral Cooperation"
But of course our bilateral cooperation extends far beyond the
marketplace to the type of world in which we want our people and
our nations to live.
Mexico and the United States stand united in rejecting Iraqi
aggression in the Persian Gulf. With its support in the U.N. and
its increased contribution to world oil markets, Mexico is
providing the kind of leadership the international community badly
needs. Next week when I go to your great sister republics in
Latin America, I'll be discussing with those leaders the Treaty of
Tlatelolco pioneered by Mexico in 1967. As all Mexicans know, it
is that important Treaty which has kept this region's territories
free from nuclear weapons.
-8-
President Salinas has irrevocably committed the Government of
Mexico to a decisive victory over drug trafficking. He
understands that narcotics are a scourge that pass quickly from
the hands of the criminal to affect the health of entire
societies. Drugs know no nationality and respect no boundary.
Our fight against traffickers is the equivalent of war, and as in
any war, we each have had our casualties and our wounded. The
grief we feel is just as real whether the heroes fall on your side
of the border or our own. Those who have sought to divide or
dissuade us on this issue have failed and will continue to fail.
When President Carlos Salinas de Gortari looks you in the eye and
says he means to chase drug-runners to the ground, I, for one,
believe him. And I know he believes me when I say the same thing.
Putting criminals in jail is dirty and difficult work, yet for all
its importance, that's not the ultimate objective. The ultimate
objective is to ensure the health, competitiveness, and
productivity of the American and Mexican peoples. Our partnership
is founded upon nothing if not respect for our peoples. This is
something which narcotraffickers may never understand, but it is
something on which Mexico and the United States will never yield.
We simply have learned that what affects one of us affects us
both. The debt crisis, the war against drugs, and the struggle to
preserve our environment all are based on this simple principle.
-9-
Our new international sewage plant in San Diego, our air pollution
studies in El Paso, Juarez, and Mexico City, and our policing of
toxic waste disposal along the border protect Mexico's
environment, the United States' environment, and the globe's
environment. It's all one precious Earth and we inhabit the same
small piece of it.
That is the attitude, I am happy to say, which marks the most
heavily crossed international border anywhere in the world.
Pardon me for challenging the widespread misperception that it is
a troubled dividing line between two countries and peoples in
conflict. If that's your view, you can't count. We had over 240
million crossings of that border last year, 240 million legal
crossings. The United States and Mexico are passionately and
gloriously and routinely involved in each other's lives. And the
future will be even more so. President Salinas and I both claim
hometowns no more than 200 miles from our common border. Between
the U.S. snowbirds flight south, and the Mexican migration to the
booming "norte", a new culture is born, firmly rooted in common
understandings with a common center of gravity transcending the
international boundary.
-10-
Part III "A Partnership of Respect and Understanding"
We have had plenty of history together, Mexico and the United
States -- much more of it as friends than as enemies, but too much
of it as distant neighbors, participants in distinct economic and
political evolutions. It is in this critical dimension of who you
are and who we are that we both still have so much to learn
Fortunately, one lesson we seem to have finally mastered is to
take each other seriously, to look past the stereotypes, and to
grapple with the realities of everything we have in common and
everything we might some day share.
History gave us, if you will, 12 million Mexican-Americans. It
gave us Manuel Lujan and Lauro Cavazos of my Administration. It
gave us Lee Trevino of professional golf, and Valenzuela of the
baseball diamond, and Antonia Hernandez of the Mexican-American
Legal Defense Fund.
But let me not thank history for this gift. Speaking for all the
people of the United States, let me thank you, all the people of
Mexico. What a precious treasure you have bestowed upon my
nation. And no one is more fortunate than I. Thanks to the
intelligence and good taste of my son Jeb, we have the honor to
-11-
have as part of the Bush family, Columba and our two
Mexican-American grandchildren. So when I speak of Americans and
Mexicans in general, or of the Bush family, I am proud to say:
"Somos una familia". (We are one family).
Today we are creating the U.S. -Mexican Commission for Educational
and Cultural Cooperation. We are reaching out to our scholars,
artists, and educators, and we are saying, let us build together a
new partnership of respect and understanding. Let us infuse it
with thought, with wisdom, and with inspiration.
What could not be done in the past can be done today. The world
of global conflict is giving way to the world of global
cooperation. Freedom, in political systems, in trade, is the
watchword of the present and of the future.
A decade from now we will enter the 21st century. Already, we see
the shape of the new world to which we will belong. It is a world
in which only those nations which can trade, compete, and
modernize will enjoy the growth and prosperity on which their
people's health and happiness depend. It is a world in which a
new generation of challenges that know no borders -- the scourge
of drugs, assaults on our air, land, and water, the dangers of
nuclear proliferation -- will require greater cooperation among
the nations of the world then ever before in our history.
-12-
Our partnership is destined to promote these ideals and face these
challenges. Let north and south, east and west examine us for how
we have matured and modernized a relationship that once was static
and now is dynamic.
That vision, in my view, should be our joint gift to our children,
our grandchildren, our hemisphere, and our world.
So, to your warm welcome, Mexico, I can only extend my hand and
offer my nation's loyal partnership in the extraordinary decades
that lie ahead.
Thank you very much and God bless you all.
John R. Bolton
Current
Policy
Human Rights Challenges in
No. 1244
Central America for the UN
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following is an address by John R.
we are witnessing a process in which
ring now in Nicaragua sends a re-
Bolton, Assistant Secretary for Inter-
the linkage between human rights,
sounding message that an electoral
national Organization Affairs, at the
genuine self-determination, and peace
process without the guarantees of
Department of State Human Rights
and stability has been made explicit.
human rights provided-for example,
Day ceremonies, Washington, D.C.,
The Tela accords signed by the Gov-
in our own Constitution-cannot be
December 7, 1989.
ernments of Costa Rica, Guatemala,
taken for granted.
El Salvador, Honduras, and Nicara-
Since coming to power, the
I am pleased to join with Dick
gua expressly connect cessation of
Sandinistas have made it quite clear
Schifter [see Current Policy No.
external support for insurrectionist
that the one thing they fear most is
1242] today in commemorating the
groups; voluntary demobilization, re-
the possibility that the Nicaraguan
human rights values which have nur-
patriation, or regional relocation of
people could vote their conscience in
tured us as a nation and which have
the Nicaraguan Resistance; and the
an unfetterred election. They have
served as a standard and as a goal for
creation of an environment in Nicara-
done their utmost over the years to
the international community. Forty-
gua, whereby the Resistance can re-
avoid such a possibility. However,
one years after the United Nations
turn without fear of further abuses of
thanks to the diplomacy of the other
adopted the Universal Declaration of
human rights, and whereby all groups
Central American governments, and
Human Rights, we meet here today
can participate in free and fair
to the Sandinistas' own abundant
amazed at the real impact the hopes
elections.
cynicism and duplicity which have led
embodied in the Universal Declara-
to many blunders on their part, the
tion have had upon the people of the
Open, Free, and Fair Elections
Nicaraguan Government has signed
Soviet Union and Eastern Europe.
for Nicaragua
on to an agreement which requires it
We have also watched with sadness,
to permit the holding of an open, free,
while people in other parts of the
We in this country, with a 200-year
and fair election next February.
world struggle against great odds to
history of peaceful change of govern-
realize their rights to freedom of ex-
ment through the electoral process,
Sandinista Violence
pression and assembly. We meet
do not have to think about what free
here today knowing that while much
and fair elections require. We are
Against the Opposition
has been accomplished, the chal-
fortunate that the institutions pro-
It is not surprising that the Sandinis-
lenges remain formidable.
vided for in our Constitution or which
tas are violating the spirit of the proc-
How can we in the United Nations
have evolved over the years provide
ess which they have formally under-
change the ugly face of human rights
a framework for genuine elections..
taken to support. Polls indicate that
abuses? Today in Central America
The people of Nicaragua, sadly, are
the Nicaraguan opposition, at first
not S0 fortunate. And what is occur-
fragmented and disorganized, has
electoral process that the Sandinistas
Cuba's Human Rights Abuses
now evolved into a political force
are pledged to uphold. Meanwhile,
enjoying widespread support among
they have stepped up international
Cuba is in many respects the source
the people of Nicaragua. As the op-
pressure to force the contras to ac-
of Central America's problems. It is
position has coalesced, the Sandinis-
cept their vague assurances that
Fidel Castro's Cuba, of course, that
the Sandinistas have modeled them-
tas have stepped up tactics designed
there will be no recriminations, no
to discredit, confuse, and intimidate
further human rights abuses of the
selves upon politically and militarily.
the opposition and its supporters.
contras and their families should the
As communist regimes throughout
Press reports detail incidents of open
Resistance lay down their arms and
the world are being repudiated by
harassment, beating, threats, fire-
return to Nicaragua as refugees.
their own citizenry, it is highly ironic
that Castro remains dinosaur-like-
bombings, smears, and even at-
able to resist in his own domain the
tempted murder directed against the
UN Election Monitors
opposition.
changes sweeping the rest of the
For instance, in the town of Pan-
The UN Security Council has given a
world.
tasma on November 26, the opposi-
clear mandate to the UN election
Three years ago the United
tion's vice presidential candidate
monitors for Nicaragua. This man-
States launched a campaign to call
Virgilio Godoy along with a group of
date includes the obligation to raise
the world's attention to the nature of
supporters were stopped by soldiers.
all incidents that violate or interfere
the gross and systematic human
Godoy took the opportunity to com-
with the principle of free and fair
rights violations that form the under-
plain to the soldiers that two of his
elections. We are working closely
pinnings of Castro's power over the
supporters had been beaten and de-
with Ambassador Elliot Richardson,
Cuban people. We still believe that
tained by the army. The soldiers re-
who heads the UN monitors, to en-
the spotlight afforded by a UN hu-
sponded that the opposition had been
sure that the types of violations I
man rights investigation affords one
throwing rocks and their commander
have described are noted and raised
of the best ways to affect Castro's
then threatened to open fire on
with the Sandinistas. Ambassador
behavior. The UN Secretary General
Godoy and his party.
Richardson will be required in Febru-
has received a mandate from the UN
An opposition activist, Encarnacio
ary to certify that the elections and
Commission for Human Rights to
Porras, was beaten by a Sandinista
electoral process conform to the let-
raise cases of human rights violations
ter and spirit of the Tela agreement.
with the Cuban Government. We are
soldier following a rally in San Dioni-
sio. The mobs of young toughs known
Given the current situation, he will
working closely with the UN Center
as turbas that have been employed by
need to work very hard in the next
for Human Rights to ensure that the
the Sandinistas to cow the Nicara-
few weeks to be in a position to do
Secretary General has the details of
guan populace throughout their rule
this.
human rights abuses in Cuba, and we
are now actively involved in the elec-
The relationship among the enjoy-
look to the Secretary General to
tion campaign. Our Embassy reports
ment of those human rights described
forcefully pursue his mandate.
that at virtually every opposition
in the Universal Declaration of Hu-
rally turba gangs roam about throw-
man Rights, democratic process, and
The Unitary UN Approach
ing rocks, shouting down speakers
regional peace and stability in Cen-
and roughing up supporters. Several
tral America is inescapable, for us, for
Our approach to human rights in the
opposition activists have been at-
the United Nations, and for the gov-
United Nations is a major facet of
tacked by turbas who have inflicted
ernments of Central America. The
what I call the unitary UN. As I
severe injuries. Sandinista officials
Central American peace process de-
have described, we need to be mind-
have not even attempted to veil
pends on the ability of the people of
ful of the interrelationships among
threats intended to prevent the oppo-
the region to express their wills
human rights, democracy, and inter-
sition from campaigning. For in-
through free and fair elections which
national peace and stability. In the
stance, the Sandinista mayor of Nan-
in turn require such fundamental
United Nations, we are constantly on
daime warned prior to a rally sched-
human rights as a free press, freedom
the lookout for ways to hammer home.
uled for November 19 that if the
of speech, of assembly, of worship.
these interrelationships. We make
event occurred "there will be blood,
The United Nations has the opportu-
human rights concerns an aspect of
there will be death."
nity to make a lasting contribution to
what we seek to do throughout the
These and other incidents too nu-
the welfare of all the people of Cen-
UN system whether it is in economic
merous to mention now present a
tral America. It will require forth-
or social forums.
clear pattern of abuses designed to
rightness and toughness to ensure
interfere with the open, free, and fair
that this opportunity does not fall by
the wayside.
Human Rights Problems in a
Democratic Western Hemisphere
United States Department of State
Bureau of Public Affairs
Public Information Series
Washington, DC
Remarks of Ambassador Luigi R.
time, a sober reading of the annual report
The commission is unsparing in its
Einaudi, US Permanent Representative
of the IACHR dispels superficial opti-
judgments on incidents in these countries,
to the Organization of American States
mism. Human rights are the cornerstone
demonstrating that good intentions are
(OAS), during the June 7, 1990 debate on
of the modern state. This hemisphere is
not a guarantee of satisfactory perform-
the Annual Report of the Inter-American
making major strides, but we have few
ance on human rights matters. Unlike
Commission on Human Rights at the
grounds for complacency.
dictatorships, however, democracies do
20th OAS General Assembly in Asuncion,
not stand alone in working to improve
Paraguay.
Human Rights and Democracy
human rights conditions. The commission
works with them to address problems.
In this last semester, as throughout its 30-
Since our last meeting, Panama, Nicara-
And, to their credit, member states
year history, the Inter-American Com-
gua, and Chile have joined the ranks of
have-as the commission confirms-a
mission on Human Rights (IACHR) has
countries with democratically elected
solid record of cooperation with the com-
distinguished itself in its professionalism
governments. In noting the milestones
mission. This record of active cooperation
and its productivity. It is today the
along the way to the return of elected
attests that, for human rights and
conscience of the Americas. The standard
civilian government in Chile, in detailing
international cooperation, democracy
it sets for performance in the advance-
the steps taken in Panama to consolidate
works-not as a panacéa, but as the best
ment of human rights is a global standard.
democratic rule, and in highlighting the
environment for getting the job done.
That is a good thing, indeed, for the
importance of the February elections in
dynamic of global development requires
Nicaragua, the commission is exemplify-
that we accelerate efforts to secure the
ing the link between democracy and
The Country Reports
human rights of all citizens. Countries to-
human rights. Its timely reports of
Cuba. My government perceives Cuba,
day must be open and outward-oriented,
electoral campaign irregularities in Nica-
the first country reported on, as having a
ready to engage effectively with the rest
ragua last year prompted corrective
government that sets it apart from the re-
of the world-in trade and commerce and,
actions, thus contributing to the peaceful
maining countries covered in the annual
more generally, in affairs across the
and representative vote in February. Its
report for two reasons. Cuba is the only
board.
visit to Haiti in April and the special
country in the group-or in this hemi-
Countries turned inward by the
report presented to this assembly on the
sphere-that has not committed itself to
fratricidal internal conflicts so often asso-
situation there can make a similar
elections, and Cuba is the only country in
ciated with human rights abuses are
contribution.
the hemisphere whose government can be
greatly disadvantaged. Moreover, com-
To its credit, the commission makes
said to repress human rights as a matter
petitiveness in today's world requires
clear that human rights problems do not
of official policy.
efforts to maximize human potential-an
suddenly or automatically disappear with
Cuba's human rights situation has
imperative that is irreconcilable with
the return of democratically elected
deteriorated over the past year. The com-
disrespect for human rights.
leaders. El Salvador, Guatemala,
mission documents government harass-
In short, a modern state cannot afford
Paraguay, and Suriname have all opted
ment, judicial sentencing without due
to minimize human rights concerns, and
for democracy. But the painstaking, long-
process, deprivation of work, and impris-
we of the Americas have made great
term effort of building democratic
onment under extremely negative
progress in our generation. At the same
institutions and ensuring respect for
conditions. The report lists 34 members
human rights continues.
of 10 different human rights and dissident
incorporate all elements of society in the
ated with the commission's visit and
organizations who have been detained
political process. But the violence is
refused to impose a state of siege when
since September 1988.
retarding these efforts. The commission
violence peaked last summer.
This is the commission's most detailed
observes that "the relative advances (in
Finally, the report also mentions
coverage of the Cuban government's
human rights) made have been seriously
reforms being attempted in the judicial
human right practices since its special
compromised by recent events." It cites
branch under the tutelage of the presi-
report on Cuba in 1983. The account of
claims by nongovernmental organizations
dent of the Supreme Court. The active
the crackdown on dissidents complements
of an increase in torture of political
role of the new human rights ombudsman
other recent reports by Americas Watch,
prisoners and by journalists of harass-
and the new possibility of ending the
Amnesty International, and the US
ment, threats, and arrest by security
guerrilla war through the peace talks
Department of State.
forces. The commission also observes that
initiated in Oslo in March 1990 are
Chile. The chapter on Chile gives the
the government has not as yet replied to
additional positive signs.
annual report an upbeat turn. The
its request for information on the killings
The friends of democracy should draw
of the Jesuits.
a sober but not defeatist conclusion from
commission "underscores its satisfaction
Those who follow the situation in El
these facts. The will to improve human
on the re-establishment of representative
rights must be joined with the power to
democracy," a note of welcome to the new
Salvador differ over particular cases and
government of Chile that my government
general characterizations. But what
secure those rights.
fully shares. The chapter marks the key
emerges is a series of fundamental truths.
Nicaragua. The commission gives
events in the transition: the October 1988
It is time to stop the killing in El Salva-
special attention to Nicaragua's electoral
dor. It is time to move forward with
plebiscite, the July 1989 constitutional
campaign and vote, events the commis-
reform, the December 14, 1989 elections,
dialogue. The war must yield to genuine
sion describes as "in themselves an
national reconciliation.
and the March 11, 1990 transfer of power
important contribution to peace and
to the civilian government.
Guatemala. The report on Guatemala
respect for human rights." Somewhat
The report highlights the new
is disturbing. But if the commission is
modestly, the commission also notes that
government's plan to establish a commis-
frank in exposing problems, the govern-
the release of the 39 persons excluded
sion to investigate human rights abuses
ment and the military of Guatemala are
from the March 17, 1989 pardon "complied
during the military regime. It comments
equally frank in acknowledging the
with the recommendation made repeat-
briefly, but concretely, on the persistence
problems. The commission reports the
edly" by the commission.
of terrorist actions throughout the period.
"most serious" increase in violence and
The commission looks briefly at the
El Salvador. The El Salvador
human rights violations since the present
post-electoral environment with a sense
government began its term. It finds the
of the enormity of the task that lies ahead
chapter notes two "conflicting tenden-
cies"-an escalation of violence and
government ineffective in preventing,
and makes two judgments we share in
human rights violations and progress
controlling, and investigating the violence
full. It trusts that the transfer of power
toward a resumption of peace talks
and prosecuting those involved. It also
and "positive experience with the
between the government and the Fara-
perceives a lack of control over those in
exercise of political rights" will be applied
bundo Marti National Liberation Front
the security forces who, in the commis-
to the political, economic, social, and
(FMLN).
sion's view, appear to have had direct
cultural challenges ahead. And the report
involvement in a number of the violations.
concludes with a reminder of the "respon-
The report makes a thorough-and
frankly disheartening-record of events
The report deals with defects of the
sibility of the international community" to
since its last report on El Salvador. Many
judicial system as well as inconclusive
support Nicaragua's new government.
of us in this room recall that this commit-
police investigations. While detailing acts
It is perhaps proof of the commission's
tee last met in the midst of horrifying
of terrorism by the guerrillas, the
independent state of mind that it does not
commission also cites Minister of Defense
news: the launching on November 11 of
even mention one of the most striking
the largest guerrilla offensive of the civil
[Hector] Gramajo, who accuses army dis-
contributions of the international commu-
war. Then, 5 days later, the murder,
sidents of serving the extreme right.
nity to national reconciliation in Nicara-
apparently by government forces, of six
President [Vinicio] Cerezo, during his
gua: the work of the OAS electoral ob-
Jesuit educators, their cook, and her
visit to the UN General Assembly in Sep-
servers and the OAS Verification and
daughter.
tember 1989, said that extreme right wing
Support Commission (CIAV) under the
The commission describes these
groups were responsible for kidnapings,
leadership of Secretary General [Joao
events as part of a "vicious cycle of
torture, and murder of trade unionists,
Clemente] Baena Soares. I congratulate
violence" in which the right and left,
journalists, and students and that former
Commission President [Leo] Valladares
security forces and guerrillas, share
officers of the security forces might also
for including such a reference this
blame. The violence and the abuses have
have been involved.
morning. I would add that my govern-
affected noncombatants, journalists,
The situation is grave, but the
ment fully supports the demobilization of
government officials, churchmen and
government's willingness to acknowledge
the Nicaraguan Resistance in accordance
-women, and labor unionists-every
problems is positive, and the institution-
with existing agreements and accepts the
sector of Salvadoran society.
alization of democracy has made substan-
leadership of the secretary general in
My government is convinced that the
tial gains. There is a high degree of press
supporting them.
democratically elected government of El
freedom in which even the guerrillas can
Panama. The Panama chapter
Salvador is making serious efforts to
publish at will. The government cooper-
documents major improvements in the
2
human rights situation and in official
Paraguay. The report on Paraguay
transition to democracy possible. We
responsiveness. The government has
praises many positive actions taken by
hope to see continued progress on
restored basic civil liberties and has
the [Andres] Rodriguez administration.
remaining problem areas such as lengthy
devoted special attention to restructuring
At the same time, it notes legal and socio-
pre-trial detention.
the security forces. The commission
economic difficulties that "hamper the full
notes:
observance of human rights." This
Suriname. The report on Suriname is
The reestablishment of freedom of
detailed report was enriched by a visit of
hard-hitting. There are accounts of arson,
expression and right of association and
the commission to Paraguay in response
shootouts, attacks on government officials
and property, attempted assassinations,
restoration of news media that had been
to an invitation extended by the Ro-
driguez administration shortly after
and ongoing civil strife. The report draws
shut down or confiscated;
two general conclusions about the
The freeing of former military men
assuming office.
situation in Suriname: "First, that the
and civilians who had been detained on
The report notes many specific steps
duly elected civilian authorities have no
charges of coup plotting or otherwise
taken by the Rodriguez administration
endangering public safety and who had, in
including:
real control over the military situation in
Suriname. Second, the army is the de
most cases, been tortured;
Repeal of laws used to jail dissi-
facto power in the country."
The launching or reopening of
dents;
My own government has observed
investigations into killings under the
Judicial action against former
that the Surinamese military, whose
previous regime, including the Spadafora
officials accused of abuse and corruption;
influence had diminished following the
case;
Elimination of official obstacles to
return to elected government, has
the freedom of expression, thought, and
"reestablished itself as the dominant
The decentralization of the security
forces to ensure their compliance with the
association; and
political force in the country."
constitution; and
Clearly, conflict among different
New guarantees of personal
ethnic groups has been the source of much
The initiation of judicial and penal
freedom, judicial protection, due process,
violence and deteriorating respect for
reforms.
political rights, and access to public office.
internationally recognized norms of
The commission reports that it has
The commission also summarizes
humanitarian conduct. Efforts to bring
recently received many fewer complaints
complaints made to the commission
genuine peace to conflictive areas would
and that the new government has
members who interviewed landless
greatly benefit the human rights situ-
responded to them promptly and satisfac-
peasants, union leaders, and representa-
ation.
torily. At the same time, the commission
tives of the approximately 50,000-member
The commission reports on the
recommends government action in six
indigenous population. The commission
passage by the national assembly of a bill
areas, from the status of individuals
praises the new government for ratifying
removing civil arrest powers from the
detained after the US military action last
the Inter-American Convention on
military police. "Promulgation as law of
December to measures to prevent
Human Rights as well the UN and inter-
this bill would constitute a first step
recurrence of abuses like those described
American conventions against torture.
toward the establishment of a true
in the special report of September 1989.
The new electoral law, the new human
democracy in the sense that the military
We are encouraged that human rights
rights committee in the Chamber of
must be subservient to the elected civilian
concerns are being addressed by the new
Deputies and the new National Commis-
authorities." President [Ramsewak]
government. Several-such as protection
sion to Coordinate Rural Development
Shankar has now signed this bill into law.
against any renewal of military abuses
are also cited.
and institutionalization of democracy-
The commission sees the most serious
An Agenda for the 1990s
are the subjects of a series of govern-
failings in the area of judicial protection.
I would like to close with a few additional
ment-proposed constitutional amend-
It notes that 90% of the detainees in the
ments currently before the Legislative
country's major prison are still awaiting
comments. I would like to express my
Assembly, which has also been asked to
sentencing. In most cases, their trials had
congratulations to Leo Valladares
revise the nation's judicial statutes.
not been completed.
(Honduras) and Edith Marquez (Vene-
zuela) for their new positions as president
The status of detainees remains a
The report discusses legislative
problem. Panamanian courts are over-
amendments to correct this problem, as
and executive secretary of the commis-
loaded with criminal cases, and there is a
well as government requests to the OAS
sion and my government's genuine
backlog of persons awaiting sentencing.
and United Nations for human rights
gratitude to their predecessors, Oliver
training to police and armed forces and
Jackman (Barbados) and Edmundo
Similarly, improvement of economic and
social conditions for low-income Panama-
the government's proposal to amend the
Vargas (Chile). They have given us high
nians depends on overall economic
constitution in 1992 to create a stable
expectations; we pledge to cooperate to
recovery, especially reduction of high
career system for judges.
make them reality. As the Permanent
My government endorses the findings
Representative of the United States, it is
unemployment. The economic assistance
of the commission, and welcomes the
with great pride that I thank David
recently approved by the US Congress—
after considerable urging by President
positive developments in Paraguay since
Padilla, a US citizen, for his exemplary
Bush-is designed to help alleviate both
the Rodriguez government took office.
performance as acting executive secre-
problems.
We congratulate the government of
tary during the past 4 months.
Paraguay for restoring respect for the
Finally, a word about future direc-
fundamental freedoms that make a
tions. First, the commission's high
3
standards of professionalism, impartiality,
general and senior secretariat officials
themselves, I would hope that the
and integrity must be maintained.
charged with responding to requests from
members of the commission would make
Independence and non-partisanship are
governments to support democracy.
the situation of those activists in the
vital to the commission's effectiveness.
In conclusion, let me note that the
hemisphere who are threatened and
My delegation concurs fully with the
progress in democracy and human rights
abused a special concern-either within
appeal by the distinguished delegate of
that we are witnessing is not the product
Chile that the work of the commission not
upcoming country reports or perhaps as
of impersonal forces. If the prospects of
be politicized.
the theme of a separate chapter.
freedom seem better than ever, it is
The activist human rights observer
Second, the commission should, as
largely because men and women every-
[Deputy] Secretary Eagleburger indi-
plays a role that is not always welcome.
where-tradespeople, laborers, lawyers
But it is a role that is indispensable to
cated in his speech before the assembly,
and journalists, churchmen and -women,
effective modern-day democracies-to
consider offering technical assistance and
and many others-have worked long and
human rights training to interested
governments which derive their strength
hard. One of the most moving moments in
from the steady popular support that can
member states and, with their consent, to
this morning's debate was the statement
only be earned through strict accountabil-
their citizens. Our common democratic
by the distinguished representative of
orientation provides an opportunity,
ity and continuing openness. Any abuse
Paraguay, describing the human dimen-
indeed creates an obligation, to move
against any individual's human rights
sions of cooperation in the face of oppres-
merits attention. This must hold for
from consensus to action, from high
sion and joy at the great progress that has
human rights activists and monitors as
aspirations to practical measures.
taken place in this most beautiful land.
IACHR assistance might include, for
well. Their work is critical to the process
Human rights activists are prominent
of democratic consolidation now under-
example, training of governmental and
in freedom's forward movement. I salute
way.
nongovernmental human rights workers
them. And I add, with a sense of personal
or organizations, training to strengthen
concern, that these very persons who are
Published by the United States Department
judicial systems, advice on national
in the vanguard of the struggle for human
of State
Bureau of Public Affairs
Office
legislation to protect human rights, and
rights are themselves, in all too many
of Public Communication
Washington, DC
building safeguards to protect political
instances, the victims of human rights
July 1990 Editor: Marilyn J. Bremner
rights. Such assistance might well be
This material is in the public domain and may
abuse. As-human rights monitors
be reprinted without permission; citation of this
offered in coordination with the secretary
source is appreciated.
PA/PC, Mailing List
United States Department of State
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Permit No. G-130
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Address Correction Requested
Secretary Baker
Current
Policy
Narcotics: Threat
No. 1251
to Global Security
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following are remarks by Secretary
rights and international law, concern for
First, I will describe America's na-
Baker before the UN General Assembly
the well-being of all the world's peoples-
tional drug strategy, which centers on the
Special Session on Narcotics, New York
if we fail to do our utmost to accomplish
need to reduce the use of drugs at home.
City, February 20, 1990.
these aims, then we could end up living in
Second, I want to share with you the
a future that resembles our troubled past.
results of the summit in Cartagena,
These are promising times for the world
Even as we work together to elimi-
where President Bush and the leaders of
community. From South Africa to East-
nate war and conflict, there are other
Colombia, Bolivia, and Peru formed the
ern Europe, from the democratic move-
troubles that will not wait and that are
world's first antidrug cartel.
ments in Asia to the new generation of
bringing untold sorrow to mankind. Even
Finally, I will offer my government's
democratic leaders in Latin America, we
as we heed the cry of freedom and democ-
thoughts on how the United Nations can
hear the stirring cry of freedom. People
racy, we must not fail to hear another cry.
best assist in the global fight against
of faith, conviction, and courage are strug-
This cry is not the affirmation of freedom
narcotics.
gling and prevailing against difficult odds.
but its negation, not the uplifting of de-
The old world of dogmatic dictator-
mocracy but its degradation. It is the call
ships is on its way out. Tragic throw-
of the drug addict.
The U.S. Effort
backs to repression only serve to remind
That cry concerns all of us, and it is
First is our national drug strategy. The
us that the new world of secure, prosper-
urgent. We hear it close to home-to my
American people consider drugs the num-
ous, and just democracies has not yet
home, to your home, and to the homes of
ber one problem facing the United States.
arrived. And it will not come auto-
our neighbors in the world community.
And winning the war against drugs is a
matically. We all must work to bring it
None of us-not one nation-remains
top priority for President Bush and,
into being and ensure that it will last.
untouched. None of us-not one-is
therefore, a top foreign priority for me.
Global war brought this organization
safe from the danger of drugs.
The Bureau for International Narcotics
into existence in 1945. And it was with
Drugs pose a serious threat to global
Matters at the Department of State, ably
solemn determination that the UN found-
security. We are here at this special ses-
led by Assistant Secretary Levitsky, has
ers pledged, in the opening words of our
sion because we recognize this bitter
done a first-rate job of ensuring that nar-
Charter, " to save succeeding genera-
truth. We fully recognize the growing
cotics control issues are fully integrated
tions from the scourge of war...."
importance of combatting drugs. I par-
into our diplomatic efforts.
Especially now, at this promising
ticularly wish to thank the governments
Our drug control strategy calls for an
time, it is critical for the nations of the
that have played leading roles in prepar-
attack on the drug problem in all its
world to recall the fundamental aims that
ing the agenda before us.
aspects-consumption, trafficking, illicit
unite us. For if we fail to support the
I would now like to review for you the
production, treatment, and rehabilitation.
goals of the UN Charter-peace, human
comprehensive approach my government
My government is placing greater empha-
dignity, justice, respect for sovereign
is taking to help rid my country and the
sis than ever before on preventive
world of illicit drugs.
education programs, treatment, and
Thus, consumption and supply, de-
rehabilitation. We aim to stop the traf-
In one short and brutal decade in Co-
pendency and exploitation, greed and vio-
ficking in all illicit drugs, not just cocaine.
lombia, the Medellin and Cali traffickers
lence become a vicious circle-in truth,
Heroin, marijuana, and the so-called
have killed over 1,000 public officials, 12
like a dragon chasing its own barbed tail.
designer drugs are also major threats.
Supreme Court justices, over two dozen
That circle of misery and death must be
And we are attacking the problems of
journalists, and more than 200 judges and
broken. America is helping to break it-
domestic cultivation and trafficking.
judicial personnel, not to mention the
both at home and with our partners
This kind of comprehensive approach
scores of men, women, and children who
abroad.
calls for increased resources. Since the
happened to be going about their daily
Bush Administration took office, the do-
lives in the wrong place at the wrong
mestic antidrug budget has increased 67%
The Cartagena Summit
time. And no amount of laundering can
to $7.6 billion. And our international
wash the blood off money stained by
antidrug budget, including border and
This brings me to my second topic: last
drugs. The so-called kings of cocaine are
Thursday's [February 15] summit in Co-
off-shore interdiction efforts, has in-
criminals-criminals of uncommon power
creased 73% to $3.1 billion.
lombia. As you know, President Bush and
and uncommon brutality.
I traveled to Cartagena where we met
We fully realize that attacking the
Time and again, President Barco has
problem of domestic consumption is our
with our counterparts from Colombia,
put his own life on the line to free his na-
most critical challenge. As long as the
Bolivia, and Peru. In Cartagena, the sum-
tion from the deadly grip of the drug
demand for drugs by Americans remains
mit partners pledged to attack the mer-
cartels. Together with President Barco,
voracious, our nation faces an endless,
chants of drugs and death from every
Presidents Bush, Garcia, and Paz all rec-
uphill struggle to halt supply. We are
angle-production, distribution, finance,
ognize their responsibility to take the lead
making progress. Domestic drug use
and use. President Bush was unequivocal
in combating cocaine, our common enemy.
in his commitment to reduce demand for
dropped 37% from 1985 to 1988, and
Together at Cartagena, we reaffirmed
cocaine use was cut in half over the same
drugs in the United States. We agreed
the need for development, trade, and in-
period. But we have a long way to go.
that it was pointless to apportion the
vestment to strengthen growth-oriented
blame between producer nations and con-
We are determined that drug users in
economic policies in order to offset the
the United States face the hard facts:
sumer nations-narcotics are a deadly
economic costs of counternarcoties pro-
Their behavior is not just a personal in-
threat to all nations that are exposed to
grams. We agreed to work in concert to
dulgence. American users act as paymas-
them. We and our summit colleagues are
heighten public awareness of the debili-
determined to break the back of crack and
ters to organized murderers. Profits from
tating effects that drug production, traf-
put the illicit cartels out of business.
every kilo of cocaine bought in the streets
ficking, and abuse have on our countries.
of America buy the bullets which rob
By going to Cartagena, the President
We agreed to provide economic assistance
democracies of their dignity and freedom.
demonstrated our country's absolute de-
to help strengthen the legitimate econo-
American users aid and abet the drug car-
termination to fight the drug war for
mies of the Andean nations. And we
tels which in turn foment and exploit re-
however long it takes. We have assured
agreed to strengthen the law enforcement
gional and global instabilities. When
our partners that we will not fail to sup-
capabilities of our countries to bring traf-
Americans feed their habits and enrich
port them in the drug fight.
fickers to justice. President Bush told his
the cartels, it's like they're giving succor
As part of our support, from FY 1989
Andean colleagues that he would raise
to terrorists. American users are acces-
to FY 1991, the United States will in-
these issues with the G-7 at the Houston
sories to criminals who poison children.
crease sevenfold our international drug
summit and with other developed coun-
Their habits also contribute to the murder
budget for Colombia, Bolivia, and Peru.
tries as well. The United States seeks to
of the land. Coca farmers have destroyed
Our total economic assistance will more
improve and strengthen narcotics consul-
acres of forest lands; traffickers have
than double to those Andean nations next
tation and cooperation with other devel-
dumped millions of gallons of precursor
year as they undertake tough counternar-
oped countries to bolster international
chemicals into rivers.
cotics programs and apply sound eco-
support of producer-country counternar-
I regret to say that narcotics has be-
nomic policies.
cotics efforts.
It is fitting that the summit was held
come a big business, a very big business
Finally, we and our Andean col-
in my country. Last fall in Los Angeles,
in Colombia. We applaud Colombia's
leagues agreed to urge all countries to
agents seized 22 tons of warehoused
courageous decision to seize and destroy
ratify, as soon as possible, the UN Con-
cocaine. If all the kilo packages we seized
labs, arrest and prosecute narcotics
vention Against Illicit Traffic in Narcotic
offenders, extradite traffickers and
were stacked, one on top of the other, the
Drugs and Psychotrophic Substances.
pile would be a mile and a half high-
money launderers, and challenge the
When ratified, the 1988 convention will
that's a mountain of misery half the
cocaine empire.
foster worldwide cooperation in such ar-
height of the tallest mountain in the conti-
No nation has SO bravely confronted
eas as money laundering, asset seizure,
nental United States. It was estimated
the drug lords or made greater sacrifices.
precursor chemical control, extradition,
that the street value of the seized cocaine
No nation here can remain indifferent to
investigation, intelligence gathering, and
exceeds the individual gross national
Colombia's fate. The scale of drug-related
information sharing. I am pleased to re-
products of well over 100 of the nations
violence in Colombia is horrific, even to
port that President Bush signed the
represented in this chamber today. And
those among us who have experienced
instrument of ratification for the United
this was just one warehouse. Imagine the
firsthand the violence that has been so
States on February 13. We deposited the
veritable Mt. Everests of misery we
sadly a part of our turbulent century.
signed instrument of ratification with the
haven't found!
United Nations today.
2
Ratification by all countries will help
them out. We must order our priorities in
laundering of money, that turns a blind
us in regional efforts to combat cocaine
such a way as to accomplish our aims
and uncaring eye to drug abuse and drug
and also increase worldwide cooperation
within the framework of a unitary
trafficking. We will give no quarter.
against illicit drugs of all kinds.
approach to the entire UN system and
through zero real program growth in
budgets.
Conclusion
A Strengthened Role
for the UN System
The Global Program of Action will re-
I began these remarks by saying that we
inforce the solid foundation which we
are living in promising times. Freedom
By fostering worldwide cooperation, the
have built already; by this I mean the two
and democracy are in the ascendancy, yet
United Nations plays a crucial role. It is
established international drug control
they face formidable odds. Undoubtedly
imperative that we make maximum use of
treaties now in effect and the new con-
drugs are among their mortal enemies,
the UN instruments and the UN system
vention against illicit trafficking which I
for freedom and democracy are universal
as a whole to buttress our efforts at the
mentioned earlier. In addition, we have
ideals that speak to the dignity of every
national and regional levels.
other mandates such as those contained in
individual. And if these ideals are to be
There is no country here so proud or
the comprehensive multidisciplinary out-
realized, every individual must make a
so great as to be able to rid itself of drugs
line from the 1987 International Drug
contribution to his or her own society and
without the help of other nations. Nor is
Conference and UN General Assembly
to the world community. An individual
there any country here SO small that it
Resolution 44/141, adopted in December
caught in the grip of drugs becomes a
cannot support in some way this impor-
1989. All of these documents give us the
slave-no longer a free or a responsible
tant international effort. Together we
legal and program basis as well as the
person. And the same thing can happen
can work more effectively than in isola-
clear authority with which to proceed. So
to entire nations.
tion. We can accomplish more in concert
let us use these tools effectively before
But such tragedies do not have to
that at odds with one another. This
we endeavor to write new treaties. We
happen-not to our citizens, not to our
special session affords to us all, the com-
want to strengthen our systemwide
countries, not to the world community.
munity of nations, an opportunity to work
efforts and ensure maximum cooperation,
It's up to us-each of us, all of us to-
together decisively against drugs.
coordination, and efficiency in the conduct
gether. A great deal is at stake.
We must seize this opportunity now.
of all UN programs.
We know that we cannot cleanse the
For if we let it pass, our inaction will con-
To be sure, there is a good case for
world of drugs in one generation. Yet I
demn more children to suffering and
improving and reinforcing our multilat-
believe I am justified in ending on an opti-
want, more families to destruction, more
eral infrastructure. We agree that mem-
mistic note. More than ever before,
governments to the assaults of drug car-
ber countries should allocate more re-
nations all over the world are working
tels. And more of the threads that hold
sources to UN antidrug efforts in order to
together on the global drug problem. The
together the very fabric of civilized
complement domestic counternarcotics
United Nations has greatly helped to
society will unravel.
efforts. We are more committed than
bring this about.
That is why the President and I are
ever to working with other governments,
From the Soviet Union to Jamaica,
convinced of the timeliness and efficacy of
so that the UN system may be a stronger,
from Spain to Malaysia, nations are join-
this special session. We have the oppor-
more responsive partner in the drug
ing forces in the fight against narcotics.
tunity to set an action-oriented course for
fight. With the help of the Secretary
the UN system.
We, the peoples of the world, must keep
General and all member states, the Presi-
up the fight-in the deep jungles and
It is my government's hope that adop-
dent and I are hopeful that the Global
mountain valleys where coca and poppies
tion of the Global Program of Action, and
Program of Action will energize a
are grown, in the urban jungles ruled by
the related Political Declaration, will take
dynamic drug control effort of worldwide
corruption and cruelty, in shadowy back-
us considerably closer to ridding the
scope.
rooms where drug-stained money is
international community of the drug
In our global war against drugs, we
laundered, and in the dark recesses of the
scourge-provided, of course, that the
regard as natural allies all nations sharing
soul-there perhaps most of all.
program commits us to concrete activi-
the resolve to resist this scourge. Tradi-
Now-today-for the sake of our chil-
ties, that it is fully implemented by the
tional friends and traditional adversaries
dren and our grandchildren, we must do
UN agencies of the system, and that it is
alike must pool their efforts. Indeed,
all that is humanly possible to rid God's
backed by complementary efforts at the
many of us already have joined forces,
good earth of the evil scourge of drugs.
national and regional levels. Certainly we
despite political and economic differences.
the member governments cannot ask the
Together we will combat the multina-
United Nations to do things that we will
tional drug empires on every front.
Published by the United States Department
not do at home. Nor can we ask the
Together we will hold to account any
of State
Bureau of Public Affairs
United Nations to undertake ambitious
government that grants safe havens to
Office of Public Copmmunication
programs without financial backing and a
drug profiteers, that actively permits the
Washington, D.C.
February 1990
strong infrastructure with which to carry
Editor: Phyllis A. Young
This material is
in the public domain and may be reprinted
without permission; citation of this source is
appreciated.
3
Melvyn Levitsky
Current
Policy
No. 1287
The Andean Strategy
To Control Cocaine
United States Department of State
Bureau of Public Affairs
Washington, DC
Following is a statement by Melvyn
drugs, we must also work hard to reduce
Objectives
Levitsky, Assistant Secretary for Inter-
the international supply; otherwise, it will
national Narcotics Matters, before the
be more difficult to sustain effective
The Andean strategy has three major
Subcommittee on Western Hemisphere
domestic programs in law enforcement,
objectives.
Affairs of the House Foreign Affairs
education, prevention, and treatment.
Committee, Washington, DC, June 20,
First, through concerted action and
In 1989, the administration completed
1990.
bilateral assistance, it is our goal to
a comprehensive plan to work with the
strengthen the political will and institu-
three Andean governments to disrupt and
I welcome the opportunity today to
tional capability of the three Andean
destroy the growing, processing, and
discuss the President's Andean strategy
governments to enable them to confront
transportation of coca and coca products
the Andean cocaine trade. With new
and outline our policy goals and objectives
within the source countries in order to
in this area. Cocaine control is our
governments in Colombia and Peru, it will
reduce the supply of cocaine entering the
be essential for the US Government to
number one priority and our main focus
United States. In September 1989, the
has been, and will continue to be, the
help them address the full range of their
President's National Drug Control
Andes.
drug-related problems.
Strategy directed that a 5-year, $2.2
The President's historic meeting in
Second, we will work with the
billion counter-narcotics effort begin in
Cartagena, Colombia, in February
Andean governments to increase the ef-
FY 1990 to augment law enforcement,
signaled a new era in narcotics coopera-
fectiveness of the intelligence, military,
military, and economic resources in Co-
tion with our Andean partners. No longer
and law enforcement activities against
lombia, Bolivia, and Peru. After careful
is the drug issue simply a law enforce-
the cocaine trade in the three source
negotiations between the United States
ment problem. We are working with Co-
countries, particularly by providing air
and each of the individual cooperating
lombia, Bolivia, and Peru to explore ways
mobility for both military and police
governments, implementation plans have
to strengthen law enforcement, military,
forces and making sure they are well
been prepared to ensure effective use of
intelligence, and economic cooperation,
equipped and trained and that they
the assistance.
including opportunities for expanded
cooperate in an integrated strategy. It
The administration's $2.2 billion plan
trade and investment in order to attack
has become clear that the Andean
provides a cooperative approach for
the drug trade in a comprehensive way.
countries cannot conduct effective anti-
working with the three major Andean
The President's Andean strategy seeks to
narcotics operations without the involve-
governments to disrupt and destroy the
bolster these countries' capabilities on all
ment of their armed forces; this is
growing, processing, and transportation
fronts. The programs we have are coop-
especially true where the traffickers and
of coca and coca products within the
erative programs. We cannot do the job
insurgents have joined forces, as in Peru.
source countries in order to reduce the
without a strong effort from the Andean
Specific objectives include efforts to
supply of cocaine from these countries to
countries, the countries that surround the
isolate key coca growing areas, block the
the United States. Congress has author-
Andean region, and the transit countries
shipment of precursor chemicals, identify
ized and appropriated funds for the first
through which cocaine passes.
and destroy existing labs and processing
year of this plan. For FY 1990, approxi-
The Andean strategy is a multi-
centers, control key air corridors, and
mately $230 million in economic, military,
faceted approach to the complex problem
reduce net production of coca through
and law enforcement assistance is being
of cocaine production and trafficking. Of
aerial application of herbicides when it is
offered to the three Andean countries for
effective to do so.
course, the main front in this war is here
counter-narcotics-related initiatives. In
at home. But as we work to diminish our
Our third goal is to inflict significant
1991, we are asking for $423 million,
own demand for and consumption of
damage on the trafficking organizations
including narcotics-related economic
which operate within the three source
assistance..
countries by working with host govern-
Misconceptions About Militaries' Roles
and their involvement is a sign of greater
ments to dismantle operations and
overall national commitment in dealing
elements of greatest value to the traffick-
Let me deal directly with concerns which
with the problem.
ing organizations. By strengthening ties
have been raised regarding the role of the
Third, while we believe the militaries
between police and military units and
Andean militaries in the drug war and
of the Andean states need to play a more
creating major violator task forces to
potential human rights abuses. There is
constructive role, we never have nor will
identify key organizations, the bilateral
no reason to expect that US military aid
force military assistance on these
assistance will enable host government
will undermine democracy or civilian rule
countries. Nor is the assistance we are
forces to target the leaders of the major
in the Andes. On the contrary, I believe
providing of a nature to create large, new
cocaine trafficking organizations, impede
it will help to strengthen both democracy
forces in the region. We are developing
the transfer of drug-generated funds, and
and the international struggle against
the specialized skills and units required to
seize their assets within the United
illegal narcotics for the following reasons:
conduct or support meaningful counter-
States and in those foreign nations in
US security assistance will be
narcotics operations, not creating major
which they operate. Intelligence is a
negotiated with and delivered through
combat units. We should remember the
critical component of this strategy. We
the civilian governments;
immense size of the countries we are
have worked closely with the intelligence
dealing with and that the narcotics
community and law enforcement agencies
An impoverished, poorly trained and
processing facilities and growing areas
to focus intelligence collection on these
equipped military, unable to feed its
are spread over large areas, often in
targets. In short, we have developed a
troops, is far more susceptible to corrup-
remote locations. Narcotics law enforce-
strategy that is coherent, focused, and
tion and human rights abuses; and
ment units are neither equipped nor
determined.
The military is far more likely to
trained to address the increasingly
A major tenet of this strategy is the
take a constructive approach if actively
paramilitary nature of the problem.
incorporation of expanded economic
engaged in the drug war as opposed to
Further, as the case of Bolivian military
assistance beginning in FY 1991 and
being left to criticize civilian efforts from
support for counter-narcotics operations
the sidelines. The involvement of the
directed toward offsetting the negative
demonstrates, military support in some
economic dislocations we know will occur.
military, as in our own country, can bring
cases can be an effective way to avoid
This assistance will, in turn, strengthen
a significant resource in the war against
duplicating a parallel military capability
the political commitment of the three
drugs if properly coordinated and
within police narcotics enforcement
Andean nations to carry out an effective
directed by civilian authorities.
agencies.
The financial resources of the
counter-narcotics program. US economic
I would also like to set out a number
assistance is, in general terms, linked to
narcotics traffickers, such as those in
counter-narcotics performance and to
of points that address misconceptions that
Colombia, enable them to hire private
have grown up in recent months about
armies and terrorists on a national and
follow-through with economic policy
reform. In harmony with the views of the
the so-called militarization of the US
international scale. Their ability to buy
three Andean governments, our direct
counter-narcotics effort. Like many
manpower and equipment surpasses the
economic assistance and other initiatives
slogans, the use of emotionally charged
police capability and, in some cases, calls
support economic alternatives for those
and sometimes politically motivated
into question even the military's ability to
directly involved in the cultivation of and
words like "militarization" is a gross
respond effectively. These capabilities
trade in coca. Examples of such assis-
oversimplification that does not do justice
permit the narco-traffickers to challenge
to the effort either to understand or deal
tance include crop substitution and other
or defy the sovereignty of local govern-
economic alternative activities, drug
with the complex problems of interna-
ments in a way unprecedented in our
awareness, administration of justice,
tional narcotics.
experience.
balance of payments, and export promo-
US counter-narcotics policy, there-
In the first place, the level of our
tion. The assistance reflects our conclu-
fore, should not be characterized as a
security assistance is only a part of our
sion, incorporated in the Declaration of
"militarized" effort, but rather one that
total effort. Of some $129 million in
Cartagena, that a comprehensive,
seeks to provide legitimate governments
counter-narcotics funds requested for
intensified counter-narcotics strategy
with the tools and assistance to help
Peru in FY 1991, for example, only about
must include understandings regarding
defend their political sovereignty.
$40 million is for military assistance, and
economic cooperation, alternative
much of that is for maintenance support
But the problem does not end there.
development, and encouragement of trade
and infrastructure improvement. Nor do
There is now a further complicating
and investment. As vigorous host
we contemplate large levels of US
factor, and that is the degree to which so-
government programs against the drug
military presence in the Andes. We have
called guerrilla organizations are becom-
trade and economic policy reform
never maintained such a presence, and
ing involved in narcotics trafficking,
initiatives become more effective, our
our strategy includes as one of our tenets
either in providing protection in return
economic assistance will increase in the
the determination not to Americanize the
for profit or in engaging in the production
outyears (1991-94) of the Andean
effort to work with local governments.
and sale of coca.
strategy. We are not seeking to impose
Second, our decision to encourage
The effort of the United States to help
law enforcement, security, or economic
greater participation of the local militar-
these countries deal with "narco-insur-
assistance on these countries. These are
ies in the counter-narcotics efforts
gents" has raised the specter of counter-
programs that require cooperation and
parallels the evolution of our own policy
insurgency-specifically, whether the
mutual agreement. Our intensive
that projects a greater role for the
United States should engage in support-
dialogue with the Andeans is refining a
Department of Defense in the war on
ing Andean militaries, some with past
common understanding of what is needed
drugs in the United States. Indeed, the
records of human rights abuses, in waging
and what is possible on both sides.
militaries in the Andean states are an
a struggle against insurgent groups which
important component of the governments
2
are clearly involved in many aspects of
The involvement of the Colombian
narcotics trafficking. We cannot gloss
In March, the Office of the US
military in supporting counter-narcotics
over past abuses in some countries. We
Trade Representative (USTR) announced
law enforcement operations over the past
do not support these and never will. But
that 129 products were accepted for
2 years proves the effectiveness of this
neither should we succumb to the
review under the US generalized system
approach. Recently, the Colombian
romantic notion of downtrodden peasant
of preferences (GSP) special Andean
military, using equipment supplied by the
masses protesting in arms against social
review. Final results of the review will
United States, with the police seized over
injustice, nor depict organizations like the
be announced in July.
18 tons of cocaine in one transportation
Sendero Luminoso (Shining Path) of Peru
complex deep in the Colombian jungle.
We have also conducted successful
or the FARC (Fuerzas Armadas Revolu-
It is basic to our policy that human
technical seminars on the GSP program in
cionarias de Colombia-Armed Revolu-
rights remain under continuous review to
Colombia, Bolivia, Peru, Ecuador, and
tionary Forces of Colombia) in Colombia
determine whether government policies
Venezuela to help the Andean countries
as champions of human rights. Moreover,
justify, reinforce, or call into doubt our
take full advantage of the GSP. A US
these groups are now becoming narcotics
continued assistance relationship. State
team is in the Andes the week of June 18
traffickers themselves, profiting from the
Department human rights reports on
to conduct seminars on the US textile
environment of drugs and using drug
Colombia and Peru have been candid in
program.
monies to finance further violence.
their criticisms and, in fact, received
In such groups, we are dealing with
We have scheduled a workshop in
praise from human rights groups. We will
professional organizations of tight-knit
Washington for the Andean countries the
work with the Andean militaries to
cadres whose human rights abuses,
week of July 9 on ways to expand US-
indiscriminate bombings of civilian
eliminate human rights abuses as they
increase their involvement in anti-
Andean trade and investment opportuni-
ties.
targets, use of torture, terrorism on a
narcotics operations. Our training, in
national scale, and barbaric brutality are
plainly part of the public record in
fact, will emphasize human rights and
We are exploring areas of potential
civic action.
cooperation with the multilateral develop-
Colombia and Peru. While the US
Involvement of US military personnel
ment banks and have emphasized US
attitude toward these problems is well
and organizations is clearly defined,
support for World Bank efforts in the
known, the United States has not
provided significant financial assistance to
limited, and subject to continuing review.
area of trade policy reform.
any of the Andean nations to deal with
The US military role is to provide support
On May 8, the United States and
these specific problems. We are focusing
and development of host country capabili-
Bolivia signed an agreement to establish
ties. It will provide training and opera-
our effort on counter-narcotics, not on
the US-Bolivia Trade and Investment
tional support, materiel, advice, and
counter-insurgency, but we cannot lose
Council, whose objectives are to monitor
sight of the fact that it is the insurgents
technological and maintenance support to
trade and investment relations, identify
cooperating nations' counter-narcotics
who have become involved in narcotics
opportunities for expanding trade and
organizations. Defense personnel will not
and, along with the traffickers, created a
investment, and negotiate agreements
militarized situation.
participate in actual field operations.
where appropriate.
Contrary to some media reports, the
Let me also point out the following.
levels of counter-narcotics based eco-
We also renewed our commitment to
At this point, we have not concluded a
nomic assistance planned for in the
seek a new International Coffee Agree-
security assistance agreement with the
President's Andean strategy outweigh
ment (ICA).
government of Peru. We have done some
advance planning and held discussions
the levels of military assistance being
We have offered to accelerate
offered. Over the 5 years that the
with officials of the government, but no
negotiations on tariff and nontariff
strategy covers, from FY 1990 to 1994,
programs of assistance can go forward
measures in the international trade
economic assistance will total over $1.1
without such an agreement. While it is
negotiations now going on in Geneva.
our belief that the narcotics situation in
billion, versus approximately $676 million
in security assistance. Moreover, this
Andean participants have not yet
the upper Huallaga Valley cannot be dealt
responded to our offer.
does not include other economic assis-
with effectively without the involvement
of the Peruvian military, this is a Peru-
tance such as food aid and trade prefer-
In addition to the bilateral aspects of
vian government decision. And, of
ences for the Andean region.
the Andean strategy, we are also working
course, it will be a decision as to whether
with the international community to gain
the counter-narcotics performance of the
Further Initiatives
support for Andean initiatives. The
Peruvian institutions involved in the
strategy suggests that a consultative
struggle will justify the provision of
We are, of course, living up to the
mechanism with other developed coun-
economic commitments made at the
economic assistance. Our request for
tries be established to encourage closer
economic assistance for Peru in 1991 is
Cartagena summit. We are implementing
coordination of international counter-
the initiatives contained in the Presi-
based on the assumption of effective
dent's November 1 Andean trade
narcotics efforts. I will be travelling to
counter-narcotics performance.
Europe at the end of this month to
Our counter-narcotics work in Bolivia
package, including working with the
further this goal.
does not create a significant military
countries in the region to develop further
We are pleased with the work of the
initiatives:
capability; it, too, focuses on improving
G-7 Financial Action Task Force on
the military's ability to support counter-
In February, administration officials
money laundering; the United States
narcotics efforts. This includes improve-
met with representatives from the
hopes to expand the number of countries
ments in riverine programs by the
European Community, Canada, and Japan
that embrace the action recommendations
Andean navies to interdict the flow of
to discuss ways we can help the Andean
of the task force to ensure that all
precursor chemicals and drugs on
countries improve their trade perform-
countries have comprehensive domestic
Bolivia's waterways.
ance.
programs against money laundering and
cooperate to the maximum extent
3
possible in international money launder-
In closing, I would like to take this
Success will not happen overnight,
ing investigations and prosecutions.
opportunity to say that I believe that
but we are beginning to see that our
Narcotics is also on the agenda of the
during the coming year, we and the
efforts are having an impact in the Andes,
Houston economic summit next month,
Andean governments will have many
and on the streets of the United States.
and there we hope to gain greater G-7
opportunities for progress as we work
Provided we are prepared to sustain our
support for precursor chemical control.
together to attack all aspects of the
activities and not allow our thinking to be
As our own controls become more
cocaine trade. We are optimistic. The
clouded by false analogies and oversimpli-
effective, the drug traffickers look to
price of coca leaf is down in Peru and
fications, I believe we will continue to
Europe and the surrounding countries for
Bolivia. As a result, in Bolivia voluntary
make progress toward a goal the Ameri-
supply of these chemicals, and so we must
eradication of coca is up-this year has
can people have made clear that they
bolster international efforts to limit their
already surpassed last year's total-and
support.
use to legitimate industry. Without
increasing numbers of growers are
essential chemicals, cocaine cannot be
moving out of the illegal industry. DEA
Published by the United States Department
produced. We have just completed a
laboratory analysis indicates that purity
of State
Bureau of Public Affairs
Office
State Department-Drug Enforcement
levels of cocaine at both the wholesale and
of Public Communication
Washington, DC
Administration (DEA) mission to Europe
retail levels are down and prices have
July 1990
Editor: Marilyn J. Bremner
to promote the control of essential and
increased at the wholesale level in many
This material is in the public domain and may
precursor chemicals. We will be conduct-
areas throughout the nation. Cartagena
be reprinted without permission; citation of this
ing similar missions to Latin American
ended the argument over who is to blame
source is appreciated.
countries.
for the drug crisis; we now have a
consensus on the nature of the problems
we face and a solidifying common front
against the drug trade.
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A quick reference aid on US foreign policy
gist
International Narcotics Control
Background
National- Drug Control Strategy
International cooperation to stop narcotics production and
trafficking is a central element of US foreign policy. Few
foreign policy concerns have as direct a domestic impact as
The President's National Drug Control Strategy calls for:
international narcotics. Ninety-five percent of the illicit
Increased economic, military, and law enforcement
narcotics consumed in the United States comes from other
assistance to Colombia, Peru, and Bolivia;
countries. It is essential, therefore, to gain international
Expanded US-Mexican cooperation in drug
cooperation to reduce drug supplies while the United States
enforcement, "money laundering" disruption, and demand
works to reduce demand at home. As Secretary Baker
reduction programs;
stated in November 1989: "[T]here is no foreign policy issue
short of war or peace which has a more direct bearing on the
Continued US support for law enforcement programs
well-being of the American people."
in South American producer and transit countries,
including Ecuador, Venezuela, Paraguay, Argentina, and
US Policy
Chile;
Continued law enforcement and intelligence programs
In January 1990, President Bush issued a National Drug
with Central American and Caribbean nations;
Control Strategy that calls for increased international
cooperation against drug production, trafficking, and abuse.
Development of an international strategy focused on
A critical part of the strategy is increased emphasis on
opium and heroin;
cooperative efforts with three Andean nations (Colombia,
Broadened domestic and foreign efforts to counter
Peru, and Bolivia) to dismantle cocaine trafficking organiza-
international money laundering activities;
tions and disrupt cocaine processing and trafficking as close
to the source as possible. In FY 1990, $423 million in
Expanded efforts to reduce the illegal manufacture
economic, military, and law enforcement assistance is being
and shipment of chemicals essential to illicit drug
provided to the three nations to strengthen their ability to
production; and
meet these objectives. Additional economic aid will be
Promotion of international law enforcement
available to these countries in FY 1991 if they use current
cooperation through mutual legal assistance treaties and
resources effectively and establish sound economic policies.
the pursuit of anti-drug initiatives at international forums.
The State Department's Bureau of International Narcotics
Matters, which has a budget of $150 million, provides $58
million to the Andean strategy funding. It has counter-
and the Soviet Union. There is a growing consensus that the
narcotics programs in South and Central America, Mexico,
solution to the world's drug problem must be global in scope,
the Caribbean, and Southeast and Southwest Asia.
addressing all elements of the grower-to-user chain.
In February 1990, President Bush met with the presi-
dents of Colombia, Peru, and Bolivia at the Andean summit
Role of Developed Nations
in Cartagena, Colombia. The four presidents agreed to work
closely in a number of critical counternarcotics areas,
Developed nations play a key role in global efforts to fight
including the control of precursor chemicals, drug education,
narcotics production and trafficking. The President's drug
exchange of tax information, and a broadened role for each
control strategy calls on European nations, Canada, Japan,
country's military in fighting narcotics.
and Australia to take greater steps to help Andean, Carib-
In addition, the United States is undertaking cooperative
bean, and Asian countries reduce drug supply and demand.
efforts with concerned governments in Asia, Africa, Europe,
An informal consultative mechanism is being established for
US Department of State
June 1990
Bureau of Public Affairs
Office of Public Communication
this purpose. Trafficking organizations are seeking new
have dropped because of increased anti-drug pressure in
markets for cocaine and heroin. Developed nations, recog-
Colombia and Bolivia, encouraging many coca farmers to
nizing the threat, are beginning to respond.
switch to legitimate crops. Working with the United
States, the government of Peru constructed a secure police
Progress in International Narcotics Control
base in the upper Huallaga Valley to house Peruvian and
US enforcement personnel.
Government leaders are focusing on the international
Progress has occurred in other countries as well.
narcotics threat and on positive solutions. A recent UN
Mexico seized 34 MT of cocaine in 1989 and drug trafficking
special session was devoted entirely to the narcotics issue.
has diminished in and around The Bahamas. Last year,
British Prime Minister Margaret Thatcher sponsored a joint
Jamaica further reduced its marijuana crop. Ecuador has
UN-UK ministerial conference on cocaine and demand
been successful in eliminating coca production, and Pakistan
reduction this spring.
reduced its opium crop.
Recent Colombian counternarcotics operations have
Nevertheless, much remains to be done. The estimated
resulted in the extradition of 15 narcotics traffickers and
production of illicit narcotics supplies increased in 1989.
money launderers to face justice in the United States, the
Most dramatically, Burma's opium crop doubled as the
seizure of about 19 metric tons (MT) of cocaine at a major
Burmese turned their attention away from narcotics
drug trafficking transportation complex in southern Colom-
control. Worldwide, coca production grew by about 10%
bia, and the confiscation of numerous properties and other
last year.
assets belonging to drug "kingpins." Coca prices in Bolivia
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Secretary Baker
Current
Policy
Democracy, Diplomacy,
No. 1228
and the War Against Drugs
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following is the prepared address by
through you to the American people our
spair. It is the tragedy of our daily
Secretary Baker for the Forum Club,
gratitude for what America has done for
headlines-of careers ruined, of families
Houston, Texas, November 22, 1989.
Germany and particularly for what
disrupted, of children gone astray, of
America has done for Berlin."
lives endangered, and of lives lost.
I am especially pleased to be here in
He said as well, "This is a moving
Our most fundamental values, in-
Houston to join you in celebrating the
moment for our nation, but I'm calling
deed our humanity, are at stake. To
Forum Club's 10th anniversary.
to express our gratitude to the people of
prevail in this twilight struggle against
As we gather with our families and
America." It almost brings tears to your
drugs will require courage and con-
friends this Thanksgiving, we Ameri-
eyes. It's a very moving event.
stancy of purpose, because there are no
cans have much to be thankful for, In
Thus, we see the postwar era near-
easy victories in this twilight war.
so many ways, we are reaping the har-
ing its end. Yet, we still live with its
International drug trafficking is a
vest of our long-held values. We have
legacy. We will do so for many years to
threat to our national security. That is
planted and nurtured them at home.
come. How we overcome that legacy
no exaggeration.
Through our efforts and by our ex-
will be a central question when Presi-
According to a survey taken in late
ample, they have taken root around the
dent Bush meets with President Gor-
September, over half of the American
world. They are ripening even in what
bachev in the Mediterranean next
people named illicit drug use as the
seemed to be the most forbidding and
month. In the meantime, the peoples of
most important problem facing the
barren ground.
the East are coming in from the cold,
country today. Illegal drug use in this
We Americans rejoiced when just
drawn closer to the warmth of democ-
country crosses the entire spectrum of
2 weeks ago the Berlin Wall was
racy.
our society. It affects people from all
breached. We shared the excitement of
Faith, conviction, and personal cour-
walks of life, all age groups, all back-
the moment with the German people,
age are prevailing against all odds. The
grounds, and all levels of income. And
just as in darker times we shared their
long, twilight struggle between East
while some regard narcotics as an ur-
grim determination to overcome the
and West that President Kennedy de-
ban phenomenon, this big-city problem
1948 blockade, the 1953 crackdown,
scribed may be coming to an end at last.
is also a major problem for rural
and, for 28 years, the stark presence of
It is ending with neither a bang nor a
America.
the wall itself.
whimper, but with the triumphant cry
I am sad to say that this native city
I had an extraordinary telephone
of the human spirit.
of mine, where we meet today, and our
conversation with the Foreign Minister
But there is another cry of the hu-
state of Texas are no exceptions. Hous-
of the Federal Republic of Germany,
man spirit that must be heard. It is not
ton is one of the four major narcotics
Mr. Genscher. He called. I came on the
the affirmation of freedom but its nega-
distribution centers in the country. It
line. His secretary said, "Just a mo-
tion; not the uplifting of democracy but
has a significant cocaine problem. In
ment, sir, and thank you for everything.
its degradation. It is the call of the
east Texas, the Sheriff's Office of Gregg
God bless America. Here's the minis-
drug addict, of the human souls and
County reports that between 1987 and
ter." This was his secretary. Then the
bodies afflicted with the scourge of de-
1988, there was an 80% increase in the
minister came on the line, and he said,
number of crack cases. Also during that
"I'm calling to simply express to you and
period, robberies rose by 70%. Four
extradite traffickers and money laun-
First, to isolate and disrupt coca
years ago, crack cocaine was pretty
derers to this country. Time and again,
production by interdicting air, road, and
much nonexistent in the town of Tyler,
President Virgilio Barco has put his
- river traffic in drugs and chemicals es-
Texas. Today, Tyler has crack houses
own life on the line for his nation and
sential to drug production;
and "shooting galleries." Indeed, well
for the cause of democracy everywhere.
Second, to eradicate coca when and
over 80% of the crime in Tyler is crack
In Colombia, the Medellin and Cali
where possible and effective; and
related.
traffickers consider themselves a coun-
Third, to develop income alterna-
Drugs hit close to home-my home
try and a law unto themselves. They
tives to the illicit drug industry by
and that of another Houstonian, George
operate just like the pariah states that
strengthening the legitimate economies
Bush; your home and the homes of our
export terrorism. They have bought
of Andean countries.
neighbors. That is why the President
banking systems to store their wealth
and I are personally committed to the
and mercenaries to attack their adver-
This is not a strategy for massive
and unilateral U.S. intervention in the
struggle against drugs. That is why I
saries. And who are their enemies:
Andes. The Andean countries want and
have made the narcotics issue a top for-
public figures, judges, journalists, and
need our assistance. But we know we
eign policy priority. I have instructed
innocent bystanders, whom they mur-
won't be effective unless we attack the
our ambassadors worldwide and the
der in broad daylight.
demand for drugs as well as the supply.
Department of State's assistant secre-
It is hard for Americans to compre-
To that end, we have accepted the An-
taries to ensure that narcotics control
hend the scale of such violence and in-
dean leaders' invitation to sit down and
issues are fully integrated into our dip-
timidation. Let me try to put it into
discuss our mutual struggle at an An-
lomatic efforts. To my mind, there is no
perspective. Imagine one day that a hit
dean summit in February next year.
foreign policy issue short of war or
squad attacks the U.S. Supreme Court
We realize that as long as American
peace which has a more direct bearing
and murders half of the justices. Imag-
demand for drugs continues, we face an
on the well-being of the American
ine our Attorney General being assassi-
endless, uphill battle to halt supply.
people.
nated by organized crime figures. And
That is why the President decided that
As I see it, the survival of democracy
imagine a criminal organization declar-
at home and abroad is perhaps our most
ing "absolute and total war" on our gov-
reducing the demand for drugs must be
at the center of our antidrug policy.
fundamental national interest. And
ernment after assassinating a leading
America's demand drives the spiraling
drugs are mortal enemies of democracy.
presidential candidate.
Let me tell you why.
This is what has happened in Co-
cycles of production and trafficking, con-
Democracy speaks to the dignity of
lombia in one short and brutal decade:
sumption, and addiction. Profits from
every kilo of cocaine buy the bullets
every individual. Every person is con-
the traffickers have killed over 1,000
which rob Colombia of its dignity and
sidered a free and responsible citizen
public officials, 12 Supreme Court jus-
freedom and threaten Bolivia and Peru.
whose vote and say in public affairs is
tices, over two dozen journalists, and
I want every user of drugs in the
essential. An individual caught in the
more than 200 judges and judicial per-
United States to face a fact: Their ac-
drug habit soon becomes a slave of that
sonnel.
habit-no longer a free person or a re-
President Bush has come to Colom-
tions are not just a personal indulgence.
They act as paymasters to organized
sponsible citizen. And in a similar way,
bia's aid by authorizing $65 million in
murderers whose victims are defenders
what can happen to the individual can
emergency military assistance. Can-
ada, Norway, United Kingdom, Italy,
of democracy and the rule of law. They
happen to a nation. The drug pirates
are accessories to criminals who poison
and profiteers attack the central nerv-
Spain, and Portugal have also pledged
children and babies. And users by their
ous system and vital organs of democ-
their help to Colombia's effort.
habits also contribute to the murder of
racy: the administration of justice; the
Moreover, this Administration has
the land. Coca farmers have destroyed
integrity of government; the right of
proposed a bold, comprehensive strat-
countless acres of forest; cocaine traf-
free speech.
egy to address the cocaine problem in
Ultimately, the illegal narcotics
the hemisphere. We call it "the Andean
fickers have dumped millions of gallons
of chemicals into water supplies.
trade robs dignity and freedom not only
strategy." This strategy is nothing less
Above all, we must be honest with
from the individual but from entire na-
than a multiyear, $2-billion American
tions. Malaysia was one of the first na-
plan to provide military, economic, and
ourselves. There is nothing glorious or
admirable or honorable in the so-called
tions to declare that drug traffickers
law enforcement assistance to help the
Andean governments as they fight co-
drug lords and kingpins. They are just
threatened its sovereignty. Pakistan,
criminals-criminals of uncommon
Thailand, Jamaica, and Mexico-all
caine. Our primary goal is to attack
power and uncommon brutality. No
have come to the alarming conclusion
and dismantle the drug trafficking or-
amount of laundering can wash the
that drug abuse is eroding their hopes
ganizations themselves. In short, to put
for the future, and they are taking ac-
them out of business. We are going di-
blood off money stained by drugs.
rectly to the source. And that is the
Narcotics has become a big business,
tion to combat this insidious enemy.
Look at Colombia. No other nation
Andes, where we will support the gov-
a very big business. Recently in Los
has so bravely confronted the drug
ernments of the region in a three-part
Angeles, agents seized 20 tons of ware-
housed cocaine. If all these kilos were
lords. No other nation can afford to be
plan:
stacked, one on top of the other, the pile
indifferent to Colombia's fate. We ap-
would be a mile and a half high-half
plaud Colombia's courageous decision to
the-height of Mount Whitney, the tallest
mountain in the continental United
2
States. It was estimated that this co-
an initiative to encourage our European
ruption and cruelty. It is being fought
caine had a street value of $6.7 billion.
allies to play a larger role in this and in
in shadowy backrooms where drug-
That exceeds the individual gross na-
other areas, such as approaching major
stained money is laundered. And,
tional products of well over 100 nations.
drug countries such as Burma, Laos,
- above all, it is a struggle of will and of
And this was just one warehouse.
and Iran-where U.S. influence is
conscience-one that is fought by each
Imagine the mountain of misery that
limited.
of us, often in the dark recesses of the
represents.
And three, we signed an agreement
soul.
I want to say a few more words now
in Paris with the Soviets last January
But I want to end on a brighter note.
about the international dimension of
which permits us to share information
For light is being shed on this pervasive
the drug problem and what we are
on narcotics issues. Since then, Foreign
problem both est home and abroad.
doing about it. Narcotics use, produc-
Minister Shevardnadze and I agreed in
Now, more than ever before, we see na-
tion, and trafficking are urgent prob-
Wyoming to expand our cooperation
tions all over the world working to-
lems not only for our hemisphere but
and, to follow through, the Attorney
gether on this global problem. From the
worldwide. So we are going to be taking
General has traveled to the U.S.S.R.
Soviet Union to Jamaica, from Spain to
some important actions that will give
Next week, our Assistant Secretary of
Malaysia, governments, leaders, and
teeth to our campaign against the ille-
State for International Narcotics Mat-
the private sector are joining in the
gal drug trade. The central idea behind
ters also will travel to the Soviet Union.
struggle against drugs.
our efforts is to attack these merchants
These are only a few instances of
Tomorrow, all across America, we
of death from every angle-production,
how, working together with traditional
will be sitting down to Thanksgiving
distribution, finance, and use. Let me
allies, friends and adversaries alike, we
dinner and blessing the Lord for the
give you just a few examples.
are beginning to attack the multina-
bounty before us. We should give
tional drug empires on every front.
thanks as well for the harvest of new
One, we are working with the Sen-
These actions, of course, are all part of
ate to promote ratification of the UN
freedom that has sprung up around the
Convention Against Illicit Traffic in
the larger strategy announced by the
world. And we pray that, with hard
Narcotic Drugs and Psychotropic Sub-
President and which is being coordi-
work, our communities here at home as
nated by Bill Bennett [Director of the
stances, and we will encourage other
well as the community of all nations can
Office of National Drug Control Policy].
governments to ratify as well.
rid God's good earth of the scourge of
Two, over the next few years you
As Secretary of State, I pledge that we
drugs.
will see an intensified effort to enlist
will hold to account nations that grant
our allies and friends in a common ef-
safehavens to drug profiteers, who
fort to fight drugs. We and our Summit
actively permit the laundering of
Published by the United States Department
Seven partners have established a fi-
money, and who turn a blind eye to
of State
Bureau of Public Affairs
Office
drug shipments.
of Public Communication
Editorial Division
nancial action task force against money
When I began this speech, I called
Washington, D.C.
November 1989
laundering. We have already launched
our war on drugs a twilight struggle.
Editor. Sharon R Haynes
This material is
Our struggle against narcotics is being
in the public domain and may be reprinted
fought abroad in the deep jungles and
without permission; citation of this source is
appreciated.
mountain valleys where coca and pop-
pies are grown. It is being fought at
home in the urban jungles ruled by cor-
3
Fact Sheet
Presidential Drug Summit
Cartagena, Colombia
February 15, 1990
Presidents Virgilio Barco of Colombia, Jaime Paz Zamora
of Bolivia, Alan Garcia of Peru, and George Bush of the
Bilateral Agreements
United States met on February 15 in Cartagena, Colombia,
to strengthen cooperation attacking the production, traf-
The U.S. and Bolivia signed the:
ficking, and consumption of illicit drugs. Colombia, Bolivia,
and Peru are sources of most of the world's supply of
Essential Chemicals Control Agreement to provide a
cocaine; the United States is the world's largest consumer.
basis for monitoring and controlling drug precursor-
chemical movement;
The Declaration of Cartagena, signed by the four
presidents, provides the framework for a comprehensive
Weapons Export Control Memorandum of
antinarcotics strategy. The declaration acknowledges that
Understanding to ensure greater cooperation toward
a successful program will necessarily involve economic and
preventing U.S. weapons exports from being acquired by
narco-traffickers; and
"We've committed ourselves to the first
Public Awareness Memorandum of Understanding
to build public support for programs against production,
common, comprehensive international drug
trafficking, and consumption.
control strategy."
- President Bush
The U.S. and Peru signed the:
development cooperation and support as well as intensified
Tax Information Exchange Agreement to provide for
bilateral exchanges of tax-related financial information in
actions aimed at narco-trafficking and reducing demand.
The leaders also stressed the need to increase public
order to track and prosecute financial gains from trafficking;
awareness of the dangers of trafficking and use, and to
Exchange of Notes on Extradition to confirm explic-
undertake diplomatic initiatives aimed at building interna-
itly that narcotics trafficking and related drug offenses are
tional support for drug control and economic development.
covered by the 1899 U.S. -Peru Extradition Treaty; and
The declaration calls for strengthened bilateral coop-
Public Awareness Memorandum of Understanding
eration. The U.S. and Bolivia signed agreements on the
to build public support for antinarcotics programs.
control of essential chemicals, weapons exports, and on
public awareness. The U.S. and Peru signed accords on the
The U.S. and Colombia pledged to:
exchange of tax information and public awareness and
Continue efforts to reduce the flow of illicit drugs;
exchanged notes on extradition. Other agreements are
Seek ways to maintain economic growth and stability;
under negotiation.
Work toward expanding U.S.-Colombian trade.
The summit nations agreed to hold a high-level follow-
up meeting within the next 6 months and called for a world
Participating Andean Countries
antinarcotics meeting in 1990.
Declaration of Cartagena-Key Points
Colombia
The four nations pledged to seek a cooperative, compre-
hensive strategy to the drug problem by:
Attacking the production, transport, and consumption
of illegal drugs;
Stimulating trade, investment, economic cooperation,
Peru
and alternative development in the Andean countries; and
Increasing public awareness of the drug problem and
Bolivia
strengthening international support for efforts aimed at
curbing illicit drug traffic.
U.S. Department of State
Bureau of Public Affairs
February 1990
Office of Public Communication
FACT SHEET
U.S. ASSISTANCE PROGRAMS RELATED TO DRUG CONTROL
Narcotics assistance to the Andean countries addresses various
economic and political issues which are intertwined with the
problem of narcotics trafficking. The majority of funding
support focuses on narcotics enforcement activities. It is
widely recognized, however, that a significant reduction in
narcotics flow cannot be achieved without an effective demand
reduction program in the U.S.
Andean narcotics enforcement agencies are ill-equipped to deal
with the magnitude of the narcotics problem in their
countries. U.S. bilateral narcotics enforcement assistance
programs with Colombia, Bolivia, and Peru provide for
specialized enforcement training, the loan of helicopters and
aircraft for use in reconnaissance and interdiction operations,
expanding the physical plant of host country narcotics bases
and assistance in developing communications and intelligence
capabilities.
The increased assistance for Andean narcotics enforcement
programs is coupled with an additional emphasis on economic
assistance, in order to offset the political and economic costs
of success in dismantling the cocaine trade. The U.S. also
supports Andean efforts to expand public and private sector
demand reduction programs.
U.S. narcotics assistance to the Andean countries in FY 90
places a particular emphasis on bringing the Andean military
-
into the anti-narcotics battle. Military support for
anti-narcotics operations in Peru and Colombia has become a
vital element of enforcement operations, due to the involvement
of some insurgent groups in narcotics trafficking activities.
The principal program objectives and measures are as follows:
Disrupt narcotics trafficking as close to the drug source as
possible
Provide the necessary equipment to host government
narcotics enforcement agencies to identify and
destroy coca paste, base, and cocaine laboratories
and clandestine airstrips in coca-producing
countries.
o
Aid host governments in the development of
effective domestic law enforcement capabilities in
cocaine source and transit countries through
training, professional exchanges, and intelligence
sharing.
-2-
Prevent drugs destined for the U.S. from entering international
trafficking channels
o
Support interdiction operations which attempt to
cut air, land and water transportation links used
by traffickers to move narcotics and precursor
chemicals.
Reduce illicit crop production where feasible
O
Support host country efforts to eradicate
narcotics crops through reconnaissance,
agricultural research, and provision of equipment.
Provide economic support to offset the social and economic
costs of successful anti-narcotics programs
o
Supply economic assistance which covers
agricultural, infrastructure, education, and
transportation projects for improving the standard
of living for farmers engaged in illicit narcotics
cultivation and processing.
O
All four countries have agreed that economic
assistance can best be utilized in the context of
sound economic policies.
-
Support the efforts of foreign governments to reduce the
internal consumption of narcotics produced in their countries
o
Provide the necessary resources to allow
governments to sensitize opinion leaders and the
general public to the health and national security
dangers of drug production, trafficking and abuse.
Attachment: Funding Chart - U.S. Counternarcotics Assistance
to the Andes
U.S. COUNTERNARCOTICS ASSISTANCE TO THE ANDES
(in millions of dollars)
FY 1990 ESTIMATE
FY 1991 ESTIMATE
Bilater-
Bilater-
al Law
al Law
Econ-
Enforce-
Econ-
Enforce-
Military
omic
ment
TOTAL
Military
omic
ment
TOTAL
Colombia
40.3
0.0
20.0
60.3
60.5
50.0
20.0
130.5
Peru
36.4
3.1
19.0
58.5
39.9
63.1
19.0
122.0
Bolivia
33.7
30.8
15.7
80.2
40.9
95.8
15.7
152.4
Total Andean Strategy
110.4
33.9
54.7
199.0
141.3
208.9
54.7
404.9
Latin America at the Threshold of a New Century
Statement by Sally Grooms Cowal
Deputy Assistant Secretary of State for Inter-American Affairs
United States of America
Ministerial Session
Economic Commission for Latin America and the Caribbean
Caracas, May 9-11, 1990
Mr. President, heads of delegation, ladies and gentlemen:
It is a privilege and an honor to address the Ministerial
Session of the 23rd meeting of the Economic Commission for
Latin America and the Caribbean.
As ECLAC embarks on its fifth decade, profound change is
taking place in Latin America. At this very moment, the Latin
American and Caribbean countries are undertaking an historic
transition toward democracy and the establishment of economies
based on principles of the market place and competition.
Economic stagnation, unemployment, widening spreads in
income distribution at the expense of the poor, and staggering
inflation rates are the legacies of the discredited statist,
inward-looking policies followed in the past. Rather than
focus on the past, however, as we look to 1992, the next ECLAC
meeting and the beginning of the sixth century of the New
World, let us dare to look to the future. We stand at the
abound. threshold of a new century; fresh promise and possibility
For the first time in history, the two continents of our
Hemisphere are developing a shared economic vision. For
centuries, the notion of the New World as the world of liberty
has been a common and unifying theme for the Hemisphere. Now,
more and more, we find a common understanding of the importance
of the individual being able to make economic choices, as well
as political ones. The authoritarian state has long been
discredited in political thought; its economic parallel, the
command economy, has likewise suffered a philosophical demise.
Leading theoreticians throughout Latin America, as well as
practical businesspeople and government officals, increasingly
recognize the market as the mechanism through which the
individual's economic choices are most effectively turned into
reality. This is a revolution as profound as that of the
ballot box.
-2-
These internal changes in Latin America have profoundly
changed the U.S. relationship with the region. Leaders elected
to office have the legitimacy and self-confidence to deal with
their neighbors within the Hemisphere and elsewhere in the
world as political equals. And countries which have freely
committed themselves to a profound restructuring of their
economic and social systems experience a justifiable sense of
pride and self-reliance. We are therefore moving toward a
relationship which for the first time in history is a natural
and easy partnership. Theories of Latin America's economic
dependency and marginalization -- SO fashionable in the 1970s
-- have been made irrelevant by the people of Latin America
themselves deciding to take control over their history and
responsibility for their future.
We have long talked of partnership in the Americas. I
believe we can give that term a new and concrete economic
meaning as we enter the new century. As our economies grow and
change, and as technology shrinks the distances between us, the
economic barriers which separate us become ever less relevant.
We are all more and more part of a world economy in which
goods, services, know-how, ideas from all parts of the globe
are combined to serve a universal market. To grow, and to
prosper, each of our nations will have to become increasingly
open to that world economy, and to accept the notion of the
globe as a single enterprise in which each nation plays a
significant and interdependent role.
The next decade -- and the century beyond that -- will
present us all with major challenges. Economic development
means change, profound change, fundamental change. And history
shows us that the rate. of change is accelerating. To meet the
ever more rapid changes that will occur in the next ten years,
the economies of the region will need to be more flexible,
efficient, and outward-looking. We need to encourage and
cement in place the structures which have begun to emerge, for
the world of the 21st Century will bring the most rapid and
voracious change we have ever seen. Even more than in the
past, the winners in the global competition will be those who
have undertaken reform as a continuing process.
This is a formidable, perhaps even a forbidding challenge.
At the same time, I am convinced that the necessary assets to
meet the challenges of the 1990s already exist in Latin America
and the Caribbean. The continent has the means to effect its
own economic transformation.
-3-
The region has always been rich in natural resources.
A land that for SO long only supported one-crop
cultures of sugar and coffee and not much else has
turned to new and varied crops such as winter
vegetables, cutflowers, soybeans, and citrus fruit,
and to new industries of satellites and supertankers.
It is generally accepted that Latin American financial
resources -- much of it flight capital in foreign
banks -- are sufficient to pay off the region's
external debt. This capital will return -- not in
response to rhetoric, but when investment climates are
healthy.
The labor force in Latin America and the Caribbean is
already urbanized, largely literate, mobile, and
increasingly organized.
And everywhere, there exist the energy and imagination
which are the seeds of a dynamic, risk-taking private
sector. Even in Nicaragua, which has suffered the
ravages of a decade of civil war, there remain
elements of an entrepreneurial private sector upon
which to build. Increasingly, studies of the informal
sector throughout Latin America show that the spirit
of enterprise is strong, even under extraordinarily
adverse conditions of poverty and stifling
over-regulation.
These are indeed impressive assets. And we must add to
that some impressive evidence of a growing will to undertake
fundamental economic reform.
We now know, both from experience as well as economic
theory, that growth and development flow from policies which
inspire the confidence of investors and lenders, domestic and
foreign. It is widely recognized that private initiative, and
private savings and investment, are absolutely necessary.
In fact, in recent years, many Latin American countries
have begun to move away from excessive government control,
market intervention, and import substitution strategies of the
1960s and 1970s. They have moved toward more market-determined
exchange rates, increased export orientation and better
macroeconomic management. Many of these policies have been
outlined by delegations present, who have provided vivid
examples of change.
-4-
These examples are heartening signs of major progress. But
the process is not complete. Governments in the region must
continue to move forward to complete the reform process. They
must commit themselves to the task of building a lasting
political consensus which supports the notion that a prosperous
future can only be built on a bedrock of sound economic polices
and open trade and investment regimes. Even with sound
policies in place, it takes time to build credibility, and to
restore the confidence of potential investors, whether large or
small.
We all know, of course, that implementation of economic
policy reforms, while long overdue and absolutely necessary, is
not painless. Change, even if ultimately beneficial, often
brings with it temporary disruption and insecurity. Perhaps
most importantly these policy reforms imply a fundamental
change in the way people perceive their relationship with the
state -- which has been an important point of discussion at
these meetings.
These reforms demand a change in basic attitudes whereby
individual enterprise is encouraged, and the state seeks to
promote a stable economic environment that rewards initiative
and provides proper incentives to work, save and invest. Under
this philosophy, government provides a stable fiscal, monetary,
and legal environment and then lets markets operate freely to
determine the most efficient allocation of resources. Equity
and social justice come not from the state assuring each
citizen an appropriate livelihood or stable employment, but
rather by providing basic investments in human capital
(education and health) and establishing a fair and open
framework within which citizens can exercise their economic
choices.
This is a profound change in human psychology. It places
the individual at the center of economic life, just as
democracy places him at the center of political life. And as
such it will release a new wave of entrepreneurial energy and
economic dynamism. If the right economic institutions and
incentives are in place and have proven their reliability, we
know that people -- even the poorest -- will work and save and
invest as a way of assuring themselves and their children a
better future.
Crucial to the success of this system is equality of
opportunity. This means a whole host of difficult but
indispensable structural changes -- changes which I
increasingly see in Latin America. It means, for example:
-5-
--Appropriate social investment, such as access of the
poor to basic education and health;
--Dismantling the maze of regulation which keeps the
informal sector out of the economic mainstream; and
--Realistic pricing of capital so as to encourage more
labor-intensive industry -- and more jobs.
This economic philosophy also implies a fundamental change
in how people look at external factors. No country is an
economic island. What happens in the world economy inevitably
changes what happens internally, even in large countries such
as the U.S. But neither are countries merely passive victims
of external circumstances. We have seen that wise economic
management can make a major difference, even in the face of
major international economic dislocations, and even for
relatively small and less developed countries. I see a very
healthy new sense of self-reliance in Latin America, a new
appreciation of each country's ability to make its own way.
There may be some who are still inclined to blame economic
problems on external factors like debt. Debt, of course,
remains a problem. It is, however, more a symptom of a greater
problem. As President Carlos Andres Perez has said: "If debt
disappears and we continue managing our economies as in the
past, inevitably we would continue in the same situation of
unemployment and disaster."
Let me turn now to two major issues in the external
economic environment faced by the region: debt and trade. In
both these areas, I believe, we have made some important
progress.
Notable progress has been made in the past ten months in
implementing the strengthened international debt strategy which
was reaffirmed at the World Bank/IMF spring meetings this week
in Washington. Just yesterday, a 50 percent increase in IMF
resources was approved by IMF officials and is likely to be
approved soon by IMF members.
My country has been at the forefront of advocating the need
to reduce debt and debt servicing for countries which are
themselves active participants in economic reform. Named for
Treasury Secretary Nicholas Brady, the so-called Brady
initiative is really a set of proposals which can be flexibly
applied. You are all aware of the key elements of this
important initiative.
-6-
Recently, Venezuela and its creditor banks reached an
agreement in principle on a comprehensive financing package
which included both a significant new money feature as well as
several debt and debt service reduction options. With this
package, four countries in the region -- Mexico, Costa Rica,
Chile, and Venezuela -- plus the Philippines have now taken
advantage of the Brady initiative.
In the trade area as well, there is considerable basis for
optimism. The United States and other industrial democracies
have achieved stable growth in their domestic economies and
have promoted the continued expansion of world trade. This has
contributed to enhanced export opportunities for Latin America
and the Caribbean.
In 1989, GDP in most of the G-7 grew in the range of 3 to 4
percent, which continues the strong trend of the past several
years. Inflation has been kept in check at around the
five-percent level in these countries. Further reductions have
been achieved in many of the largest trade and current account
imbalances.
The U.S. economy has continued its record peacetime
expansion for the seventh straight year. Real GNP increased by
almost three percent in 1989 and is forecast to rise by about
two and a half percent in 1990 and by more than three percent
in 1991. U.S. inflation in 1989 was 4.4 percent. Reduction of
the federal budget deficit continues, and we remain committed
to making substantial progress.
Despite many complaints and perceptions to the contrary,
the U.S. market is remarkably open. Our tariffs, for example,
average less than five percent. We take close to half of what
Latin America exports world-wide.
But our policy is to go further, and to seek even greater
openness; to create an ever-expanding global trading system
based on clear and enforceable rules. President Bush has
designed, and we are vigorously executing, a three-pronged
strategy to achieve these objectives:
--First, we are committed to conclude successfully the
Uruguay Round of trade talks by the December 1990
deadline.
--Second, in a manner that is entirely consistent with
our Uruguay Round aims, we will pursue bilateral and
regional market-opening intiatives.
--Finally, we will use the strength of our domestic
market to further our objectives in the Round.
-7-
With respect to agricultural trade, the United States
tabled the first comprehensive proposal on reform in this
area. The U.S. proposal would allow farmers to grow what they
want, when they want, and earn a decent income without
government interference. Latin American and Caribbean
countries would benefit considerably from our proposal.
On market access, the United States has challenged its
trading partners to envision a future "tariff-free" world. We
are ready now to work aggressively with others to achieve this
in key sectors of the Uruguay Round.
Our new proposal on textiles would bring this sector within
GATT discipline in a reasonable period of time. But we are not
prepared unilaterally to liberalize our market. Other
countries must participate.
In the new areas of services, investment, and intellectual
property, we all have a major stake in creating rules of
international fair play. Services are an increasingly
important sector in all our economies, whether construction
services, financial services, or computer software services.
And, while services are important in themselves, agriculture
and manufacturing would grind to a halt without them.
While seeking global trade liberalization, we are also
committed to programs which recognize the special needs of
developing countries. The Generalized System of Preferences
(GSP) provides duty-free access on a wide range of products
imported from developing countries. Further, the Caribbean
Basin Initiative gives the small and particularly vulnerable
countries of Central America and the Caribbean improved U.S.
trade opportunities, which have helped create many new jobs in
those countries that have adopted sound economic policies.
To sum up, we see tangible near-term opportunities for a
major liberalization of world trade. Latin America can play an
increasingly important role in this new trading system. More
Latin American countries are becoming members of GATT, more
governments are committed to full participation in world trade,
more countries are dedicated to an economic model which would
make them dynamic actors in this new system.
And yet, today some in Latin America and the Caribbean are
questioning the place of the Americas on the world scene.
There is concern about marginalization: being left out and left
behind by change. Will they measure up, for example, to the
challenge of Europe '92? There should be no reason to worry so
long as the pace of economic reform continues unabated.
European integration presents Latin America and the Caribbean
-8-
region with challenges and opportunities in terms of market
access. Indeed, the EC single market, the most visible aspect
of the integration process, may serve as a model for parts of
the Latin American region.
Similarly, there is concern that the attention of
governments as well as international business is shifting away
from traditional economic interests in Latin America toward the
new trading and investment opportunities opening up in Eastern
Europe. Here again, the issue is how Latin American
governments and entrepreneurs will respond to the new
challenge. If Latin America continues and deepens its
commitments to market-oriented policies and to international
competitiveness, then the new Eastern Europe will not be a
threat but an opportunity, providing a new market for Latin
goods and services.
This is a time of great promise, but also -- let's face
it -- of some confusion. There is a new consensus on the broad
principles of development strategy, but governments have to
translate these principles into specific, practical,
cost-effective programs.
As more countries in the region implement reforms aimed at
promoting greater private sector involvement in development; at
building strong, responsive capital markets; at legitimizing
the informal sector, and at stimulating more competition in
both the public and the private sector, ECLAC can serve as an
important advisor, helping to sort out what works best,
disseminating successful experiences, and extracting useful
lessons from not-so-successful ones. Working closely with
member states and drawing from their real-life experience,
ECLAC can recommend comprehensive domestic economic policies,
with the aim of generating domestic investment and attracting
foreign equity and voluntary lending.
Another important function for ECLAC is to tell the world
the exciting story of change in Latin America and the
Caribbean. The democratic revolution which the region has
experienced is well known and justly well appreciated. But the
parallel economic revolution, the seminal changes in economic
philosophy which now underlie most governments' policies, this
is less well known and less well understood.
There is also a certain amount of doubt on the part of many
business leaders -- understandable perhaps -- that this new
economic philosophy will take hold and prove durable enough to
to withstand political pressures. ECLAC thus has an important
role in disseminating the track record of Latin American
economic performance, in demonstrating the credibility of the
new economic model. We need to aggressively market the
attractiveness of Latin American and Caribbean countries as
trading partners and as offering investment possibilities.
-9-
If the domestic and external challenges and opportunities
are faced with perseverance, we can look forward to the 1990s
as a new beginning. With commitment to the exercise of both
economic and political freedoms, the new decade can be one of
renewed prosperity in our hemisphere and full participation of
Latin America and the Caribbean in the global economy.
In closing, I would like to repeat what World Bank
President Barber Conable recently said about economic progress
and prospects in Latin America and the Caribbean:
There are those who see only problems and crises in Latin
America. I see instead a region blessed with abundant
natural resources, and populated by peoples of energy,
imagination and courage. I see a region where, since World
War II, remarkable economic and 'social changes have taken
place; where average income has more than doubled, and
where average life expectancy has risen by one-quarter. I
see a region where, even in a time of severe economic
stress and painful but necessary reform, the transition to
democracy has been successful.
I share this vision. In the turmoil of great change, it is
easy to see only the strife and the confusion. But we need to
remember where we are going and what we have already achieved.
The United States and Latin America have a long history of
mutual endeavor and mutual support. Today, we have a renewed
partnership, based on a newly shared economic vision of open
societies and open economies. With our traditions of
friendship and mutual support, and with a new guiding vision,
we can move into the new decade with confidence and hope.
Thank you.
Luigi R. Einaudi
Current
Policy
The United States
No. 1279
and the OAS
United States Department of State
Bureau of Public Affairs
Washington, DC
Following is a statement by Luigi R.
on a basis of democracy and national
Finally, [Western Hemisphere
Einaudi, US Permanent Representa-
reconciliation. In the Caribbean,
Affairs Subcommittee] Chairman
tive to the Organization of American
Haiti has fresh hope for democracy;
[George W.] Crockett last July noted
States, before the Subcommittee on
only [Fidel] Castro's Cuba remains
one problem central to this hearing.
Western Hemisphere Affairs and the
stubbornly resistant to the winds of
The OAS is financially broke, its rele-
Subcommittee on Human Rights and
freedom. In South America, Brazil
vance undermined by a generation of
International Organizations of the
and Chile this year completed demo-
misuse and disuse by member
House Foreign Affairs Committee,
cratic transitions with new presidents
governments.
Washington, DC, May 1, 1990.
elected directly by the people. In
This year marks the centennial of
January, Canada joined the OAS as a
the first International Conference of
full member. This June, the annual
American States (1889-90) in Wash-
Potential and Uncertainty
OAS General Assembly will meet in
ington, presided over by US Secre-
Paraguay, whose government is a
tary of State James Blaine. The
Speaking last November to an Or-
symbol of political and generational
International Union of American
ganization of American States (OAS)
change.
Republics, staffed by the Commercial
General Assembly filled with repre-
Uncertainties abound, however.
Bureau of the American Republics,
sentatives of the elected govern-
The hemisphere has largely rid itself
became the Pan American Union in
ments of Latin America and the
of dictatorships, but even elected
1910. The modern Organization of
Caribbean, Secretary Baker said that
leaders still face ominous clouds of
American States is based on the 1947
he and President Bush believe that
poverty and frustrated development.
Inter-American Treaty of Reciprocal
we and they "have it in our power to
The momentous changes sweeping
Assistance (the "Rio Treaty") and the
create, here in the Americas, the
Eastern Europe are altering the
Organic Pact adopted in 1948 in
world's first completely democratic
structure of international politics as
Bogota and most recently updated at
hemisphere-a hemisphere, as the
we have known it since the end of
Cartagena in 1985.
charter of the OAS envisions, where
World War II, but the nature of the
Today, the OAS has 32 members.
human rights are respected and the
new order remains unclear. Where
Its activities are consistent with
rule of law prevails, where all nations
will the Americas fit? Many observ-
Article 52 of the United Nations
live in peace and none lives in fear of
ers are pessimistic, both about Latin
Charter, which recognizes "regional
aggression."
America after a decade of lost growth
arrangements or agencies for dealing
This is not a utopian vision. The
and about the outside world's con-
with such matters relating to the
bitter troubles of Central America
tinuing interest in the region's
maintenance of international peace
are not over, but there is clearly
development.
and security as are appropriate for
movement toward conflict resolution
regional action."
A Renewal Has Begun
The meeting was organized by the
gaged in a joint venture north and
ai
Few observers thought a year ago
OAS Drug Abuse Control Commis-
south to advance and defend democ-
of
that the OAS would be deeply
sion (CICAD), which had earlier
racy, then we must each do our
rt
involved in such weighty matters as
negotiated the model legislation on
part-collectively where possible-to
Nicaraguan elections, [Manuel]
chemicals and will now develop the
create new mechanisms and
T
Noriega, or effective peacekeeping
legislation on money laundering.
strengthen existing ones to defend
On November 9, 1989, just as
human rights, to guarantee the
C
and antidrug activities. Take just
four examples:
public attention focused on the
integrity of elections, and to establish
opening of the Berlin Wall, the Inter-
sanctions against those who threaten
c
On April 18, 1990, the Sandinista
American Commission on Human
democratically elected governments
S
government of Nicaragua and the
Nicaraguan Resistance agreed to a
Rights (IACHR) issued a devastating
through violence or through coups."
d
Report on the Situation of Human
"If you ask the United States,"
v
cease-fire with the full participation
the Secretary said to his fellow
c
and support of the incoming
Rights in Panama. The OAS report
Chamorro government and witnessed
systematically documented the
members of the OAS, "to forego
a
by Cardinal Miguel Obando y Bravo.
Noriega regime's abuses of human
unilateral initiatives and to work,
The cease-fire was negotiated and
rights after it suspended rights
instead, in good faith with the demo-
cratic nations of Latin America in a
I
signed in the OAS offices in Managua.
established in the Panamanian
The cease-fire calls for UN forces
constitution on June 10, 1987. The
new cooperative diplomacy to sup-
(the UN Observor Group in Central
IACHR'S conclusion: The puppet
port democracy, then we ask you to
government installed by Noriega on
join us in good faith to turn the
America-ONUCA-with Venezuela
€
September 1, 1989, was "devoid of
promise of that diplomacy into a
in a key role) to collect weapons.
constitutional legitimacy."
reality throughout this hemisphere."
Meanwhile, OAS teams are to pro-
On March 22, 1990, Assistant Sec-
vide humanitarian assistance to the
On October 6, 1989, a citizen of
retary of State Bernard Aronson told
demobilizing resistance forces.
Trinidad and Tobago died in a
the Committee on Appropriations of
Earlier, OAS election observers
shooting incident between a Trinidad
the House of Representatives that
were decisive in ensuring the free-
and Tobago fishing trawler and a
the United States perceived four
dom of the February 25 elections.
patrol boat of the Venezuelan na-
tasks in its relations with Latin
Two Members of the US House of
tional guard. At the request of the
America and the Caribbean: "Con-
Representatives Subcommittee on
two governments, OAS Secretary
solidating and building on democratic
Western Hemisphere Affairs, Repre-
General Joao Clemente Baena Soares
gains, advancing economic develop-
sentatives Porter Goss and Harry
appointed three experts, two from
Johnston, were among the 434
ment, promoting peace, and ridding
the OAS Secretariat and one from the
our region of the scourge of drugs."
international observers and experts
Royal Canadian Mounted Police, to
The OAS is contributing in all four
mobilized by the OAS to create the
undertake an impartial investigation.
areas. But the OAS also serves as a
climate of confidence that enabled the
By January, the recommendations of
critical "environmental" factor. A
will of the Nicaraguan people to be
the OAS team had led to the conflict's
climate of effective regional commu-
respected.
resolution to the satisfaction of all
nication can only start with a clear
Last February, the summit
concerned.
statement of national interests. The
between President Bush and the
Trinidad and Tobago's minister of
precedent was established at the
Presidents of Colombia, Bolivia, and
external affairs wrote that the OAS
United Nations by Senator Moynihan
Peru marked a powerful new an-
had again demonstrated its value as
and Ambassador Kirkpatrick.
tidrug consensus.
"the ideal forum of the Americas for
[Daniel Patrick Moynihan and Jeane
On April 17-20, 1990, Attorneys
the peaceful resolution of conflicts."
Jordan Kirkpatrick, former US
General and Ministers of Justice from
Permanent Representatives to the
throughout the hemisphere gave
US Policy and the OAS
United Nations.] Silence is often not
concrete impetus to the war on drugs.
golden. There are cases to make,
They agreed to complete ratification
From the start of his Administration,
interests to defend. Words count.
of the 1988 UN antinarcotics treaty
President Bush and his Secretary of
Resolutions matter.
by year's end. They approved
State have articulated a new empha-
By making clear our interests, we
specific legislation controlling essen-
sis on multilateral diplomacy.
make them understood and position
tial and precursor chemicals and
On March 30, 1989, having just
ourselves to seek as much common
machines used in the manufacture of
concluded a bipartisan accord be-
ground as possible with others to
cocaine and urged individual coun-
tween the executive [branch] and the
advance them. The OAS is an
tries to adopt it as soon as possible.
leaders of the United States Con-
association of sovereign states. No
And they established an experts
gress, Secretary of State Baker told a
matter what extraordinary changes
group to develop model common leg-
distinguished assemblage of demo-
are wrought in the world, this will
islation against money laundering and
cratic leaders from Latin America
still be a hemisphere of nation states.
illegal assets.
and the Caribbean that "we need
The OAS makes possible consulta-
each other now as we have never
tions and harmonization of interests
before.
If we are together en-
2
and instruments among the countries
unwillingness of OAS member gov-
of this hemisphere on a basis of
the trust extended it by the people of
ernments to make the admittedly
Nicaragua, to the high standards of
respect for sovereignty.
tough decisions involved. The lowest-
the technical infrastructure the OAS
common-denominator approach that
put in place with support from the
The OAS Fumble on Panama
ensued made clear the hemisphere's
Pan American Health Organization
distaste for Noriega and his brand of
(PAHO) and the Inter-American
On December 20, 1989, US military
forces went into action to defend US
government, but failed to provide any
Institute for Cooperation on Agricul-
visible consequences for his defiance
citizens in Panama. The action was a
ture (IICA), and to the support of
of hemispheric opinion.
sharp reminder that multilateralism
OAS member states who provided
Our prolonged and patient effort
does not always work. The OAS, to
observers, technical experts, and ad-
to deal with the crisis in the OAS
visers.
which the United States and other
helped mitigate adverse reaction to
The United States contributed
countries had turned after the brutal
the use of military force when it was
annulment of the May 7, 1989, elec-
key financing ($3.5 million) and
finally required to defend the lives of
tions, failed. Its actions did not begin
technical advice. (Danny McDonald
US citizens. The OAS resolution of
of the Federal Elections Commission
to match the agony of the Panama-
December 23 criticized the US action
nian people, their initial faith in the
was among the Secretary General's
unequivocally, but "deeply regretted"
OAS, or the hopes of the interna-
personal advisors, along with election
rather than condemned. Conscious
tional community.
tribunal members from Brazil, Costa
that responsibilities were shared,
Rica, and Venezuela). Last but not
A mission of foreign ministers
Venezuela and five other Caribbean
expended much effort but was unable
least, as noted earlier, Members of
Basin nations abstained.
to negotiate Noriega's departure
Congress joined legislators from
from power. The result left the
other hemisphere countries as
people of Panama-and the US
The OAS Recovery on Nicaragua
observers.
citizens fulfilling treaty obligations to
In response to requests from both
OAS election monitoring in Nicara-
operate and defend the Panama
incoming President [Violeta]
gua contributed decisively to the fair
Canal-subject to abuse and, for
Chamorro and outgoing President
outcome of the February 25 elections.
some, death at the hands of the
[Daniel] Ortega, Secretary General
The presence of observers from the
Noriega dictatorship. Disguised
Baena Soares kept OAS observers in
UN and the OAS as well as those
initially by appeals to the doctrine of
Nicaragua after the election. Mean-
organized by [former] President
nonintervention, this failure of
while, he and UN Secretary General
[Jimmy] Carter, the Center for
diplomacy became evident to all when
[Javier] Perez de Cuellar negotiated
Democracy, and other activist
the United States was ultimately
terms of reference for the joint Veri-
groups, permitted the voters to
forced to military action.
fication and Support Commission
express their will without fear and
The Noriega case did show that
(CIAV) called for by the Central
made it impossible for the results to
the OAS could be used by member
American presidents to verify com-
be ignored.
governments to communicate their
pliance with the Tela and subsequent
The OAS observation system was
agreements. To assist with the vol-
concerns to a broader public. On
both the largest and the most perva-
August 31, 1989, the eve of the
untary demobilization, repatriation,
sive of the various international
September 1 deadline established in
and resettlement of the Nicaraguan
efforts. It was supervised personally
the Panamanian constitution and
Resistance, OAS-CIAV assumed
by Secretary General Baena Soares,
recognized by the OAS meeting of
responsibility for Nicaragua, UN-
who did not delegate his authority,
CIAV for Honduras and Costa Rica.
foreign ministers for the transfer of
but instead traveled repeatedly to
Participation in electoral observa-
power, the United States called for a
Nicaragua to keep in touch with the
special session of the Permanent
tion and in the post-election transi-
many leaders involved.
Council. Acting Secretary [of State]
tion subjected OAS staff members to
The OAS established offices in all
Lawrence Eagleburger delivered a
numerous hardships, particularly in
nine electoral Nicaraguan districts.
rural areas, but their common reac-
powerful, detailed statement, "The
This basic OAS infrastructure
tion was that in the wake of the
Case Against Panama's Noriega."
provided communications, housing,
The US Mission distributed facsimi-
demoralizing 30% reduction in force
transport, data handling capabilities,
les of the Florida indictments and
of early 1989, no better way could
and a parallel voting tabulation
have been found to remind them-
copies of Noriega bank records in
system nationwide. Beginning in
selves and others of the fundamental
Europe. Together with the damning
August, 1989, personnel from the
mission of the OAS.
OAS human rights report, these OAS
OAS Secretariat in Washington took
activities led to the isolation of
turns in staffing the offices in Nicara-
Noriega's Panama and the with-
gua.
Human Rights
drawal of ambassadors from Panama
Secretary General Baena Soares
by many OAS members.
The independent OAS IACHR is the
informed the Permanent Council that
Even so, OAS inaction was deeply
conscience of the hemisphere. OAS
the success of the program was due to
disappointing. Part of the problem
involvement in human rights is based
upon the 1948 American Declaration
was Noriega's obduracy, part of it the
of the Rights and Duties of Man and
3
the 1969 American Convention on
overcome the stereotypes associated
Human Rights. The IACHR and the
Program development. The
with labels such as "producing,
foregoing discussion illustrates the
Inter-American Court on Human
transit, and consuming" countries and
Rights (CIDH) give the OAS an
OAS's capacity to adjust priorities
galvanized measures such as those
and institutional structure to meet
active and at times forceful role in
agreed upon at Ixtapa, Mexico, last
changing demands and requirements.
promoting and protecting human
month.
What is new is the Secretary Gen-
rights. Through both persuasion and
CICAD's programs focus on
eral's success in mobilizing the other
published reports on human rights
regional approaches to legal develop-
infringements, the commission has
inter-American specialized organiza-
ment, public awareness, and preven-
been instrumental in improving
tions-PAHO and IICA-in joint
tion. One project seeks to mobilize
member government practices. On
efforts such as election monitoring in
private sector support for antinar-
Nicaragua. The OAS, PAHO, and
occasion it has directly helped resolve
cotics programs, another to enlist
conflict situations.
IICA are continuing their close
schools in preventing drug abuse, yet
cooperation with CIAV. OAS
Members of the IACHR are
another to strengthen national and
elected in their own right, not as
experts experienced in Nicaraguan
international law on seizure of
conditions have prepared detailed
representatives of governments. The
traffickers' assets and control of
projects for recovery in education,
autonomy of the commission is
precursor chemicals. In addition to
job training, health services, and
further enhanced by its prerogative
support via the OAS budget, the
agriculture.
to initiate human rights investiga-
United States has made several
tions without the approval of the
special grants. The Inter-American
Specialized organizations. The
Secretary General or the Permanent
Development Bank (IDB), the
OAS directly supports:
Council. A US citizen, John Steven-
European Community, and the
The Inter-American Defense
son, is currently one of seven commis-
Italian, Japanese, and Canadian
Board (IADB), created during World
sioners; another US citizen is acting
governments are currently consider-
War II to plan and coordinate collec-
executive secretary.
ing grants to CICAD.
tive hemispheric defense. It advises
The IACHR prepares an annual
report with chapters on countries
Technical assistance. Respond-
the OAS on defense matters, and has
with human rights problems in
ing to a major demand of less devel-
coordinated peacekeeping operations.
general and on individual cases, as
oped members, OAS programs train
The Inter-American Defense
well as special reports. In its last 14
over 2,000 specialists annually (91,000
College (IADC) is supervised by and
years, the commission has effectively
since its inception), primarily in the
funded by the IADB. It strengthens
challenged abuses in Panama, Nicara-
US but also at 23 inter-American
military professionalism and aug-
gua, Cuba, Chile, El Salvador,
centers. The United States continues
ments US international military
Guatemala, Suriname, Haiti, and
to be the major contributor, but
training programs. The college
Paraguay, among others. The 1989
Argentina, Brazil, Mexico, and
annually trains about 60 field grade
special report on Panama was an im-
Venezuela have joined the United
officers, many of whom reach leader-
portant factor in galvanizing interna-
States as net donors. OAS feasibility
ship positions in their respective
tional public opinion against the
studies for large-scale projects in
services.
Noriega regime. The IACHR also
regional development, environment,
and education are endorsed and
The Inter-American Children's
played a key role in the release of
funded by the IDB. Wider recogni-
Institute (IACI) is concerned with
thousands of political prisoners in
Nicaragua.
tion of OAS effectiveness has at-
problems of mothers, adolescents and
On February 23, 1990, the OAS
tracted contributions from nonmem-
families, including the growing
number of "street children."
Permanent Council adopted a resolu-
bers, including Spain, Italy, Holland,
tion mandating an in situ visit on the
Israel, and France, anxious to take
The Inter-American Commis-
human rights situation in Haiti. The
advantage of the favorable cost-
sion of Women (CIM) is concerned
IACHR visited Haiti April 16-20; its
benefit ratio achieved by the OAS.
with women's rights and their
report will be part of a broad OAS
The OAS manages a major program
integration into development and
and UN effort to support elections by
of feasibility studies on modernizing
decision-making processes. CIM
the new Haitian government.
telecommunications throughout Latin
research and seminars have focused
America and the Caribbean. The US
on women and politics (1988), women
private sector has also joined in. An
and employment (1989), and violence
Other Key Activities
International Business Machines
against women (1990).
Drugs. The OAS Inter-American
(IBM) contribution of $1,500,000 (not
Drug Abuse Control Commission
including in kind contributions) has
Other organizations associated
(CICAD) was established in 1986,
helped the OAS put together a highly
with the OAS are financed outside
first met in April 1987, and began its
sophisticated trade information
the OAS budget:
first activities in 1988. Under the
program now at work facilitating an
leadership of Irving Tragen, an
expansion of north-south trade.
The PAHO, with resources of
$67 million (1988), has contributed
American citizen, the CICAD has
significantly to protecting the United
4
States from communicable diseases
The Financial Crisis is Acute
and promoting improved sanitation
stration's determination to use
and health conditions throughout the
A remarkable aspect of the enhanced
multilateral diplomacy, where
hemisphere.
role of the OAS in the past several
feasible and appropriate, to resolve
months is that it took place despite
regional problems and to engage our
The IICA, with resources of $34
million (1989), has worked closely
serious underfunding. The US paid
neighbors on topics of hemispheric
only $18 million of its 1989 assessed
concern.
with the US Department of Agricul-
quota payment of $40 million to the
Other countries are showing their
ture in preventing threatening animal
OAS. (The US assessment for the
commitment to the OAS. Argentina,
and plant diseases from entering the
OAS is 66%; the United States
Ecuador, Mexico, Paraguay, and
United States and in helping mem-
accounts for 85% of the total GNP of
Venezuela are all hosting important
bers develop food production.
all OAS members.)
meetings this year. In September
The Pan American Institute for
This caused a severe cash flow
1989, Argentina paid most of its $12
Geography and History (PAIGH) has
crisis which the OAS met by a 30%
million arrears. This year, Canada's
major geodetic and cartographic pro-
personnel cut in January 1989,
accession to the OAS in January was
grams of its own and facilitates coop-
combined with one-time reductions in
testimony to the benefits of member-
erative relationships between US
program activities. From November
ship and will further enhance effec-
1988 to March 1989, 293 employees
tiveness.
agencies (such as the Defense Map-
ping Agency and the National Ocean
either resigned voluntarily (205),
Service of the National Oceanic and
were on fixed-termed contracts
The Second Century
Atmospheric Administration) and
allowed to lapse (76), or retired (12).
other countries in such vital areas as
The cuts, worked out in close coop-
Imagine the number of vital issues,
safety of flight.
eration with member states including
from drugs to economic development,
The Inter-American Indian In-
the United States, fell roughly
from mutual security to the environ-
proportionately on nationals of all
ment, on which progress would be
stitute (IAII) has been helpful in
member countries. Total OAS
more rapid if we succeed in building
providing the US Department of
Interior's Bureau of Indian Affairs
personnel in 1974 numbered 1,577; by
on a democratic foundation where the
with a vehicle for cooperation with
the end of 1989, the number was
rights of individuals and of govern-
other Latin American countries with
654-a 55% reduction in 15 years. At
ments are not in conflict.
major Indian populations.
present, the United States provides
As the OAS enters its second
14% of the entire OAS staff and 20%
century, one of its enormous
strengths is that its membership is
Finally, one organization created
of its professionals-easily the
and supported by the OAS receives
largest national group among OAS
overwhelmingly made up of states
financial support largely from US
personnel.
that organize themselves in ways
corporations and other private
Despite these draconian cutbacks,
that are democratic. The test of
arrearages and the consequent lack of
membership is becoming democracy
sources. The Pan American Develop-
ment Foundation (PADF) is a Section
reserves severely limit flexibility and
as well as geography. This is a stark
threaten to undermine the work of
contrast to the situation just a
201(c)(3) entity with a subsidy from
the OAS and some US Agency for
the OAS on almost every front. For
generation ago. Moreover, the
example, the $1.5 million the OAS has
flexibility of democracy is a strength
International Development (AID)
received for its work facilitating the
that is vital to today's rapidly chang-
funds; corporate donors provide over
peaceful demobilization and reinte-
ing world. This hemisphere has come
one-half of its resources. It has
channeled over $100 million from the
gration of the Nicaraguan Resistance
a long way in the evolution toward
will run out later this month.
democracy and in the suffering that
private sector into development
Just last week, Assistant Secre-
any evolution requires. Compare the
projects which mobilize private
tary of State John R. Bolton told the
odysseys of Argentina, Brazil, Chile,
sector support in recipient countries.
House Subcommittee on Interna-
or Nicaragua in the past decade to
The OAS and its specialized or-
tional Organizations that "we must
those of the countries of Eastern
ganizations frequently carry out
programs for other organizations,
reestablish America's image as a
Europe now beginning to face the
such as the UN Development Pro-
credible, reliable participant in
problems of attempting to construct a
international organizations. To do SO
democratic polity.
gram (UNDP), the UN Environment
we must fully meet our financial
Our challenge, a very difficult but
Program (UNEP), and the World
Bank, on a contract basis. The OAS
obligations when they are due."
inspiring challenge, should be to
The Administration is asking the
make the second century of the OAS
has received some $6 million annually
Congress for full funding of our FY
the century of democracy. Already
in recent years for these purposes.
1991 quota assessment to the OAS as
others in the region see the need to
External entities recognize the value
of OAS management of technical
well as $38 million for arrears, which,
reconcile the principle of noninter-
assistance and its effectiveness.
if appropriated, would be paid in
vention, one of the traditional corner-
equal installments of 20% a year for 5
stones of the inter-American system,
years. This would fulfill the Admini-
with the principles of self-determina-
5
tion and representative democracy,
Still Far to Go
both of which are contained in the
education. The social, economic, and
For some years, important issues
educational problems which cause S0
OAS charter and both of which have
been given new urgency by today's
have been considered outside the
many young people to drop out of
OAS-or not considered at all. Now
school waste human potential.
needs. Speaking at a special session
of OAS Permanent Council on April
100 years old, the inter-American
Curricula need to be redesigned and
27, 1990, President Carlos Andres
system is turning a corner, and there
teachers retrained. OAS multina-
Perez of Venezuela declared himself a
is an exciting new focus for the 1990s
tional programs in basic education
and beyond:
and education for work provide
convinced believer in "collective
mechanisms for all member countries
unarmed intervention for the positive
Promoting and assisting demo-
to share successes and to avoid
and peaceful resolution of conflicts."
cratic transitions and strengthening
repeating costly mistakes.
On March 28, 1990, Assistant Sec-
democratic institutions are now a
retary of State Aronson was explicit
prime concern of the OAS.
Integration. The Caribbean,
to the Senate Foreign Relations
Central America, the Andes, the Rio
Committee: "The conventional
The IACHR-the most re-
de la Plata area-the Americas have
wisdom holds that our historic
spected human rights organization of
long been differentiated into natural
mistake in Latin America has been
any multilateral body-must continue
subregions. So long as governments
interventionism. I would argue the
to keep human rights at the center of
were despotic, SO long as frontiers
opposite is true. Our historic mis-
the hemisphere's collective con-
meant boundary disputes, and SO long
take-when we have made mis-
science.
as individual countries could attempt
takes-has been to fail to rally early
In the drug wars, the OAS is
to cut themselves off from progress,
and boldly and effectively to support
strengthening multilateral coopera-
integration remained a dream. The
and extend democracy in its hour of
tion and breaking new ground, most
spread of democracy gives the OAS
need."
recently in precursor chemicals and
new vigor as a forge of common
The Organization of American
money laundering. As President
consciousness and regional and
States already serves as the basic
Carlos Salinas de Gortari of Mexico
subregional cooperation.
sounding board of the western
told the OAS ministerial conference 2
hemisphere. As an association of
weeks ago, "We are encouraged by
The OAS is by definition not a
sovereign states, its structure makes
the spread of a generalized aware-
single-issue or single-country organi-
it an inherently democratic sounding
ness that we have a common enemy
zation. But all these areas-plus the
board. The OAS has no privileged
and by the emergence of a balanced
important work in trade promotion
members, no security council, no
and mature vision of how to attack it
and democratically focused military
vetoes. Every member has one vote,
internationally."
education and training-are of deep
the same opportunity to be heard.
national interest to the United
Visitors to OAS Permanent Council
Similar cooperation is foreseeable
States. All require positive, practical,
meetings sometimes comment that
in other areas:
productive, and patient contributions
they can seem almost familial in spite
if we are to deal with the issues of the
of their formality. And that is
The environment. The June
next century in a manner befitting
another strength. Even with the
1990, OAS General Assembly will
the potential of the new world.
entry to membership over the past
consider a proposal to create an
generation of a dozen countries of the
"Inter-American System for Nature
Commonwealth Caribbean, OAS
Conservation." Because of the great
Published by the United States Department
of State
Bureau of Public Affairs
Office
interest in environmental issues
membership is still small enough to
of Public Communication
Washington, DC
be manageable. No one need be
among member countries, the Gen-
May 1990
Editor: Marilyn J. Bremner
eral Assembly might decide to call a
This material is in the public domain and may
silenced in the name of efficiency.
specialized conference of experts to
be reprinted without permission; citation of this
The OAS is the natural forum to turn
source is appreciated.
democracy in individual countries
develop a program of action.
into democratic solidarity as a source
Education. Democracy, economic
of hemisphere-wide strength.
development, and cultural sensitivity
require substantial investments in
6
Memorandum for all speechwriters and researchers
From Chriss Winston
Subject: Latin American trip
A short postscript to the meeting. Two of the gentlemen
attending this morning's meeting will serve as liaison for us at
State. They are Phil McLean (647-6754) and Andrew Sens (647-
3403).
They are anxious to help in any way and will contact embassies
for you if you prefer that to calling direct. Some of the
information you will need will probably be sensitive and the
embassies may prefer sending it by secure cable.
Also, over the next few weeks, you will receive, no doubt,
sensitive documents through Don Johnson of the NSC i.e. cables.
NSC had planned to "clean them up" for our use but I told him we
had a safe and would lock up all sensitive papers. This should
save us some time but, please, be careful of these papers and
make sure they are in the safe in my office every night.
Bernie Aronson told me after the meeting that they hope to have
the first bullets within two weeks. However, you each have a
document to get started.
Secretary Baker
Current
Latin America and the
Policy
No. 1160
U.S.: A New Partnership
United States Department of State
Bureau of Public Affairs
Washington, D.C.
defending human rights in the Helsinki
Soon we will enter the 21st centu-
Following is an address by Secretary
Baker before the Carter Presidential
Final Act. So I very much appreciate
ry, and we face a choice between two
Center's Consultation on a New
the hospitality of each of these Presi-
very different futures. Down one road
Hemispheric Agenda, Atlanta,
dents in inviting me to join you today.
lies a vision of freedom and oppor-
tunity and economic development. It's
Georgia, March 30, 1989.
a vision in which all our citizens can
Historic Changes
I am truly delighted to have the oppor-
share as partners in a global economy
I think we meet at a truly historic mo-
and a true community of democratic na-
tunity to be here today. It is a special
privilege for me to join two American
ment for Latin America and for the
tions. Down the other road lies a failed
leaders who together, I think, really
United States. Across the Americas to-
vision. A vision of dictatorship and
symbolize the promise of bipartisan
day, from Punta del Este to California,
state control and missed opportunities.
foreign policy, President Jimmy Carter
an old order is dying and a new world is
We know which road we must travel,
and President Gerald Ford. Let me
struggling to be born.
and we know that we have got to make
start, if I might, by saying a brief word
Brazil is manufacturing communi-
that journey together. To put it simply,
cation satellites. Mexico has joined the
we need each other now as we have
about each of these two former
GATT [General Agreement on Tariffs
never before.
Presidents.
I think it is noteworthy that just 5
and Trade]. A new vision of regional
days ago, we celebrated the 10th anni-
trade and int egration is taking shape
Common Challenges
versary of the Camp David accords. All
in the Caribbean Basin. And the winds
of the bright promises of that historic
of democracy are blowing across our
The agenda of issues before this impor-
hemisphere, from Chile to Paraguay to
tant conference confirms that new
treaty have, of course, not yet been re-
alized, but we should take note of the
Central America.
reality-democracy; development;
fact that for 10 years neither Israel's
The United States does not stand
drugs; debt; trade; migration; the envi-
aloof from the historic changes which
ronment; nuclear proliferation. These
sons nor Egypt's sons have died in bat-
tle with each other, and peace reigns
are transforming our hemisphere-in
are neither North American nor Latin
today on the Sinai. That historic treaty
fact, quite the opposite. We are proudly
American responsibilities. They are
rediscovering our shared heritage with
the common challenges that we are
will forever be a monument to the vi-
sion and leadership of three men of
Latin America.
going to have to confront together to
peace: Anwar Sadat, Menachem Begin,
Stand in Miami today, or go as I do
shape successfully our shared destiny.
and President Jimmy Carter,
occasionally to San Antonio. Close your
In recent weeks and months, Presi-
I was also struck on my recent tour
eyes and listen. You could easily imag-
dent Bush and I have heard that very
of Europe by the new, historic stirrings
ine yourself in Caracas or in San Jose.
message. We have heard it from Presi-
for greater freedom and democracy in
The fifth largest Spanish-speaking
dent Salinas [Mexico], President Al-
Eastern Europe from Poland to Hun-
community in the world now lives in the
fonsin [Argentina], President Perez
United States. Our culture and econ-
[Venezuela], President Azcona [Hon-
gary; indeed, to the Soviet Union it-
omy are vastly enriched by the contri-
duras], President Cerezo [Guatemala],
self. There are many causes, of course,
bution of these Americans.
and President Duarte [El Salvador],
for these profound changes, but surely
and we have heard it from Prime Minis-
history will record that one of those im-
ters Eugenia Charles [Dominica] and
portant reasons is the leadership that
Michael Manley [Jamaica]-all of whom
was shown by President Gerald Ford in
were recently welcomed visitors to
economy releases the energies of indi-
Instead, it must create a climate for
viduals and entrepreneurs, that it re-
investment-a climate that will bring
Washington. We have heard that mes-
sage as well from many of those of you
wards initiative, and that it offers
flight capital back to the region and
upward mobility. Economic liberty is
that will attract new capital flows.
in this room.
I think that Latin America's demo-
the surest way to fulfill the aspirations
Debt is a problem, but it is really also a
cratic leaders are reaching out to the
of all of our citizens. Those Latin na-
symptom of, sometimes, a greater
United States to offer a new partner-
tions which have turned to this model
problem. If there were a magic solution
have already begun to see a tangible
that did not require structural econom-
ship. A partnership built on mutual re-
reward.
ic reform, then those nations which
spect and a partnership built on shared
During earlier phases of our his-
have declared a moratorium on debt
responsbility. I am here on behalf of a
new President of the United States and
tory, we in the United States too often
would be growing well today, but that
a new Administration with our answer:
sought rapid growth at the expense of
simply is not the case. Instead, they
We are reaching back to you.
our nation's environment. We hope that
are in deeper economic crisis. Today,
The problems we face will not be
here our experience can help Latin na-
democratic governments must try to re-
resolved through quick promises or
tions learn from our mistakes, rather
form bloated state economies, service
then repeat those mistakes.
their debt and, at the same time, satis-
through easy answers. Instead, we
While we have much to learn from
fy the real needs of their citizens. We
have got to confront them together. We
have got to confront them with candor.
each other, we also have much to expect
understand that facing this challenge
from each other. Together, we have got
alone is a nearly impossible juggling
We have got to confront them with
courage. And we have got to confront
to set aside the easy politics of blame
act.
them with commitment. Let us begin
and the easy politics of mutual re-
by recognizing a simple truth that we,
crimination. Let us forge, instead, a
The Need for a Cooperative Approach
I think, have too often forgotten in the
new bond of cooperation and a new
past. We really do have a lot to learn
bond of mutual responsibility.
We do not expect Latin American na-
Those mutual responsibilities are
tions to face this challenge alone. As
from each other.
the subject of this conference, and we
these nations move forward to take the
In recent years, the people of
will discuss them also in our private
necessary, but difficult, steps to re-
North America have learned a lesson
from the people of Latin America. A
dialogue. Let me, if I might, mention
structure and reform their economies,
lesson about personal courage and the
a few of those subjects very briefly.
we must be prepared to hear their
calls for help. And we accept that
passion of ordinary people to simply be
responsibility.
free. Peasants and political leaders,
Democracy and Prosperity
Within the first 5 weeks of our Ad-
shopkeepers and market ladies have
defied death threats and guerrilla
The democratic wave sweeping Latin
ministration, we have announced a new
America today has been propelled by
approach to help reduce Latin Ameri-
violence, colonels and comandantes,
the aspirations of ordinary people for
ca's debt burden. In the weeks and
to fight for democracy. I think we
learned that lesson again 10 days ago in
freedom and a better life. Now one
months to come, we must negotiate
question, above all others, confronts
case by case the details of that policy to
El Salvador.
We have watched far-sighted demo-
this hemisphere: Can democracy really
ensure continued economic reform, to
ensure a real reduction in existing debt
cratic leaders take the first vital, and
deliver?
often politically difficult, steps to shed
Can democratic governments begin
burdens-and, very importantly, to en-
layers of state regulation and special
to satisfy their peoples' basic needs for
sure new capital flows into the future.
preference that for too long have held in
jobs, for health care, for homes, and for
If we ask Latin America to strip
schools? Can fragile new civilian re-
away the layers of protection that
check the creative, productive energies
gimes construct and strengthen demo-
shield their economies from the free
of Latin America. And we have learned
cratic institutions, protect their
flow of trade in goods and services,
a lesson from Latin America about po-
citizens against organized violence
then we in the United States, too, must
litical leadership.
We continue to be reminded of
from both the extreme right and left,
confront protectionism and steadily
the values that we hold dear by Latin
and normalize succession of power
reduce the barriers to products.
America's special sense of family,
through peaceful electoral processes?
If we ask that you confront the new
friendship, culture, and hospitality.
The answer, of course, has got to
menace of organized drug cartels, now
be yes.
often in league with guerrilla move-
And we hope that our experience in the
ments, then we must not only assist you
United States with democracy-our ex-
Yet, hanging over every decision
perience with a free economy-may of-
which the region's elected leaders con-
in that effort but also confront the ter-
fer useful lessons to our friends in
template is the specter of deep econom-
rible demand that exists in our country
ic and social crisis and the weight of
for these drugs. Only by tackling both
Latin America.
Latin America's foreign debt. "The
supply and demand can we free our
The United States enjoys political
stability, peaceful succession of power,
elected Presidents of the continent,"
hemisphere from this drug menace.
unquestioned civilian authority, and
The Economist wrote recently, "rule
If we are together engaged in a
the steady expansion of human rights.
from capital cities ringed by shanty
joint venture north and south to ad-
towns, swollen with refugees from the
vance and defend democracy, then we
We enjoy these blessings because for
depressed countryside."
each must do our part-collectively
200 years we have struggled to ensure
that every citizen can help shape our
That is not our shared vision of
where possible-to create new mecha-
political destiny. We are committed to
Latin America's future. Clearly, Latin
nisms and strengthen existing ones to
helping Latin America wage that suc-
America must begin to grow again, and
defend human rights, to guarantee the
cessful democratic struggle as well.
the fruits of that growth must be more
integrity of elections, and to establish
We have also learned that a free
widely shared.
sanctions against those who threaten
To grow, Latin America cannot
continue to be a net exporter of capital.
2
democratically elected governments
announcing the accord, to support a
have the courage and the will to seize
through violence or through coups.
process that guarantees democracy
the opportunities before us, this is a
If you ask the United States to for-
in Central America. But the United
time when we can dream great dreams
go unilateral initiatives and to work,
States will never support simply a pa-
for all the people of the Americas.
instead, in good faith with the demo-
per agreement that sells out the Nicar-
I believe the day will come when
cratic nations of Latin America in a
aguan people's right to be free, and
Carlos Andres Perez and Raul Alfon-
new cooperative diplomacy to support
neither should any other democracy
sin, Vinicio Cerezo, Jose Napoleon Du-
democracy, then we ask you to join with
in this hemisphere.
arte, Carlos Salinas, Julio Sanguinetti
us in good faith to turn the promise of
Together we must send a clear
[President of Uruguay], Jose Azcona,
that diplomacy into a reality through-
message to others outside this hemi-
Oscar Arias [President of Costa Rica]-
out this hemisphere.
sphere: This is simply not a dumping
and many others-will be seen as the
Our Administration has negotiated
ground for their arms or their failed
pioneers who blazed the trail that will
a new bipartisan accord with Congress
ideologies. We are looking for tangible
lead one day to the world's first com-
on Central America [see Selected
signs of the so-called new thinking. The
pletely democratic hemisphere. I be-
Documents No. 36, "U.S. Support for
Soviet Union now has an opportunity
lieve that our hemisphere can become
Democracy and Peace in Central
to demonstrate its new thinking in its
the model for the rest of the planet for
America"]. We are committed to work
relationship to Central America. That
a true partnership between the devel-
with Latin and Central American dem-
is what the Esquipulas agreement re-
oped and the developing nations. A
ocratic leaders to translate the bright
quires, and that is what the democratic
partnership where trade is free and
promise of the Esquipulas agreement
community demands.
prosperity is shared and the benefits of
into concrete realities on the ground.
And finally, if we support dialogue
technology are harnessed for all.
That is a challenge, but at the same
between the Government of El Salvador
And I believe that ideas generated
time it's an opportunity. All those who
and the Marxist guerrillas to end the
in meetings such as this can, in fact,
advocate diplomacy and political solu-
conflict there, then we should insist as
lead us to the day when in all nations of
tions to the region's conflicts, I think,
well on dialogue between the Govern-
the Americas the rule of law prevails,
have a responsibility to prove that this
ment of Nicaragua and the peasant
human rights are respected, the strong
is the best and the surest route to
army of the Nicaraguan Resistance
are just and the weak secure, and the
achieve our common goals. We invite
so the guns of war can stand silent
people live in peace.
Latin America's democratic leaders to
throughout Central America. For only
join us in this challenge.
when democracy and peace reign
Published by the United States Department
Together, we must insist that the
throughout Central America can we get
of State Bureau of Public Affairs
promises in that regional treaty for de-
on with the urgent work of economic in-
Office of Public Communication Editorial
mocracy, for peace, and for security are
tegration and development for which
Division Washington, D.C. April 1989
Editor: Colleen Lutz This material is
not only kept but verified. We are pre-
the people of that war-torn region
in the public domain and may be reprinted
pared, as President Bush declared in
deeply yearn.
without permission; citation of this source is
Some look at the crises and prob-
appreciated.
lems facing Latin America today, and
they despair. I want you to know that I
am not one of those. I believe that if we
,-
3
- 1 -
INTRODUCTION
(SEARAPPC 8146, 5/16/90)
Council of the Americas
A time of great change in the world, symbolized by the fall of
the Berlin Wall.
-- "defeat of communism"
-- lessening of E-W tension
--
unification of the "two Germanies"
Economically,
-- Europe '92
-- the challenge of the Pacific Rim economies
-
-- the opening of markets, investment opportunities in E.
Europe.
Concerns about the Americas' place in the world, the U.S. stake
in the Americas.
O
One, Brazilian magazine speculated that while Brazil
strggled to compete with "Asian Tigers" in the 1980s, the
1990s will belong to the "East European Tigers" and Western
and Japanese investment will be diverted from low-growth
LDCs such as Brazil to East European countries
Reflecting on the impact of Europe 92 on the Caribbean one
leader said: "Is the single European market a threat or an
opportunity? It can be both for the Caribbean. It is an
opportunity if we are wise and imaginative -- a threat if
we are not.
Change in Central Europe has seized world attention, but there
are signs of profound changes -- less visibly dramatic --
taking place in this hemisphere.
O
In Mexico, the Chamber of Deputies has passed by an
overwhelming vote (339-54) the Government's privatization
plan - privalize the banks - Sente negatall aFTA a
Argentine exports of soybeans have grown 28 times in the
little over a decade to make the world's 3rd largest
exporter.
o
Tijuana's exports to California are roughly equal to total
two way trade between the United States and both Poland and
Hungary.
The island country of Trinidad and Tobago is the world's
second largest supplier of nitrogen fertiler -- after the
Soviet Union.
I. THE AMERICAS MATTER
- 2 -
We are re-thinking our relationships -- in this hemisphere and
elsewhere. We are not retrenching. Our stake in future of the
Americas is substantial and growing.
Economic
Our total merchandize trade with the region (1989) is just
under 100 billion dollars, about 13% of the world total.
The United States has major investments in the region,
amounting in 1987 to 42.3 billion, or 59% of all U.S.
direct investment in developing countries.
When our Latin partners have prospered, we have prospered;
when Latin American growth has lagged, so has our trade
with the region.
--
As the Mexican economy has opened up and turned around
our two-way trade has mushroomed. The total of $52
billion is a 20% increase over 1988's figure and 50%
above '87's level of $35 billion.
--
In 1981, at the onset of the economic crisis, the
region spent $42 billion on U.S. products, 18% of our
total exports. As the crisis deepened, the region's
purchases of U.S. goods fell sharply to $26 billion in
1983. Today, they are just above the earlier peak
($44 billion, with no adjustment for inflation); but
the share is much less (12%).
I
Venezuela is an example of both sides of the equation:
In 1988, Venezuela grew by 4.2%; our exports advanced
28%.
In 1989, Venezuela's econy receded by 8-10%; our
exports declined by 34%.
We share with our American partners as well a genuine
interest in dealing successfully with the debt problem.
Total Latin debt exceeds $400 billion of which a 1/3 is
held by U.S. commercial banks. It has been estimated that
the debt problem has cost the United States as much as $75
billion in lost exports over the past decade.
Drugs
O
All of the cocaine consumed in the United States originates
in South America. Coca, the raw product used to produce
cocaine is grown in the Andean countries of Peru, Bolivia,
and Colombia.
Gross illegal drug sales in the U.S. are estimated at $110
billion -- more than our gross agricultural income, more
- 3 -
than double the profits enjoyed by the Fortune 500
companies combined.
Traffickers in Latin America are estimated to net some $8
billion/year. Three of the region's 7 billionaires are
traffickers.
Environment
The Amazon represents nearly one-third of all the world's
tropical forest. Estimates of de-forestation, based on
LANDSAT satellite photography indicate that 5 - 12% of the
Amazon has been deforested.
Not just an Amazon issue: E.g. in Costa Rica in 1970 51%
of the country was in forest; in 1980 only 30% was
forest-covered. At present rate of deforestation,
exploitable timber will be exhausted by 2000. Costa Rica
will need to import.
Not just de-forestation: air pollution (2/3 of region's
inhabitants live in cities; 2 of world's largest cities,
Mexico City and Sao Paulo, are in region), fishing
practices, and Antarctic exploration.
Remaining Security Issues
Almost 1/2 of U.S. imports and exports and 55% of our crude
oil imports pass through the Caribbean Basin.
2 of every 3 ships transiting the Panama Canal carry goods
to or from the United States.
Insurgencies persist in Peru and Colombia, Guatemala and El
Salvador. Violence -- political, social, and criminal --
traditionally high, has escalated in recent years. Now
murder is the leading cause of death for male adults
(18-40) in Colombia (where the government estimates some
140 groups engage in extra-judicial killings).
II. THE PROSPECTS FOR PROGRESS ARE GOOD
The countries of the Americas have taken the right direction.
O
One important lesson of global changes: economic and
political freedom work hand-in-hand.
-- Democracy is an economic asset. As one former Latin
Latin finance Minister put it: Political centralism
works against competition. Excessive statism must
cease What is happening in Eastern Europe is an
example. We are learning that democatic solutions are
slow, that they often involve a difficult process of
- 4 -
negotiation. Democracy is less efficient in some ways
from other systems but still is better because among
other things, it is necessary to achieve a consensus
and wide participation of all segments of society to
implement change.
In the Americas, political transformation -- the democratic
revolution -- is well along; an economic revolution is
underway.
--
The Volta Rondada Steel plant in Brazil (once the
symbol of modernization through state-supported
]
industrialization) is slated for privatization.
In Uruguay, the state mononopoly on insurance will end
and private capital will be able to invest in the
national airline and telephone company.
In Mexico, the banks are being denationalized and the
state telecommunications monopoly is ending.
Tijuana, the second largest city on the West Coast of
North America, has become known as "the world capital
of television manufacturing." Unemployment is just 1%
and the average wage is double the minimum.
Chile has transferred twice the value of state assets
to the private sector than Britain, and in half the
time (according to an independent study and taking
into account the relative sizes of both countries).
-- The island states of the Eastern Caribbean are
planning to create a regional stock exchange.
ISSUE: But, will the Latin American and Caribbean nations
follow through on their programs of economic reform? What are
the prospects for full implementation?
Answer: There is good reason to believe that they will follow
through.
O Success in carrying through reforms depends on leaders who
are willing to stay the course, to make the hard decisions and
then follow through to the end. Latin leaders, it is clear,
know that they must follow through on their reforms. There is
a real sense of urgency on this, a sense of now-or-never.
Menem's Inaugural: "we are living a long, painful crisis
the worst, deepest, most decisive and most terrible crisis
we can imagine.
This crisis is a challenge
I
am here to call you to the birth of a new era, of a new
opportunity, perhaps the last one.
- 5 -
O Leaders must also set goals that make sense to citizens.
Leaders are also accutely aware that economic growth is not an
end in itself and are committed to growth that reaches all
sectors of society.
Menem on the Anniversary of the B.A. Stock Exchange: "I
will lead the economic recovery of a prostrated nation,
with a new and wide-reaching market system. When I say
wide-reaching, I mean that the economic system should serve
the welfare of the population. But I also mean that each
and every citizen must become part of the economic system." "
CAP's Inaugural: "The readjustment of the economy
cannot be separated from the obligation democracy has
twards workers, towards the poor people living in the urban
and rural areas, as well as towards the middle class."
Collor's Labor Day Speech: one can't talk of a market
economy in a society where the majority of workeers is not
integrated into the economy.
in developed market
countries progress is a process of negotiation.
O The failure of protectionist, statist, and closed economic
systems to produce genuine wealth is widely evident. It is
understood that a reduced state role in the economy is not just
compatible with but, is a pre-condition to realizing social
goals.
Menem on Anniverary of Stock Exchange: "Forty years ago,
just as in maby post-War European countries, companies were
nationalized while other State-owned companies were
created. Today, those same companies are bleeding the
country with their deficits and imbalances."
Salinas' State of the Nation speech: "a State that does
not attend to the demands of the people because it is too
busy administering its entrprises is neither just nor
revolutionary
An over-extended, overworked State ends
up as a weak State
:
Menem on the Anniversary of the B.A. Stock Exchange: "We
want a socially effective government, a government able to
take charge of strategic national policies rather than one
that manages hotels, blocks private initiative and
bureaucratizes pepole's lives.
"
O
Economic reform must have popular backing. The genuinely
open economy has inherent popular appeal. It offers
empowerment, mobility, and real participation in the economic
life of the nation to all levels and sectors of society.
In Lima the informal sector provides 43% of the housing,
83% of the markets, and 95% of urban transport. An
- 6 -
estimated 40% of the GDP is generated by the informal
sector.
Fernando De Soto's group estimates that the informal
economy of Peru produces nearly 40% of the GDP and
represents 60% of the man-hours worked in the country.
Informals own land and housing valued at some $16 billion.
There are similar estimates from other countries.
+
(Economists estimate that the Brazilian GDP would be
25% higher if the informal economy's contribution were
counted. One research group estimates that some 7.3
million workers are employed in the informal economy.)
+
(An Argentine think-tank estimates that the informal
economy there equals 60% of the official measured GNP
-- 1 out of 3 goods manufactured is not officially
counted.)
-- Today the informals operate at the margins of society and
in spite of state restriction and control. The closed
economy discourages wide particpation by the people in the
economic life of their country.
+
It took 4 researchers working full time 43 days and 15
times the minimum wage to open a small retail shop.
+
Less than 4% of the homes in Lima's informal sector
are titled.
+
Getting title to a home in Peru, requires up to 48
months of hard work and more than a year's minimum
wage in "fees."
The open economy legitimates private ownership, the effect
is to liberate productive economic activity.
+
Legal title to property makes it possible to leverage
de facto assets (through mortgages, loans, etc.) to
greatly expand activity.
+
When individuals acquire title to property the "own"
the value increases 9 times over 10 years.
+
In the words of Hernando DeSoto: "tangible
enfranchisement" creates an "enabling environment."
O
Carried through, economic opening works.
-- One small example on the micro-level: Mexico has increased
its revenue from the sale of coffee by 40%, in spite of the
collapse in the international coffee agreement. The
- 7 -
reason, according to the Mexicans: virtual elimination of
the Mexican Coffee Institute as a regulator.
Country Examples
Mexico's GDP grew 3% in 1989 (exceeding population growth
for the first time in 10 years). Inflation brought down
from 51.7% in '88 to 20% in '89.
Bolivia continued with modest inflation, steady growth.
Costa Rica showed uninteruppted economic growth since 1983,
with expanding non-traditional exports (now more than half
of total exports).
Venezuela (which suffered a decline of 8-10% in GDP) still
expects nontraditional exports to increase 20% under last
year's maxi-develuation, has reduced its fiscal deficit
reduced to just 2% of GDP last year.
In Colombia, tight money policy held inflation down to 27%
last year. Growth at 3% remains high for the region.
III. WE WILL CONTRIBUTE TO THE WELL-BEING OF THE AMERICAS IN
WORKING PARTNERSHIP WITH OUR NEIGHBORS.
Definition of Partnership: The President described our
relationship this way: "a partnership built on mutual respect
and mutual responsibility
rooted in a common commitment
to democratic rule.
Our Contribution to the Partnership
What is the U.S. doing to encourage Latin economic growth?
What does it plan to do concretely?
O First, let us not minimize the importance of asserting
intellectual leadership. The way to solutions if often blocked
by thinking that was out of synch with the times and global
developments. The terms of reference needed to be clarified
and discussion of issues channeled along pragmatic lines.
-- E.g. Debt: while significant in its own right, needed to
be seen as the symptom of a greater problem.
-- Economic reform had to be recognized as an indispensable
condition for any progress.
-- Linkages needed to be strengthened between debt-packages
and internal reforms. The Brady Proposals as much a
vehicle for encouraging economic restructuring as simply a
means of debt and debt-service reduction.
- 8 -
O Concretely on the issue of debt, 5 countries (4 in the
region: Chile, Costa Rica, Mexico, Venezuela; and the
Philippines) have concluded new debt arrangements under Brady
proposals; these countries account for 44% of commercial debt
owed by the 16 largest LDC debtors.
--- Mexico's recent debt deal will allow it to reduce its net
external transfers from 6% of GNP/yr. (1983-1988) to an
annual average of 2% per yr. (1990-1994). (According to
Jose Gurria, undersecretary for international finance,
Finance Ministry).
-- Costa Rica's debt buyback agreement with commercial banks
will result in repurchase of 60% of the country's debt,
leaving the debt at $3.9 billion for this year.
Venezuela's agreement with leading foreign creditory banks
allows them to slice 25% off debt value and accept bonds at
fixed, below-market interest rates or provide new money.
--
We are contributing to the strengthening of the
International Financial Institutions (IFIs) which play a
critical support role in debt arrangements.
O The future will very much depend on what happens in the
areas of trade, investment, and technology.
-- This is neither the time or place for a Marshal Plan for
the Americas. The U.S. cannot underwrite the costs of
economic growth out of its foreign assistance budget. Nor
should we.
+
Where U.S. assistance is critical and appropriate we
do provide: bilaterally and multilaterally.
+
Last year our economic bilateral aid to the region was
just under $1 billion. Adding in U.S. contributions
to multilateral lending institutions, our assistance
to the region roughly equals that during the Alliance
for Progress.
-- We are exploring ways of liberalizing trade with
neighbors. e.g. Mexico.
-- We have been working to enhance the CBI.
-- The Cartagena approach wisely requires that we cooperate to
liberalize trade with the Andean countries -- a step not
only advantageous in its own right but also supportive of
the effort to combat drugs.
-- On bilateral trade and technology issues we are working
hard at establishing a "positive agenda." We are not
- 9 -
looking to gain a short-sighted, unilateral advantage from
our 301 actions. The issue is reciprocity.
-- Consistent with our emphasis on a global approach to trade
liberalization we are working hard at increasing access to
markets around the world, principally at the GATT.
+
We have set a goal of eliminating agricultural
subsidies world-wide by the year 2000. And, to date
we have introduced over 100 proposals in the Uruguay
Round.
+
+
We encourage Latin participation in the GATT.
Currently 12 countries have formal accession
applications pending. Last year, work was completed
on 3 (Bolivia, Costa Rica, and Tunisia). Six others,
largely from Central and South America, are under
active consideration.
+
We have a common interest with Latin GATT members in
negotiating access for specific products (e.g.
soybeans) and, more generally, in resisting the
"protectionist temptation" in newly emerging trading
groups. We invite Latin cooperation at the GATT.
We welcome the opportunity to invest in Latin growth.
Bilateral Investment Treaties (BITs) are one way to clarify
the rules of the game and facilitate capital transfere. We
are exploring others. And, we would welcome signals from
capital-needy countries of receptivity to investment. The
issue is one of clear, transparent, and consistent rules of
the game.
-- We encourage countries outside the hemisphere to trade and
invest in the region: Japan, EC countries.
The Consequences of Partnership
-- If we support more open trade we need to confront
protectionism in the United States.
-- If we and our partners in the hemisphere support an outward
looking approach to trade then we need to work together for a
freer international trading system. And, if we admit to
differences with our neighbors on some GATT issues, we should
recognize our common interests in gaining access to markets
outside this hemisphere. We can and should work together to
advance those common interests.
--
If everyone recognizes that technology is a driving force
in the global economy, then we must encourage the commercial
transfere of technology by discouraging the piracy of
technology.
- 10 -
-- If our neighbors are looking for the capital to finance
growth, then they must signal to investors -- their own as well
as foreign investors -- that they welcome their participation,
and that the rules of the game are transparent and coherent.
-- And, if our neighbors are working hard to open up their
economies we should recognize that their need of capital for
growth can be our opportunity for investment.
Partnership is not a zero-sum game in which my gain is your
loss and vice-versa.
North and South we have an interest in dealing with the debt
problem.
North and South we have good reason to expand two-way trade
not just exports.
North and South we have every reason to engage more broadly
in global markets even as we deepen our own economic
relationship.
1
7883, 4/26/90
INTRODUCTION
Latin America matters, and in the next 5 to 10 years it
will require still greater attention.
Latin America owes us more money, sells us more cocaine,
and buys more of its imports from us than any other part of the
world.
As East-West tensions/competition around the world seems to
diminish, threats close to home move to the fore.
Drugs. All of the cocaine consumed in the United States
originates in South America. Coca, the raw product used to
produce cocaine is grown in the Andean countries of Peru,
Bolivia, and Colombia.
The largest foreign sources of marijuana are Colombia,
Mexico, and Jamaica.
Debt. Economic disarray in South America causes a decline
in the value of loan assets in U.S. banks. It also reduces
by tens of billions of dollars American exports to a once
thriving market,
Terrorism. U.S. interests remain the prime foreign target
of Latin American terrorists -- accounting for 3/4 of the
region's nearly 150 international terrorism incidents in
1988.
Strategic/Security Concerns. Almost 1/2 of U.S. imports
and exports and 55% of our crude oil imports pass through
the Caribbean Basin.
2 of every 3 ships transiting the Panama Canal carry goods
to or from the United States.
Support for democracy is our best bet for realizing our
interests and objectives in the region: from protection of
human rights to security.
Democratic states offer their citizens a say and a stake in
their future and thus tend to be more resistant to
subversion. (E.g. in El Salvador, in a period which has
seen 6 nationwide elections, guerrilla strength has
declined by 1/2; the November offensive was a last-ditch,
desparation effort by an insurgency without popular
support; it failed, as previous such offensives have,
without that support.)
- 2 -
Where economic freedom works hand-in-hand with political
freedom, the results are impressive: economic growth with
opportunities and benefits for all. (E.g. Mexico, Costa
Rica, Bolivia, Uruguay)
Finally, democratic states offer an environment protective
and supportive of human rights. The transition to
democracy has brought a marked improved in human rights
performance. (E.g. In Argentina and Uruguay, where
disappearances, torture, and political killings were once
commonplace they are virtually nonexistent.)
Partnership describes the approach we intend to take in our
dealings with the other countries of the hemisphere.
The President described it this way: "a partnership built
on mutual respect and mutual responsibility
rooted in a
common commitment to democratic rule." (Bush)
Partnership is a 2-way street. (Following is drawn from
Baker Atlanta speech.)
If we ask countries to undertake economic reform, we must
be ready to lend a helping hand (the U.S., the industrial
democracies, the IFIs, and the banks).
If we ask for trade liberalization, we must confront
protectionism in the United States.
If we ask Latins to confront drug cartels, we must confront
the demand that exists here.
If the Latin and Caribbean states ask us to forgo
unilateral initiatives and to support democracy in a
cooperative effort, they must show the resolve to turn
commitments into reality (E.g. Esquipulas).
CURRENT SITUATION AND TRENDS
The 1980s saw both progress and deterioration in Latin
America.
On the positive side. a decade-long move to democracy has
put all but 2 of the 33 countries of the region in the
democratic column; elections in Paraguay this May gave that
country a democratically-elected government after 35 years of
military rule under General Stroessner. Conclusion of
elections in Chile put all of South America under democratic
goverment. Panama now finally on the road to recovery.
On the down side, economic growth has barely kept up with
population increases -- where once growth rates were 2 - 3
times our own and second only to the East Asian NICs'.
- 3 -
This stagnation imposes
a human cost in underdevelopment,
an "opportunity cost" in markets lost to American exports,
and
a political cost to elected leaders who attempt needed but
difficult policy reforms.
Across a wide front, the region has experienced regression.
Drug traffickers net an estimated $8 billion annually.
Area cultivated grows by some 10% a year. Three of the
region's seven billionaires are drug traffickers.
Debt has risen to over $400 billion, up from $330 billion
in 1982.
Insurgencies persist in Peru and Colombia, Guatemala and El
Salvador. Violence -- political, social, and criminal --
traditionally high, has escalated in recent years. Now
murder is the leading cause of death for male adults
(18-40) in Colombia (where the government estimates some
140 groups engage in extra-judicial killings).
Democratic gains are not absolutely fixed. In Peru,
Guatemala and Argentina, coup rumors have surfaced from time to
time even as elected leaders work to consolidate democratic
government. In Argentina three barracks rebellions took place
since April 1987.
A perception that democratic leaders are unable to cope or
that democracy is unable to "deliver the goods" puts democracy
at risk and could produce an antidemocratic reaction.
To be sure, the problems are not insurmountable.
Mexico, Bolivia, Costa Rica, and Uruguay have done
considerably better than average economically.
-- Concerning drugs, debate over who's to blame is largely
over and cooperation has begun. The Cartegena Summit laid
out a comprehensive framework for cooperation. The Latins
are beginning to take political risks (herbicide use,
eradication campaigns) and deploy their best assets (the
military in Colombia).
-- Gaining momemtun in the late 80s, has been a trend to
greater pragmatism and eagerness to dialogue.
- 4 -
CURRENT POLICY, OBJECTIVES
Support for democracy is the keystone of our policy and
offers an enduring basis for bipartisan policymaking in the U.S.
To directly further democracy, the U.S. provides direct
support for free and fair elections (e.g. Nicaragua),
vigorously opposes coup attempts (Argentina, Guatemala,
Peru), and is quick to encourage openings when they occur
(Paraguay).
Material support for democracy aims at long-range
institution-building.
-- Technical/legal assistance to judicial systems in
Argentina, Bolivia, Chile, Colombia, Peru, and Uruguay
are being initiated; administration of justice
programs in Central America have shown the way (the
investigative capacity of the Special Investigative
Unit in El Salvador -- supported by U.S. assistance --
was critical to the progress on the Jesuits case.
-- A legislative management program will start up in
Chile.
-- Our aim is strengthen the building blocks of a healthy
pluralism -- courts, legislatures, a free press and
trade unions. With some exceptions, these
institutions tend to be weak thoughout the region.
Democracy/Nicaraqua The elections of February 25th which
ended 10 years of Sandinista rule mark the beginning of
Nicaragua's transition to democracy.
The democratically elected government of Violetta Chamorro
faces major challenges in consolidating democracy in
Nicaragua.
-- The opposing sides in Nicaragua's civil conflict must
work a reconciliation.
-- The Nicaraguan Resistance must be re-integrated in the
political, economic, and social of the country.
|
10 years of Sandinista economic mismanagement have
left the economy in a shambles; economic
reconstruction which lays the basis for long-term
economic growth is in order.
The United States supports the consolidation process and is
endeavoring to assist the Nicarguan democracy bilaterally
and multilaterally.
- 5 -
The United States is cooperating with the UN and the
OAS in the demobilization and reintegration of the
Nicaraguan Resistance.
We have lifted the economic sanctions intended to
pressure the Sandinistas to fulfill their promises to
democratize and are working to provide economic
assistance to Nicaragua.
-- We are encouraging other countries -- in the
hemisphere and outside -- to provide assistance to
Nicaragua.
Panama -- Years of mismanagement and corruption by the
Noriega regime wreaked havoc on the Panamanian economy,
shattered the public sector, and destroyed confidence in the
country's justice system.
Events finally led to a Panamanian declaration of a state
of war, attacks on US personnel, and the U.S. military
response in December, 1989.
For Panama to recover significant U.S. aid will be
required.
Economic Aid
By the start of FY 91 we expect to have assisted Panama in
responding to the most immediate short-term needs for
economic recovery and political stability -- including
solving the political/humanitarian problem of re-housing
residents made homeless by the fighting, repairing damage
to infrastructure, and providing technical assistance to
government ministries.
Significant, but one-shot economic assistance (a FY 90
supplemental of $500 million has been requested) will be
required to "jump-start" a fundemantally sound economy and
assure that it returns to a sustainable growth pattern.
The supplemental FY 90 assistance package will continue to
be used in FY 91 to promote sustained economic recovery and
to strengthen the administration of justice.
Military Aid
Panama had available some $6 million in prior-year military
assistance grant funds as well as $3.8m in FMS Credit.
Most of these funds have been spend to by nonmilitary
basics for the public forces (uniforms, trucks, small arms,
etc.)
|
There are no plans to implement military assistance
(other than a modest International Military Education
and Training (IMET) program to give a select group of
- 6 -
Coast Guard and public forces infrastructure-support
training).
-- Other kinds of military aid will be depend on GOP
decisions on the organization and mission of the
non-police components of the public forces --
including specialized units.
The Endara Government has made clear that the new public
forces will have primarily a police/public order mandate --
fully responsive to civilian authority, and with strictly
limited military functions and equipment.
It recognizes, however, need for the capability to combat
terrorism and insurgency -- and Panama will consider
formation of small "specialized units" to deal with these.
U.S. aid to the public forces is currently limited to the
development of a civilian law-enforcement assistance
program, to be implemented immediately upon the removal of
Congressional restrictions on aid to Panama.
The National Drug Control Strategy lays out -- among other
things -- our priorities in the international war against drugs.
Disruption and dismantlement of drug-trafficking
organizations.
Reduced cocaine supply.
-- Law enforcement, military, and economic assistance
will be provided to the three Andean cocaine-producing
countries to (a) isolate major growing areas, (b)
block delivery of chemicals for processing, (c)
destroy processing labs, (d) dismantle trafficking
organizations.
--- Efforts in transit areas will be improved
-- And, Joint Intelligence Collection Centers have
started to operate in the Caribbean Basin.
Reduced heroin supply through efforts to convince other
countries to exert influence on opium growers and reduce
heroin processing and distribution.
Reduced marijuana supply through strengthened foreign law
enforcement and eradication, and through efforts to
discourage minor producing nations from becoming major
producers.
- 7 -
U.S. assistance and encouragement for multilateral efforts
aimed at source country and transit country production and
distribution.
Other international objectives:
-- Elevation of drugs as a bilateral foreign policy issue.
-- U.S. ratification of the UN Convention Against the
Illicit Traffic in Narcotic Drgus and Pyschtropic
Sustances.
-- Support for the foreign aid certification process.
-- Bilateral and multilateral efforts against
money-laundering.
Some recent achievements
By far the most notable, the Cartegena Drug Summit.
Not just a photo-op or protocollary, the Summit ended
the fruitless debate over supply and demand, who is to
blame.
It laid out a comprehensive framework for dealing with
the problem -- to which the principal coca-producing
countries and key consuming country agreed.
In Colombia, the fifteenth extradition since August of last
year took place March 28.
CICAD (the OAS body on drugs) approved, due in part to the
leadership of Chile and the U.S., model legislation on
precursor and essential chemicals that is more restrictive
than the 1988 UN Convention. CICAD's model legislation
will be submitted to the hemisphere's drug ministers in
Ixtapa.
On March 24, Bolivian forces destroyed a large cocaine
production complex not far from the Brazilian border. This
is one of the largest labs destroyed to date in Bolivia and
the biggest success yet for the riverine program.
The Bahamas signed an Extradition Treaty Signed on March 9
which should remove some of the obstacles we have
previously faced when attempting to prosecute drug
traffickers arrested in the Bahamas.
As of March 28, Bolivia's eradication efforts have have
almost equalled last year's total. In 1988, Bolivia, which
has adopted sweeping anti-narcotics legislation, exceeded
its eradication targets.
- 8 -
Regarding debt and development, the Brady proposals
incorporate key elements of the Baker Plan
Economic growth through market-based economic reform;
Voluntary action by creditor banks -- no "taxpayer bailout"
for banks or debtors; and,
Case-by-case negotiation of debt agreements.
To this approach, the Brady proposals add
Voluntary debt and debt-service reduction. The precise
amount and terms of debt or debt-service reduction will
depend on negotiations between the banks and debtors.
The idea is that in return for a reduction of debt, banks
will be guaranteed repayment on remaining debts.
Here is where the international financial (i.e. lending)
institutions (IFIs) come in. They can serve as quarantors
in specific debt reduction arrangements.
For its part, the United States has helped to enhance the
resources of the IFIs to enable them to play a greater
role. (We contributed to an increase in capitalization of
the World Bank last year; this year we are working on an
increase in our IMF quota.)
Debt is a problem, but debt, quite frequently, is also the
symptom of a larger problem: restructuring economies to
support sustained growth, with benefits widely shared.
QUOTE. Carlos Andres Perez (addressing international labor
leaders in April) said, "If we say, for the sake of
argument that the debt disappears and if we continue
managing our economies as we have managed them in the past,
inevitably we would continue in the same situation of
unemployment and disaster."
If debt relief, all by itself, were a magical solution to
the problem then countries which have declared moratoriums
would be growing today. They are not. (E.g. Peru;
temporarily, Brazil)
Leaders know that market-based economic reform is
essential. In Argentina, the new government working to
sell off state-owned monopolies, lower barriers to foreign
investment, and end subsidies for sheltered private
industries. Argentines realize that while others can be
supportive, they must make the fundamental changes that
will make the most difference.
9
Where such measures have been pursued vigorously the
results have been impressive. E.g. Costa Rica.
--
It has slashed deficit from 13.7% of GDP ('81) to 0.3%
('87);
--
It has privatized state-owned companies, liberalized
banking system, maintained realistic exchange rate;
Inflation fell from 82% ('82) to 15% ('87).
Unemployment down from 9.5% ('82) to 5.6% ('87).
Nontraditional exports have increased 182% in 4 years
to 1987.
Similar efforts and results in Mexico prompt us to view
favorably efforts by Mexico, the banks, and the IFIs to
work out a debt reduction/payment scheme. When debt relief
goes hand-in-hand with economic reform, everyone benefits.
OPPORTUNITIES AND PROBLEMS
Three developments, if managed well, promise a more active
and successful relationship with South America.
The first is the growing realization that state-directed,
dependency-based theories of national economic management do
not work in a competitive, interdependent world.
O
While the movement to privitization is still halting,
Latins' own experience and news of change in the Soviet
bloc are creating doubts about statist models.
The second is a genuine and widely held commitment to
democracy: people believe that they can govern themselves.
Election turnout is exceptionally high.
And grassroots political activity is strong (Argentina,
Brazil, and Venezuela).
Lastly, Latins are eager for "dialogue" with Washington.
They are also receptive and ready to listen.
STRATEGY AND POLICY
The continent is wealthy in resources and human capital and
traditionally oriented to the U.S. As its major customer,
richest and most populous neighbor, the U.S. has a position of
influence. Careful use of this advantaged position is
important, since the U.S. cannot buy away Latin problems; in
the end solutions must be home-grown. U.S. strategy aimed at
supporting the evolution of politically and economically secure
partners will in the long run produce the best returns.
President Bush
Current
Policy
Enterprise for the
No. 1288
Americas Initiative
United States Department of State
Bureau of Public Affairs
Washington, DC
DAVID R. MALPASS
DEPUTY ASSISTANT SECRETARY OF STATE
INTER-AMERICAN AFFAIRS
Econ -
ARA ROOM 6263
WASHINGTON, D.C. 20520
(202) 647-7285
Following are remarks by President
are now looking to the power of the free
the Caribbean as a whole. I asked
Bush before administration officials and
market to help this hemisphere realize its
Treasury Secretary Brady to lead a
members of the business community,
untapped potential for progress. A new
review of US economic policy toward this
Washington, DC, June 27, 1990.
leadership has emerged backed by the
vital region, to make a fresh assessment
strength of the peoples' mandate-
of the problems and opportunities we'll
Thank you all very much for coming to
leadership that understands that the
encounter in the decade ahead. That
the White House. It is my pleasure to
future of Latin America lies with free
review is now complete, and the results
welcome 80 many distinguished guests
government and free markets. In the
are in. And the need for new economic
with such strong interests in the vital
words of Colombia's courageous leader,
initiatives is clear and compelling.
Latin American and Caribbean region.
Virgilio Barco-President Barco: "The
All signs point to the fact that we
In the past 12 months everyone of us,
long-running match between Karl Marx
must shift the focus of our economic inter-
from the men in the White House to the
and Adam Smith is finally coming to an
action toward a new economic partner-
man on the street has been fascinated by
end" with the "recognition that open
ship because prosperity in our hemi-
the tremendous changes, the positive
economies with access to markets can
sphere depends on trade, not aid. I've
changes taking place around the world.
lead to social progress."
asked you here today to share with you
Freedom has made great gains, not just in
For the United States, these are
some of the ideas, some of the ways we
Eastern Europe, but right here in the
welcome developments-developments
can build a broad-based partnership for
Americas. We've seen a resurgence of
that we're eager to support. But we
the 1990s-to announce the new Enter-
democratic rule, a rising tide of democ-
recognize that each nation in the region
prise for the Americas Initiative that
racy never before witnessed in the
must make its own choices. There is no
creates incentives to reinforce Latin
history of this beloved hemisphere. And
blueprint, no one size fits all approaches
America's growing recognition that free
with one exception, Cuba, the transition
to reform. The primary responsibility for
market reform is the key to sustained
to democracy is moving toward comple-
achieving economic growth lies with each
growth and political stability.
tion. We can all sense the excitement
individual country. Our challenge in this
The three pillars of our new initiative
that the day is not far off when Cuba joins
country is to respond in ways that sup-
are trade, investment, and debt. To
the ranks of world democracies and
port the positive changes now taking
expand trade, I propose that we begin the
makes the Americas fully free.
place in the hemisphere. We must forge a
process of creating a hemisphere-wide
With one exception, that's the case.
genuine partnership for free market
free trade zone; to increase investment
But the political transformation sweeping
reform.
that we adopt measures to create a new
the rest of Latin America and the Carib-
Back in February, I met in Cartagena
flow of capital into the region; and to
bean has its parallel in the economic
[Colombia] with heads of the three
further ease the debt-the burden of
sphere. Throughout the region, nations
Andean nations. And I came away from
debt-a new approach to debt in the
are turning away from the statist
that meeting convinced that the United
region with important benefits for our
economic policies that stifle growth and
States must review its approach not only
environment.
to that region but to Latin America and
Trade
free trade overnight; changes 80 far-
through, and the wait for a new telephone
In the 1980s, trade within our hemisphere
reaching may take years of preparation
line can be as long as 5 years-and that's
trailed the overall pace of growth in world
and tough negotiations. But the payoff in
got to change.
trade. One principal reason for that:
terms of prosperity is worth every effort.
Investment reform is essential to
over-restrictive trade barriers that wall
And now is the time to make a compre-
make it easier to start new business ven-
hensive free trade zone for the Americas
off the economies of our region from each
tures and make it possible for interna-
other, and from the United States, at
our long-term goal.
tional investors to participate and profit
great cost to us all. These barriers are
And third, I understand that some
in Latin American markets. In order to
the legacy of the misguided notion that a
countries aren't yet ready to take that
create incentives for investment reform,
nation's economy needs protection in
dramatic step to a full free trade agree-
the United States is prepared to take the
order to thrive. The great economic
ment. And that's why we're prepared to
following steps:
lesson of this century is that protection-
negotiate with any interested nation in
ism still stifles progress, and free markets
the region bilateral framework agree-
First, the United States will work
breed prosperity. To this end, we've
ments to open markets and develop closer
with the Inter-American Development
formulated a three-point trade plan to en-
trade ties. Such agreements already exist
Bank (IDB) to create a new lending
with Mexico and Bolivia. Framework
program for nations that take significant
courage the emerging trend toward free
market reform and that is now gathering
agreements will enable us to move
steps to remove impediments to interna-
tional investment. The World Bank could
forces in the Americas.
also contribute to this effort; and
First, as we enter the final months of
Second, we propose the creation of a
the current Uruguay Round of the world
new investment fund for the Americas.
trade talks, I pledge close cooperation
A new leadership has
This fund, administered by the IDB, could
with the nations of this hemisphere. The
emerged, backed by the
provide up to $300 million a year in grants
successful completion of the Uruguay
in response to market-oriented invest-
Round remains the most effective way of
strength of the peoples' man-
ment reforms in progress in privatization.
promoting long-term trade growth in
date-leadership that under-
The United States intends to contrib-
Latin America and the increased integra-
stands that the future of
ute $100 million to the fund, and we will
tion of Latin nations into the overall
global trading system. Our aim in the
Latin America lies with free
seek matching contributions from Europe
and Japan. But in order to create an
Uruguay Round is free and fair trade.
Through these talks, we are seeking
government and free
attractive climate for new investment, we
to strengthen existing trade rules and to
markets.
must build on our successful efforts to
ease the debt burden. That's the third
expand them to areas that do not now
pillar of this new Enterprise for the
have agreed rules of fair play. To show
Americas initiative.
our commitment to our neighbors in Latin
America and the Caribbean, we will seek
deeper tariff reductions in this round on
forward on a step-by-step basis to
Easing the Debt Burden
products of special interest to them.
eliminate counterproductive barriers to
Second, we must build on the trend
trade and toward our ultimate goal of free
Many nations have already undertaken
trade. And that's a prescription for
painful economic reforms for the sake of
we see toward free markets and make our
greater growth and a higher standard of
future growth. But the investment
ultimate aim a free trade system that
links all of the Americas-North, Central,
living in Latin America and, right here at
climate remains clouded, weighted down
and South. We look forward to the day
home, a new market for American
by the heavy debt burden. Under the
products and more jobs for American
Brady plan, we are making significant
when not only are the Americas the first
workers.
progress. The agreements reached with
fully free democratic hemisphere, but
Mexico and Costa Rica and Venezuela are
when all are equal partners in a free trade
Promoting free trade is just one of
already having a positive impact on
zone stretching from the port of Anchor-
three key elements in our new Enterprise
investment in those countries.
age to the Tierra del Fuego.
for the Americas Initiative. And our
Mexico, to take just one example, has
I'm announcing today that the United
second pillar is increased investment.
already seen a reversal of the destructive
States stands ready to enter into free
capital flight that drained 80 many Latin
trade agreements with other markets in
Investment Reform
American nations of precious investment
Latin America and the Caribbean,
resources. That's critical. If we restore
particularly with groups of countries that
The competition for capital today is fierce.
confidence, capital will follow.
have associated for purposes of trade lib-
And the key to increased investment is to
As one means of expanding our debt
eralization. The first step in this process
be competitive, to turn around the condi-
strategy we propose that the IDB add its
is the now-announced free trade agree-
tions that have discouraged both foreign
efforts and resources to those of the
ment with Mexico.¹ We must all recog-
and domestic investment, reduce the
International Monetary Fund (IMF) and
nize that we won't bring down barriers to
regulatory burden, clear away the thicket
the World Bank to support commercial
of bureaucratic barriers that choke off
bank debt reduction in Latin America and
'On June 11, 1990, Presidents Bush and
Latin America's aspiring entrepreneurs.
the Caribbean and, as in the case of World
Salinas endorsed the goal of a comprehensive
In one large Latin city, for instance, it
Bank and IMF, IDB funds should be
free trade agreement between the United
States and Mexico. The presidents have
takes almost 300 days to cut through the
directly linked to economic reform.
directed their trade ministers to undertake the
red tape to open a small garment shop. In
While the Brady plan has helped
consultations and preperatory work needed to
another country, the average overseas
nations reduce commercial bank debt for
initiate such negotiations and to report back to
caller has to make five phone calls to get
nations with high levels of official debt-
them before the two presidents' next meeting
in December 1990.
debt owed to governments rather than
2
private financial institution-the burden
Debt-for-nature swape are one
indeed, as we talk with the leaders of the
remains heavy. And today, across Latin
example-patterned after the innovative
G-24 about the emerging democracies in
America, official debt owed to the US
agreements reached by some Latin
Europe-I've been talking to them also
Government amounts to nearly $12
American nations and their commercial
about their supporting democracy and
billion, with $7 billion of that amount in
creditors. We will also call for the
economic freedom in Central America.
concessional loans. In many cases, the
creation of environmental trusts, where
Our aim is a closer partnership between
heaviest official debt burdens fall on some
interest payments owed on restructured
the Americas and our friends in Europe
of the region's smallest nations—
US debt will be paid in local currency and
and in Asia.
countries like Honduras and El Salvador
set aside to fund environmental projects
Two years from now, our hemisphere
and Jamaica.
in the debtor countries.
will celebrate the 500th anniversary of an
That's a problem we must address
These innovative agreements offer a
epic event, Columbus' discovery of Amer-
today. As the key component in address-
powerful new tool for preserving the
ica, our New World. And we trace our
ing the region's debt problem, I am
natural wonders of this hemisphere that
origins, our shared history to the time of
proposing a major new initiative to
we share. From the vistas of the un-
Columbus' voyage and the courageous
reduce Latin America's and the Carib-
spoiled Arctic, to the beauties of the
quest for the advancement of man.
bean's official debt to the United States
barrier reef off Belize, to the rich rain for-
Today, the bonds of our common heritage
for countries that adopt strong economic
ests of the Amazons, we must protect this
are strengthened by the love of freedom
and investment reform programs with the
living legacy that we hold in trust. For an
and a common commitment to democracy.
support of international institutions.
increasing number of our neighbors, the
Our challenge, the challenge in this new
Our debt reduction program will deal
need for free market reform is clear.
era of the Americas is to secure this
separately with concessional and commer-
These nations need economic breathing
shared dream and all its fruits for all the
cial types of loans. On the concessional
room to enact bold reforms. And this
people of the Americas-North, Central,
debt, loans made from aid or food for
official debt initiative is one answer. A
and South.
peace accounts, we will propose substan-
way out from under the crushing burden
The comprehensive plan that I've just
tial debt reductions for the most heavily
of debt that slows the process of reform.
outlined is proof positive the United
burdened countries. And we will also sell
States is serious about forging a new
a portion of outstanding commercial loans
Conclusion
partnership with our Latin American and
to facilitate these debt-for-equity and
Caribbean neighbors. We're ready to
debt-for-nature swaps in countries that
I know there is some concern that the
play a constructive role at this critical
have set up such programs.
revolutionary changes we've witnessed
time to make ours the first fully free
this past year in Eastern Europe will
hemisphere in all of history.
Strengthening Environmental Policies
shift our attention away from Latin
America. But I want to assure all of you
These actions will be taken on a case-by-
here today, as I've assured many demo-
case basis. One measure of prosperity in
cratic leaders in Central and South
the most important long-term investment
America and the Caribbean, and Mexico,
Published by the United States Department
any nation can make is environmental
the United States will not lose sight of the
of State Bureau of Public Affairs Office
of Public Communication Washington, DC
well-being. As part of our Enterprise for
tremendous challenges and opportunities
June 1990 Editor: Juanita Adams This
the Americas Initiative, we will take
right here in our own hemisphere. And
material is in the public domain and may be
action to strengthen environmental
reprinted without permission; citation of this
policies in this hemisphere.
source is appreciated.
3
- 2 -
THE PRESIDENT'S SEPTEMBER 16-22 TRIP TO SOUTH AMERICA:
THEMES AND RELATED MATERIAL FOR SPEECHES
I. OVERVIEW
The President's major address in Brazil and his
speeches in Uruguay, Argentina, Chile and Venezuela
will provide him an unparalleled opportunity to stress
the theme of partnerships based on the principles of
free government and free enterprise. The speeches
should highlight what we and the Latins have done to
sustain the momentum towards stronger democratic
institutions and rational economic development, and
the challenges that face us in the future. We must be
forthright, however, in telling the Latins that even
though progress has been made, there is still a great
deal to do.
Governments and electorates in the five countries the
President will visit are showing new determination and
realism in pursuing economic opening and reform. If
these reforms continue, economic progress in which all
can participate becomes an attainable goal. The
President's Enterprise for the Americas initiative is
intended to give impetus to the economic restructuring
which has begun -- to greater and lesser degrees -- in
these five countries, and to sustain and deepen this
process in tangible ways. Development is not a single
event, but a continuous process of fundamental change;
not just investment or trade reform, but a reshaping
of the whole society and its world view.
In the economic sphere, open markets not only generate
growth to the benefit of all concerned, but also offer
participation, mobility, opportunity and empowerment
to all sectors of society. An overburdened state,
trying but failing to perform the work of the private
sector, is not the agent of social justice but rather
an obstacle to its attainment.
development and to Lotin America, they are part of any
Just as change, competition and sound currencies are
essential to1 and successful economy, they are to Latin
American development. This is a lesson we in the U.S.
are constantly re-learning. As the pace of
technological change grows ever more rapid, only those
economies which welcome change and actively seek out
new opportunities will prosper.
The President's initiative offers a vision of where we
should aim to go over the next decade and what forms
- 3 -
our cooperation should take. It is not a detailed,
comprehensive plan for development, nor a set of
ready-made, short-term solutions to specific
problems. Its aims to establish a long-term
partnership, a process in which the details of our new
economic relationship will be developed through
consultation and accommodation.
Attached on Tabs A through E you will find memoranda
which describe the individual circumstances affecting
each of the five speeches and proposes themes which
should be incorporated into the President's remarks.
- 4 -
TAB A
BRAZIL (Sunday, September 16 - Monday, September 17)
Suggested Venue: still undetermined, most likely a
joint session of congress in Brasilia, but possibly a
business group in Sao Paulo.
Probably Audience: members of the Brazilian Congress,
selected members of the GOB, representatives of the
diplomatic corps, business interests.
Local Color: (1) Brasilia, a starkly modern planned
city, symbolizes Brazil's pioneering vision of the
future and its potential as a world economic and
political leader. President Eisenhower, whose
centenary we celebrate this year, visited Brasilia in
1960, prior to its formal inauguration as the new
capital of Brazil; (2) Sao Paulo, Latin America's
largest industrial city, embodies the region's
potential dynamism and projection toward world markets.
Themes for the Major Address:
--
As we approach the quincentenary of Columbus'
encounter with the new world, it becomes
increasing clear that in 1992 -- if not sooner --
the rest of the world will rediscover the
Americas.
-- After more than a decade of economic stagnation
and serious social and political problems the
region now appears on the threshold of sustained
economic growth, social development and a new
level of political maturity firmly rooted in
respect for democratic processes and
human/political rights.
Regretably, the only anomaly in this revolution
of freedom is Cuba, which still clings to
outmoded political and economic models that put
it more and more out of step with the rest of the
hemisphere. We are confident that eventually
Cuba too will realize the depth of the changes
that are occurring all around the world and
rejoin the inter-American community as a full
partner.
--
The old idea of a Western Hemisphere that is
different, separate and aloof from the corrupting
- 5 -
influences of the Old World must now give way to
a new vision of the Americas as full and equal
partners with the industrialized nations in the
forging of a more cooperative, more peaceful,
more interdependent world for the 21st century.
--
With democracy largely achieved, the region now
faces the challenge of its consolidation and
deepening. This will require both economic
growth and social modernization. We are prepared
to help in this process.
In the face of this daunting task we have the
advantages of a young, vigorous population and
abundant natural resources.
We in the Western Hemisphere appear to be
reaching a new understanding of the proper
parameters of state authority over the individual
and the economy.
One of the most difficult steps remaining in
setting these parameters is the creation of a
sound currency and erasing the memory of
inflation. Success in this area is galvanizing
Germany's unity. Without it development in Latin
America is unlikely.
The balance between public and private sector
power will be different from country to country,
but throughout the hemisphere opportunities for
the individual to speak, act and work according
to his own conscience -- and to seek unlimited
economic horizons free from the stifling
intervention of the state -- now appear better
than they have been anytime in this century.
The Enterprise for the Americas (Iniciativa para
las Américas) announced on June 27 -- proposing
new ideas on trade, investment and debt -- is a
clear indication that the United States is ready
to be a full partner in this new American
revolution.
Brazil-Specific Themes for the Major Address:
Brazil, known for its economic miracle" in the
1960's and early '70s, is now a regional
political leader and major player in the
international economic arena.
- 6 -
--
President Collor's bold economic reform program,
which we applaud and follow with close interest,
can help serve as a catalyst in strengthening
Brazil's economy and world role.
With regard to the all-critical inflation hurdle,
the U.S. is prepared to provide technical
assistance and to encourage the multilateral
institutions to become involved in this area.
The challenge, however, is Brazil's.
--
The United States attaches great significance to
the 1992 U.N. -sponsored environmental conference
which will be hosted by Brazil and plans to work
closely with the GOB to insure maximum
effectiveness.
|
The U.S. endorses the establishment of an
international fund to assist less developed
countries to make the technological changes
necessary to reduce chloroflurocarbons emissions.
|
We are working with Brazil through both bilateral
and multilateral channels to address the major
threats to the world's environment and global
climate change.
--
President Collor's personal commitment to
combatting drug use will spur our joint narcotics
interdiction and education efforts.
--
Brazil and the United States share an intense
interest in the successful outcome of the Uruguay
Round of GATT.
|
As large nations with global interests, the
United States and Brazil have a common interest
in international peace and security issues.
--
We need to increase the level and frequency of
our discussions on the subject of global arms and
nuclear proliferation, particularly with regard
to regional instability.
Quotable Quotes:
(None provided by Embassy Brasilia.)
- 7 -
TAB B
URUGUAY (Tuesday, September 18)
Suggested Venue: a joint session of the Uruguayan
congress in Montevideo.
Probable Audience: members of the Uruguayan Congress,
selected members of the GOU, representatives of the
diplomatic corps.
Local Color: the Uruguay Round of the GATT was begun
here, making it particularly appropriate for the
President to note its successful implementation.
President Bush will be the first U.S. president to
visit Uruguay since Johnson participated in the
Meeting of American Chiefs of State at Punta del Este
in 1967.
Themes:
Two facets of the Enterprise for the Americas
initiative -- trade and investment -- are of
particular interest to Uruguay. In addition to
the successful completing of the Uruguay Round of
GATT, the U.S. is pleased that Uruguay and its
neighbors are actively considering the
elimination of reduction of barriers to free
trade through a regional trade agreement and
through strengthening of ALADI, the Latin
American Integration Association.
We also applaud President Lacalle's proposal for
a hemisphere capital market as a stimulus to
investment, and are encouraged by progress made
here and else where on bilateral investment
treaties.
President Lacalle's courageous implementation of
a wide range of structural reforms will improve
the economic environment, while other reforms
will reduce the size of the state, bring greater
stability to prices and to the currency, reform
or eliminate costly state monopolies, and
modernize labor relations to make Uruguay more
competitive on the international labor market.
We are also encouraged by clear signs that
Uruguay is willing to cooperate in controlling
international narcotics trafficking, particularly
money laundering and other types of criminal
financial activity.
- 8 -
Quotable Quotes:
"The economic relationship between Latin America and
the United States needs to be reconsidered. We do not
believe that the solution is more aid but rather more
trade, more investment
out
we would also like to point
that our countries are undertaking profound
transformations in their respective economies
creating in this way, a favorable climate for
investment. The restructuring of the state has been
undertaken as a necessary goal by almost all of the
American nations and it is proof of the will towards
change which guides the Latin American governments,
because we see and recognize that this is not a
one-way street. " (President Lacalle, OASGA, Asuncion,
June 1990)
- 9 -
TAB C
ARGENTINA (Wednesday, September 19)
Suggested Venue: a joint session of the Argentine
Congress in Buenos Aires.
Probable Audience: members of the Argentine Congress,
selected members of the GOA, representatives of the
diplomatic corps.
Local Color: President Bush will be the first U.S.
President to visit Argentina since Eisenhower in
1960. It comes at a time of a 180 degree shift in
Argentine attitudes toward the world at large,
including the United States, and the causes of their
national problems. Once the eight ranking economy in
the world, Argentina now ranks 58th. President Menem
speaks openly of his friendship and admiration for
President Bush. He seeks to integrate Argentina fully
into the international community while abandoning
statist, protectionist economic policies. The
magnitude of economic reform needed is greater in
Argentina than in the other countries the President is
visiting and resistance to Menem's efforts is strong.
Themes:
-- Argentina is enjoying one of the longest periods
of constitutional rule in its recent history and
the protection offered to human and civil rights
has increased.
-- Argentina led the hemispheric move away from
military governments to democracy in the 1980's.
-- The United States supports President Menem's
courageous economic reform program, including
restructuring of the public sector, and other
policies leading to a modern, growing,
market-oriented economy.
-- Economic reform will encourage greater individual
initiative, thereby improving the prospects of
prosperity for this and future generations.
-- The increasing attention paid to the
establishment of a sound currency merits hope and
further encouragement by those who have supported
Argentina's past efforts in this area.
- 10 -
President Menem's determination to divest
monopolistic enterprises, especially the
privatization of the national telephone system,
sets an example for the other nations of Latin
America.
The Bilateral Investment Treaty which we have
signed will encourage United States investors to
join Argentines in a cooperative partnership that
will result in greater productivity, more
exports, more jobs and a return to the level of
optimism and the standard of living that
Argentina enjoyed in the past.
The Mutual Legal Assistance Treaty we have signed
is a further step forward in our close
cooperation in the figlt against narcotrafficking
and other transnational criminal activity
In this spirit of reform and modernization, the
United States welcomes Argentina's decision to
help halt the proliferation of dangerous missile
systems and to cooperate more fully with the
international community in nuclear safeguards
within the spirit of the Tlatelolco Treaty.
As President Menem's economic reform policies
develop and are implemented, they may provide the
potential for voluntary, negotiated debt and debt
service reduction as a compliment to new
commercial bank lending.
Quotable Quotes:
"To take advantage of democratic experiences to propel
economic growth and progress is the principal
crossroads and challenge for our peoples and
governments.
"
"We Argentines must abandon this fabled mental
colonialism that tells us that all of our problems
come from elsewhere. Because if we think that way
we'll come to the conclusion that we have no solution
within our own means, by our decisions, by our
courage. The people will do it; through the people is
how its done. People think of opportunities rather
than excuses, of possibilities rather than risks, or
new horizons rather than old dangers. (President
Menem, Congress, May 1, 1990)
- 11 -
TAB D
CHILE (Thursday, September 20)
Suggested Venue: the GOC very much wants the
President to address a joint session of the Chilean
Congress at its new headquarters in Valparaiso. This
would pose logistical and security problems.
Alternative venues are the old congress building in
Santiago, the University of Chile and the Diego
Portales Building, headquarters of the previous
military problems. government, all of which pose political
Probable Audience: in Valparaiso, members of the
congress, selected members of the GOC and
representatives of the diplomatic corps.
Local Color: After more than 16 years of estrangement
in U.S.-Chilean relations, the President's visit will
be interpreted by most observers as a strong
endorsement for democracy and for the kind of
market-oriented economic reforms that have made
Chile's economy one of the strongest in the region.
According to an independent study, Chile has
transferred twice the value of state-owned assets to
time. the private sector than has Britain, and in half the
Themes:
Latin America, like Eastern Europe, is shedding
failed political and economic ideologies and
rediscovering the power of individual citizens
seeking their own and collective interests within
a free and open society.
The United States joins all Chileans in
celebrating the return to democracy and renewed
respect for the sanctity of individual liberties
and is ready to play an active, positive role in
this process.
Chile's economic achievements serve as a guide to
economic planners in other countries. Recent
economic growth is the envy of the rest of Latin
America, fully one third of national output is
devoted to international trade, a tribute to the
openness of the economy and the productivity of
the Chilean people.
- 12 -
--
Chile's uniformly low tariffs, simplified
investment rules, efficient procedures and honest
civil servants combine to give Chile a
significant advantage in the new, more integrated
world that faces us in the 21st century.
As a result, Chile stands to benefit more from
more open international markets than any other
country in Latin America.
--
Similarly, Chile's sound, innovative management
of is foreign debt, which appear overwhelming
only a few years ago, has been impressive and
serves a a model for the rest of Latin America.
Through hard work and sacrifice the debt has been
reduced from 14 billion to 5 billion dollars,
making Chile the first country in the region to
regain normal access to sources of international
finance.
Quotable Quotes:
"Chileans, with a tradition of democratic
institutions, of respect for human rights, of the rule
of law, have chosen to remake their society, based on
those values which honored their country in the past
at the same time we want to seek progress and
economic development, based on an open and competitive
system, in which all creative initiatives find space
for expression. (President Aylwin, Expomin'90, May
15, 1990)
"We need to grow if we want to overcome poverty. This
requires that we stimulate savings, investments,
creative initiative and the entrepreneurial spirit.
Government policies must reconcile the spirit of
social justice and the legitimate requirement to
satisfy essential needs with the unavoidable demand
for growth and development.' (President Aylwin,
Inaugural Address, March 12, 1990)
- 13 -
TAB E
VENEZUELA (Saturday, September 22)
Suggested Venue: breakfast meeting of the
Venezuelan-American Chamber of Commerce (VENAMCHAM),
at the Hilton.
Probable Audience: members of VENAMCHAM and
representatives of other appropriate Venezuelan and
U.S. organizations.
Local Color: Venezuela is one of South America's most
stable democracies, with a long tradition of free,
openly contested elections and respect for civil and
political liberties. The oil bonanza is over,
however, and Venezuelans are adjusting to the new
reality of austerity. Although this has tempered
somewhat Venezuelans' image of themselves as regional
leaders, President Perez still aspires to play a
leading role in hemisphere affairs and can be counted
on to be generally supportive of U.S. interests.
Themes:
--
The VENAMCHAM venue is an ideal forum for
emphasizing the U.S. role as Venezuela's largest
market and, reciprocally, our role as its
principal supplier.
--
The recently concluded free trade agreement with
Canada, ongoing negotiations with Mexico for a
similar accord, and the recently announced
Enterprise for the Americas initiative bode well
for economic growth in the hemisphere and the
expansion of Latin American trade to
non-traditional markets.
--
Venezuela, which has implemented an innovative
economic reform program which includes reduction
of trade barriers, free market discipline and
export oriented growth, is poised to take
advantage of these opportunities.
--
Venezuela's role in international cooperation to
eliminate narcotics production and trafficking is
also important. Although not a producing
country, we need Venezuela's help in suppressing
transshipment, the uncontrolled use of precursor
chemicals and money laundering is crucial to
regional anti-narcotics efforts.
- 14 -
Quotable Quotes:
"President Bush has thrown down a positive challenge
to us Latin Americans, to which we cannot, nor should
we, respond with the same old suspicions which have
generally fed the misunderstandings of the past. If
we think what he prooses is easy, it is not. We have
to bridge that gap between out beliefs and
understanding of Latin America's realities and the
concepts that we still hold to with regard to the role
our peoples and economies must play in the wake of the
industrialized world. Yet never has the United States
taken an initiative of such enormous importance for
the region. The dialogue we are offered opens up
paths so far not explored.' " (President Perez'
Independence Day address, July 5, 1990.)
- 15 -
Drafted:
ARA/PPC: WLofstrom 7-6374
Approved:
ARA : DMalpass
Cleared
ARA : WBrownfield
ARA/BR: MLore
ARA/SC: BOwens
E
ARA/AND : CShapiro
ARA/EPC: MHarrington
ARA/PPC: DSkocz
Document SEARAPPC 8450
7/6/90