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South America - Survey Trip November 1982 (2)
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118570620
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South America - Survey Trip November 1982 (2)
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Records of the White House Office of the Deputy Chief of Staff (Reagan Administration)
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Deaver, Michael Folder Title: South America-Survey Trip, November 1982 (2) To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ BRAZILLIA - Thank you letters sent to the following: His Excellency Ambassador Joao Augusto de Medicis and No cy Chief of Protocol His Excellency Ambassador Joao Clements Baena Soares the Secretary General Colonel Emanuel Augusto do Oliveira Serrano Its Commander - Military Sector Minister Lael Simoes Barbosa Soares cand No cy Protocol Division Ministry of External Relations Colonel Moacyr Coelho the Director - Federal Police Department Counselor Synesio Sampaio Goes Filho the Chief of Protocol THE WHITE HOUSE WASHINGTON November 7, 1982 Dear Counselor Sampaio Goes: On behalf of the entire Presidential survey team, I want to express our warm thanks for your outstanding contribution to the plann- ing for President Reagan's upcoming trip to Brazil. I especially appreciate your having interrupted your weekend to meet and work with us. It was a great pleasure to meet you and I and the rest of the White House team look forward to working with you and your colleagues in the days to come, Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Counselor Synesio Sampaio Goes Filho Chief of Protocol Palacio do Planalto Brasilia, D.F. Brazil THE WHITE HOUSE WASHINGTON November 7, 1982 Dear Colonel Coelho: I want to express my personal thanks and those of the entire Presidential survey team for your superb contribution to the security planning for President Reagan's upcoming visit to Brazil. This is a key part of our preparations and I especially appreciate your taking time on the weekend to meet with US. I and the rest of the White House team look forward to working with you and your colleagues in the days to come, Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Colonel Moacyr Coelho Director Federal Police Department Brasilia, D.F. Brazil THE WHITE HOUSE WASHINGTON November 7, 1982 Dear Ambassador Baena Soares: I want to express my deep appreciation for your invaluable help in preparing President Reagan's upcoming visit to Brazil as well as my admiration for the enthusiastic support your colleagues in the Ministry of External Relations have provided. It was a great pleasure to meet you and I look forward to renewing the pleasure in the days to come. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff His Excellency Ambassador Joao Clemente Baena Soares Secretary General Ministry of External Relations Palacio do Itamaraty Brasilia, D.F. Brazil THE WHITE HOUSE WASHINGTON November 7, 1982 Dear Colonel Serrano: On behalf of the entire Presidential survey team, I want to express our warm thanks for your important contribution to arrival and departure planning for President Reagan's upcoming visit to Brazil. We especially appreciate your interrupting your weekend to meet and work with us. It was a pleasure to meet you and I and the rest of the White House team look forward to working with you and your colleagues in the days to come. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Colonel Emanuel Augusto do Oliveira Serrano Commander Military Sector International Airport Brasilia, D.F. Brazil THE WHITE HOUSE WASHINGTON December 9, 1982 Dear Mr. Minister: Thank you for the beautiful sculptured statue of the horse by Mario Agostinelli. I sincerely appreciate your thoughtfulness. Although our visit was very brief, we were able to accomplish a great deal thanks in large part to your invaluable assistance. Your cooperation did much towards making President Reagan's trip a success. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Ministro Italo M. Alexandre Mastrogiovani M.D. Chefe do Ceremonial Palacio dos Bandeirantes Av. Morumbi Sao Paulo - SP Brasil THE WHITE HOUSE WASHINGTON November 8, 1982 Dear Ms. Morelos: On behalf of the entire survey team, I would like to express my personal appreciation to your staff for taking the time to meet with us and show us the lovely National Theatre. Together I am sure we can work to insure a successful visit to Costa Rica by President Reagan. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Ms. Graciela Morelos Director National Theatre San Jose, Costa Rica THE WHITE HOUSE WASHINGTON November 8, 1982 Dear Mr. Minister: On behalf of the entire survey team, I would like to express my personal appreciation for the help your Ministry gave during our brief stop in San Jose today. Together I am sure we can work to insure a successful visit to Costa Rica by President Reagan. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff His Excellency Fernando Volio Jimenez Minister of Foreign Relations Republic of Costa Rica THE WHITE HOUSE WASHINGTON November 8, 1982 Dear Mr. Ambassador: On behalf of the entire survey team, I would like to express my personal appreciation for taking time from your busy schedule to meet with us during our brief stop in San Jose. Together I am sure we can resolve the many details to insure a successful visit to Costa Rica by President Reagan. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff His Excellency Alvar Antillon Salazar Director General Ministry of Foreign Relations Republic of Costa Rica THE WHITE HOUSE WASHINGTON November 8, 1982 Dear Mr. Oreamuno: On behalf of the entire survey team, I would like to express my personal appreciation for your assistance during our brief stop in San Jose today. Together I am sure we can resolve the many details to insure a successful visit to Costa Rica by President Reagan. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Mr. Maximiliano Oreamuno Brenes Chief of Protocol Office of the President Republic of Costa Rica THE WHITE HOUSE WASHINGTON December 9, 1982 Dear Mr. President: It was SO thoughtful of you to send the beautiful book "Columbia". I am looking forward to some free time to enjoy it. I sincerely appreciate your generosity and thoughtfulness. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff His Excellency Belisario Betancur President of the Republic of Columbia Bogota, Columbia THE WHITE HOUSE WASHINGTON MEMORANDUM FOR RECORD SUBJECT: Survey Trip to South and Central America November 5 - 8, 1982 Washington, DC to Brasilia Flight time: 8 hrs. 30 min. Attended informal barbecue at Ambassador Motley's residence. OVERNIGHT Saturday, November. 6 Tour of American Embassy Itamaraty (Foreign Office) Planalto (President's Office) Alvadorada (Official residence) DEPART Brasillia 1 p.m. Flight time: 1 hr. 20 min. ARRIVE Sao Paulo, Brazil Tour of Maksoud Plaza Hotel Anhembi Convention Center FEB Memorial DEPARTED Congonhas AP via Brazilian Aircraft en route Viracopos International AP DEPARTED Sao Paulo, Brazil en route Rio de Janeiro Flight time: 40 min. OVERNIGHT Sunday, November 7 DEPART Rio de Janeiro Flight time: 5 hrs. 30 min. ARRIVE Bogota, Columbia THE WHITE HOUSE WASHINGTON ARRIVE BOGOTA Meeting at Embassy Proceed to Foreign Ministry Tour Presidential Palace Plaza Bolivar Quinta Bolivar DEPART Bogota Flight time: 1 hr. 15 min. ARRIVE Cartagena DINNER Club de Pesca OVERNIGHT Cartagena Monday, November 8 Site survey: Club Naval to survey possible Presidential dinner DEPART Club Naval via BOAT enroute Casade Huespedes Ilustres. (Columbian Presidential guest house) TOUR Convention Center DEPART Cartagena, Colombia Flight Time: 1 hour 35 min. ARRIVE San Jose, Costa Rica Ambassador's residence for lunch. Hammond Medallion World Atlas 70° West Greenwich D 60° E 50° 40° G 80° c 1 of Lucia A N S E A R B B BARBADOS A NETE. ANTILLES Pta. Gallinas, A 92' 90° Grenada Sta GUAJIRA PEN. X Barranquilla Guaira a: Carúpano WEST INDIES GALAPAGOS ISLANDS Tobago (ARCHIPIELAGO DE COLON) Coro TRINIDAD & TOBAGO (ECUADOR) Cartagens Ciénada Maracaibo Port of Spain SCALE OF MILES O L Maracaibo Barquisimeto Caracas Trinidad N 100 150 Mompos Truillo Morewhanna PACIFIC Pints Valera OCEAN San Menda Fernando Cucute Amerdendem Merchens Equator Turbo E Ciudad Bolivar 0° 0° Sentiago G.of oPempions Chaves Panama Capital Fernandina San Ritacuvas 18,022 Pto. Modellino 6 Chiquinquira Meta Carreno Mana Isla Isabela Cristóbal L Roranna stone Devite Island Puerto 1. Floreane+ di Española oTunia c. Corrientes oManizales Dam, Cayenne Ayacucho 92° 90" Bogota SURINAM FR. 2 Ibague DUTCH GUIANA Georges Buenaventura ac/o OMM B N GUIANA) FININI Malpelo Guaviare Boa Vista 98 (Col.) 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Huacas olca © Trinidad de Jequié A $17.999 Titicaca Mato Grosso FEDERAL DISTRICT & Ilhéus Juliaca° Cuiabá C Lomas San Ignacio Goiás° Brasilia Arequipa Puno X Pas 4 V A Goiânia Anapolis Montes Claros Mataranto 19.199 Mollendo B L Belmonte c Moqued Cochabamba oSanta Purapora Sajama Cruz Pto Quijarro OMinas Novas Oruro Rto. Suárez Paranaiba Arica Poopó ©Corumbá Araguari oDiamantina Caravelas Sucre Río Pisagual Mulato Potosí Porto Esperance beraba Belo Horizonte Iquique Villa Uyunio Montes: Campo Grande o Tupizao Tiele o Ouro Mariscal Ollague Pto. Tibinças Ribeirao Prêto O Grands Prêto Tanjao Vitória oBarbacena 20" & Tocopilla Quiaca Pto. Casado Araraquara Juiz de Fora Campos E G Orand Concepcion Londrina São Tomé F Cabo Tropic of Capricora Frio Antonio Antotagasta ojujuy Castrob Juguido 22,057 Tropic of Capricorn Saltao Pto. Mendes Curitiba Taltal Asuncion o u Rosanoo Villarrica Paranaguá Sanios DE / JANEIRO Reis PAULO Chañaral Tucumáno Encarnación Joinville 5 22.572 Chilel Calderap Resistencia Child Copiago Santiago Posadas del Estero Corrientes Flonanópolis Huascop Tinogasta Catamarca de Santa Catarina Reconquista Cruz Alta° Caxias Laguna Vallenar Chilecito oLa Rioja Uruguaiana doSul Santana do Pôrto Alegre Serena Coquimbo Vachal Mar Chiquita Livramento Concordia Rivera of o I Bagé Ovalle San Juan Santa Fee Saito Pelotas dos Patos 3 Córdoba Paysandú Los Vilosb Parane 30° Melo Villa Rio Grande del Mar 22,831 Mendoza San Rosario Mirim Viña Cuarto Valparaiso FLUIS Mercedes Santiago Mercedes oFlonda N Robinson Crusos n - 464 San Rafael BUENOS AIRES Rocha 1.Alejandro Selkirk JUAN FERNÁNDEZ (Chile) IS. Chivilcoy La Montevideo Talca c Constitución General Plata Alvear Victorica Talcahuano S oSta. Rosa Dolores Chillan 6 Concepción Gral. do Acha Tandilo Piato San / Arauco Bahia Blanca Mar del Plate Temucoo Zapala - Neuquen P Quequén o Villarrica o Bahia Blance = E Valdivia San Viedma Carlos C Month Banloche Golfo San Matias Pto. Norquines Ancud Puerto Pen. Valdes 40° Castrola 5 Madryno Salina Grande Rawson Isla de Chiloe Las Plumas E del ARCHIPIÉLAGO Camarones 5 de los Comodoro Rivadavia CHONOS R Golfo San Jorge Las Heras PEN TAITAO A Montes Aires Desido Tree Puntas Tres Puerto Deseado SOUTH AMERICA G.de Penas 7 LAMBERT AZIMUTHAL EQUAL-AREA PROJECTION I.Campans &San Julian SCALE OF MILES N Santa Cruz FALELAND ISLANDS 0 100 200 400 600 I.Madre de Diosing Bahía Grande West (Dr.) SCALE OF KILOMETRES P Río Gallegos Falkland Stanley o 100 200 400 600 Ptd. East Falkland Turbio Capitals of Countries Strail of Magellan Punts Arenas I Tierra del Fuego International Boundaries 50° L.Sta. Inés shugia San Diego Canals - de los Estados (Staten a C.S. HAMMOND & Co., Bahis Names 8 Hests "Cape Horn (Cabe Normes) Hammond Medallion World Atlas 80° H 78° J 76° 90° C 88° D 86° E Longitude 84° West of F Greenwich 82° G Mentage Coros Bay 1 Pt Bay Port OPakzada C Savanna la Mart S asing Orange Walk 18 Cay Balancan San Pedro c JAMAICA San Felipe R Kingston Parel Cav Corker a Tenadique :Hat Banko St Cay A Walton Bank / Georges Pelenqueo Cay Chilón San José Belize Turneffe is. la Porvenil City, Pedro Bank . 2 © Ocolzingo Cayo Viajo Cay Half Cay San Cays L Peten Morant Cays Stan Creek (Jamaice) San Cristóbal Santa/Ana H Roof de las Casas palund 5 Bahia Guanaja Dolores (Bonassa) Bank Comitáno Sta. 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Bonita Grunde Cristobation Guardian Bank Judez Quepos Chagres/ San Blas CENTRAL AMERICA 6 di vi Aires * del .121 Chorrera Panama M CONIC PROJECTION B. de Gulf SCALE OF MILES UPlatanilla Crist Bajo P de 28 so 100 150 Dolega Loma 4 9.272 OGu de las $ SCALE OF KILOMETRES Doming Canaras I.del Rey Sano Calp 1.8an o 100 180 Puerto G de Parita Bohic Sex 1 Turbo c Armuelles Garachine & Capitals of Countries N 1. la Pte. Burica Santos Gulf of Panamá International Boundaries Tablas Canals Piñus} Pea Ríosucio Copyright by C.S. HAMMOND & I. Coiba L.Cébaco C 7 do L.Jicarón Jurade Pla. 0 TP OF SEAL OF SEALOR THE OF THE PR PRESIDENTS A HEMISPHERE OF DEMOCRACY The Reagan Administration and Latin America T he journey of President Ronald Reagan to Brazil, Colombia, Costa Rica and Honduras from November 30 to December 4, 1982, bore witness to the commitment of the United States to democracy in the Western Hemisphere. It is quite true that President Reagan also traveled to Latin America "to listen and learn'; to discuss new economic challenges in an era of growing interdependence; and finally, to reaffirm the U.S. faith in the collective security of the inter-American system. But in demonstrating the importance that his Administration places on the entire fabric of hemispheric relations, the President consciously gave the highest priority to the identification North Americans feel for the struggle for democracy in Latin America. THE DEMOCRATIC IMPERATIVE If one theme runs through virtually every aspect of the Two-thirds of the members of the OAS have Reagan Administration's policy toward the Americas, it is governments chosen in open, competitive elections. It is a commitment to the support and expansion of free estimated that, counting Brazil, more than 80 percent of the institutions and democratic government. Support for population of Latin America live under some form of democracy, it must be stressed, is not a theme that only democratic government. This is an achievement Latin America has been singled out to hear: It is a central unmatched on any continent anywhere in the developing element of American foreign policy throughout the world. world. It means, quite simply, that the peoples of the Western democracy begins with the primacy of the Americas live in a hemisphere of democracy. President individual. Our forebears recognized the inescapable fact Reagan recognized this when, in Colombia, he said: "We all that human beings are more important than the social and know that the democratic path is never easy. But it is a path political uses to which they can be put, that governments toward which the peoples of this hemisphere are exist to serve them and not the reverse. This is the increasingly turning." foundation upon which the democratic process rests. This development is a just source of pride, but it is no President Reagan has given the theme of democracy a reason for complacency. Democracy provides neither final renewed emphasis in many of his foreign policy addresses, truths nor guarantees of the good life; instead, it is most calling for a campaign to revitalize the democratic ideal appropriately thought of as a process that allows throughout the world. individuals to express their political values and to seek their "The objective I propose is quite simple to state," the own definition of the good life. It represents the antithesis President has declared: "to foster the infrastructure of of ideologies, which claiming a monopoly on political truth, democracy-the system of a free press, unions, political impose their values upon people regardless of their wants parties, universities-which allows a people to choose their or needs. "Democracy has no universal formulas like those own way, to develop their own culture, to reconcile their of totalitarian philosophies," President Luis Alberto own differences through peaceful means. Monge of Costa Rica has stated. "Its strength is that it allows "This is not cultural imperialism; it is providing free people to find their own solutions." the means for genuine self-determination and protection Despite their diversity, democratic societies share of diversity." certain characteristics. For one, they tend to be vigorous and open. Democracy enables debate on such core issues as defining national identity, insuring social justice and DEMOCRACY achieving economic prosperity. Not surprisingly, the IN decibel level in democratic states-domestically and LATIN AMERICA internationally-tends to be higher than authoritarian Nowhere has the reassertion of democratic values been societies where such decisions are imposed from above, more dramatic than in Latin America. Just a few years ago, or negotiated privately by elites accountable only few political analysts foresaw the extent to which to themselves. democracy would constitute the wave of the future. Yet The challenges to the Americas today-in trade, today the nations of the Americas increasingly recognize finance, human rights, economic growth and security- that sustained political and economic progress must rest are, and will continue to be, subjects of vigorous debate. But on the participation and consent of the people. nations sharing the receptivity and respect for differing U.S. Secretary of State George Shultz commented on viewpoints inherent in the democratic tradition, as well as this phenomenon in his November 1982 address to the the ties of culture, history and geography, already have a Organization of American States (OAS): foundation for surmounting these problems through "Our record is uneven. For some countries— accommodation and cooperation. Colombia, Costa Rica, Mexico, Venezuela, Barbados, Jamaica, Trinidad, indeed most of the Caribbean- democratic institutions have functioned without inter- PROSPERITY, ruption for a generation or more. Other countries have PEACE experienced only interludes of democratic governance. AND DEMOCRACY "But what is most striking is that democracy is every- One facet of democracy that Latin America and developing where the hemisphere's recurring and practical standard nations everywhere are recognizing is that democratic "In the last few years, Ecuador, Honduras and Peru institutions, far from being luxuries that only have all fully reaffirmed their democratic traditions. The industrialized countries can afford, contribute decisively to Dominican Republic has sustained its newer tradition. sustained growth, prosperity and social equity. They are Brazil's abertura (opening to democracy) has been also essential for the maintenance of genuinely dynamic underway for a decade. And today, Argentina's and societies in which individuals have enough of a stake to Uruguay's commitment to a return to democratic politics, invest in, and work willingly for, the society's future. Bolivia's newly elected government, and the democratic Economic progress, after all, is not the product of transformation in El Salvador-all offer genuine hope automatons, but the sum total of the efforts of individuals. for the future." Growth is inherently a creative act and economic growth is Before a richly colorful tapestry, Presidents João Figueiredo and Ronald Reagan toast one another's country during a formal banquet in Brasilia. Said Reagan: "My eyes are dazzled by the progress of the Brazilian nation." no exception. Unless a society values creativity and perpetuate themselves in office but must remain freedom, its potential for the innovation essential to accountable to the citizenry at regular intervals. Elections continued economic growth is severely limited. are inclusive: They are not limited to small groups that leave Examples abound everywhere, from the developing large segments of the adult population disenfranchised. world to Eastern Europe and the Soviet Union, of And elections are definitive: When the people vote, the authoritarian and totalitarian nations that are results are binding and not advisory. "Legitimate power stagnating economically, and often find themselves flows only from the people," Ambassador Kirkpatrick adds dependent on military and police power to maintain Further, the ability of a nation to conduct free their rule. By contrast, the democracies of Latin America, elections implies the ability to protect other essential other developing nations and Western Europe, with few freedoms, including freedom of expression and the press, exceptions, have recorded relatively high rates of growth and to organize political parties. and levels of prosperity. As President Reagan has observed: "Nations in Central and South America are finding that the consensus- THE IMPERATIVE building inherent in a democracy offers a firm foundation for OF INTERDEPENDENCE responding to economic and other crises." Three of the countries the President visited-Brazil, Costa Rica and During the past 20 years, Latin America and the Caribbear Honduras-recently have conducted elections in times of have achieved one of the most impressive rates of economic stress-clear indications of an understanding economic growth in the world. The average annual growt that economic recovery must proceed in tandem with rate, excluding inflation, of 5.7 percent has been democratic institutions. consistently higher than that of the developed countries Democratic societies in the 20th century also tend to and of the developing nations taken as a whole. be peaceful societies. This is not because their citizens are The economic size of Latin America has tripled in inherently more virtuous than those of other states, but absolute terms since 1960. This fact is hardly surprising because democratic governments are accountable to the given the size and diversity of its markets, its increasing people. "We know that democracies are far less likely to go skilled work force, large agricultural and mineral to war than governments whose leaders need not obtain the resources, and growing industrial and technological consent of the people," Secretary of State Shultz said in capability. his OAS speech. "In Central America the democratic International trade has contributed to Latin America transformation of all the states in the area is not only a growth as well. U.S. imports from Latin America and the desirable step that each may set itself; it may well be a Caribbean have grown from $4 thousand million in 1960 t precondition for a durable peace." $39 thousand million in 1980; direct investment from the United States increased from $8.4 to $38.3 thousand millic in the same period. THE In 1980 total trade within the hemisphere-includir ELECTORAL Canada-totaled $155 thousand million, or 42 percent O KEY the hemisphere's overall world trade. Latin America, as In committing itself to the support of political democracy whole, is the United States' biggest customer. in Latin America and elsewhere, the United States has no The impressive nature of these figures should not unilateral definition of precisely what democratic obscure another fact of great importance to U.S.-Latin practices must look like in other nations and cultures. But economic relations: the diversification of Latin America the central institution of any true democracy is the same- trade and investment patterns. Trade between Japan and open elections. During his trip, President Reagan endorsed Latin America, especially Brazil, has increased enormous the resolution of the October 4, 1982, San Jose conference and trade between Latin America and Europe has of eight Latin American democratic states establishing a expanded greatly as well. At present, direct foreign regional elections bureau as part of their program for investment in Latin America by nations outside the strengthening the electoral process in Central America. hemisphere exceeds $15 thousand million. In an age when even the most totalitarian of states pay As a result, the economic relationships in the obeisance to the forms of democracy, free elections offer a Americas are both more competitive and more diverse. T benchmark by which to distinguish true democratic days when relations consisted almost exclusively of practices from those of states that are democracies in name bilateral exchanges between the United States and Lat only. Ambassador Jeane Kirkpatrick, Permanent U.S. America are past. Latin America has, in broad historica Representative to the United Nations, provides a succinct terms, moved from a pattern of relative dependency to definition of truly free elections: "Democratic elections position of unquestioned economic strength and are competitive, periodic, inclusive and definitive." diversity. Dependence has become interdependence. As Elections are competitive: Candidates representing Secretary of State Shultz puts its: "We depend vitally 0 contest each other in open debate. each other, for our prosperity, for our security, for peace. Interdependence, therefore, is an imperative for the industrial nations have declined. United States as well as for Latin America. Without mutual The response of each nation in Latin America must, of accommodation and cooperation, prosperity and growth course, suit its special circumstances, but all confront th are impossible; with it, the physical and human resources need for economic stabilization and reduction of foreign of the hemisphere offer a future of renewed progress for all. debts. At the same time, public and private lenders shoul maintain adequate flows of credit. As President Reagan observed: "Lenders and borrowers must remember that THE each has an enormous stake in the other's success." CHALLENGE OF Where nations undertake necessary reforms and sta- RECOVERY bilization programs, the United States recognizes the ne Every nation of the hemisphere now faces the challenge of cessity of working together on debt matters. In August overcoming a serious worldwide recession. To succeed, 1982, for example, Mexico and the United States cooperate nations must translate the pledge of mutual cooperation to mobilize $4.5 thousand million in financing to allow into practical recovery programs, and work to protect the time for Mexico to prepare a stabilization plan in conjun integrity of the trading and financial systems that are among tion with the International Monetary Fund (IMF). And in the most powerful engines of growth at the disposal of the Brazil, President Reagan announced a $1.23 thousand m international community. lion, short-term "bridging" loan pending arrangement O This challenge is not a North-South issue, but one a similar financing agreement with the IMF. shared by every member of the international community. Like the other nations of the Americas, the United States has been struggling to recover from the multiple impact of MULTILATERAL recession, inflation, increased energy costs and high AID interest rates. The Reagan Administration recognizes that AND CBI the United States, as the world's single largest market, Although the Reagan Administration emphasizes the must make every effort to revitalize its own economy; role of free trade and the private sector as the essentia President Reagan's domestic recovery program is keys to sustained, noninflationary growth, it is fully awa designed to do precisely that. Already, inflation and interest that concessional aid and other forms of assistance are rates have dropped dramatically, and productivity and often critical factors in development. The United States savings are on the upswing. "We believe the door is now contrary to some assertions, is not seeking to reduce it opening to lasting, broad-based economic expansion," overall contributions to international multilateral the President said in Sao Paulo, Brazil, "[which] will mean organizations. Prior to his Latin American trip, Presiden increased trading opportunities for our friends in the Reagan said: "We support an adequate increase in IMF developing world." quotas and a substantial replenishment of the Inter- The United States remains committed to fostering American Development Bank." expanded international trade as an essential step toward Member nations of the Inter-American Bank later recovery. In 1981, for example, the United States alone paid agreed to such a replenishment plan, one element of wh more than $68 thousand million to the developing world for is a $13-thousand-million lending program. And in imported goods (which excludes payments for oil imports January 1983 the United States joined with other indust to nations belonging to the Organization of Petroleum nations in announcing a major increase in the funding Exporting Countries (OPEC)). This figure is twice as much the IMF to "insure renewed and sustained growth." The as the developing world received in official development aid created a new emergency fund of $19 thousand millior from all sources. accessible to any IMF member with balance-of-payment It is vital that the industrial and developing nations debt problems that "pose a threat to the stability of th alike reject the lure of protectionist policies implemented international monetary system," and agreed to expand I either by building tariff barriers to imports, or by artificially reserves through a substantial increase in the quotas subsidizing exports to gain a fleeting competitive member nations. advantage. In the end, protectionism simply spawns In setting terms of trade and specific levels of aid protectionism elsewhere, leading to economic Latin America and the United States must strive for W contraction and the loss of jobs that were the rationale for Secretary of State Shultz called the "balance of interde such protectionist policies in the first place. pendence." Just who should make what economic adju At the same time, the Reagan Administration ments, and in what degree, is a question with a differe recognizes that the recession has hit the developing answer for each nation and each set of circumstances nations, including Latin America, particularly hard. The For some of the most vulnerable economies of th problem is a formidable one. Deficits among the region, the President has proposed the innovative hemisphere nations have increased sharply, aggravated by Caribbean Basin Initiative. CBI is an integrated, mutua inflation and high interest rates. Simultaneously, the reinforcing package of trade, investment and aid provisi recession has reduced export earnings as the prices for designed to provide short-run assistance, and to help basic commodities have fallen and imports by the establish conditions for long-term increases in producti In Bogota, Colombia, President Reagan, after laying a commemorative wreath, stands in silence before the statue of Latin America's Great Liberator, Simon Bolivar. Colombiana President Reagan, aboard the Presidential plane during his Latin American journey, confers with key foreign policy and economic aides. From left: Special White House Trade Representative William Brock, the President, National Security Adviser William Clark, Secretary of State George Shultz and Secretary of the Treasury Donald Regan. and output. CBI's centerpiece is an offer of one-way free and definitive settlement: various inter-American trade for 28 nations and dependencies in the region that arbitration and conciliation agreements, OAS would eliminate duties on all imports from the Caribbean peacekeeping mechanisms, the International Court of Basin (with the exception of textiles that are covered by Justice, even the treaty of Tlatelolco, which establishe international agreement). The United States developed the world's first nuclear-free zone in a populated CBI in consultation with other nations in Latin America; and area The maintenance of a peaceful equilibrium with Canada, Mexico, Venezuela and Colombia are the hemisphere is everyone's business." participating as donor nations in this regional effort. The decision of the United States in the South Atlan The U.S. Congress already has authorized the crisis does not imply support for the sovereignty claim economic aid portion of CBI, but, due to procedural either Britain or Argentina, and in November 1982 the obstacles, failed to pass the free-trade provisions at the Reagan Administration supported a balanced resolution end of 1982. In a subsequent meeting with ambassadors the Falklands/Malvinas in the United Nations. from the OAS however, President Reagan pledged that Even given this tragic exception, the inter-Americ passage of the remaining trade and tax-incentive provisions system, based on the Rio Treaty, the Pan American Unio of the Caribbean Basin Initiative would be one of his the OAS and a strong network of bilateral ties, has served Administration's highest priorities in 1983. (His remarks to security needs of the hemisphere well. Latin America, ( the OAS ambassadors appear on the inside back cover.) average, spends only about 1.4 percent of gross nation product on defense-a quarter of what the developing INTER- world as a whole spends. By one count, the OAS has AMERICAN responded to more than 50 requests for mediation ano SECURITY settlement of disputes; often its contributions have be decisive. Costa Rica, for example, has no army and no In his speech to the OAS, Secretary of State Shultz intention of establishing one; this policy is not based observed: "The striking thing to me, thinking over what occurred in our lifetimes, is the success the American wishful thinking, but upon an inter-American security system that has proven repeatedly that it works. states have had in preventing war." Of course, there have been exceptions, he noted, the Chaco War in the 1930's, conflicts in Central America and internal insurgencies. THE Most recently, the hemisphere confronted the tragic CENTRAL AMERICAN war in the South Atlantic. It bears repeating that the United CHALLENGE States made a sustained effort to help settle the Falklands/ Central America today is a test of the right of peoples Malvinas dispute peacefully; and when prospects for a set- be secure from violence imposed on them by hostile tlement ended, the United States moved to underscore its foreign powers. The question is whether, after generatio condemnation of the use of force to resolve disputes. of inequity, a more progressive and just future will be As Thomas O. Enders, U.S. Assistant Secretary for Inter-American Affairs, has pointed out: "Machinery guaranteed best by the free institutions of democracy, or b the tired ideologies of totalitarianism. Tyranny of the left is exists to anticipate disputes and permit their peaceful no less despotism than dictatorship of the right. Just as th 6 United States, together with other nations, seeks economic justice and democracy for the hemisphere, the "To U.S. also affirms its opposition to those who would impose a single vision of the future on their neighbors. Strengthen The guerrilla war being waged against the elected government of El Salvador, for example, is not simply an the internal matter, since the anti-government forces are sustained by arms, training and logistical support from forces outside the hemisphere, with the active Democratic assistance of Cuba and Nicaragua. The conflict is a test of the ability of the Americas to deter aggression and Bond" protect the principle of self-determination. The recent elections in El Salvador, held in the face of threats and PRESIDENT REAGAN attacks by guerrilla forces, were eloquent evidence of the IN LATIN AMERICA Salvadoreans' belief in the democratic process and rejection of revolutionary violence. Nicaragua represents, in principle, a similar challenge. In addition to supporting intervention in El Salvador, the Sandinista regime has violated its own promises of pluralism and free elections which they made repeatedly, first to democratic members of the coalition that united with them in opposition to the regime of E Anastasio Somoza, and later to the OAS. The Sandinistas very trip by a head of state has also have embarked on a program of militarization on a a personal as well as an official level: scale far beyond that of any other nation in the region with For President Ronald Reagan, his the exception of Cuba. journey to South and Central America U.S. military assistance to El Salvador and Honduras was a source of personal satisfaction. is based on the simple premise that neither peace, Since his first days in office, democracy nor economic progress is possible without President Reagan has expressed interest assurances of security. But containing aggression and in traveling to Latin America. He also has eliminating subversion are only first steps. '`If peace given inter-American affairs high requires strength," Secretary of State Shultz said, "strength priority within his Administration. Mr. in turn infuses an obligation to make peace." Reagan met twice with outgoing The Reagan Administration firmly supports the reso- President José Lopez Portillo of Mexico lutions of the San Jose Conference of democratic nations of and more recently with new President Central America and the Caribbean, held in October 1982. Miguel de la Madrid. On a Caribbean These resolutions reaffirm their commitment to non-inter- trip he held meetings with Prime vention, democratic values and human rights. Specifically, they call upon all nations in the region to: Minister Edward Seaga of Jamaica, Prime Minister J.M.G.M. "Tom" -renounce the importation of heavy offensive weapons; -insure the withdrawal of all foreign military Adams of Barbados and the leaders of the advisers and troops; island nations of St. Vincent, Dominica, -end support for subversion against neighboring Saint Kitts-Nevis, and Antigua and countries; Barbuda. He also consulted with a -begin internal reconciliation enabling dissidents to number of American leaders in Wash- participate openly in public life; and finally, ington and addressed the Organization -establish democratic institutions and hold open of American States on his trade-and- elections. investment initiative for the Caribbean. "The principles of the San Jose Final Act provide a The President intended his trip to reciprocal, just and verifiable basis for peace," President underscore further the importance that Reagan stated in his televised address from Costa Rica. "I his Administration attaches to relations call on all states in this region to join in this process of with Latin America. Each of the four genuine, peaceful reconciliation." countries on the itinerary had held The affirmation of democracy, a pledge to work for elections in the past year, which enabled economic progress and expanded trade, a commitment to President Reagan to encourage what he the inter-American security system-these are the termed "a strong democratic tide foundations of the Reagan Administration's policy for Latin running in the Americas." BRAZIL Below, President Reagan and aides, flanked b arrive for talks with Brazilian leaders. Right conferees (from left): U.S. Treasury Secretar Ambassador to Brazil, Langhorne A. Motley State Shultz; President Reagan; President F Brazilian Ambassador to the U.S., Antonio "Let us remember progress is imposs peace, economic crucial pilla Beneath Brazilia President Figueiredo accompanies flags, President Real President Reagan following delivers an addre I his arrival in Brasilia (below), first and economic relat stop on the U.S. President's Americas four-nation Latin American trip. representatives in : n Brazil President Reagan groups to examine bilateral renewed his acquaintance with issues in economics, nuclear President João Figueiredo, power, science and technology, whom he had met previously in space and military-industrial Washington. On his arrival in relations. Brasilia, President Reagan said: At an afternoon visit to "Our societies are similar in that President Figueiredo's ranch, we both have a frontier tradition, both leaders went horseback an openness and vision for riding and enjoyed an outdoor greatness Your elections barbecue. At a more formal dinner November 15 demonstrate in the evening, President Reagan Brazil's confidence in itself and its toasted his host and said: "My stability in freedom." eyes are dazzled by the progress The two leaders held lengthy of the Brazilian nation." discussions on the following day, On the second and final day resulting in agreement on a series of his Brazilian visit, President of measures designed to meet Reagan flew to São Paulo for an financial and trade problems. address on hemispheric President Reagan announced economic and trade relations that the United States would before an audience of business provide a short-term loan of representatives. The President $1.23 thousand million so that observed that, despite the current Brazil could complete a financial recession, the United States and program in conjunction with the Latin America were taking the International Monetary Fund. painful but necessary steps for President Reagan noted that the sustained economic expansion. loan supplemented recent He urged nations to reject lending by private banks, which protectionism and work to expand "reflects their confidence in international trade. And as a Brazil's economic soundness and practical example of cooperation a recognition of the commitment between Brazil and the United of the Brazilian government and States in science and technology, its people to undertake needed he invited a Brazilian astronaut adjustments." to train in the United States They agreed that Brazil for a future mission aboard would phase out export subsidies the U.S. Space Shuttle. (Excerpts during the next two years, and from this speech begin on established five special working page 17.) guard, the U.S. y of ; and ra. st as hout is a ace." U.S. ght) I rade the ness ulo. I n a busy five-hour visit to conferred at the Presidential that he appreciated that President other's thoughts in th Colombia, President Reagan and Palace. At a luncheon following Betancúr had spoken "from the tive spirit in which th President Belisario Betancúr their meeting, President heart." Mr. Reagan continued: offered." held frank and cordial talks as they Betancúr expressed his concern "You have spoken frankly. President Reagar reviewed some of the differences over such issues as trade and the Now let me do the same. I came the conclusions of th between them on bilateral and impact of the recession on Latin here to listen and to learn. One of conference of democra hemispheric issues. After laying economies, funding levels for the great traditions of democratic as an important step a wreath at the statue of the great multilateral institutions and U.S. nations, as you know SO well, is peace, with its call for Latin American liberator Simon policy in Central America. that leaders can speak candidly to importation of offensi Bolivar, the two Presidents President Reagan responded one another and accept the weapons, the withdrav Above, Presidents Belisario Betancúr and Ronald Reagan exchange gifts at the Presidential Palace in Bogota. Accompanied by senior foreign policy aides, the two leaders discuss a range of issues that included bilateral trade relations, multilateral aid programs, the problem of illegal drug traffic and the security situation in Central America. COLOMBIA 10 C- foreign military advisers and the increased quotas for the IMF and ly, member nations agreed on a production of illegal drugs and establishment of reconciliation replenishment of the Inter- plan to replenish the funds in the cutting drug traffic. and democratic institutions American Development Bank. bank, including a lending program "Our new relations with among all nations of the region. (Officials explained that the of $13 thousand million.) each other reflect the maturity of He pointed to the far-reaching disagreement concerning the President Reagan also our partnership," he concluded. trade and investment provi- Inter-American Bank involved expressed his determination to "We do not agree on every issue sions of the Caribbean Basin the amount of funds for the four continue U.S. efforts to reduce ..but we have established a dia- Initiative, in which Colombia largest Latin countries, and not illegal drug consumption in the logue based on mutual respect, is participating, and noted over amounts available to nations United States and to cooperate our shared religious heritage and American assurances of in- such as Colombia. Subsequent- with Colombia in reducing our common legacy." Presidents Reagan and Betancúr (above) toast each other at a formal luncheon. One of the great traditions of democratic nations," said Mr. Reagan, "is that leaders can speak candidly to one another and accept the other's thoughts in the constructive spirit in which they are offered." COSTA RICA A rriving in Costa Rica, President Reagan received a warm greeting from President Costa Rican schoolchildren (below) greet Luis Alberto Monge. A short time the President upon his later, he met with President Alvaro arrival in San Jose. Magaña of El Salvador to review the country's economic and security situation, and to express his determination that the government continue its efforts to protect human rights. Reaga President Magaña noted that he is establishing a Human Rights Alberto Commission to monitor the situation with representatives ext from widely varied sectors of betwe and the Salvadorean society. President Reagan concluded his Latin American trip the following day with a strenuous schedule of activities that revolved around the basic themes of his entire journey: support of democratic insti- tutions and measures to help stimulate economic growth. During a round of meetings, Presidents Reagan and Monge reviewed alternatives for U.S. assistance to the Costa Rican economy, including a major agricultural loan. At the National Theater in San Jose, both leaders signed an extradition treaty, after which President Reagan delivered an address to Costa Rican legislators and their guests that was televised to 15 nations in the region. As the President rose to speak, a Marxist member of the legislature interrupted the proceedings to read a protest. President Reagan listened to a translation at a nearby earphone for a few moments, and then commented: "I was informed that he was expressing the communist viewpoint. He was allowed to do so here in this democracy. We wouldn't be allowed to do the same in a communist country." The audience applauded his remarks. In his speech, President Reagan condemned the "violence of false revolutionaries and the reaction of false conservatives." Costa Rica, he said, "will always be between continents and seas, but to live peacefully and democratically will require the continued courage and commitment of all the Americas." (Excerpts from this speech begin on page 19.) 12 President Monge (below) speaks to assemblage of Costa Rican officials and guests at the National Theater in San Jose following the signing of the extradition treaty. ent to MIS IS on ty a a HOTEL cariari COSTA RICA Left, El Salvador President Alvaro Magaña and President Reagan, together with aides, confer at their meeting in Costa Rica. They focused on the need to maintain progress in human rights, and reviewed El Salvador's security and economic F San Jose, the solidarity, our governments can that the visit "represents the most elections, and en President flew to San Pedro Sula, protect our democratic clear and decided support for our government's cam Honduras, for meetings with institutions and free market democratic process and our abuses of human President Roberto Suazo economic systems from the efforts for social and economic combat corruption Córdova and General Efraín Rios counterfeit revolutionaries who development." In a statemer Montt of Guatemala. After his seek to destroy growth and In his meeting with General their meeting, Pre discussions with President Suazo, impose totalitarianism on Rios Montt, President Reagan said: "I have assu Mr. Reagan said: free people." stressed his support for the rapid President that the l "Through cooperation and President Suazo responded restoration of democracy and free committed to supp LIONDUIDAS to restore democracy and to address the root causes of this violent insurgency. I know he wants to improve the quality of life for all Guatemalans and to promote social justice. My Administration will do what it can to support his progressive efforts." With an honor guard in the back- ground, President Reagan waves to a crowd during his stay in Honduras. While in Honduras, President Reagan meets with Guatemalan President Efraín Rios Montt (second from left). W hen President Reagan returned to the United States, it was with a deeper knowledge of the strengths, diversity and problems of the nations of the Americas, and In San Pedro Sula, with a renewed dedication to Honduras (left), President Reagan the objective with which he reviews that country's began his trip: to join with the requirements for countries of Latin America and economic and security assistance with the Caribbean in building a President Roberto prosperous, peaceful Suazo Córdova. hemisphere of democracy. Two Speeches The following are excerpts from President Ronald Reagan's address in Sao Paulo, Brazil, December 2, 1982. W to Brazil with the admiration and respect due a great nation. One of your renowned writers, Monteiro Lobato, lived in our country in the 1920's and 1930's. While there, he wrote a book called America in which he said, "The Brazilian considers his country the marvel of marvels, but with one single defect: that it is not well known abroad." If he were writing today, he could still say, Brazil is the marvel of marvels; but he would have to admit that your reputation has caught up with your achievements May I share with you today a dream I have long had? A dream of strengthening our relations with Brazil, and with all our neighbors here in the Western Hemisphere. On this shrinking planet, the drive for renewal, economic progress, and the leadership for world peace must increasingly come from the New World. Here we are blessed with great abundance: resources, technology, and, most important, the spirit of freedom-a spirit that harnesses our energies to pursue a greater good Trust the people; believe every human being is capable of greatness; believe every society is capable of self-government-this is the soul of our revolution, the soul of democracy and freedom. It is the New World's gift to the old. Only when people are free to worship, create and build, only when they are given a personal stake in deciding their destiny, and benefiting from their own risks-only then do societies become dynamic, prosperous and free The great republics of South and North America and the Caribbean have virtually unlimited potential for economic development and human fulfillment. We have a combined population of more than 600 million people. Our continents and islands boast vast reservoirs of food and raw materials. The markets of the Americas have produced high standards of living. We offer hope to oppressed and impoverished people We also see Brazil's modern pioneers exploring a frontier as challenging as the Amazon: space. Well, today I would like to propose an idea to you: To have a Brazilian astronaut train with ours so that Brazil and the United States can some day participate in a Shuttle launch together as partners in space T hree things are essential for full world recovery and development: We must each move to correct our domestic economic and financial problems. We must protect the integrity of the world's trading and financial systems. And we must work together to help the international system evolve and better assure our mutual prosperity. The first, most important contribution any country can make is to get its own economic and financial house in order. Many countries, including our own, did not do so For the United States, the way back has been hard. When my Administration took over, we faced record interest rates and inflation and the highest peacetime tax burden in our history. Our recovery program is designed to help us make a long-overdue transition to an investment- powered, non-inflationary economy that will put the United States back on the cutting edge of growth We believe the door is now opening to a lasting, broad-based economic expansion over the next several years. As the world's largest single market, a prosperous, growing U.S. economy will mean increased trading opportunities for our friends in the developing world With so many out of work-in my country, yours and others-protectionism has become an ugly specter stalking the world. One danger is protection against imports, erecting barriers to shut out the competitive goods and services of others to one's own markets. Another danger is protection of exports, using artificial supports to gain competitive advantage for one's own goods and services in the markets of others. The aim of these actions may be to protect jobs, but the practical result, as we know from historical experience, is the destruction of jobs. Protectionism induces more protectionism and this leads only to economic contraction and, eventually, dangerous instability Our crisis today is not between North and South, but between universal aspirations for growth and the longest worldwide recession in postwar history. But let us also acknowledge another fundamental fact of economic life: The recession has had a particularly painful impact on developing countries. They have suffered declining demand in world markets and falling access to financial markets. This greatly complicates our collective recovery Last February [1982], I spoke before the Organization of American States in Washington. I pledged that our Administration would seek a new relationship with the nations of the Caribbean, and Central and South America. I said we would approach our neighbors not as someone with still another plan, but as a friend, pure and simple-one who seeks their ideas and suggestions on how we could become better neighbors The leading developing nations should all enter the world trading system as full partners. Then they can share more fully in the gains from trade and, at the same time, assume more fully the obligations of the trading system. All we ask is that we examine together the mutual trading gains that can be achieved through reciprocal action. I have enormous confidence in the methods that brought unprecedented benefits in the past We must improve the mechanisms for the settlement of trade disputes to take economic quarrels out of the political arena, and base resolution of conflicts on criteria we all respect Finally, let us remember that just as progress is impossible without peace, economic growth is a crucial pillar of peace, beckoning with brighter horizons for all who dream of a better life Brazil will build. You will grow. And by your side will be the United States-your partner in the New The following excerpts are from the President's televised address in San Jose, Costa Rica, December 4, 1982. mericans and Costa Ricans-we are all of the New World. Our people live the peaceful revolution of democracy, secure under the rule of law and prospering through economic freedom. But there are outsiders who would exploit our rich new world by undermining the democratic systems that make us free. We of this hemisphere must stand together so that we can continue to improve the quality of life for our people. We must be strong enough, our people prosperous enough, and our democracies stable enough to remain independent, at peace and free Costa Rica is a proud example of a free people practicing the principles of democracy. And you have done so in good times and in bad: when it was easier, and when it required great courage. Your commitment to freedom was evident last February [1982] when-as every four years-you elected a new government. In October you led the region's democracies toward recognition of principles for a lasting, humane peace in Central America. And just last month President [ Luis Alberto] Monge spoke eloquently in Washington about democracy and of the commitment of all democratic nations of the region to an elections institute-an advisory body to assist other countries in developing the practice of democracy, and which will be a specialized branch of the Inter-American Institute of Human Rights in San Jose. Costa Rica's foundation of democracy and law, as President Monge said in Washington, is your guarantee of peace. He put it this way: "Violence, war and guerrillas lose their support when the people enjoy free elections and when their vote is respected The only real route to peace-to lasting peace-is the well-charted course of Costa Rica: commitment to democracy, rejection of extremism and the force of arms; and respect for human rights and the rule of law. It also includes reliance on international law such as the Rio Treaty essential to your national defense and fundamental to our common security The peace we've known has been a precious asset for the Americas. Instead of allocating a great share of their resources on military spending, the developing countries of this hemisphere have invested in the future, and this has been no accident. From the Pan American Union to the Treaty of Rio de Janeiro and the Organization of American States, this hemisphere has been in the forefront of multilateral, international cooperation. No other region of the world can match our record. 19 The hese are not mere words. We have and will continue to practice what we proclaim. The United States will continue to support the new democratic institutions in Honduras and the developing democratic processes of El Salvador. Any nation destabilizing its neighbors by protecting guerrillas and exporting violence should forfeit close and fruitful relations with the people of the United States of America-and with any people who truly love peace and freedom. The meeting of democratic nations here in San Jose on October 4 [ 1982| showed us anew the way toward peace and stability. We applaud the Costa Rican government for that initiative and for its continued leadership in this regional, democratic effort. We join you willingly. Democratic states have a unique role in the moral history of the world, because our governments are accountable to the governed and are less likely to abuse their own citizens or to attack their neighbors. The principles of the San Jose Final Act provide a reciprocal, just and verifiable basis for peace. I call on all states in this region to join in this process of genuine, peaceful reconciliation. In this same spirit we must also work together to solve the serious economic problems jeopardizing social and political progress Self-discipline is necessary; so, too, is mutual accommodation. Borrowers must move to restrict their deficits. But it is just as important that lenders not withhold new funds from countries which adopt effective stabilization plans. Lenders and borrowers must remember that each has an enormous stake in the other's success. Similarly, the integrity of the world trading system must be preserved, so it can serve once again as the great engine of growth. Closed markets must be carefully opened, open markets must be shielded from protectionism. Our challenge is to make our trading and financial relationships remain a source of prosperity and strength, and not become a source of discord and disagreement. The debt problems facing many nations today are imposing, and we must act together to ensure that we have the tools to deal with them. The resources of the International Monetary Fund are one of the most important of these tools. To assure the adequacy of IMF resources, the United States has proposed that in addition to an increase in the IMF quotas, there should also be a special borrowing arrangement to meet the demands that may be placed on the IMF. Where countries need assistance as they seek IMF funding, those able to do so must act to provide bridging funds Earlier this year, in Washington, there was an exhibit of pre-Columbian Art from Costa Rica. The title of the show was "Between Continents-Between Seas." This was fitting. But Costa Rica and Central America as a whole are now caught between something else-a struggle of ideas between the violence of false revolutionaries and the reaction of false conservatives. You will always be between continents and seas, but to live peacefully and democratically will require the continued courage and commitment of all the Americas. I am confident that together we will achieve in practice the goals we have together proclaimed: -a Central America where not just some, but all countries are democracies where institutions are based on free and regular elections in an atmosphere of political reconciliation within each state; -a Central America returned to the path of substantial economic and social development; -a Central America at peace with itself and the world; -with a halt to foreign support for terrorist and subversive elements working toward the violent overthrow of other governments; -with an end to arms trafficking, the importation of heavy weapons and the buildup of armaments and forces beyond that required for legitimate defense; and -under fully verifiable and reciprocal conditions, the withdrawal of all-1 repeat, all-foreign military and security advisers and troops from Central America My government will give you and your neighbors the full support of the United States. Our commitment to the Rio Treaty and to the principle of collective security will remain a basic tenet of our policy. Together we will work toward the economic growth and opportunity that can only be achieved by free men and women. We will promote the democracy that is the foundation of our freedom, and stand together to assure the security of our peoples their governments and our way of life Caribbean Basin Initiative: A Presidential Pledge Two-and-a-half weeks after his return from Latin America, on December 22, 1982, President Reagan invited the ambassadors of the member nations of the Organization of American States to a meeting in Washington, D.C. The following is a portion of his remarks. I want to report to you today on the status of our -to support the integrity of an open and free trading system Caribbean Basin Initiative. This initiative is part of which is vital to the prosperity of all the peoples of America's contribution to a collective partnership for this hemisphere; peace, prosperity and democracy in the Caribbean and -to help countries trying to work through financial crises Central America. And, as you know, I recently traveled to and who are adopting adjustment programs in hard times South and Central America. The reception I received just as we are doing convinced me even more of the vital importance to all of Of course the Caribbean Basin Initiative is a central and us of the well-being, the independence and the security critical feature of this policy. Its importance was of the nations of the Caribbean Basin and, indeed, the underscored by everyone I met. entire hemisphere. I promised my Administration would do its best to My conversations with the presidents of five gain passage of the free trade and investment proposals in Caribbean Basin countries were particularly the initiative in this season of Congress I 1982]. Now this is inspirational and helpful. We face common economic not a made-in-the-U.S.A. product. We in the Americas have problems of deficits, slow growth, idle capacity and high all contributed our ideas, our resources, and our strong debts, and common threats of insurgencies supported by efforts to create this bold approach to development Cuba and other Soviet satellites. Now let me report on where that effort stands and I was impressed most, though, by the bright prospects what lies ahead. The aid portion of the program is an for the future. Great advances were made over the previous accomplished fact. The other part, having to do with trade two decades in economic growth, in developing and and investment, is still in the legislative process, I'm sorry to diversifying industrial and agricultural production, say. Because of procedural maneuvering by a small improving health services and education. I'm convinced minority of opponents, it has been difficult to bring that part that the hemisphere will continue this trend of strong of the CBI legislation to a floor vote in the Senate where a growth and improvement. clear majority would have supported passage. But what I The promise of the New World remains bright. We want you to know is that the Caribbean Basin Initiative will have great resources and dynamic peoples. Prosperity not die. The tremendous efforts that the leaders of your strengthens democracy. Throughout the hemisphere countries have put into this bill will not be in vain democracy is on the move. Nearly all the governments in the I am personally determined to see the CBI through. Caribbean Basin are now democracies. Freedom and This initiative is close to my heart. It is my highest respect for human rights gives the fullest expression to the priority. It proposes the right measures to help our meaning of life, and democracy also advances peace neighbors through this difficult period. More important, I sought to explain our policies on my trip, and I found it can help open the door on the kind of future our support for them: neighbors have a right to expect. -to strengthen the practice of democracy and the respect The CBI will be among the very first pieces of for human rights; legislation that I submit to the 98th Congress [in 1983]. -to continue support for the San Jose peace process to The time is short, the needs are great; but we will win this reduce tensions and conflict in Central America; fight because there is no acceptable alternative. -to provide limited assistance to help small countries Together, we are a tremendous force for good. We will struggling for democracy to defend themselves against show the world that we conquer fear with faith, that we foreign-supported insurgencies or terrorists determined overcome poverty through growth, and that we counter to impose their own totalitarian ideas; violence with opportunity and freedom. PHOTO CREDITS: All photographs by White House photographers Front Cover-Inside Front Cover, Jack Kightlinger. 2. Kightlinger. 5-6, Michael Evans. 8-9, top and bottom left. Evans (2); top and bottom right, Karl Schumacher (2). 10-11, Evans (3). 12. top, Kightlinger: bottom, Bill Fitz-Patrick 13. top, Fitz-Patrick: bottom. Schumacher. 14-15, Fitz-Patrick (3). 16-17, Schumacher (2). 19, Schumacher. WRITER AND EDITOR: Howard Cincotta. DEPUTY EDITOR Adrienne E. Price. PHOTO George Miller ART DIRECTOR Robert Banks UNITED STATES INFORMATION AGENCY