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POTUS [President of the United States] Trip to Chile (for Summit of the Americas) and State Visit, April 15-19, 1998 [5]
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POTUS [President of the United States] Trip to Chile (for Summit of the Americas) and State Visit, April 15-19, 1998 [5]
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Case Number: 2009-1155-F
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Folder Title:
POTUS [President of the United States] Trip to Chile (for Summit of the Americas) and
State Visit, April 15-19, 1998 [5]
Staff Office-Individual:
Press-Crowley, Philip J. (PJ)
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3457
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V
President Clinton's Trip
to
Chile
April 1998
PRESS KIT
President Clinton's Trip to Chile
State Visit and Summit of the Americas
PRESS KIT CONTENTS
Annotated Itinerary
Fact Sheets
Summit of the Americas Process
U.S. Trade and Investment in the Americas
Counternarcotics and Law Enforcement Accomplishments
in the Western Hemisphere
Additional Transcripts
Press Briefing by National Security Advisor Samuel Berger, Special Envoy for
the Americas Thomas "Mack" McLarty, and U.S. Trade Representative
Charlene Barshefsky (April 13, 1998)
THE PRESIDENT'S TRIP TO CHILE
STATE VISIT AND SUMMIT OF THE AMERICAS
SANTIAGO, CHILE
Nestled in the majestic Andean mountain range, Santiago is the capital city of Chile and a
thriving metropolis of nearly 5.2 million people. Santiago epitomizes the geographic
diversity of this mountainous, coastal country: few capital cities in the world can boast of
easy access to both ski slopes and beaches. Modern ski lodges and famous beach resorts,
such as those of picturesque Viña del Mar and Valparaiso, can be visited in the same day.
Outside the bustling city, idyllic rural villages dot the countryside, many situated among
Chile's world renowned vineyards. Casablanca, the President's destination on the second
day of his state visit, is one such village.
The Santa Lucia Hill at Santiago's center is an important historic landmark. It was here, at
the foot of the this hill formerly known as the "Huelen", that the Spanish conquistador
Pedro de Valdivia founded the city on February 12, 1541. He planned the city according to
the traditional Spanish checkerboard layout which is still evident in Santiago's downtown
area today. The Plaza de Armas is also noteworthy; many of its surrounding buildings
have historical significance. The Metropolitan Cathedral, on the western side of the plaza,
stands where the first church built in Santiago once stood. On the north side, the post
office, National Museum of History and town hall can be found. In the days of the
Republic, modern neighborhoods (now traditional ones) developed around the colonial
Santiago of the 16th century. By the 1930s, modern Santiago, with its urban parks and
contemporary architecture, emerged.
THURSDAY, APRIL 16, 1998
SANTIAGO, CHILE
Arrival Ceremony
La Moneda Presidential Palace
The President and First Lady arrive at Comodoro Arturo Merino Benitez International Airport
early Thursday morning and will review the Chilean Honor Guard before departing for La
Moneda Presidential Palace. La Moneda is the site of the State Arrival Ceremony and many of
the Summit events. Originally constructed in the late 1700's to house a mint (hence its name,
which means "coin" in Spanish), it was the largest building in the Spanish colonies at the time.
La Moneda has been the site of many important events in Chile's history and today houses key
offices of the presidency. The State Arrival Ceremony will take place in the palace's Canon
Courtyard.
Bilateral Meetings with President Frei of Chile
La Moneda Presidential Palace
Consultations between President Clinton and President Frei will follow the State Arrival
Ceremony. These bilateral discussions will touch upon all issues of mutual concern, from
improving access to quality educational opportunities to expanding hemispheric trade. An
equally important item on the agenda will be discussion of environmental protection and
advancing the climate change accords adopted at the Kyoto conference last year. During the
Presidential meeting, U.S. and Chilean Cabinet Ministers will sign a host of bilateral agreements,
which serve to expand cooperative efforts and deepen the healthy relationship between the two
countries.
Tour of South Santiago Neighborhood
Discussion with Community Members
San Miguel/ University of San Andrés
The President's afternoon will be spent touring the working-class neighborhood of San Miguel in
South Santiago and participating in a "kitchen table" discussion with community leaders who
have worked toward improving the economic, educational and business capacity of the
neighborhood.
San Miguel epitomizes President Frei's successful efforts to renew urban areas by stimulating
microenterprises. The Summit of the Americas seeks to duplicate such success throughout the
hemisphere by expanding the Inter-American Development Bank's small business activity and
improving access to credit, training, and technology for microenterprises.
The University is operated by the St. Paul Foundation, a not-for-profit organization specializing
in education. Similar to our community colleges or vocation schools, the University focuses on
developing the skills needed to start and run small businesses. The President, along with the
Mayor of San Miguel, will lead a discussion with select members of the local community on how
micro-enterprises have contributed to their neighborhood's development.
American Chamber of Commerce
Santiago Municipal Theater
After meeting with members of the San Miguel community, the President will address American
and Chilean business leaders at the Santiago Municipal Theater (Teatro Municipal). The Theater
is the heart of Santiago's cultural life, hosting performances of opera, ballet and major concerts.
The building was originally designed by Brunet des Baines, the same French architect who
designed the old Congress building, in 1853. It seats approximately 1,200 people.
Following introductory remarks by the President of the American Chamber of Commerce, a
representative of Chile's leading business association, and President Frei, President Clinton will
address the assembled business leaders. This speech offers the opportunity to not only applaud
Chile's broad-based economic prosperity and voice continued U.S. support for free trade
between the two countries and throughout the hemisphere, but also to call for increased trade
liberalization, economic integration and the importance of ensuring all citizens benefit from the
global economy.
State Dinner
The President returns to La Moneda for a State Dinner Thursday evening. The President and the
First Lady will join President and Mrs. Frei at the table of honor, which also include the
President of the Supreme Court and the Presidents of each house of the Chilean Congress.
Approximately 400 other guests are expected, including most of Chile's political and economic
leaders.
FRIDAY, APRIL 17, 1998
VALPARAISO, CHILE
Address to Joint Session of Congress
Valparaiso, Chile
On Friday afternoon, the President will address the Chilean Congress in the coastal city of
Valparaiso, west of Santiago. The building housing the Congress was constructed by the during
the return to civilian rule and the re-establishment of Chile's legislative branch was in 1990.
Upon arrival, the President will be greeted by the President of the Senate, Andrés Zaldivar, and
the President of the Chamber of Deputies, Gutenberg Martínez. The President will deliver his
remarks to the two assembled house of Chile's bicameral legislature from the "Hall of Honor."
Visit to Casablanca Rural Village
Following his address to the joint session of Congress, the President will visit the Chilean
farming town of Casablanca, a quiet community of 11,500. Although a tobacco factory is
located just outside town, the primary industry in Casablanca is wine. Two U.S. companies,
Kendall Jackson and Mondavi, purchase grapes from the area.
Founded in 1753, Casablanca is the birthplace of three 19th Century Chilean presidents - Pedro
Montt, Manuel Montt, and Jorge Montt. Julio Montt, the hero of the Battle of Conception during
Chile's struggle for independence, was also born here, as a statue to him testifies.
SATURDAY, APRIL 18, 1998
SANTIAGO, CHILE
Summit Opening Ceremony
Sheraton Hotel
The Santiago Summit of the Americas opens with a ceremony held at the Sheraton Hotel, the site
of each of the Summit's working sessions. As the host of the previous Summit held in Miami in
1994, the President will arrive after all other heads of state have entered.
Summit Session: Education
Sheraton Hotel
The first working session is dedicated to the Santiago Summit's central theme. During this
session, the Summit leaders are expected to discuss the importance of education in preparing the
people of the Americas for the challenges and opportunities of the next century. Particular focus
will be placed upon reaffirming the Miami Summit goals of universal access to primary and
secondary education and harnessing new education technologies such as those that enable
distance learning.
Summit Session: Democracy, Justice, and Human Rights
Sheraton Hotel
A number of important initiatives will be announced during this second working session, all
devoted to strengthening democracy and promoting justice and human rights throughout the
hemisphere.
Summit Leaders Working Lunch
El Camino Real
Following the Summit's opening sessions, the President will dine with the other heads of state at
the El Camino Real restaurant in Santiago's Metropolitan Park. The restaurant is set on the San
Cristobal Hill, which rises directly north of downtown Santiago and the Mapocho River. On a
clear day, the hill offers spectacular views of Santiago and the Andes mountains behind it.
Summit Session: Poverty and Discrimination
Sheraton Hotel
After lunch, the Summit leaders will return to the Sheraton Hotel to discuss efforts at alleviating
poverty and eradicating discrimination. Chile's success at engineering economic growth while
reducing poverty through market mechanisms serves as a hemispheric model in this regard.
Summit Session: Economic Integration and Free Trade
Sheraton Hotel
The first of two sessions dedicated to economic integration and free trade takes place Saturday
afternoon. The two sessions will include discussions of free trade, financial reform, science and
technology, energy cooperation and infrastructure development.
Summit Gala Dinner
La Moneda Presidential Palace
The Summit gala dinner takes place at La Moneda. The President and First Lady will be greeted
by Summit Secretary General Oscar Pizarro upon their arrival and will join the assembled Heads
of State and First Ladies for cocktails on the second floor of the palace.
President and Mrs. Clinton and their counterparts will listen to a concert in the Orange Tree Patio
prior to being served dinner. The concert will include the initial orchestral and choral
performance of the Summit of the Americas Anthem, Canto A La Cordillera ("Ode to the
Andes"). After the concert, all will proceed to the adjoining Patio de Honor, where the heads of
state will be seated at a single table. A brief choral follows the dinner.
SUNDAY, APRIL 18, 1998
SANTIAGO, CHILE
Summit Session: Economic Integration and Free Trade
Open Discussion
Sheraton Hotel
The Summit leaders will begin the day with a continuation of the previous day's discussion. An
open leaders-only discussion will follow.
Summit Closing Ceremony
Following the Summit's final session on Sunday, President Clinton and the other Summit leaders
will sign a joint declaration during a closing plenary session. This signing ceremony will take
place in the former National Congress building, a 19th century structure that now houses the
Foreign Ministry. The old Congress building, as it is known, is located in the heart of downtown
Santiago, four blocks from La Moneda and two blocks from Plaza De Armas, Santiago's central
square.
Remarks to U.S. Embassy Community
The President's final stop on his visit to Chile will be the U.S. Embassy in Santiago, where he
will greet the embassy community and thank them for their efforts. The embassy, located in the
Las Condes area of Santiago, was designed by Leonard Parker Associates of Minneapolis to be
inexpensive, functional, attractive, and safe from earthquakes. The façade is built of granite
quarried in the U.S., with prefinished aluminum panels (also from the U.S.) interspersed
throughout.
FACT SHEET: SUMMIT OF THE AMERICAS PROCESS
In December 1994, President Clinton hosted the first Summit of the Americas in Miami,
to forge a new partnership among the 34 democratically-elected leaders of the
hemisphere built on democratic governance and open markets. The hemisphere's
democratically-elected leaders will meet again at the Second Summit of the Americas on
April 18-19, 1998, in Santiago, Chile to build on the progress made since Miami.
The Santiago Summit will advance the close partnership we have established with our
neighbors and convey the opportunities and challenges of a "new" Latin America - one
filled with vibrant democracies and rapidly growing markets. The Summit's Agenda
focuses on the "second-generation" reforms necessary to consolidate democracy and
support the free markets that Miami identified as a goal. The initiatives center on
ensuring opportunities for all citizens through education, judicial reform, hemispheric
security and counternarcotics cooperation, economic integration, poverty alleviation,
support for micro-enterprises and safeguarding the environment. Over $14 billion in
bilateral and multilateral resources will be available over the next two years to help bring
Summit initiatives to fruition. In this way, it can be said of the hemisphere that
democracy will deliver to all the people of the Americas.
Santiago will highlight the shared commitment to democracy and open markets that the
hemisphere has demonstrated since Miami. Some of the major achievements since
Miami have been the restoration of democracy in Haiti, the preservation of democracy in
Paraguay and the Guatemala Peace Accords. Moreover, after the successful resolution
of the Mexican Peso crisis, the hemisphere has been a model for fiscal and monetary
prudence, achieving the lowest levels of inflation and highest levels of growth in two
decades. Finally, the 1996 Santa Cruz Sustainable Development Summit focused on
long-term stewardship with important attention on environmental matters.
In addition to its own agenda, the Santiago Summit will review progress made on the 23
initiatives set forth in Miami. In following-up the Miami Action Plan, the hemisphere
has pursued common strategies against narco-trafficking and money laundering, adopted
the world's first ever anti-corruption convention and prepared the technical groundwork
for the Free Trade Area of the Americas (FTAA). Governments collectively launched
new efforts in encouraging mutual security and confidence building, reinforcing capital
markets and encouraging microenterprises and small businesses. New funding from the
Inter-American Development Bank (IDB) supported education reform and increased
access to health care for the neediest of the hemisphere's citizens. The hemisphere has
also made progress on ambitious initiatives to promote sustainable energy use and
development and other environmental areas.
The focus for the Santiago Action Plan will be forward-looking, with education reform
the priority. The Summit leaders agree that education is the key to prosperity and the
best tool for expanding opportunity for all citizens. Assistance offered by the Inter-
American Development Bank and World Bank will further commitments made to
improving primary and secondary education, encouraging teacher training and
exchanges, developing distance learning, promoting curriculum reform and higher
standards, and introducing new technologies into the classroom.
In continuing to make good on the promises of Miami, the Summit leaders will also
launch negotiations to conclude an agreement on the FTAA by 2005, with concrete
progress toward that goal by the turn of century. Trade Ministers have agreed to a
negotiating structure and the inclusion of input from civil society, labor and
environmental groups. In addition, the FTAA workplan is forward-looking in seeking
recommendations from a public/private advisory group on advancing a framework for
global electronic commerce.
FACT SHEET: U.S. TRADE & INVESTMENT IN THE AMERICAS
U.S. trade with the countries that will form the Free Trade Area of the Americas is
burgeoning. In 1997, our merchandise exports to the hemisphere reached $286 billion,
42 percent of our global exports. In five years since 1992, trade within the Western
Hemisphere has increased 58% from $375 billion to $592 billion, reflecting stronger and
more interdependent economies throughout the region. U.S. exports to Latin America
continue to grow more than twice as fast as our exports to the rest of the world. In 1997,
Mexico surpassed Japan as our second largest export market, behind Canada, and in the
second half of 1997, U.S. exports to Latin America and the Caribbean (excluding
Mexico) exceeded our exports to the European Union. Altogether the U.S. supplies an
estimated 40% of Latin America's imports.
Trade within and among Latin American regional trade arrangements (MERCOSUR,
the Andean Community, the Central American Common Market and CARICOM) is
expanding rapidly. More than 30 free trade accords have been signed in the region since
1990. Such agreements that meet WTO standards and do not create new barriers to non-
participants are good for the members and good for the hemisphere. The growth in intra-
regional trade has deepened regional cooperation and economic integration, and has
helped to cement democratic institutions and lock-in economic structural reforms. The
United States supports this trend, and looks forward to leading the process of
hemispheric trade integration as the Free Trade Area of the Americas negotiations get
underway in Santiago.
We continue to encourage more open investment regimes in the region. The U.S.
currently has over $150 billion in direct investment in Latin American and Caribbean
countries and we invested over $24 billion in 1997 alone. Our Bilateral Investment
Treaty (BIT) program is providing greater protection for U.S. investors in Argentina,
Ecuador, Jamaica, Panama, Grenada, and Trinidad & Tobago. We have signed new
BITs with Honduras, Haiti and Nicaragua and are actively negotiating agreements with
Bolivia and Venezuela.
FACT SHEET: COUNTERNARCOTICS AND LAW ENFORCEMENT
ACCOMPLISHMENTS IN THE WESTERN HEMISPHERE
The comprehensive counternarcotics strategy pursued by the United States has
yielded impressive results throughout the hemisphere. The Summit of the Americas
builds on those successes by defining a new hemispheric alliance against drugs. A
centerpiece of this alliance will be mutual evaluation mechanisms that OAS
members will begin to negotiate in detail beginning in early May 1998, under the
auspices of the OAS Inter-American Anti-Drug Commission (CICAD).
This year's Andean coca cultivation total of 194,100 hectares was the lowest in a decade.
The 27 percent decline in Peru was the most dramatic and it brought Peruvian cultivation
to the lowest level on record. Interdiction efforts to choke off the air bridge that carries
Peruvian coca to Colombia are depriving Colombian traffickers critical materials and
driving down the price of Peruvian coca, leading many Peruvian farmers to abandon coca
in favor of alternative development opportunities. Bolivian eradication and alternative
development efforts reduced coca cultivation to the lowest level in ten years. However,
Colombian traffickers accelerated new coca plantings, much of it in areas where a strong
guerrilla presence makes eradication more difficult and dangerous. Nonetheless, spray
operations destroyed more than 19,000 hectares last year.
Key trafficking organizations also suffered disruptions. Mexican drug trafficking rings
suffered the most as the Juarez Cartel lost its boss (Amado Carrillo Fuentes), the Gulf
Cartel its operations manager (Oscar Malherbe de Leon), and the major
methamphetamine smuggling ring one of its key leaders (Adan Amezcua Contreras).
Elsewhere, a joint Peruvian-Colombian operation captured Waldo Vargas Arias, who
supplied over half the cocaine base refined in to Colombia. Peruvian forces arrested
long-sought drug chief Luis Molqui, while Bolivia extradited an important trafficker,
Miguel Seleme Rodriguez, to the U.S.
In 1997, several countries continued the process of modernizing laws and
professionalizing court systems through reforms ranging from installing more modern
equipment to major changes in the way judges are appointed. The Summit will advance
this process through the establishment of a hemispheric Judicial Studies Center. We
have also seen progress on extradition, with Paraguay and Peru agreeing to negotiate new
extradition treaties with the U.S. and continuing negotiations between the U.S. and other
countries to adopt new extradition procedures.
Illicit transnational traffic in firearms, and explosives also pose a common threat to
Hemisphere's public safety and democratic institutions. To meet this threat, countries in
the hemisphere are working toward ratification of the Inter-American Convention to
Combat the Illicit Manufacturing of and Trafficking in Firearms, Ammunition
Explosives and Related material. In addition, model regulation from the OAS Inter-
American Drug Abuse Control Commission to control licit commerce on fire arms is
awaiting approval by the OAS General Assembly, which should occur this year. The
United States already is in substantial compliance with these model regulations.
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 13, 1998
PRESS BRIEFING BY
NATIONAL SECURITY ADVISER SANDY BERGER,
SPECIAL ENVOY FOR THE AMERICAS MACK MCLARTY, AND
UNITED STATES TRADE REPRESENTATIVE CHARLENE BARSHEFSKY
The Briefing Room
3:43 P.M. EDT
MR. RUBIN: Okay. It's a briefing on the President's trip to Santiago by the National
Security Adviser, Samuel Berger; the United States Trade Representative, Charlene Barshefsky;
and the Counselor to the President and Special Envoy for the Americas, Mack McLarty. Thank
you.
MR. BERGER: Thank you, Eric. I'm pleased to be joined by Charlene Barshefsky and
Mack McLarty. Together we want to preview for you the President's to Chile this week, both for
a state visit and for the Santiago Summit of the Americas.
I'd like to spend a few minutes describing what we hope to accomplish during this trip
and how it fits into the President's focus on the Western Hemisphere. I'll also run through the
schedule of key events. Mack will speak about the summit in more detail, the road traveled from
Miami, and what we'll be focusing on in Santiago. And then Charlene will talk about our vital
trade agenda in the Americas and update you on where we are with respect to the free trade area
of the Americas.
Let me start, first of all, on the focus that the President has placed on our hemisphere over
the past year. The state visit to Chile and the Santiago Summit are the culmination of a yearlong
engagement with the Americas, arising from -- originating back, actually, three and a half years
ago with the first Summit of the Americas, which the President convened in Miami in 1994. As
you know, the President then last year went to Mexico, Central America, and the Caribbean in
May, and in October went to Venezuela, Brazil, and Argentina.
The objective of these trips, of these visits is to build upon an extraordinary convergence
of our hemisphere around values and interests we share -- in democracy, open market economies,
2
and cooperation against common threats. There has been a quiet revolution in this hemisphere,
and the President is determined to build upon it.
As the chart that is not behind me illustrates, but the one that's behind the one that's
behind me -- 34 of the 35 nations today in the hemisphere embrace democracy and free markets,
as you can see, compared to the time of the '67 and '56 summits. Now, lest you add up the
numbers and say that our crack graphics squad cannot add, there obviously have been an
additional number of countries in the hemisphere during this period.
Decades of civil war and coups have given way generally in the hemisphere to peace and
stability. Despite the peso crisis in Mexico and the effects of the Asian financial problems,
economic reforms in the hemisphere have resulted in the lowest inflation and highest growth in
two decades. Forty-two percent of all US exports -- Ross Perot does this somehow easier, I don't
know quite how he does it -- forty-two percent of all U.S. exports, $286 billion go to hemispheric
countries in 1997. That represents a 17 percent increase in exports in 1997.
Q
From when?
MR. BERGER: From the year before. Versus a 5.6 rise worldwide. And if you look at
this chart, you see the extent of our overall exports that go to the western hemisphere. And quite
a bit of that is to Latin America, but when you take out Latin America, Canada, and the
Caribbean, it's $308 billion. The result is -- in a sense these two charts capture the two important
trends of democratization and economic growth and economic market opening which resulted in
the hemisphere being united as never before as we enter the 21st century.
Now, Mack will talk more about the road from Miami to Santiago, but it certainly has
been a road that has been marked by a number of concrete realizations of commitments that were
made in Miami. In Miami we agreed to expedite ratification of a protocol providing that any
state that ceased to become a democracy would be expelled from the OAS. That was done in
October '97. We agreed to initiate a process of regional confidence building. Since then we
have established an OAS committee on hemispheric security. On the economic integration side,
you can see from these charts, what is happening is not only economic growth but economic
integration between us as and the hemisphere and within the hemisphere, within regional groups
within the hemisphere.
We talked at the summit about eradicating poverty and trying to combat disease. In
1995, for example, the First Lady launched a measles elimination program. Those cases today
have been reduced from 23,000 in 1994 to roughly 2,000 in the hemisphere today. In Miami we
agreed to recommend that multilateral development emphasize microenterprises, microlending.
The Inter-American Development Bank has adopted a five-year $500 million strategy to promote
microenterprises.
In the area of the environment, there were a number of commitments made in Miami,
national action plans to take the lead out of gasoline. In 1996 12 countries had eliminated leaded
gas, and by 2001 there will be 20.
3
Those are simply illustrative of a series of the roughly 100 commitments that were made
in Miami and the progress that has been made on most of them.
Now, the people in Latin America have chosen democracy and open markets, but for
democracy and markets to endure they must deliver for their people. That is, their people need
to understand that democracy delivers, that democracy works. They need to move beyond the
basic building blocks of elections and market economics to the second generation of issues faced
by all democracies, but particularly new democracies: education, rule of law, health care, worker
rights, press freedom, anti-corruption. And this is precisely what the agenda and the focus of the
summit in Santiago will be -- the second-generation issues that these countries face together, and
where cooperation can help give democracy deeper roots. And Mack will have more to say
about this in a few minutes.
On the economic integration side, the Miami Summit set forth a vision of bringing the
Americas together around open markets through a Free Trade of the Americas Agreement by the
year 2005. In Santiago the leaders will launch negotiations with timetables and a work plan.
They will direct their trade ministers to begin negotiations with the objective of concrete
progress by the year 2000. Charlene will talk more about that.
They will establish a mechanism to allow labor, the environment, and other civil groups
to contribute to this FTAA process. And they will also pursue commitments to strengthen bank
regulation and market oversight to promote stability in financial markets, something that since
Miami we have come to learn is far more important.
Now, let me talk a bit about Chile itself, because the first two days of the trip is a state
visit to Chile, and it will really give the President an opportunity to spotlight Chile's quite
impressive achievements. Chile is a country that has succeeded in achieving both an increase in
economic growth and a decrease in its poverty rate. Its annual growth since 1990 has averaged
6.9 percent, while its poverty rate has dropped from 40 percent in 1990 to 23 percent in 1997.
President Frei is committed to providing access to computer networks, for example, for
all 1,500 secondary schools and 50 percent of primary schools by the year 2000.
The Chile of today has emerged from the turbulent and dark past that we are all too
familiar with to become a vibrant democracy working to ensure that all of its citizens share in the
fruits of an open market economy.
Now let me briefly just run through the schedule so you can know where you're going to
be at various points. We will leave Wednesday at about 8:30 p.m. and arrive in Santiago at 6:30
a.m. in the morning -- a delightful red-eye, all-night flight.
On Thursday the President will meet with President Frei. They will finalize and then sign
a U.S.-Chile communique on which we've been working. They will tour a neighborhood of
Santiago and have a roundtable conversation with community leaders, which will provide an
opportunity to discuss Chile's record of economic growth and poverty reduction. And then
finally -- not finally, next to finally -- the President will address business leaders, which together
4
with the event in a poor neighborhood, will provide I think the two sides of the coin that we've
talked about so much; that is, economic growth to provide opportunity, a social safety net in
order to make sure that that opportunity is spread widely. And then that evening there will be a
state dinner.
On Friday we will helicopter to Valparaiso, where the President will address a joint
session of the Congress, in which he undoubtedly will highlight Chile's success in reclaiming its
democracy and spreading the benefits of its prosperity to more of its people. We'll tour a rural
area near Valparaiso, and return to Santiago.
Saturday begins the summit. In the morning most of the events will take place in the
Sheraton Hotel. In the opening session the President and President Frei will make opening
remarks which will be open to the press. Then they will have sessions during the day from 10:00
a.m. to 6:00 p.m., three discussions: one on democracy, one on education, one on poverty
alleviation. And then that evening there will be a summit gala for leaders and spouses.
And then on Sunday the summit resumes at 9:00 a.m. at the Sheraton. There will be two
leader discussion sessions, one on trade, and the final one, which really has no specific agenda
will be essentially an open-ended discussion. At about 12:30 the summit will conclude at the
former Congress building with statements from several leaders, including President Clinton,
President Frei, Prime Minister Chretien, since Canada is likely to be the host of the next Summit
of the Americas.
The President will then go speak to the staff and families at the embassy, as he always
does when he travels. And we will depart for Washington about 3:45 p.m. and a mere 10 hours
later we will be back in Washington.
Let me ask Charlene and then Mack to speak and then we'll take -- Mack, then Charlene.
MR. MCLARTY: Sandy, thank you. The President and our administration has had a
policy of sustained engagement and the intense Presidential focus that was noted in Sandy's
comments for the past several years, in fact, beginning from the first days of the administration.
We are well aware, the President is acutely aware, of our history in the region from time
to time, which has been marked by intervention or neglect. I think he is also keenly aware of this
quiet revolution that Sandy noted, a profound change, in many ways as profound as the fall of
the Berlin Wall. We have both, from time to time, used the phrase "this is not your father's Latin
America," which is, I think, a good way of describing some of the changes -- remarkable changes
of 34 out of 35 countries are now democratic. In Central America we don't have the United
States and the Soviet Union in a Cold War battlefield or civil wars there. And in fact the export
market for U.S. goods in Central America is larger than all of the former Soviet states put
together.
The real story from an economic standpoint has been the taming of hyperinflation, which,
of course, was the cruelest burden to those below the poverty line. Some example of that is
Argentina in 1989 had an inflation rate of 5,000 percent; today it's .3 percent with a 7 percent
5
annualized growth rate. As the minister of finance told us in Brazil when we traveled there, our
inflation rate, Mr. President, is 5 percent; the difference is, that is an annual figure not a weekly
one. So a remarkable economic change.
In terms of the sustained engagement, our goal is to create what we have phrased as a
Greater Americas, based on mutual trust, respect, and reward. And we have certainly discussed
with the American people about our views regarding Latin America. After all, we are the fifth
largest Hispanic nation in the world, the United States, and in turn, to sharpen and improve their
views of us.
Sandy has already noted the first-term record of the convening of the summit -- restoring
peace in Guatemala, as friends of that process; restoring democracy in Haiti; the support of the
Mexico peso crisis; and the passage of the NAFTA; as well as the two presidential trips to the
region, including two summits with the Central American leaders and the Caribbean leaders.
The Vice President has traveled to the region five times, emphasizing economic growth
and environmental stewardship. The First Lady has traveled to the region four times,
emphasizing issues of health care, poverty, and including all aspects of women's inclusion in
society as well as indigenous people.
Now, the Miami Summit affirmed what is called the first generation of reform, which are
free and fair elections, stable and open economies. And I think it's fair to say an architecture was
put in place to further that progress, and one of the centerpieces -- not the only, but one of the
centerpieces was the Free Trade Area of the Americas by the year 2005.
We have made real progress on that road from Miami to the promise of Santiago, but the
key point here is that progress is not assured and not guaranteed. It is critical in my view, as
someone from the private sector, to have a second generation of reform in order to sustain the
first generation, the macroeconomic reform.
I think most of us would agree the bright line between foreign policy and domestic policy
has blurred. You'll see that at this summit. From a U.S. perspective, whether it's jobs, the
economy, energy prices, gasoline prices with summer vacations coming up, education, fighting
the drug trade, alleviating poverty, or protecting the air we breathe, the issues we will discuss at
this summit are the issues that affect our citizens and families here at home. They are issues that
our people care about and care about deeply.
The summit agenda will very much follow the Miami agenda: first, strengthening our
respective democracies; secondly, trade and economics, including financial coordination, which I
think should be emphasized and highlights; thirdly, addressing poverty; and fourth, of course,
emphasizing education. We'll certainly try to marshal resources, particularly where we have
leverage in the multilateral organizations -- the Inter-American Development Bank, the World
Bank, the Pan-American Health Organization -- particularly focusing those resources on
education.
6
I think in terms of education the emphasis to strengthen the resources devoted in Latin
America to primary and secondary education is particularly important to strengthen their
democracies and their economies. There are clearly dramatic changes in terms of distance
learning taking place throughout the hemisphere and indeed the world and our own country.
And some of the same issues, including resources, teachers in the classroom, size of the
classroom, and so forth, will be very much discussed at the summit.
I think it's a fair question to ask, how is improving education in Latin America going to
help people here in the United States? I think the answer is, good schools make good neighbors.
Education advances our economic and security interest in the region. First, it expands the middle
class that buys U.S. goods and services that are noted on this chart. Secondly, it reduces the
opportunity to buy or sell illegal drugs to be part of that undercurrent and undertow. It reduces
illegal immigration by encouraging people to stay at home with their families, and it makes for
more stable democracies, and with partners who are ready and willing and able, as they have
demonstrated, to stand by us not only in the hemisphere, but in terms of our peacekeeping efforts
in Bosnia and our efforts in the Persian Gulf.
You have a number of presidents who have spent a number of years devoting their efforts
to education, including President Clinton. President Cardoso has been a lifelong teacher and
academician, as has his wife; President Zedillo a former Minister of Education; President Frei,
President Figueres and others have talked about and been dedicated to educational reform for at
least a decade, if not longer.
I think all of us would agree in this global economy, which Ambassador Barshefsky will
talk about, the key to inclusive growth both here in this hemisphere and worldwide, is education.
And in many ways I think that will be the legacy of this summit.
In terms of democracy, I think we will see an emphasis on broader democratic
participation, certainly the strengthening of the judicial system in Latin America -- a fair, open
professional judiciary is key to any modern contemporary working democracy. Attorney
General Reno, Justice Breyer have worked very diligently on this effort.
Press freedom something important specifically to all of you in this room, is an issue
we have pushed, encouraged, and the President raised it when he went to Argentina on our last
trip, and the hemisphere embraced it. And through the inter-American human rights part of the
OAS, no new bureaucracy, we will establish, I think, at this summit a special rapporteur to
advocate for freedom of expression.
Now, that may be perhaps even more important than just the fundamental tenant of
freedom of expression, because over the past 10 years 200 journalists have been killed in Latin
America and some in the United States in pursuit of a story, doing their job professionally and
responsibly. And I think this effort will clearly help address these crimes of impunity.
I think, finally, corruption is certainly a very important issue in the hemisphere. The
hemisphere is leading the way with the signing of the Corruption Convention over a year ago,
and that measure, as I think was announced here, has been sent to our Congress for ratification.
7
The region clearly still has too much poverty over 150 million below the poverty line,
despite the progress that Sandy noted. And these targeted issues, while they can be viewed as
rather mundane, are critical for including everyone in an open-market democracy in terms of
microcredit to small business which I certainly can identify with coming from a small
business, a family-owned business -- land titling; and certainly women's issues and inclusion in
the economy and the democracy.
In terms of the economic issues, Charlene will speak to the trade issues specifically. I'd
just like to note a couple of things very briefly. First of all, we should look at not only trade,
economic integration, which is obviously occurring in a rather dramatic way, but we should look
also at investment and we should look at financial coordination, that is. the stability of the
banking system and the financial markets. We've seen what can happen seriously in Mexico, in
this hemisphere, when that does not take place in the right way, and certainly in Asia. And I
think Latin America in many ways has become a model to emulate there, as opposed to avoid,
and has shown a remarkable resilience in the face of Asia contagion because they've had the
capacity and the will to act in relatively modern financial systems.
In terms of energy on the economy, three of our four top energy suppliers are from this
hemisphere. And I think all of us understand the relation to energy prices, inflation, and our
overall economy.
In terms of the FTAA launch, there is a true consensus we'll have a comprehensive and a
credible launch, and that should not be taken for granted and it should not be minimized. The
importance of it I think is very clear, with 40 percent of our exports going to this hemisphere,
with our exports growing twice the rate to this hemisphere as any other region in the world.
One fact, as a business person, about half of the population in Latin America is under 21
years of age. So if you project that market potential out in a natural market, the numbers
obviously become very compelling and very important. We export more to Brazil than we do to
China, more to Chile where we are visiting than we do to India.
In terms of the summit process, I think the region has found its voice on the world stage.
We have a much more mature dialogue in the region than in any times, I think, in the past. I
think it is time to put our consultations on a more regular basis and I think this Santiago summit
will accomplish that. We'll schedule the next time and place for the next summit meeting. I
think the agenda has been one reached by consensus and I think, in that regard, we have a
common agenda. The issues that we address in Santiago are issues that matter to the American
people and to the people throughout the Americas.
I think the real opportunity of Santiago is to change the very shape and nature of the
character of our relationship in the hemisphere, and to have truly a foundation for both security
and prosperity as we move toward the 21st century.
AMBASSADOR BARSHEFSKY: I'll try and be brief. We've talked about the political
declaration that the leaders made in 1994 at Miami, that there should be a free trade area of the
8
Americas. As important as that political declaration was in 1994, the formal launch of these
negotiations following three and a half years of preparatory work, ensures the realization of the
Miami vision. There will be a free trade area of the Americas. A comprehensive launch will be
initiated in Santiago, along with all that that implies.
And let me tell you what has been agreed. First off, the entire negotiating structure from
here to 2005 has been agreed. The first three years of the process will be hosted by Miami. The
final two and a half years of the process will be co-chaired by the United States and Brazil. We
in the United States were very concerned about this launch that is in the start and the conclusion,
because there are two parts of a negotiation that matter, and only two: the setup in the beginning,
and the end.
The middle will always go as the middle goes -- up and down, sometimes fast, sometimes
slow, the trajectory is usually positive. But the setup is very, very important, and that's Miami.
And the conclusion, by co-chairing with our other major hemispheric partner, ensures that we
will indeed conclude the agreement on time.
We have also agreed on concrete progress by 2000. I think this will largely be reflected
in the negotiation and adoption of a series of business facilitation measures. Let me give you
some illustrative examples of what that might encompass: customs, meaning customs
coordination, meaning paperless entry with respect to customs; a series of provisions related to
government procurement and transparency in government procurement -- there is very little
transparency of the process in our hemisphere now; services trade, I think we'll see some
progress there of a very concrete nature. I also think we'll see some progress with respect to
telecommunications trade and some other areas.
We have also for the first time established a committee within the FTAA itself to receive
the views of labor, environmental NGOs, and other groups who obviously have a stake in the
outcome of the process. The setting up of this committee is really rather a milestone in the
history of the FTAA thus far. Our hemisphere has been reluctant to establish a committee within
the FTAA to listen to the views of civil society broadly and to take those views into account in
the course of the negotiation.
This year there has been rather -- I should say over the last several years -- there has been
rather a change of attitude, and I think a growing recognition in our hemisphere that people -- all
segments of society -- need to feel empowered by this process of hemispheric integration, not
disempowered by it. And so we have for the first time now established a committee within the
FTAA to be chaired by the ministers themselves, that is to say, by those most responsible
directly to their political constituencies, to take into account these views and to translate these
views, where appropriate, into negotiating objectives.
In addition to, as Mack said, a credible launch, the launch will be very comprehensive,
covering all areas of trade and covering areas of trade we can project into the future -- so global
electronic commerce now figures prominently on the agenda, as it should, since Internet usage in
our hemisphere has the highest rate of usage, the highest growth rate in the world, including in
Asia, interesting.
9
Economically, as you know, the markets of Latin America are the most dynamic, and the
most dynamic export markets for us. And let me just add for your use a couple of extra numbers.
As Sandy Berger said, in 1997, our exports for Latin America and the Caribbean grew more than
three times as fast as our exports to the rest of the world. During the second half of 1997, we
exported more to our hemisphere than to the entirety of the European Union.
In 1997, Mexico surpassed Japan as our second largest trading partner. Think about that
a minute. Mexico has an economy one-twelfth the size of Japan. We sell more to Mexico than
we do to Japan, and they have now surpassed Japan as our second largest trading partner.
And last, our export increases to the Western Hemisphere accounted for 63 percent of our
export growth worldwide in 1997. That is to say, 63 percent of the growth in our exports
globally stayed in our hemisphere, went to our hemisphere. And much of that is accounted for
indeed by Canada and Mexico.
Let me just say in closing that because of the economic transformation in Latin America,
including, as Mack pointed out, reigning in hyperinflation, you have 500 million consumers, a
burgeoning middle class, and extraordinary opportunity for American exports. And this is
exports in all of the categories that we see, and in all of these categories we've experienced
substantial growth already - and that is in goods, in services, in agriculture as well.
You also have a wave of privatization in our hemisphere, and as we look at areas like
power generation, energy, telecommunications, the United States is well poised to capture those
opportunities as well. And this range of opportunity will be enhanced substantially as Latin
American barriers come down. Their tariff barriers alone average four times what ours are to
their products, and non-tariff barriers in Latin America remain a persistent problem. So we see a
substantial expansion of opportunity for the United States as we pursue the FTAA.
And by opportunity, of course, I mean U.S. jobs, because that's what the bottom line is
here from our point of view. We already have an economy in which, of new jobs created, one in
five depend on exports. One in five new jobs are in manufacturing and dependent on exports.
And we know that exports pay on average 15 percent more than non-export related jobs.
Our future in terms of increasing U.S. economic growth is in exports; it is in opening
markets abroad where the other 96 percent of the world's population lives, and most particularly,
in our hemisphere, which we ought to view as our neighborhood. We need to remain well-
positioned to capture that opportunity, and that is what the FTAA will do.
MR. BERGER: Questions. Have we worn you down?
Q
-- have you been able to convince the labor unions that this is such a good thing
for them?
MR. BERGER: We will obviously be consulting as we go along in these negotiations
with labor and business, with Congress and all other affected segments of society, to convey
10
what I think is clear, and that is that the future of America's economic growth and a greater
production of jobs is going to come in greater trade.
Q
How far can you negotiate until you need fast track? How many months or years
until you absolutely --
MR. BERGER: Let me answer and then I'll ask Charlene to answer. We launched the
Uruguay Round of the GATT negotiations -- in Uruguay, by the way -- (laughter) -- without fast
track authority, and did not have fast track authority for over two years in those negotiations.
Obviously, as we come to the conclusion -- or before we get to the conclusion of these
negotiations, that is something that we will need to have, and it's something the President is
deeply committed to obtain, and we will continue to work towards that objective. But I don't
think it is necessary for the launch of these negotiations.
Charlene.
AMBASSADOR BARSHEFSKY: Yes, if I might say, I think the fast track question
points up to a kind of split dynamic that's occurring in our hemisphere. The launch of these
negotiations is as well positioned as it could possibly be. That's with or without fast track. We
have precisely the launch, the scope, the U.S. at the center of it, that we want it to have, and that
we would have had whether we had fast track now or not.
But what you see in our hemisphere, on the other hand, is an acceleration in sub-regional
integration -- that is, in countries integrating with each other around the United States, not with
the United States. And so you see an acceleration of ties between Mercosur -- that is, Brazil,
Argentina, Paraguay and Uruguay -- and the Central American countries. An acceleration of the
ties between Mercosur and the Andeans; an acceleration between Canada and Chile; between
Chile and certain of the Central Americans; or between Chile and Mexico; Mexico and
Mercosur; the EU and Mercosur; Asia and Mexico.
That acceleration has occurred, I believe, because countries see a potential window of
opportunity that they might not have envisioned had the U.S. had fast track right now. That's not
from our point of view an overly positive development. We don't object to these sub-regional
arrangements, obviously, where they expand trade, as most tend to do. But we do want to ensure
that the United States remains at the center, as the center of a constellation of trading
relationships. The FTAA launch helps us reassert that central role, but the acceleration of sub-
regional integration is something I think we have to look at very carefully.
Q
When do you need to have fast track, though? The launch is next week, but
obviously, you're going to need -- and it looks now like the administration is not going to even
push again until next year.
AMBASSADOR BARSHEFSKY: We have said all along that the timing of fast track
depends on two things -- one is the substance, and the second is the chemistry, both of which we
continue to consult with Congress on. And, as Sandy has said, fast track remains a priority for
this administration.
11
Q
-- going to be embarrassing, really, because this was the goal, wasn't it -- to have
Chile on board for a NAFTA thing? It sounds like everything you've said is a rationale of trying
to get around the fact that you failed in --
MR. BERGER: I'll say a couple of things, Helen. First of all, what we set out to do in
Miami in 1994 was to launch a free trade area for the Americas, a negotiation at this summit;
we're going to do that. And those negotiations will proceed vigorously.
There is, in addition to that, obviously more to this summit, as there was more to Miami,
than trade. And I think one of the things that I've talked about, Mack has talked about, are the
other issues that increasingly are important to the quality of democracy and the quality of society
in these countries. Obviously, to take full advantage of the growth in this hemisphere and to
reach fruition in a free trade agreement we will need to have fast track authority. But I believe
we will have it.
MR. MCLARTY: Sandy, let me just reenforce a couple of points there. First of all, I
think the Miami summit, it should be restated -- if the centerpiece, as many suggested, was the
establishment of the FTAA with Chile having a comprehensive trade agreement, the heart of the
Miami summit was democracy -- the 34 countries that had moved toward democracy; indeed,
established political liberty and democracy. And they are two sides of the same coin.
Secondly, I think we should keep agreements in perspective. What is driving this process
and these numbers are not trade agreements. What is driving this process is the interconnective
global economy and the private sector, both businesses large and small, and ultimately the
consumers' knowledge of and desire for lower priced, competitively priced goods and services.
So I think Helen, had the President and the administration -- and I have heard this on my
some 40 or so trips to Latin America - not made a concerted effort to achieve fast track, then I
think you would have some concerns and problems. I think it is well recognized in these
democratically elected governments that, as we discussed earlier, our batting average on
legislation and trade legislation is very good. They have their own Congresses, and they're not
always successful in a perfectly straight line either.
So I think what is important is to move forward with momentum on this agenda, as
Ambassador Barshefsky has noted. And finally, I would suggest the actual summit agenda,
which was reached by consensus, was actually essentially agreed upon in large measure over a
year ago, well before the fast track vote even took place.
Q
Ambassador Barshefsky, you said that the United States is at the center of this
process. In Santiago, Brazil will be signing a number of trade agreements, and the President
won't be signing any. I wonder, most commentators seem to think that Brazil is now at the
center of this process. How do you avoid having the President look like he's become
superfluous?
12
AMBASSADOR BARSHEFSKY: Well, should I start with the fact that we're a $7
trillion economy? The United States will always be at the center. But your question goes
exactly to the point I made before, which is you see an acceleration in the coming together of
sub-regional arrangements to the exclusion of the United States. And this is really where fast
track becomes important not for the launch; the Uruguay Round was launched without fast
track and we're well positioned here, excellently positioned here with respect to the launch of the
FTAA negotiations.
Where the rubber hits the road is where you see other countries integrating around us, and
for that we're going to need fast track authority.
I do think, now that there will be this comprehensive launch of negotiations, we will soon
see countries focus their resources on that. And I think that will begin to subsume a lot of this
other sub-regional activity, but for right now what you see, in this last six months especially
since the fast track vote was postponed, is an acceleration with respect to the level of sub-
regional negotiation. But in terms of the United States, the United States is a 7 trillion pound
gorilla.
MR. MCLARTY: One quick thing, I think the negotiations are not win-lose. I think the
FTAA is clearly a win-win proposition, and I think the markets are indeed very complementary
of each other. I think we see that in terms of resources -- I spoke of energy -- and of investments
in the region, which Charlene spoke of, infrastructure projects -- so I want to make sure when we
talk about the center of what we do need to have is the position in the launch, which we have, to
shape the agreements, particularly on issues that are important to us and the American people.
Q
Is Pinochet going to attend the Congress, the National Congress event on Friday?
Do you know what to expect?
MR. BERGER: We don't know whether he will.
Q
Have there been conversations with Chilean officials about whether he's going to
come?
MR. BERGER: I know it's been a subject of some discussions at the advance level, but I
have no idea whether he's going to be there or not.
Q
Will that affect what the President says if he's in the audience?
MR. BERGER: No, he will say the same thing whether he's in the audience or not.
Chile is a democracy with a glorious recent history of having reclaimed its democracy, and I can
assure you that what the President says will not be affected by whether General Pinochet is in the
audience or not.
Q
And what bilaterals is he going to have on the sidelines of this summit?
13
MR. BERGER: Not absolutely clear because of the nature of this. This is a little bit
more like -- for those of you who were on the Africa trip Entebbe in a sense than a situation
where there will be formal bilats. There will be opportunities in the breaks for the President to
sit down with President Zedillo, Prime Minister Chretien, and a number of others. It will be
somewhat more informal.
Q
What about will he have a special message about Paraguay's recent turmoil over
the elections there?
MR. BERGER: Our message will be the same as the message of all of the countries that
are in the region Argentina, Brazil, Chile, and others -- which is that we hope and expect that
constitutional democracy will be upheld in Paraguay.
Q
Sandy, two of the subjects of the summit are education and combatting poverty.
What is the United States going to do concretely on those issues? Are there going to be
commitments of money or --
MR. BERGER: Well, on education there will be commitments, not only in terms of
multilateral funding but also bilateral commitments as well. I'll let Mack, perhaps, speak more
specifically about it. Go ahead, Mack.
MR. MCLARTY: John, I'll get you the precise figure. I think your question is on point
in terms of marshaling resources and leveling and leveraging the multilateral agencies,
particularly the Inter-American Development Bank and the World Bank and both President
Iglesias and President Wolfensohn will be in attendance at the summit. I think the AID has had
an active program in the hemisphere; as you know, they will continue that with somewhat
reduced funding over the last several years, but targeting that funding, particularly in terms of the
poverty efforts.
But I think what you will see is a continued, concerted, focused, and effective effort on
the part of the governments, both at the federal, state, and local levels in Latin America, take full
advantage of these expanded resources. And I think you will see their efforts in terms of poverty
alleviation to be quite effective and to be sustained efforts. We obviously want to be fully
supportive of that.
In terms of education, there will be a number of memoranda of education agreements
signed with Chile, with Brazil. And Secretary Riley, of course, will be on the trip and can
answer, I think, in specific detail the educational aspects that will take place at the summit and
with Chile.
Q
I apologize if it's been asked before - are there American business leaders going
with the President.
MR. BERGER: There are not American business leaders going with the President.
There of course are many American companies that have subsidiaries in Chile. The President
14
will be speaking to the American Chamber of Commerce in Chile, as he does in a number of
countries. But there - as far as I know, none going on the trip.
Q
So there's no delegation as there was to Africa.
MR. BERGER: There will be a Congressional delegation that will be going with us, as
there has been in all of our trips in the second term. And we look forward to that. But I don't
there will be no private delegation.
Q
Many members of the Hispanic caucus in the delegation?
MR. BERGER: Yes.
Q
Mack, you mentioned that on the economic agenda, international financial
stability will be a big point in Santiago. Right after the peso crisis, the United States took the
lead in international fora, particularly the G-7, to address this problem through the IMF, with
greater transparency and surveillance of international banking, et cetera. And for about a couple
of years, there was an awful lot of self-congratulations, that a lot progress had been made -- it's
even in the Halifax and Leone communiques and boom, we got the Asian crisis when there
had been every indication that enough prevention had taken place.
What are you going to be doing in Santiago to reassure investors and consumers and
everybody else in the world that something is finally taking hold to prevent this kind of crisis?
MR. MCLARTY: Well, I think, increasingly, as I noted, Latin America has been looked
at as a model to emulate, not avoid, in terms of financial institutions, central banking functions
and reform of the banking system. I saw that both at the APEC conference in Vancouver, where
you had Asian leaders and members of the private sector from those countries attending APEC
talk to President Zedillo, discuss with President Frei, what they had done in that regard. I saw it
again at the Davos Conference World Economic Forum.
While it is not perfect, clearly the leaders in Latin America have had the capacity and the
will to act in terms of fiscal discipline. That's why their inflation rates have stayed under control,
that's why their budget deficits are much, much smaller, I think, overall, than even many
countries in Europe. And I think we will want to support an increasing and deepening of that
kind of transparency and openness that the financial markets clearly judge. And I think that's
why you have seen to date stable financial markets in Latin America despite a sharp decline in
oil prices, where many of the economies are very dependent on oil prices.
I think you're correct in terms of the efforts the President has made to provide leadership
in overall financial architectures - Secretary Rubin and Secretary Bentsen before him and
actually started at the G-7 in Naples. I think it's clear more needs to be done, and particularly
reform, in a local basis in the individual countries affected, which is at the very heart of the IMF
program. I think the difference is Latin America has taken those reforms and has taken very
positive steps, and in some of the areas they have not.
15
MR. BERGER: And if you meant to ask by that question whether we would welcome
Congress passing the supplemental, which would provide IMF funding and funding for the NAB,
which grows directly out of Halifax and is specifically designed to provide for these kind of
circumstances the answer is yes.
Q
Sandy, also what I was wondering about was having put their house in order, as
you put it -- the Latin American countries -- are you going to try and enlist them in Santiago to
help you globally, have them put some pressure on Asian finance ministries and banking
supervisor groups and so on.
MR. BERGER: I think this is happening informally already. In Vancouver, when APEC
met at the end of last year, I think President Zedillo had an enormous impact there. In a sense,
he's walked through the valley of the shadow of death, and he's come out on the other side. And
he said to the leaders, there are certain rules that you've got to follow: you've got to tell the truth,
you've got to take the hard knocks as quickly as you can, and you've got to restore the confidence
of the markets.
I think there is beginning to be, as I've said before, a differentiation in this global
financial marketplace. Not all emerging markets are alike; not all Asian markets are alike; not
all Latin Americans are alike; some are more disciplined than others; some are better run than
others. And I think that the time that's passed since the Asian problems began, in some ways
established that degree of differentiation on the part of international investors to be a little bit
more discriminating and a little less spontaneous in terms of the movement of capital.
Q
While we're on international stabilization issues, Japan a few weeks ago
announced a package of stimulation measures to revive the Japanese economy. But despite that,
the IMF global world economic outlook today forecasts zero growth for Japan for 1998. Does
that mean that they have taken insufficient steps? Are you looking for them to do anything else?
MR. BERGER: Well, I don't know what factors they took into account when they made
that judgment. We have said that the steps that the Japanese government undertook last week
were good steps forward but that, as we've said before, it is extremely important that that
economy be stimulated and increase at a faster rate of growth -- not only for its own health but
also for the overall health of the Asian economies.
Q
Sandy, you just touched on drug trafficking briefly what progress do you expect
on the idea of multilateral drug certification and on the possibility of a Latin counter-narcotics
center in Panama?
MR. BERGER: Well, let me answer and then ask Mack to add. We will make progress
at this summit in expanding the multilateral alliance against drugs that we began to talk about
when we were in Mexico and Brazil and elsewhere. The purposes of these efforts are to increase
cooperation throughout the hemisphere, both a demand reduction and supply reduction. And to
the extent that we can -- and they will include an element of evaluation of the performance of
individual countries. And we think this is an important step forward.
16
Q
Could this be a replacement of certification with time?
MR. BERGER: Well, certification is an act of Congress; it's the law of the land. We
obviously intend to comply with it. Both of these are directed toward the goal of enhancing
cooperation in fighting drugs in the hemisphere. If at some future point the alliance were strong
enough and viable enough that it were advancing that goal, obviously one might take a look at
that. But I think at this point I would say they complement each other.
Q
Yes, but if this certification is U.S. -- I mean, unilateral measure from the United
States, and as you are trying to build a partnership with Latin America, this alternative would be
the only politically correct solution on the long run, wouldn't it?
MR. BERGER: Well, we certainly want to be politically correct. As I said, both of these
-- the motivation of both of these regimes is to enhance the cooperation throughout the
hemisphere on fighting drugs, which is a deadly threat to each country in this hemisphere.
Whether it's the United States that purchases $57 billion worth of drugs, which poisons our
children, or other countries where the narco-traffickers are eating away at the very foundations of
democracy, there is no greater threat we have in common. And so it is extremely important that
we work on this problem together through whatever means we can. We think the alliance
against drugs will be one more instrument to advance that cooperation.
MR. MCLARTY: Well, the only -- I think Sandy really has covered the subject very
well. The only additional point I would make in terms of the cooperation is that from a Latin
standpoint or a Caribbean standpoint, they view this deadly threat, as Sandy noted, as seriously
as the families of our countries do. This is not something we are imposing are having to try to
change any views. The truth is, it is a very formidable foe. So I think it calls for increased
cooperation. I think that will be achieved at Santiago. The goal of cooperation, the multilateral
drug alliance, and certification are the same. Certification is the law, as Sandy noted, and we'll
continue certainly to abide by and enforce that law.
In terms of the Panama multilateral drug counter-narcotics center, it is an idea that has
been well received, but there are a lot of issues still outstanding, and I would not anticipate that it
would come to fruition at this summit. I think it could obviously be a part of a multilateral
effort.
MR. LOCKHART: I just wanted to let you all know about a change in the schedule on
the trip we're taking tomorrow. The President will now overnight in Houston and travel
Wednesday morning to Alabama to view the tornado damage and the work that FEMA and the
local authorities are doing to help with the cleanup.
The trip presents some logistical challenges to us, not the least of which is some of the
people who are going on that trip are also going on the Chile trip, besides some other ones we're
working through. So we will let you all know as soon as we can, possibly by tonight, on the
coverage details, but I think it's important that people going on the trip tomorrow pack for two
days.
17
Q
Will he then come back here?
MR. LOCKHART: He will come back. There is a possibility that we will bring the
press plane back tomorrow night and just take an expanded pool for the trip over to Alabama.
We are working through those things now, but for your own comfort you should assume you're
staying for an extra day.
Q
Will the press charter leave at the same time from Andrews?
MR. LOCKHART: The press charter is still leaving at the same time, and that's what
we're trying to work through now, how we reconcile the two things. But the press charter is still
leaving early Wednesday morning.
END
4:40 P.M. EDT
PRESIDENT'S TRIP TO
CHILE
State Visit and Summit of the
Americas
April 16 - 19, 1998
NEWS CLIPS
The New Budget Game in Albany
The halls of the Capitol in Albany echoed with
optimistic projections is risky. Also worrying is the
self-congratulation this week as the Legislature
tendency to enact tax cuts that balloon in size in the
approved a $71 billion budget only two weeks late. In
years ahead.
truth, the lawmakers' accomplishment was note-
Mr. Pataki is said to be most concerned about
worthy. Not simply was this the earliest budget in
the open-ended nature of the Legislature's borrow-
five years, it resulted from the most open and
ing schemes. The Legislature wants to issue $425
participatory legislative process in modern times.
million in bonds for sports stadiums and other pork-
Some maneuvering went on behind the scenes, but
barrel projects. More sensibly, the Legislature set
the Legislature achieved a procedural watershed
aside $600 million in borrowing for school construc-
that ought to be hard to reverse in the future.
tion, day care and housing. In deciding whether to
The process came about partly because of a
veto any of the budget, the Governor should safe-
revolt by lawmakers who demanded their rights
guard those areas with the greatest need for fund-
after years of being shut out by legislative leaders
ing.
and their staffs. Both Assembly Speaker Sheldon
The Governor has declared publicly that he is
Silver and Joseph Bruno, the Senate majority lead-
happy with the newfound spirit of cooperation and
er, were in a mood to listen rather than let their
openness in the Legislature, but his resentment over
budget confrontation drag on until August. The one
being shut out is palpable. The final issues may well
powerful person in Albany who did not participate
have to be resolved offstage in a meeting with the
was Gov. George Pataki, who is threatening to veto
legislative leaders. But that would be much better
those parts that exceed his own spending ceilings.
than drawing up an entire budget behind the scenes.
When it comes to substance, we continue to be
Besides, the delays of the last few years have not
troubled by the Legislature's revision of the Gover-
only been embarrassing. They have been expensive,
nor's original estimates on spending and revenues,
as compromises were always achieved with the
making $1.2 billion available for programs beyond
expenditure of more money. Mr. Bruno and Mr.
those proposed by Mr. Pataki in January. The
Silver both say that now that they and their mem-
Legislature stuck largely to the right priorities,
bers have tasted openness and cooperation, they
including more money for school construction, men-
will never go back to the bad old days. If they want
tal health programs, child care and the environ-
to leave a real legacy for the future, they should
ment, but "finding" money that results from newly
enact the new budget procedures into law.
Latin American Agenda
The Summit of the Americas in Chile later this
Administration can help by promoting this agenda
week finds both Latin America and its relationship
as vigorously as it promotes free trade.
with the United States in far better health than in
Almost every Latin American nation now elects
the recent past. Except for Cuba, which was barred
its leaders, but many of those leaders control the
from the summit, all the nations are nominally
judiciary, muzzle the press, harass critics and re-
democracies. On most issues the mistrust and even
strict labor unions. The Clinton Administration is
hostility that once characterized Washington's rela-
right to make press freedom a priority, and should
tions with Latin nations have been replaced by
work for an effective and independent judiciary as
cooperation. Still, Latin America has enjoyed a
well. The regional training center for judges that
wave of elected civilian leadership twice before in
Washington supports is useful, but pressure to re-
this century. Insuring that this one lasts requires
spect judicial independence is more important.
deepening democracy and extending the benefits of
The end of the cold war has brought a welcome
growth to the poor. There is more Washington can
shift away from Washington's blind support of
do on both counts.
repressive militaries and toward initiatives that
While Washington's free-market policies have
train civilian leaders in defense issues and build
produced export-led growth, there are more poor
relationships with them. Unfortunately, the Clinton
people than ever before in Latin America. Econom-
Administration's mistaken enthusiasm for using
ic inequality, already the worst in the world, is
Latin armies to combat cocaine could reverse this
rising. Measures to fight poverty, especially
positive change. President Clinton should reimpose
through more widespread access to education, are
a ban on selling high-tech weapons to Latin Amer-
prominent on the summit's agenda, and that of the
ica. The decision to lift the 20-year ban last year,
Clinton Administration. But they are too small and
taken partly to please arms manufacturers, could
scattered to be effective. Latin American budgets
spark an arms race and divert money from social
need to emphasize health and education, which in
spending that is so urgently needed throughout
turn require improved tax collection. The Clinton
Latin America.
The New York Times
THURSDAY. APRIL 16, 1998
Yankee Big Brother No Longer
U.S. Influence Slackens at Hemispheric Trade Summit
By ANTHONY FAIOLA
In one noteworthy concession,
and STEVEN PEARLSTEIN
AI
the United States also dropped its
Washington Post Foreign Service
insistence that any agreements
reached early in the process be
As President Clinton lands
locked up in preliminary treaties,
today in Santiago, Chile, for the
even as broader talks continue on
second Summit of the Americas,
more difficult issues. Instead, the
he'll be in a decidedly different
entire agreement must be consid-
position from that of previous
ered as a single package-a formula
visiting U.S. presidents. Sud-
that the Latin Americans believe will
denly, not only is Uncle Sam
give them greater leverage in the
speaking softly in these parts,
final stages of negotiations. The
but he's carrying a small stick.
United States also agreed to forma-
More than any other issue on
tion of a committee to deal strictly
the table here this weekend, the
with agriculture, something it op-
posed in the past.
quest to create a Free Trade
The result, although still only a
Area of the Americas from Alas-
framework for negotiations, illus-
ka to Tierra del Fuego by 2005
trates an extraordinary maturing of
underscores the new, more
U.S.-Latin relations through the
equal relationship forming be-
prism of free trade, analysts say.
tween the United States and
Symbolically, it brings a respite to
Latin America.
the perception of Uncle Sam as Big
In developing a format for
Brother to this part of the world.
talks aimed at creating the
"The situation is obviously differ-
world's largest free-trading
ent now" than at the first Americas
bloc-the details of which, in-
summit in Miami, Chilean President
cluding meeting dates and inter-
Eduardo Frei said in an interview
im deadlines are to be an-
this week. He suggested that Latin
nounced this weekend-the
America would proceed toward eco-
United States has granted sig-
nomic integration with or without
the United States.
nificant concessions to its nego-
"We are going to launch the move-
tiating partners. In essence, to
ment to reach this accord by 2005,"
keep the process moving, Wash-
Frei said. "And we are agreeing with
ington bowed to a number of
the Clinton administration to ad-
demands made by the Latin
vance [the process in talks with the
nations, especially Brazil, an in-
United States], but their domestic
dustrial powerhouse with an
problem [of fast track] is going to
have to be resolved along the way.
The Washington Post
economy larger than Russia's.
Regardless, the integration process is
THURSDAY, 16,
The event that brought this
now practically impossible to stop."
about-congressional rejection
U.S. officials maintain that they
of "fast track" legislation that
have yet to give in to the Latin
would have granted Clinton
Americans on anything concrete and
that procedural concessions were
See AMERICAS. A28. Col. I
necessary to win acquiescence for
creation of a special study group to
AMERICAS, From A.
consider social, environmental and
labor issues. Those issues are at the
sweeping powers to negotiate free-
heart of opposition to free trade
trade agreements-may have given
among congressional Democrats and
an important psychological boost to
were the sentiments that derailed fast
the idea of hemispheric free trade,
track on Capitol Hill late last year.
analysts say. Latin Americans, who
U.S. trade officials say that without
historically had felt bullied or ignored
ensuring some mechanism for inter-
by the powerful United States, real-
jecting those issues into the trade
ized that U.S. officials would be
talks-even one as nebulous as a
coming to the negotiating table in a
study group-there was little chance
significantly weakened position-
that Congress would endorse a hemi-
one that could be turned to their
spheric free-trade pact.
advantage.
"We have a moment to establish a
"Latin America is unifying and
general partnership based on mutual
strengthening, and there is a sense
trust and respect," Thomas "Mack"
they will no longer allow themselves
McLarty, the White House special
to be forced into anything" by the
envoy for the Americas, said of the
United States, said Jan Heirman, an
pending talks. But "at some point,
official with the U.N. Economic
you certainly need to shape it and
Commission for Latin America and
advocate U.S. interests."
the Caribbean in Santiago. "They
The United States and Latin
feel they are coming at this from a
America are moving toward a free-
position of strength."
trade compact for distinct reasons.
The format for the 33-nation sum-
For the United States, a pole-to-pole
mit reflects that reality. No longer
free-trade zone would give it prefer-
are the countries of Latin America
ential access to the region's fast-
lining up, in effect, to negotiate
growing markets and economies.
individually with the United States
Latin business leaders, noting the
about joining Canada and Mexico in
recent economic troubles in Asia,
an enlarged North American Free
have put themselves forward as an
Trade Agreement. Instead, these
attractive alternative market for
talks will be multilateral, with the
goods and a good place for invest-
United States just one player and
ment.
other countries free to participate
individually or as blocs.
The United States has watched,
tiating issues in the United States as
meanwhile, as individual Latin na-
well, chiefly arising from labor con-
tions have decided not to wait for
cerns. Thea Lee, the assistant direc-
Washington to leap aboard the
tor for public policy at the AFL-CIO,
free-trade train. Chile, for instance,
says, for example, that the hemi-
has struck bilateral accords with
spheric trade committee on labor
Canada and Mexico-the United
issues may be no more than political
States' partners in NAFTA-which
window-dressing aimed at appeasing
have given those two countries a
Democrats in Congress.
leg up in dealing with the most
"Our view is that this could be a
technologically advanced nations in
positive step if it turns out to be a
Latin America.
stepping stone to have the concerns
From 1990 to 1996, overall trade
of labor and environmental groups
doubled in Latin America to $493
reflected in the final agreement," said
billion, according to the Inter-
Lee. "But it is not acceptable if all we
American Development Bank, with
get is a committee and nothing more
the spoils being shared largely with-
by way of results. Our sense, frankly,
in new Latin American trading
is that the Latin American ministers
blocs-the largest being Mercosur,
still have great hostility to consider-
which encompasses Brazil, Argenti-
ing worker rights and workplace
na, Paraguay and Uruguay, and
safety issues."
represents nearly two-thirds of the
At this point, a hemispheric free-
region's overall trade volume.
trade zone is still far from a reality;
For Latin America, the primary
only procedural architecture has
benefit would be increased U.S.
been agreed upon, and implementa-
investment and, for consumers
tion could take 15 years or more.
here, cheaper, high-quality Ameri-
Still, as worked out by trade minis-
can goods on store shelves. Such
ters at a meeting last month in Costa
nations as Argentina, Chile and
Rica, overall supervision of the pro-
Peru are eager for the kinds of
cess will be delegated to one country
benefits that came to Mexico as a
on a rotating basis, starting with
result of the NAFTA agreement,
Canada and winding up with the two
including new jobs and high-tech
major antagonists, Brazil and the
factories built with U.S. corporate
United States, as co-presidents. It's at
dollars. Indeed, NAFTA is credited
that point that Washington will be
by the Mexican government not
playing rougher.
only with boosting trade between
But by then, the United States
Mexico and its mammoth trading
must have fast-track legislation to
partner to the north, but with
stay in the game, experts say. Yet
helping it cultivate trade with part-
there are no moves currently afoot at
ners elsewhere around the globe.
the White House or in Congress to
"It has put Mexico on the radar of
reintroduce such legislation this year,
other countries that wouldn't have
and congressional leaders say there is
had the incentive to be here," one
no likelihood of such a move this
Mexican official said.
year.
But there are forces in Latin Amer-
"You've got to understand that
ica that oppose the idea of dropping
this deal will [still] require huge
trade barriers, in countries both big
concessions by Latin American coun-
and small. In large nations, such as
tries, involving very big political
Brazil, domestic companies that have
risk," said Jeffrey Schott, a senior
long enjoyed a captive marketplace
fellow at the Institute for Internation-
do not want to surrender their advan-
al Economics in Washington. "But
tage to U.S. competition. In small
they are going to bei unwilling to put
countries, especially Caribbean island
their best offers on the table and take
nations, the threat is even greater,
those risks if they sense that an
since their economies of scale gener-
agreement will eventually be rejected
ally make local manufactures far less
or amended by the Congress."
competitive then their American
counterparts.
Faiola reported from Santiago,
There is resistance on some nego-
Pearlstein from Washington.
The Washington Post
THURSDAY. APRIL 16, 1998
Cesar Gaviria
Reshaping
the Hemisphere
This weekend in Santiago, Chile,
adopted an anti-corruption conven-
we will witness a remarkable affirma-
tion-the first international agree-
tion of shared goals and values, when
ment of its kind-which gives us new
the heads of state and government
tools to combat bribery, illegal enrich-
from the hemisphere's 34 democracies
ment and related crimes.
meet for the Second Summit of the
We have a new convention in the
Americas.
hemisphere to stop illegal arms pro-
The leaders who will gather in
duction and trafficking. This agree
Santiago represent some 750 million
ment, signed last November in the
people of different races, languages
presence of President Clinton and
and dreams who live in the vast
Mexico's President Ernesto Zedillo,
stretch from the Yukon to Patagonia.
will help us track the flow of illegal
The economies of their countries have
firearms, explosives and ammunition,
a combined GDP of $9 trillion.
and cooperate in stemming these in-
Once divided by Cold War conflicts
ternational crimes.
of interest, our nations today are
The hemisphere has focused on the
united by an unprecedented conver-
need for the type of development that
gence of ideals and values. With the
takes into account not only economic
exception of Western Europe, no oth-
concerns but also environmental and
er region in the world can lay claim to
cultural factors. A detailed plan to
address these issues came out of the
such political stability and economic
1996 Summit of the Americas on
potential. The 34 countries that will be
represented in Chile-all of which sit
Sustainable Development, held in Bo-
livia.
together at the table within the Orga-
nization of American States (OAS)-
Acting on another mandate from
now have democratically elected gov-
Miami, our nations have developed a
ernments. Some have left behind a
comprehensive strategy to combat ille-
dark past of repressive dictatorships
gal drug production, trafficking and
consumption. In 1996, we also adopt-
or civil wars; today, they have resolved
ed a plan of action against money
to strengthen democratic gains, pro-
laundering.
mote human rights, foster economic
We have made progress on other
growth and improve the everyday
fronts too, including trade. Even
lives of citizens.
though the lack of fast-track authority
Of course, we do not all have the
by the U.S. government is a setback,
same perspectives or needs. Consider
the momentum behind free trade is
this: Canada's economy is 125 times
already established. Average tariffs in
the size of Jamaica's-and Canada's is
Latin America have fallen from 40
not the largest economy in the Ameri-
percent in the late 1980s to 11 percent
cas, nor is Jamaica's the smallest. The
today. In a recent meeting of trade
disparities in education levels and
ministers in Costa Rica, the govern-
economic opportunities within our
ments agreed to launch formal negoti-
hemisphere are sobering and painful.
ations in Chile to create a Free Trade
That is what makes our shared vision
Area of the Americas by 2005.
all the more remarkable.
Nobody denies the immensity of the
While education is the priority for
task ahead-especially when it comes
Santiago, the hemisphere's leaders will
to addressing such complex challenges
look at more than 20 issues, ranging
as fighting poverty and giving our
from promoting equal opportunity for
citizens better access to education.
women to improving our nations'
The nations of the Americas have
telecommunications systems. They
missed opportunities in the past to
will also set in motion a multilateral
address many of our problems. But
effort to evaluate the region's progress
today, in a climate of economic growth
in the fight against drugs.
and democratic values, we have every
In the little more than three years
reason to be optimistic that we can
since our first summit in Miami, we
seize the day and build on the progress
have taken a number of concrete steps
we have already made.
that are reshaping the architecture of
the hemisphere. Many of these ad-
The writer is secretary general of
vances do not make headlines, but
the Organization of American
they do make a difference.
States and a former president of
For example, in 1996 the OAS
Colombia.
The Washington Post
THURSDAY. APRIL 16, 1998
A Meeting of Minds, From Peoria to Patagonia
Poll Finds Yanks and Latins Often Agree on Trade, Security and Drugs
By EDWARD SCHUMACHER
Brazil. That IS the highest rating any of the
Reporter
of
THE
major Latin American countries received
HE HEADS of state meeting
from U.S. respondents. In contrast, Latin
T
this weekend III Santiage,
Americans rate the U.S. the most trusted
Chile, to begin hammering out
trade partner.
a trade agreement for the
More than half of the Latin respondents
Western Hemisphere might be
agree with poll statements that the U.S. is I
pleased to know that the people of Latin
democratic model and a global defender of
America and the U.S. are on the same
human rights. A majority favor a continued
free market bandwagon.
U.S. military presence in Panama to fight
A poll sponsored by The Wall Street Jour-
drug trafficking after the U.S. returns the
nat and 16 newspapers in Latin America
canal to Panama in 2000.
also found surprising agreement on many of
Fifty seven percent of Latin Ameri-
the hemisphere's most heated issues. For
cans. but only 40% of respondents
instance, Latin Americans break with their
polled in the U.S., say foreign in-
governments and join with Americans in
vestment is "good because it
supporting U.S. sanctions against countries
stimulates the growth of our
that aren't doing enough to fight drugs.
economy. Lawrence Harri-
THURSDAY 16. 1998
THE WALL STREET
Many in the U.S. break with the Clinton ad-
son. author of 'The Pan-
ministration and Congress. joining their
American Dream," a
Latin brethren in favor of economic engage-
book about values and in-
ment with Cuba and in opposing the sale of
tegration in the Western
sophisticated weapons to the region.
Hemisphere, calls this
More fundamentally. Latin Americans
a dramatic change
are embracing open economies and competi-
compared to 10 years
tion. "What surprises me are the similari-
ago. Latin America was
ties of the answers." says Jeffrey Frieden, a
operating on a strategy
professor at Harvard University. "It indi-
individu-
that said they should be
cates a convergence of opinion about the
als polled
wary to work with others.
problems of the hemisphere. It may signal
in the U.S.
especially with the U.S.
better understanding in the relations be-
favor it.
The respondents in five
tween the two continents.
U.S. respon-
Latin countries prefer to de-
Thirty-four countries are attending the
dents are al-
velop trade with Japan
two-day Summit of the Americas that begins
most evenly
rather than the U.S. Those
Saturday in Santiago. Cuba, the only non-
split over the re-
polled in Brazil, a country
democracy in the hemisphere. wasn` in-
lated issue of ex-
with a large population of eth-
vited, and the poll shows little public sup-
panding the North
nic Japanese, split equally be-
port in the hemisphere for Cuba's president,
American Free Trade
tween Japan and the U.S. Argen-
Fidel Castro. Another poll finding: A sizable
Agreement. or Nafta, to
tines and Chileans, the most Eu-
minority of Latins than a quarter of
include other countries. Cur-
ropean of Latin Americans. prefer
respondents- in Brazil, Mexico, Guatemala.
rently, Nafta is a free-trade agree-
to trade with Europe. Indeed. while
Colombia, Paraguay and Venezuela say
ment among the U.S., Mexico and Canada.
John Dykes
a majority of Latin Americans re-
they prefer a more authoritarian govern-
The poll numbers show that many in the
sponding to the poll trust the U.S. as a
ment: a majority in Ecuador prefer a more
U.S. are uncomfortable establishing free-
trading partner. only 27% of Argentines
authoritarian government. The poll shows
trade agreements with Latin America in
more neg-
do. and 14% of Mexicans.
that a large number of people in each coun-
part because they fear losing jobs to lower-
ative than posi-
Fully three-fourths of the Latin respon
try are troubled by violence, corruption and
wage countries, Respondents in the U.S.
tive. Mexicans feel the
dents agree with the statement: `The U.S.
social upheaval:
consider Nafta's impact on jobs and wages
same. and other Latin re-
only pursues its own interests and inter-
The major item on
spondents say they also deem their own re-
feres too much in the affairs of other coun-
the agenda at the Santi-
The Drug Problem
gional trade par is as damaging to wages
tries." Notably. 61% of the U.S. respon-
ago summit will be nego-
LATIN
and job growth.
dents agree.
tiations for a Free Trade
RESPONDENTS WHO:
U.S.
AMERICA
A plurality of those polled in the U.S.,
Within Latin America. respondents were
Area of the Americas, or
Favor U S.-imposed sanctions on countries
397. say the primary objective of U.S. for
equally split over whether the privatizations
FTAA. which is meant to
that don't do enough to combat drug
72%
65%
eign policy toward Latin America should be
sweeping the region are good. Chileans, who
establish a free-trade
production or trafficking
to decrease drug trafficking. Only 17% say
were in the vanguard of free-market reform.
zone among the nations
the chief objective should be to expand eco-
join with other Latin Americans in favoring
gathered for the meet-
Feel drug-producing countries are most to
nomic relations.
ing. Nearly 80% of those
blame for drug trafficking
53
55
government ownership of telephone services.
Pollsters Peter D. Hart and Robert
pension systems. utilities, health systems
polled in both the U.S.
Teeter, who conducted the poll in the U.S.,
and the mining and petroleum industries.
and Latin America say
Find that the U.S. is doing its part to control
conclude: The largest bulk of Americans
Private ownership is preferred in only two
they support free trade.
the global drug problem by reducing the
49
55
don't view Latin America as a region of eco-
sectors: airlines and television.
But the numbers diverge
demand for drugs in the U.S.
nomic opportunity. but rather as a region
on the specifics. While
with a severe drug problem.
70% of Latin Americans
Feel corruption among police. government
Indeed, while more than SO% of the U.S.
Journal Link: For an expanded report
endorse the proposed
officials and politicians makes the fight against
22
52
respondents say they trust Canada as a
WSJ
and the full results of the poll. see The
drug tratticking difficult
Wall Street Journal Interactive Edition at
FTAA. only hall of the
trade partner, only 31% say they trust
http://wsj.com
U.S. in a weak
trade position for
Americas summit
By Bill Nichols
USA TODAY
WASHINGTON - Today's Latin
America "is not your father's Latin
America," says Thomas "Mack"
McLarty, President Clinton's special
envoy to the region.
And as his third trip to Latin
America as president begins today in
Santiago, Chile, Clinton again will be
trying to build support for policies
that will continue the stunning
growth of free markets and democ-
racy across the region.
The problem for Clinton, in Chile
for the second Summit of the Ameri-
cas and a state visit with Chilean Pres-
ident Eduardo Frei: It is the United
States that comes into this meeting
being criticized for not keeping pace
By Pedro Ugarte, Agence France-Presse
with its hemispheric neighbors.
Setting up: Workers prepare meeting
The administration's failure to get
table for summit in Santiago, Chile.
fast-track trade legislation passed last
fall - to give the president authority
er issues at this weekend's summit.
to negotiate trade deals that Congress
That's meant to demonstrate that
can accept or reject but not alter -
what McLarty and others call "sec-
has cast a shadow on this summit.
ond-generation issues" for emerging
Administration officials insist that
democracies - education, respect
negotiations in Santiago will move
for the rule of law, press freedom,
the nations toward creation of a free-
anti-drug and anti-corruption mea-
trade zone throughout the hemi-
sures and the environment - should
sphere, a goal first expressed by the
gel the same media focus as trade.
leaders during the first Summit of
Clinton, particularly in a speech to
the Americas, held in Miami in 1994.
U.S. and Chilean business leaders in
But the White House also admits
Santiago today, will portray a Latin
that for the free-trade area to be in
America where economic opportuni-
place by 2005, the president of the
ties are almost limitless.
United States will need fast-track.
Hyperinflation has been tamed,
The reason is simple: Countries
growth rates are up, and Latin Amer-
are much less likely to go through
ica ranks as an export magnet.
the tedious negotiations that trade
"The long-lasting efforts in Latin
pacts require if they know that a deal
America during the last 10 years
can be rewritten by Congress.
have transformed this continent,
National security adviser Sandy
which in the 1980s was the continent
Berger says that while passage of
of lost growth, the ill continent of the
fast-track is not necessary for the
world economy," International Mon-
free-trade negotiations to be
etary Fund Managing Director Mi-
launched, "before we get to the con-
chel Camdessus says.
clusion of these negotiations, that is
Chile is a perfect example. The
something that we will need."
country's annual growth since 1990
McLarty, a White House counselor
has averaged 6.9% while the poverty
as well as Clinton's trouble-shooter in
rate has dropped from 40% in 1990
Latin America, says Clinton is pre-
to 23% in 1997.
pared to tell leaders of the 34 demo-
The case Clinton will make is that
cratic nations in the region - Cuba
a second wave of reforms is needed
is the lone nondemocratic exception,
to make sure economic gains aren't
and Fidel Castro is not attending -
rolled back.
that he still thinks fast-track can pass,
He'll urge additional spending on
perhaps even this year.
education, as well as establishment
But White House aides also make
of a regional watchdog group to mon-
clear that Clinton will emphasize oth-
itor press freedom.
USA TODAY THURSDAY, APRIL 16, 1998
which is responsible for the deaths of countless thousands of
Last year the heavy equipment manufacturer sold $1.7 billion worth
Cambodians. The negotiations for the handover of Pol Pot provide
of graders, scrapers, tractors and other machinery in Latin America,
further evidence the noose is tightening around the enigmatic and
up from $1.2 billion in 1996.
elusive Khmer Rouge founder.
That expansion -- some 37 percent in just one year -- came despite
Gen. Meas Sophea said the defense minister would meet guerrilla
the failure of President Clinton to win fast-track negotiating authority
commander Nou Nou at the Thai border to discuss conditions for the
to expand NAFTA into South America, and despite warnings by
handover.
economists that South America's own emerging trade pacts might
The United States has called for the arrest and trial of Pol Pot before
soon prove a roadblock to U.S. business expansion in the region.
an international tribunal for crimes against humanity.
Actually they've made our job easier, absolutely," said Robert
However, the Cambodian general said, We do not know what the
Petterson, Caterpillar's vice president for Latin America. Regional
Khmer Rouge conditions will be, if any."
trade groupings, such as the Mercosur pact dominated by Brazil and
Nou Nou is believed to be the chief of staff of the remaining
Argentina, have made it simpler and faster for Caterpillar's Brazil
hard-core guerrilla force, which is now squeezed up against the Thai
manufacturing plant to ship machines to Argentina, Chile and much of
border by Cambodian troops and Khmer Rouge turncoats.
the rest of South America.
The mutineers took over the movement's last stronghold at Anlong
That has boosted sales, held down costs and generally made
Veng early this month after staging a rebellion against the rigid rules
Caterpillar confident of its future in Latin America -- even as the
of Angkar, the bizarre organization that Pol Pot created in the 1970s.
United States has relinquished its dominance of hemispheric free trade
He called it the mother and father for all Cambodians."
negotiations.
The Khmer Rouge commander has already said he and his men are
It's unfortunate that the problems with fast track have caused the
willing to hand over Pol Pot. But Thailand's refusal to accept him
United States to lose some of its leadership on the issue," Petterson
apparently led to confusion in guerrilla ranks. They were reportedly
said. But Congress' reluctance to expand the North American Free
told by Thai authorities to contact the International Red Cross. But the
Trade Agreement, he and other businessman say, has done nothing to
Red Cross said Wednesday that it had received no word from the
slow an explosion of free trade in the Americas.
Khmer Rouge.
Four years ago, at the first Summit of the Americas in Miami, the
Gen. Meas Sophea said the handover was also expected to include
hemisphere's leaders agreed to set up a free trade zone from Alaska to
Ta Mok, known as the butcher of Cambodia" for his role in the
Patagonia by 2005, with formal negotiations on the pact to begin at a
deaths of tens of thousands. Ta Mok took over from Pol Pot last year.
second summit in 1998.
Asian diplomats said the border rendezvous may be an attempt by
This week President Clinton walks into that summit in Chile, a
the present Khmer Rouge leadership to determine whether the
nation that once appeared likely to be NAFTA's next member, without
Cambodian government is prepared to grant them amnesty.
even the fast-track trade negotiating authority he has tried for four
Defense Minister Tea Banh said Sunday that he did not expect
years to win.
further significant fighting with the remaining Khmer Rouge forces.
This state of affairs has reduced the United States to essentially a
But the guerrillas may have a problem finding a way to rid
sideline role in Latin America's fast-moving trade negotiations, which
themselves of Pol Pot. In an interview published by the Hong
today focus more on regional deals and pacts with Europe and Asia
Kong-based Far Eastern Economic Review this week, commander
than on trade with the United States.
Nou Nou said that although Pol Pot had agreed to face an international
That's not from our point of view an overly positive development,"
tribunal, he did not want to be taken to Phnom Penh.
U.S. Trade Representative Charlene Barshefsky said at a White House
More than a million of the the city's residents were sent to the killing
briefing earlier this week.
fields, the notorious rural labor gulags, 24 hours after the Khmer
White House officials said they still hope for modest progress on
Rouge marched into the city on April 17, 1975.
specific issues despite the fact that the president doesn't have the
will go anywhere, but not to Phnom Penh to work with Vietnam."
leverage he hoped to have coming into the weekend summit of leaders
Pot Pot was reported to have told Nou Nou.
of the hemisphere's 34 democracies.
The Khmer Rouge routinely denounce the current Phnom Penh
But Clinton's main role at the gathering, aides confirmed, will be in
government as puppets of the Vietnamese. A 1979 invasion of
pushing for regional agreements on education, drugs, the environment
Cambodia by Vietnam ousted the Khmer Rouge from power and sent
and other concerns.
them fleeing to the northern jungles.
Those issues, along with questions of nagging poverty and limits on
The negotiations for the handover are expected to take place
freedom of expression, however, are expected to become important
somewhere along the Cambodia-Thailand border. The latest Thai
focuses of the Santiago summit, largely because of growing
estimates are that between 200 and 500 Khmer Rouge fighters are
disenchantment in Latin America with the the pace of social progress.
holed up along the border, together with as many as 10,000 villagers
Across much of the region, there were very high expectations that
and porters.
globalization would address a lot of problems and bring better social
Cambodian officials say the remnants of the once-disciplined Khmer
conditions and higher employment," said Michael Shifter, program
Rouge are expected to seek medical supplies and food during the
manager at Washington-based Inter-American Dialogue.
negotiations.
Instead, as the region has flung open its markets, it has seen almost
Cambodia could grant them the same autonomy and pardons it gave
no reduction in the vast numbers of Latin Americans living in poverty.
other Khmer Rouge deserters, including figures such as leng Sary, the
Unemployment has skyrocketed in many countries as privatized state
foreign minister under the Pol Pot regime.
companies lay off surplus workers and even longtime private-sector
Meanwhile, deserters this week said Ta Mok caused the mutiny in
companies cut payrolls to meet new global competition.
Anlong Veng by refusing to ease the same rigid rules and punishments
The problems come despite record growth in the region last year,
that had governed rebel life since 1975. He also reneged on his
with an average annual boost in gross domestic product of 5 percent,
promise to allow soldiers and villagers to trade as he had promised
and despite some of the lowest inflation in two decades.
after succeeding Pol Pot.
Growth is expected to fall this year, after the Asian economic crisis
Brother Number One was charged with treason last June, a crime
that shook countries such as Brazil and Chile. For Latin American
punishable by death under Khmer Rouge rules. But Pol Pot was
nations pounded by a series of worldwide crises beyond their control,
condemned only to house arrest for the rest of his life.
including the 1994 Mexican peso crash, the failure to find security in
His demise came after he ordered the murders of his longtime ally
globalization, or even to see much progress in combating social ills, is
and former Defense Minister Son Sen and 14 of the minister's family,
disconcerting.
including children. Son Sen had advocated a peace arrangement with
We're used to looking at trade as an indicator of progress, that if
the government along the same lines that allowed Khmer Rouge
you don't promote more and more free trade somehow you're a
commanders in other regions autonomy over their areas in return for
Neanderthal," said Victor Menotti of the San Francisco-based
an oath of allegiance to Phnom Penh.
International Forum on Globalization, one of dozens of citizen groups
participating in an alternative People's Summit this week in Santiago.
But while globalization of trade boosts profits for companies best In
Latin America Bypasses Laggard U.S. to Lead Free-Trade
suited to compete, it also appears to `exacerbate inequalities,
Movement By Laurie Goering, Chicago Tribune Knight
between the rich and poor and between rich and poor countries,"
Ridder/Tribune Business News
Menotti said.
SANTIAGO, Chile--Apr. 16--Expansion of NAFTA may be mired
There's a storm of opposition gathering and it's not just in the
in a Washington political quagmire, but you wouldn't know it from the
United States," he said, where fears over job losses and pressure to cut
balance sheets of Peoria-based Caterpillar Inc.
environmental regulations have led to stiff opposition to expanding
NAFTA.
burgeoning anyway, as businesses forge ahead without waiting for
Latin Americans aren't ready to back away from global markets
government action.
there hasn't emerged any kind of coherent alternative." Shifter said
Over the past two years, U.S. exports to Brazil have grown 20
but they are clearly disappointed.
percent a year, reaching almost $15 billion last year. The once-closed
What we're finding is that even having all the right macroeconomic
Latin American giant also has sharply dropped its tariffs in recent
things in place doesn't necessarily address social issues," he said.
years, to an average of less than 14 percent today, Mein said.
There's a clear recognition that not everybody is benefiting
The U.S. has seen similar growth in trade with many other Latin
immediately from the new economic policies that have taken off in
American nations and now holds huge trade surpluses with many of
Latin America."
them.
Frustration with the new economic model is evident nearly
This growth in U.S. commerce with the region has come despite big
everywhere in the region. In Peru, thousands boycotted the nation's
increases of trade within the pacts. Mercosur has boosted regional
privatized telephone system earlier this month, angry that the new
trade among its partners 30 percent since it was launched in 1992, and
Spanish owners had tripled the cost of local calls and added a series of
Andean Pact nations have tripled trade within their region in the same
new service charges.
period.
In Ecuador, hundreds of peasants blocked national highways with
Sadia, a Brazilian processed-meat company, has seen its exports to
boulders and bonfires this month to protest a proposal to privatize
neighboring Argentina and smaller Uruguay and Paraguay grow from
social security. In Venezuela, a once oil-rich nation where the poverty
almost nothing" to $30 million since the creation of Mercosur, said
rate has burgeoned to nearly 70 percent, many families have too little
Luis Furlan, chairman of the board.
to eat, and public hospitals are frequently out of even basic supplies
We're disappointed with the lack of trust of the American
such as insulin.
Congress" in expanding NAFTA and cutting U.S. trade barriers, he
Even in Brazil, where the poor have benefited enormously from a
said. But the expansion of Mercosur, which has already incorporated
new stable currency after years of hyperinflation, a recent poll showed
Chile and Bolivia as partial members, Furlan said, should make
53 percent of Brazilians think the country's development is stalled.
forming the Free Trade Area of the Americas that much easier in the
and
future."
a further 18 percent believe it is actually moving backward.
A total of 57 percent of those polled also called unemployment the
nation's worst crisis.
Exasperated World Leaders Urge Japan to Stimulate Economy
Economic growth is not, by itself, enough. We need effective
By Merrill Goozner, Chicago Tribune Knight Ridder/Tribune
social policies to improve our peoples' standard of living and to
Business News
eradicate poverty," Carlos Portales, Chile's ambassador to the
Organization of American States, told reporters recently in demanding
WASHINGTON -Apr. 16--Finance ministers and central bankers
discussion of social topics at the summit in Santiago.
from the world's seven leading economies spent most of Wednesday
With those concerns in mind, hemispheric leaders will try in
behind closed doors beseeching Japan's leadership to do more to
Santiago to share innovative ideas to improve Latin America's
stimulate its moribund economy.
notoriously poor education system and to address poverty.
While that follows a familiar pattern -- Japan has been experiencing
unemployment and other social worries.
a slow-to-no-growth economy for seven years, and the group known
The leaders also are expected to consider creating a special
as the G-7 routinely asks its Japanese member to do more in the way
rapporteur," or ombudsman, within the Inter-American Commission
of economic stimulation -- a hint of exasperation has entered the
on Human Rights to track concerns about freedom of expression in
dialogue.
Latin America. The proposal, supported by the United States, comes
The fear is that only Japan's return to economic health can ensure
in response to a growing number of attacks on journalists and human
that the financial crisis sweeping much of developing Asia won't drag
rights advocates in the Americas.
the rest of the world down with it.
Trade, however, remains the heart of the Summit of the Americas
Financial markets snubbed as inadequate Japan's $77 billion
process, and the Chile meeting could hardly have come at a time of
stimulus package, announced last week.
greater progress in regional integration.
G-7 ministers, steeped in diplomatic niceties, would never go that
Mercosur and the Andean Pact, South America's second-largest
far. In words rarely seen at one of these regular get-togethers, the final
trade group, are expected Thursday to announce their own process of
communique concluded that the challenges facing Japan are serious
integration.
and have intensifed in recent months."
If the two pacts eventually combine they will effectively create a
Treasury Secretary Robert E. Rubin had hoped Finance Minister
free-trade area covering virtually all of South America. a sort of
Hikaru Matsunaga would bring to the gathering further details of
SAFTA to parallel NAFTA.
Japan's economic stimulus package. But it was clear that the Japanese
Whether that would make creation of a Free Trade Area of the
arrived with little more than what had previously been announced.
Americas by 2005 -- the goal of the summit process -- easier or more
The critical time now has come for Japan," Rubin said at a press
difficult remains to be seen.
briefing following the all-day meeting. `How long it will take for
International economists have warned that exclusionary trade pacts
Japan to return to a high rate of growth remains to be seen. For now,
like Mercosur, the Andean Pact and the Caribbean's Caricom distort
it's more important to take the right steps."
free trade and distract from efforts to reduce tariffs and trade barriers
The ministers also said there would be no help from the other
worldwide.
advanced economies in propping up the faltering yen, which has
There's little question that for U.S. companies without plants in the
depreciated nearly 60 percent since its high point in April 1995 to 130
pact areas or joint ventures with companies there, gaining access to
ven to the dollar, a 6 1/2 year low. In recent days, Japan's central bank"
the markets can be tough. That's especially true if pact countries have
has intervened in currency markets by selling dollars and buying yen
local content laws, which demand that a certain percentage of any
to keep its currency from falling farther.
product sold there be produced within that country or pact.
If the yen doesn't get stronger, Japan will be sending a powerful
But are they a complete barrier? No, they're just a challenge." said
signal to the rest of the world that it is trying to take its old path of
James McNamee, senior vice president at First Chicago NBD Bank,
exporting its way out of its economic problems. The U.S. trade deficit
one of the U.S. banks that finance trade with Latin America.
is expected to soar later this year.
He also says, as do a growing number of economists, that trade
It is important to avoid excessive depreciation where this could"
12
integration within Latin America can only further prospects for
exacerbate large external imbalances," the communique said. We
winning a hemisphere-wide free-trade area.
support appropriate steps by Japan aimed at stimulating domestic
This is not an anti-U.S. move. I think NAFTA's still important.
I
demand-led growth and reducing external imbalances, thus also
think having a hemispheric free-trade agreement is important." agreed
correcting the excessive depreciation of the yen."
John Mein, president of the U.S. Chamber of Commerce in Sao Paulo.
The G-7 ministers from the U.S., Japan, Germany, the U.K.,
But as countries get more comfortable with integration by
France, Italy and Canada -- met in Blair House, across the street from
practicing it and as it becomes clear it's a win-win situation, that
the White House. A clearly exhausted Matsunaga emerged from the
nobody's losing, then the leaders can only move further in that
all-day session and made a brief statement to reporters. The U.S.
direction," he said.
shares our concern about a yen that's dropped too far," he said before
Although it is difficult to say how much trade U.S. businesses have
his aides hustled him into a waiting limousine.
lost to Latin America, because of the emergence of the region's own
There is lots of room for skepticism about the recovery plan Japan
trade pacts, what is clear is that U.S. trade with the region is
announced last week. It was the fifth plan in the last three years.
Japan's domestic consumption still hasn't recovered from three tax
station after it aired investigative reports linking military officers to
increases last year. Earlier this week, the IMF projected its economy
the drug business. Ivcher has since submitted a complaint to the OAS
to remain flat this year, after growing by less than a percent last year.
Human Rights Commission.
Some analysts have projected Japan's economy will decline by two
OAS officials say the Human Rights Commission could possibly
percent this year.
take cases to the Inter-American Court of Justice in Costa Rica, whose
On the other hand, the communique sounded an optimistic note on
rulings must be honored in several countries in the region. But many
the economic turmoil in Indonesia, Thailand and South Korea. The
journalists question whether the press monitor will be able to go
ministers welcomed progress toward restoration of financial
beyond focusing public opinion on abuses.
stability" in those countries. As evidence, the communique noted the
I love the idea of a continental forum with powers to punish a
early return to the capital markets by some countries," a reference to
government when it acts wrongly," said Hector D'Amico, managing
the successful sale of bonds by South Korea.
editor of Argentina's Noticias magazine, who recently was ordered by
The ministers warned, though, that a full return to the rapid growth
a federal court to pay President Carlos Menem $150,000 for violating
path required a substantial commitment to the macroeconomic and
his privacy by printing a report on his purported illegitimate son.
structural reform" of the IMF programs for their countries.
But the key question will be whether its decisions will be
And in an oblique reference to the food riots that continue to disrupt
mandatory. Otherwise, it won't do us much good."
Indonesia and the potential for labor unrest there and in Thailand and
South Korea, the communique noted the importance of building a
social consensus, which requires action to limit the impact of the crisis
Paula Jones' decision on appeal could mark the end or beginning
on the poor."
of long legal battles for the president By Elsa C. Arnett Knight
Ridder Newspapers (KRT)
WASHINGTON Paula Corbin Jones is poised to help decide just
Latin Summit to include forming an institution to protect press
how difficult President Clinton's next year will be.
rights By Andres Oppenheimer Knight Ridder Newspapers
On Thursday, Jones is scheduled to announce whether she will
(KRT)
appeal a federal court ruling that dismissed her sexual harassment suit
MIAMI In a move hailed by media groups across the hemisphere,
against Clinton two weeks ago.
the establishment of a new institution to guard press freedom is due to
If she drops the case, the president would be liberated from a legal
be announced at the second Summit of the Americas this weekend in
assault that has dogged him for nearly four years, depicted him as a
Santiago, Chile.
womanizing, lying adulterer and tainted his presidency as one of the
President Clinton, who is among the 34 government leaders
most scandal-ridden in history.
attending the summit, also will announce a $300,000 contribution
Clinton still would face the relentless pursuit of Independent
from the United States to support the new press-rights office,
Counsel Kenneth Starr and questions about his relationship with
according to U.S. officials. The Clinton administration hopes that
Monica Lewinsky. But Jones' name likely would fade from the public
other governments, press associations and private companies will
eve, along with her claims that Clinton dropped his trousers and
make additional contributions, officials say.
propositioned her in a Little Rock, Ark., hotel room in 1991.
According to a draft of the summit's declaration, the office will
If Jones persists as many who have talked to her in recent days say
operate within the Organization of American States' Human Rights
she's likely to do it could mean at least another year of legal warfare
Commission.
that could go all the way to the Supreme Court.
This is very important," said Ricardo Trotti, a spokesman for the
It means more recounting of the lurid details of the allegations and
Inter-American Press Association (IAPA), a group representing
more headlines in newspapers and the evening news. Clinton's
newspapers, radio and TV news throughout the hemisphere It's an
presidency, as well as his time and energy, will be hampered by this
official recognition by governments that there is a problem with
persistent cloud of allegations of sexual impropriety.
freedom of the press in the region."
At worst for the president, an appeal could lead to a reversal of the
Despite growing freedom of speech in most countries III the region,
federal judge's dismissal, and a trial in Arkansas where Clinton would
large numbers of journalists are being killed, and many of the crimes
be called to testify.
are never properly investigated.
Either way, this won't be a major setback for the president, but it's
At least 192 journalists have been slain in Latin America over the
still a big deal because it's like a death from a thousand cuts," said
past 10 years, according to IAPA.
Michael Giles, a political scientist at Emory University. `He needs to
The media's growing independence has exposed journalists to
stop the bleeding on this one so he can attend to all the other wounds."
different kinds of dangers," says Joel Simon, a spokesman for the New
Presidential scholar Shirley Anne Warshaw, at Gettysburg College
York-based Committee to Protect Journalists. Government officials,
in Pennsylvania, said an appeal would "keep the issue alive, which
powerful economic actors and criminal elements, including drug
would keep speculation alive, and anytime you have speculation alive
traffickers, have responded to efforts to probe their activities by
about sexual misconduct, it's definitely a negative thing for the
lashing out at the press."
president."
In the past, some governments have ignored complaints by media
A renewed suit would add to Clinton's woes, which include an
groups about violations of press freedoms, Trotti noted.
upcoming report that Starr is expected to send to Congress detailing
`Now, it will be a multinational office supported by all governments
potentially impeachable offenses committed by the president:
that will be making such demands" he said. It will have much more
Part of Starr's investigation has focused on whether Clinton perjured
political weight."
himself and tried to obstruct justice in the Jones case. Starr is looking
OAS Secretary General Cesar Gaviria said the soon-to-be appointed
at whether Clinton lied about an alleged sexual relationship with
press monitor who will be officially known as special rapporteur for
Lewinsky, a former White House intern, or encouraged others to do
freedom of expression" also will take up specific complaints by
the same.
journalists against governments.
What should have been a small sideshow has turned into'the main
The new officer will be appointed by the OAS' seven-member
event, and that's bad for the country," said Robert Shapiro, a professorv
Human Rights Commission this year, and will issue his first
of political science at Columbia University.
country-by-country report by next year, Gaviria said, adding that the
There are signs it won't end soon.
new office will act with autonomy and independence" from
Wednesday afternoon, Jones and her husband, Stephen, were
government pressures.
huddled in her lawyers' Dallas office with Jones' confidant and
Independent analysts say they have no reason to dispute that at least
sometimes spokeswoman, Susan Carpenter-McMillan, waiting
for now.
outside.
While the OAS as a whole rarely criticizes member countries. its
Although she wouldn't hint at Jones' decision, McMillan offered an 11"
human rights commission enjoys greater independence because its
argument for an appeal. You don't dismiss a case 56 days before the
members do not represent their governments.
trial, if you're a judge. That's for a jury to decide," she said.
The commission recently ruled against the Mexican government in a
McMillan said Jones' spirit had not been broken by the dismissal.
case involving a general who was arrested after criticizing army
It was devastating, but she's doing great," she said of Jones. She's
human rights abuses.
a fighter. She's a feisty, strong little woman. Clinton exposed himself
Among the complaints the rapporteur may be asked to take up is the
to the wrong Southern gal."
case of Peruvian television owner Baruch Ivcher, officials say.
Last week, her husband said Jones was likely to appeal. And, in an
Ivcher, an Israeli-born Peruvian citizen, was stripped of his Peruvian
interview, Jones said, I've made my decision, I've always known
citizenship and effectively ousted from ownership of his television
what it was going to be."
By JOHN M. BRODER
The first two days of the trip are
SANTIAGO, Chile, April 16 -
dedicated to a state visit to Chile and
President Clinton pleaded with the
talks with President Eduardo Frei.
leaders of Latin America today to be
This weekend, 34 of the 35 countries
patient with the United States as it
of the hemisphere, with the exception
conducts a painful internal political
of Cuba, which was not invited, will
debate over the merits of free trade
convene in a hemispheric summit
:hroughout the hemisphere.
meeting to celebrate the spread of
Mr. Clinton, in Chile for a Latin
democracy and an era of exceptional
American summit meeting dedicat-
economic expansion.
ed to creating a hemispheric duty-
Mr. Clinton and Mr. Frei, at a joint
free shop from the Yukon to Tierra
appearance today, announced that
del Fuego, felt compelled 4 explain
they would work together to reduce
Clinton Urges America to Patient' on Trade
Congress's refusal last fall to grant
emissions of greenhouse gases that
him unlimited trade negotiation au-
lead to global warming. They also
thority, known as "fast track."
announced cooperative efforts on
In a speech to an international
education, disaster preparedness
business audience here today, Mr.
and anti-drug programs.
Clinton acknowledged that he had so
far failed to persuade a majority in
Mr. Clinton is to speak to a joint
Congress of the benefits of free trade
meeting of the Chilean legislature on
with the other nations of the hemi-
Friday. To the relief of American
sphere. The United States currently
officials, Gen. Augusto Pinochet, a
has a free-trade pact with Mexico
lifetime member of the Senate, sig-
and Canada.
naled today that he would not be
Mr. Clinton said that ultimately
present. American officials had
the United States would not walk
feared that the appearance of the 82-
away from the "colossal opportuni-
year-old general, who led an authori-
ty" presented by the so-called Free
tarian regime here from 1973
Trade Area of the Americas, which is
through 1990, would be a distraction
supposed to be in place by 2005.
from Mr. Clinton's message of hope,
Mr. Clinton quoted Winston
growth and democratic development
Churchill, who said, "The United
n. Latin America.
States invariably does the right
Samuel R. Berger, the national se-
thing, after having exhausted every
curity adviser, said Mr. Clinton
other alternative."
vould not alter his remarks on de-
The President said: "So be patient
mocracy and human rights, whether
with us. So just stay with us. We'll get
General Pinochet was in the audi-
there."
ence or not. The operative theory of
Mr. Clinton's remarks set the tone
the trip appears to be that meeting
for this visit, which American offi-
and talking, even if with only modest
cials said marks a maturation of the
achievements, are in themselves im-
United States' relations with its
portant benchmarks in the march
neighbors, which have veered over
toward hemispheric economic and
the decades from military interven-
political integration.
tion to not-always-benign neglect. By
The official line is that the Presi-
opening the trip with an explanation
dent does not need fast track to begin
and implied apology, Mr. Clinton
the negotiations for the Free Trade
hoped to establish a dialogue of
Area of the Americas, to which the
equals, officials said.
democratic nations of the region
Mr. Clinton said he would continue
committed themselves at the first
to press for approval of fast-track
modern Latin American summit
authority, under which Congress can
meeting, in Miami in December 1994.
approve or reject proposed trade
Charlene Barshefsky, the United
treaties negotiated by Mr. Clinton,
States trade representative, said
but cannot amend them. The Presi-
Washington had arranged the talks
dential authority is considered cru-
in its own interest, setting out their
terms at the beginning, and had as-
cial to achieve trade breakthroughs
sured itself the co-chairmanship of
because other countries will be reluc-
the talks at the end stage of the
tant to negotiate trade deals with the
negotiations five years from now.
United States if they feel Congress
In a briefing before leaving Wash-
will change the terms after an agree-
ington, she brushed off concerns that
ment is reached.
in the interim Latin American na-
A bill granting Mr. Clinton fast-
tions will bypass the United States
track authority was withdrawn last
and form regional trade groups that
November after Democrats in Con-
will create economic ties with Eu-
gress said they were not persuaded
rope and Asia and put American
that the trade deals the President is
exporters at a disadvantage.
proposing would provide adequate
Ms. Barshefsky said those region-
protection for workers and the envi-
al trade deals are not "an overly
ronment.
positive development" for the United
The start of the complex seven-
States. But she said the Latin Ameri-
year trade negotiations is the center-
can nations would ultimately have to
piece of the President's four-day vis-
accommodate United States trade
it to Chile.
terms if they want unrestricted ac-
cess to the immense American mar-
ket for goods and services.
The New York Times
FRIDAY, APRIL 17, 1998
By THOMAS W. LIPPMAN
SUMMIT, From A25
Washington Post Staff Writer
ways must be found to ensure that
SANTIAGO, Chile, April 16-
the economically disadvantaged are
At the same presidential palace
not left out.
where socialist President Salvador
As in Russia and much of Africa,
Allende died in a CIA-encouraged
senior officials said, democracy has
military coup nearly 25 years ago,
President Clinton today hailed the
taken hold in every country of the
"tides of change" that have con-
Western Hemisphere except Cuba
verted Chile into a "partner and
but remains fragile in those where
friend for the United States."
people have not felt its benefits. The
Clinton Stresses Benefits of Open Markets
Clinton met at La Moneda pal-
next step, or "second generation" of
issues, is to demonstrate that de-
President Opens Latin American Visit With Praise of Chile's Economic Strides
ace with Chilean President Eduar-
do Frei at the start of a state visit
mocracy can deliver jobs, health care
focused on themes similar to those
he pursued last month in Africa-
and education to ordinary people.
trade, education, the environment
"Harnessing the forces of global-
and access to credit for aspiring
ization to work for all our citizens is
entrepreneurs.
literally a challenge to every nation
With Chile and other Latin Amer-
in the world," Clinton said in a
speech to a business group this
ican states, as with Russia, Vietnam
afternoon. "A rising tide does not
and Angola, Clinton has sought
necessarily lift all boats. People with-
throughout his presidency to dis-
out the right education, without
mantle the sour legacy of the Cold
training, without skills, without bar-
War and rethink the nature of U.S.
gaining power can be stranded on
relations with other countries. As he
yesterday's shore."
travels the world now, Clinton the
He and Frei issued a statement in
president sounds much like Clinton
which they agreed to expand bilateral
the candidate stumping the United
cooperation on education, including
States in 1992, stressing economic
opportunity rather than strategic
development of bilingual computer
alignment as the key to stability. In
software and increased student ex-
Frei, he said, he has found a leader
changes, and to support similar initia-
who fully shares his views.
tives at a hemispheric summit confer-
Clinton praised "the astonishing
The Washington Post
FRIDAY, APRIL 17, 1998
ence that begins here Saturday.
record established by Chile in the
The president restated his deter-
last few years in economic and
mination to obtain from Congress
political terms." Frei said his visit to
the "fast-track" negotiating authority
Washington last year and Clinton's
he seeks to complete the hemisphere-
reciprocal visit here "reflect the new
wide free-trade agreement on which
level of maturity that relations be-
negotiations will begin here this
week. Congress has so far refused to
tween our two countries have
achieved."
give Clinton authority to negotiate an
agreement that would not be subject
Clinton said the transformation of
to amendment, but he said today that
this key South American country is
virtually complete, as Chile "has set
an impressive standard in strength-
"before [the negotiators] are done,
ening its democracy, opening its
we'll have it, and it will work."
economy [and] lifting its people
Clinton and Frei also signed a
from poverty."
joint declaration affirming Chile's
The two presidents refered only
commitment to reducing emis-
indirectly to the long period of
sions of greenhouse gases, which
strained relations between their
many scientists say are causing a
countries that followed the 1973
potentially harmful warming of the
coup. Clearly understood, if unstat-
Earth. At the same time, Clinton
ed, was that Chile's relations with
challenged what he said is a wide-
the United States began to change
spread belief "that poor countries
cannot become rich countries with-
only after Gen. Augusto Pinochet,
out emitting more greenhouse gas-
the man who overthrew Allende and
es."
seized power with U.S. backing,
There is no plot by the industrial-
stepped aside in favor of civilian rule
in 1990 following a dictatorship
ized nations to "hold others down,"
marked by both economic transfor-
Clinton said. "For 30 years, every
mation and human rights abuses.
time we have sought to improve the
Pinochet, who remained com-
environment, we heard from some-
mander of the Chilean armed forces
one who stood up and said, 'If you
until February and has since been
take this step to clean the air, to clean
appointed a senator for life, may be
the water, to improve the health of
in the audience Friday when Clinton
the food supply, you will cost jobs and
addresses the Chilean Congress in
hurt the economy.' And for 30 years
the port city of Valparaiso. "I can
every single step we have taken to
assure you the speech will be the
improve the environment has helped
same whether he's there or not,"
the American economy."
White House national security advis-
With today's statement, Chile be-
er Samuel R. "Sandy" Berger said.
came the second Latin American
Clinton mostly stressed the fu-
country to endorse-albeit vague-
ture, not the past, pressing his
unwavering theory of international
ly-the concept of emissions-reduc-
relations: that economic expansion
tion targets for developing countries.
through open markets is the key to
White House officials are hoping to
prosperity and stability, and that
secure specific commitments from
key developing countries over the
See SUMMIT. A27, Col. 1
coming months as a way of softening
resistance in the Senate to ratifica-
tion of the international climate trea-
ty signed in December in Kyoto,
Japan.
"Clinton tests summit speech on Chile
Tries to smooth over
lombia, Mexico and Chile, Clinton also
stressed the need for "second-genera-
issue of free trade
tion" reforms for other emerging Latin
American democracies. "We need to
show that democracy and free markets
By Bill Nichols
can make a tangible difference to the
USA TODAY
lives of common people," Clinton said
in written responses to questions sub-
USA TODAY FRIDAY, APRIL 17, 1998
SANTIAGO, Chile - President Clin-
mitted by six newspapers. "That means
ton used his state visit to Chile on Thurs-
going beyond elections and market re-
day to preview the prescription for con-
forms to education, the rule of law,
tinuing democratic growth in Latin
health care and labor rights."
America that he will stress when the
The president and first lady Hillary
second Summit of the Americas opens
Rodham Clinton arrived here early
here this weekend.
Thursday after an all-night flight from
But the president also tried to smooth
Washington. They spent the day touring
over a troublesome summit subject - a
the cautiously democratic Chile that
congressional impediment to negotiat-
has gradually emerged from the shad-
ing a free-trade zone in the hemisphere
ow of Gen. Augusto Pinochet's 17 years
that also kept Chile out of the North
of authoritarian rule. Clinton and Chil-
American Free Trade Agreement.
ean President Eduardo Frei issued a
Clinton asked Chileans to "be patient
joint statement then toured Frei's old
with us" as his administration tries to
8y Jaime Razun, Agence France
Santiago neighborhood, visiting a local
build support in Congress for approving
In Santiago: Chile's first lady Marta Larraechea, left, and Hillary Rodham Clinton
ceramics factory and taking part in a
fast-track trade authority, which failed
observe a man on a nail bed at an interactive museum Thursday.
round table with local entrepreneurs.
to pass last fall. The authority would al-
Today Clinton travels to the coastal
low a president to negotiate trade deals
Clinton told an audience of Chilean
heads of state for the sequel to the 1994
city of Valparaiso to address a joint ses-
that cannot be altered by Congress, only
and U.S. business leaders he was con-
Summit of the Americas in Miami.
sion of the Chilean legislature. Pino-
approved or voted down. Last year's de-
vinced that Congress will not return to
Clinton lauded Chile's emphasis on
chet, who stepped down from the Chil-
feat scuttled White House plans to in-
"misguided protectionism" and prom-
education, legal reforms and pollution
ean military last month to become
clude Chile in NAFTA, a free-commerce
ised that before hemispheric free-trade
curbs as a model for other emerging de-
senator-for-life, has indicated he might
zone in which the United States, Mexico
negotiations conclude, the United States
mocracies in Latin America.
be in the audience. Chilean officials in-
and Canada already take part.
will have fast-track authority.
Once ruled by a brutal military junta,
dicated Pinochet would not attend; Clin-
Administration officials say the Unit-
"We'll have it and it will work," he
Chile "has become a leader in our
ton aides said they had received no fi-
ed States will need fast-track authority
said. But in Congress, approval is seen
hemisphere and an even stronger part-
nal answer.
to be able to complete negotiations for a
as unlikely this year.
ner and friend for the United States,"
Clinton's speech might be controver-
free-trade area throughout the Ameri-
Clinton's larger point, however, was a
Clinton said, praising the country's "as-
sial, aides said, because it would not
cas by 2005. Those negotiations are
push for emerging democracies to stay
tonishing record" of economic growth.
contain the anti-Pinochet references
scheduled to be officially launched at
on track. It's an idea he'll stress this
In an interview published Thursday
that some Chilean human rights activ-
this weekend's summit.
weekend when he meets with 33 other
in newspapers in Argentina, Brazil, Co-
ists wanted.
the United States Congress for a return to misguided
LOS ANGELES TIMES
protectionism."
(first-edition) Page 1 for Friday, April 17, 1998:
Clinton's trip here has two distinct parts a state visit, which ends
Friday, then the Summit of the Americas, on Saturday and Sunday.
Top of page:
At the summit, hemispheric political leaders will wrestle with issues
of trade, anti-narcotics enforcement and widespread poverty that
Col 1: The Vatican, opening up its archives into the Roman
continues to jeopardize reforms.
Inquisition for the first time, also may be opening up a can of
Never before have the Americas been so united in values,
worms. (INQUISIION, moving Friday.)
interests and goals," Clinton told the business audience, alluding to
the widespread move toward free-market economies and political
Col 2: The Defense Department struggle with Illinois community
liberalization in a region home to brutal dictatorships not long ago.
leaders over plans to destroy obsolete napalm there is not an
We have to keep that in mind as there are bumps along the way
isolated case; across the United States, the military is treading
through a minefield of potential opposition as it tries to get rid of all
Clinton's day began with a ceremonial airport arrival, followed by
sorts of explosive or toxic materials that no longer have any utility.
a helicopter ride to Santiago and a motorcade to the La Moneda
(NAPALM-WASTE, moved.)
presidential palace, where he and Frei signed a series of accords.
In their vaguely worded agreement on climate change, the leaders
Cols 3-5: Wild art of President Clinton in Chile.
agreed that industrialized nations, such as the United States, should
reduce greenhouse gas emissions as a matter of priority."
Col 6: Local telephone snafu. (UNLISTED, upcoming.)
And in a bid to handle one of the thorniest aspects of the issue
concerns that the cost of fighting pollution would hinder the
Above fold:
prosperity of poorer nations Clinton and Frei cited the importance
of market mechanisms" in promoting clean air and in fighting
Col 2: Independent Counsel Kenneth W. Starr says that because
climate change.
his investigation `has expanded considerably and the end is not yet
Such mechanisms, while not spelled out, are meant to ease the
in sight," he is withdrawing from positions promised him at
financial burden on developing countries in combating global
Pepperdine University. (STARR-TIMES, moved.)
warning. They could mean that advanced nations would receive
credit toward emissions-reduction goals, for instance, by investing
Cols 3-4: A revolutionary way to combat deadly
in clean-air technologies in poorer nations overseas. The United
antibiotic-resistant `superbugs" has been developed by researchers
States and Argentina reached a similar accord last October.
at the University of California, Davis, perhaps paving the way for a
``I know this is a matter of some controversy throughout Latin
new class of drugs to supplement antibiotics. (STAPH, moved.)
America, and indeed, throughout many developing nations,"
Clinton said at the presidential palace.
Col 5: China recently rebuffed an American arms-control
Picking up the theme later, in his address to business leaders, he
proposal that it should join the main international organization for
knocked the notion that there was some dark conspiracy to hold
limiting the spread of missile technology when President Clinton
others down" through a global-warming deal. In the first place,
visits Beijing this summer, senior Clinton administration officials
that's bad economics, because the United States should want all of
say. (CHINA-POLICY, moved.)
our trading partners to get wealthier," he said. "That is what is in
our interest."
Below fold:
The leaders also agreed to cooperate in building a climate
forecasting system for the Americas, aimed at limiting the
Bottom of page:
disruptive effects of El Nino.
While the Asian financial crisis has prompted jitters about the
Cols 1-2: Local political story.
interlinked global financial system and the disruptive effects of
emerging markets, Clinton Thursday described South America as a
Cols 4-6: Pol Pot, a former teacher and lover of poetry who
successful contrast to Asian nations that have suffered capital flight.
emerged from the jungles in 1975 to lead the Khmer Rouge's
In general," he said, ``Latin America has grown so strong that I
campaign of terror and mayhem in Cambodia, dies what is a fitting
think even a lot of you are probably surprised that this region has
death: alone, betrayed by his closest allies, reviled by the world.
weathered the shock of the Asian financial crisis as well as the
(CAMBODIA-TIMES, moved.)
region has."
But he also noted that financial progress has not meant the end of
inequities in a region with 150 million in poverty, urging South
Americans to improve education as a social equalizer. He and Frei
agreed on exchanges of students and teachers and other areas of
Clinton, Chilean Leader Sign Accords on Climate, Economy
educational cooperation.
(Santiago) By Jonathan Peterson (c) 1998, Los Angeles Times
SANTIAGO, Chile President Clinton launched his four-day
Chilean visit Thursday by agreeing with President Eduardo Frei to
Leaders to Consider Free Trade Pact for Western Hemisphere
cooperate on climate change, financial-market stability and other
By Chris Kraul (c) 1998, Los Angeles Times
issues in a global economy.
President Clinton and 33 other heads of state will gather this
But it was on a more down-to-earth level that Clinton sought to
weekend in an unprecedented effort to create the world's largest
explain the ties that bind Chileans and Americans on issues such as
free trade zone and economically integrate the Western
schools, child care, jobs and access to credit. Working families, in
Hemisphere.
that sense, from Santiago to San Diego may not be all that much
The two-day Summit of the Americas, which opens Saturday in
different," Clinton said in a speech to business leaders.
Santiago, Chile, is the first time in more than three years leaders
To his disappointment, the globe-trotting president who just two
representing 800 million people in the hemisphere have met under
weeks ago was on a 12-day tour of Africa came to Chile having
one roof. And trade, not surprisingly, is the magnet that's drawing
failed to get Congress to award him powers to make trade deals that
them together.
would be immune from tinkering on Capitol Hill.
Clinton and his peers are expected to launch what is expected to
U.S. critics, who have denied Clinton the fast track" authority,
be a grueling seven-year negotiation process to draft the Free Trade
fear that unfettered global commerce would lead to the exploitation
Agreement of the Americas, which would effectively extend the
of workers and the environment, while the White House has said
North American Free Trade Agreement to include South America
such power is crucial for America to remain a leading example in
and the Caribbean. Any pact would have to approved by the U.S.
global trade policy.
Congress.
"Be patient with us," Clinton told about 800 business leaders in a
U.S. government and business interests want free trade because
downtown Santiago theater, pledging his commitment to gaining
they are increasingly cognizant of Latin America as a huge and
fast track" authority. There is not a majority in either house of
largely untapped market, especially south of Mexico, and that a free
trade agreement could help them exploit it. Latin American exports
Clinton asks Chileans
for patience on trade
Promises to achieve
PRESSEL
UNITED
'fast-track' authority
By Warren P. Strobel
THE WASHINGTON TIMES
SANTIAGO, Chile - President Clinton
pleaded with America's Latin neighbors
yesterday to "be patient with us," promising
that he will continue to prod Congress for
broad powers to negotiate new trade deals
AP photos
and predicting that he will win them after
Hillary Clinton meets Chile's first lady,
a long debate.
Marta Frei, after the Clintons arrived in
These upbeat comments came on the
Santiago, Chile, for the Americas summit.
first day of a Latin American visit that, like
his previous stop in the region last October,
Mr. Clinton's attempts to liberalize trade
was largely overshadowed at home by do-
throughout the Western Hemisphere. Last
mestic politics.
fall he had to pull his proposal for "fast-
News conferences by independent coun-
track" trade negotiating authority from the
sel Kenneth W. Starr and Paula Jones, who
House floor after it appeared headed for
is appealing the dismissal of her sexual ha-
defeat by opponents who wanted stronger
rassment lawsuit, overwhelmed attention to
labor and environmental protection.
his foreign policy.
Chile felt a special sting at the defeat
The president skirted questions about
because it was first in line to be added to
the matters for most of the day and, when
the North American Free Trade Agreement
he finally did answer, declined to reveal his
(NAFTA) between the United States,
thoughts.
Canada and Mexico.
"I shouldn't be commenting on domestic
The issue was the one sour note in a day
politics while I'm overseas," said Mr. Clin-
devoted to celebrating strong U.S.-Chilean
ton, who has done precisely that on many
relations. Introducing Mr. Clinton at the
previous forays abroad.
theater, Mr. Frei said, "We hope very soon
White House officials and reporters
the necessary consensus will be reached in
sparred throughout the day over access to
his country" for procedures to implement
Mr. Clinton, who scheduled no formal news
free trade.
conference during his four days in Chile.
Fast-track would allow the president to
In the morning, officials offered to allow
negotiate trade agreements that Congress
a newspaper reporter to witness the open-
would have to vote up or down but could not
ing of a meeting between Mr. Clinton, Chil-
amend.
ean President Eduardo Frei and their top
U.S. officials said the absence of fast-
aides, with the clear understanding that no
track will not hinder the launch of talks for
questions be asked. The officials cited Chil-
a hemispherewide free-trade zone, called
ean customs regarding such events, saying
the Free Trade Area of the Americas, that
it would be unfair for U.S. reporters to ask
is to take place at a 34-nation summit here
questions when Chilean journalists are
this weekend. But they acknowledge it has
barred from doing so.
dampened the mood of the negotiations.
This reporter for The Washington Times,
Mr. Clinton said the United States has
who was the designated newspaper repre-
launched trade negotiations before without
sentative in the media "pool" shadowing
fast-track authority.
Mr. Clinton at the time, declined to partici-
"Before they're done, we'll have it and it
pate under those restrictions. CNN then
will work," he said to applause.
pulled its cameras and crew from the event.
"There is not a majority in either house
It was only one of several opportunities
of the United States Congress for a return
for Mr. Clinton to appear on camera yester-
to misguided protectionism," the president
day, and a Clinton press aide worked to al-
said, but rather "a continued and vibrant
low journalists another chance to ask ques-
debate" about how to make sure all citizens
tions. But when that opportunity came
benefit from free trade.
during the president's visit to the neighbor-
"So be patient with us," he said, citing
hood of San Miguel for a roundtable discus-
Winston Churchill's quip that the United
sion, he ignored questions shouted at him
States always does the right thing "after
four times.
having exhausted every other alternative."
He finally addressed the matter after a
The talks will include a committee on
midafternoon speech to business leaders at
labor and environmental concerns, which
Santiago's Teatro Municipal.
opponents say are being ignored in the race
Domestic politics also have intruded on
to open markets and cut deals.
The Washington Times
FRIDAY, APRIL 17, 1998
Today it remains at 5 percent, but that's 5
interests as well, for this simple reason:
expression. Almost 200 reporters have been
What's up in Santiago
percent annually instead of 5 percent each
good schools make good neighbors. Educa-
killed in the last ten years - 13 in the last
week.
tion improves the U.S. economy by enlarg-
six months - but these and other crimes go
With the region embracing democracy
ing the middle class that buys our products,
unpunished. Democracy cannot survive
and markets, we have an historic opportu-
it encourages those tempted by illegal immi-
without a free press or an independent judi-
By Thomas F. McLarty III
growth potential literally goes off the charts.
nity to advance our national interests. From
gration to stay home, it stabilizes young
ciary. We cannot tolerate intimidation of
Gasoline today sells for a little over a dol-
expanding trade and fighting drug traffick-
these rights, whether it be by drug lords,
H
ow can you boost U.S. job and wages,
lar per gallon - adjusting for inflation,
ers to restoring democracy in Haiti and
guerrillas, or by governments.
fight illegal drugs, protect the envi-
that's the cheapest it's been in a generation.
peace in Guatemala, President Clinton per-
ronment, and curb illegal immigra-
We have seen a quiet
We will launch negotiations in Chile to
But how many Americans know that
sonally has led our policy of sustained
establish a Free Trade Area of the Americ-
tion all at the same time? President Clinton's
Venezuela is our number one energy sup-
engagement. Along the way we discovered
revolution in the Americas
as (FTAA) by 2005. We know that exports
answer might surprise you: travel to Santi-
plier, and that three of our top four suppli-
that the concerns of the American people
and imports increase efficiency, hold down
ago, Chile this weekend to improve cooper-
ers are in this hemisphere? Our regional
are increasingly the concerns of our neigh-
that is no less dramatic than
inflation, and support higher-paying jobs.
ation with our regional allies. The agenda at
allies have supported our efforts in Bosnia,
bors. The people of the Americas share
the second Summit of the Americas demon-
common interests and the same hopes for a
the fall of the Berlin Wall.
But open markets also have lower poverty
Asia, and in the Persian Gulf. Their coop-
rates, higher labor standards, and better
strates that the once bright line between
eration is critical to combat the dark, evil
better life. We share geography and the
domestic and foreign policy is blurring -
force of illegal narcotics. And we cannot
value we place on family and faith. Our cul-
Thirty years ago half of the
environmental protection. In fact, democ-
racy and open markets are two sides of the
particularly in Latin America and the
stop environmental threats such as global
tural exchanges are at record levels, and the
warming without the commitment of devel-
western hemisphere lived
same coin. Together they are the currency
Caribbean.
United States has the fifth largest Hispanic
of progress for responsive government and
Trade accounts for one-fourth of our total
oped and developing nations alike.
population in the world.
under authoritarian rule;
broadbased economic growth.
economy, and 43 percent of our exports go
We have seen a quiet revolution in the
In today's global economy education is
to the western hemisphere. Jobs supported
Americas that is no less dramatic than the
the only route to lasting, inclusive growth.
today 34 out of 35 countries
Gas prices, education, illegal drugs, and
clean air and water. These are the issues
by exports pay 15 percent more than others.
fall of the Berlin Wall. Thirty years ago half
But the average Latin American child
of the western hemisphere lived under
are democratic.
that Americans talk about as they gather
We export more to Brazil than to China, and
receives only seven years of schooling, and
around their kitchen tables, and they are the
more to Chile, with 14 million people, than
authoritarian rule; today 34 out of 35 coun-
some teachers must supervise over 100 stu-
interests we're advocating in the Americas.
to India, with 940 million. And half of the
tries are democratic. Fifteen years ago Cen-
dents. That's why our leaders in Santiago
As President Clinton meets with the hemi-
region's population is under 21, SO the
tral America was a battleground for the
will put a priority on getting more teachers
democracies with a deeper commitment to
sphere's leaders, take a fresh look south.
U.S.-Soviet Union conflict. Today Central
in the classroom, encouraging greater
civic responsibility, and it reduces the lure
This is not your father's Latin America.
America is at peace, and the United States
parental involvement and responsibility,
of illegal drug profits.
With an open dialogue and sustained U.S.
Thomas F. McLarty III is counselor to the
exports more to Central America than the
linking students to the internet, and expand-
The Santiago Summit will also help estab-
leadership, our regional community can
President and special envoy for the Ameri-
former Soviet states combined. A few years
ing vocational training.
lish a justice studies center and a special
work together to find new prosperity in the
cas.
ago, Brazil's inflation rate was 5 percent.
A better-educated hemisphere is in our
rapporteur to advocate for freedom of
twenty-first century.
The Washington Times
FRIDAY, APRIL 17, 1998
being granted to the Clinton
administration is successful in
only option for any of the partici-
and freer trade for all of America
administration Such a situation is
securing fast track before the start
pating countries or regional groups.
not unprecedented. At times dur-
of negotiations.
If lift-off is stalled it could lead to
ing the eight8-year Uruguay
The FTAA process, which is due
"trade promiscuity" through the
Round negotiations, the U.S. par-
to be completed by 2005, can cer-
proliferation of bilateral and sub-
heads of state are meeting in Santi-
be submitted to Congress to accept
ticipated without fast track author-
tainly proceed for several years
regional agreements, which may
By Richard L. Bernal
ago, Chile to evaluate that recom-
or reject, without amendment.
ity. Yet the U.S. maintained its lead-
without the absence of fast track
create confusion and suffocate trade
Till the Free Trade Area of the
W
mendation and take the next steps
This provides U.S. trading part-
ership role in launching and
being a major impediment, as in
with the complexity of regimes and
Americas (FTAA) process
toward implementation of the
ners with the confidence to pro-
securing the final agreement of the
any event, negotiations are likely to
conflicting rules. There is ample
be delayed by the absence of
FTAA.
ceed because it gives the assur-
WTO. As the largest economy and
proceed slowly. Moreover, in many
basis for such concerns. Between
fast track negotiating authority, or
Many of the initial differences in
ance that what is agreed upon in
market in the hemisphere, the U.S.
areas, the mandate to show "con-
1992 and 1996, for example, the
will negotiations start this year? If
perspective about what the FTAA
negotiations would not be modified
will remain a major player in the
crete progress" by the year 2000
WTO was notified of 77 new trade
negotiations do not start shortly, will
should be and how to isolate it have
by Congress.
FTAA process, whether or not the
could be met by the U.S. without fast
agreements.
the FTAA process lose momentum
now been resolved and negotiators
Many observers
track. Some trade
With or without fast track the U.S.
and be overtaken by a proliferation
are finalizing the guiding princi-
believe that until
actions such as
should not underestimate the
of bilateral and regional initiatives?
ples, structure and schedule for the
Congress grants
business facilita-
importance of trade with Latin
These are some of the questions
commencement of negotiations.
fast track authority
tion in the area of
American and the Caribbean. Trade
that deeply concern the govern-
This has been a significant accom-
to President Clin-
customs automa-
is now the engine of growth for the
ments and business interests in the
plishment given the wide differ-
ton, hemispheric
tion, may not
US economy. Between 1985 and
Americas.
ences in levels of development
governments will
require new legis-
1994, export growth accounted for
The process is now at a critical
(ranging from the United States to
be hesitant to take
lation.
32.5 percent of overall growth in
juncture and it will either move for-
Haiti) and size of economy (vary-
U.S. positions in the
However, while
Gross Domestic Product. More than
ward to actual negotiations or be
ing from Canada to St. Kitts). Fur-
FTAA seriously,
it is true that the
42 percent of U.S. exports are
sidetracked. At the first Summit in
thermore, views differed on the
and there would be
FTAA negotiations
shipped to destinations in the Hemi-
Miami in December 1994, the pres-
pace of movement toward the
no point in starting
can start and pro-
sphere. With Latin America expect-
idents and prime ministers of 34
FTAA. Canada has been proposing
negotiations.
ceed for a while,
ed to grow as much as five percent
countries declared their commit-
to accelerate the process, while the
While fast track
these efforts can
annually over the next decade, U.S.
ment to establish the FTAA by the
MERCOSUR countries believe that
will provide some
not be concluded
exports to this region will remain
year 2005.
there are dangers if the process
level of comfort to
without the U.S.
high. Clearly then, U.S. firms and
Since then, there have been
does not slow down. Meanwhile the
foreign trade offi-
negotiating team
workers will demand full participa-
extensive discussions at the minis-
small developing countries of Cen-
cials in the bar-
having the impri-
tion by the United States in these
terial, vice-ministerial and working
tral America and the Caribbean
gaining process, it
matur afforded by
historic discussions.
group levels. Only last month at a
want adequate time to adjust their
is not a prerequi-
fast track.
The FTAA process must not stop
meeting in Costa Rica, the 34 trade
economies.
site. Lack of fast
The real danger
or wait for the U.S. to have fast track
ministers of the hemisphere agreed
The main cause of concern is
track authority at
is that those who
authority. It must go forward with
that negotiations for the FTAA begin
that the Clinton administration has
the beginning of
argue that the
the commencement of negotiations
before the end of 1998. This week,
been unable to secure fast-track
negotiations
absence of fast
as soon after the Santiago Summit as
trade negotiating authority from
process, is not
track will have a
possible. The heads of governments
the U.S. Congress. Fast track is
inimical to the
dampening effect
must accept the recommendations
Richard L. Bernal is Jamaica's
both an enabling legislative pro-
eventual success
on the FTAA
of the trade ministers to begin nego-
ambassador to the United States, a
cedure and a statement on U.S.
of the FTAA. Nego-
process may be
tiations by September, 1998. In so
permanent representative to the
trade negotiating goals and prior-
tiations for the
unwittingly aiding
doing, they will accelerate a process
Organization of American States
ities. This authority would permit
FTAA can com-
a self-fulfilling
that will directly benefit the liveli-
and chairman of the FTAA Working
the U.S. to undertake negotiations
mence without fast
prophecy.
The
hood of the hemisphere's 775 million
Group on Small Economies.
on trade agreements, which would
track authority
FTAA is not the
inhabitants.
The Washington Times
FRIDAY, APRIL 17, 1998
Tear down that trade wall
It calls, among other things, for the abolition of the
T
hat giant sucking sound you hear these days,
to paraphrase Ross Perot, is the sound of Latin
income tax and its replacement by tariffs on foreign
American countries absorbing U.S. goods.
goods.
Between 1988 and 1997, the Heritage Foundation
Editors here are second to none in their dislike of
reports, the value of made-in-America products has
the income tax, but replacing it with yet another tax,
risen from $46 billion to more than $134 billion. If
which has the added disadvantage of being largely
you listen closely, you may also hear the sound of U.S.
"invisible" to those who pay it, is hardly a solution.
job creation to handle all those exports. They support
Import tariffs, duties and quotas are a tax on U.S.
almost 3 million American jobs.
jobs. They are a tax on economic growth. And they
This weekend, President Clinton is scheduled to
are a tax on consumer choice.
participate in the Second Summit of the Americas
Understanding the nature and effect of tariffs is
in Santiago, Chile, which, in another time, would have
critical to understanding what's wrong with protec-
been the perfect occasion to expand trade with that
tionism. As protectionists see it, trade is something
part of the world. Four times since 1990, the United
that nations do: The U.S. gets so many widgets from
States has pledged that Chile would be the next
Chile in return for sending so many gizmos to Chile.
member of the North American Free Trade Agree-
One tallies up the balance of trade between the two
ment with Canada, Mexico and the United States.
and names the winners and losers accordingly. Since
President Clinton himself did so at the first summit
this country buys more goods and services from
held in 1994 in Miami, Fla.
Chile than Chile does from us, well, Chilean goods
But since that time, free-trade advocates have fall-
must be taking over U.S. markets. Hence it wins the
en on hard times. Mr. Clinton arrives in Santiago
war of economic nationalism.
without so-called fast-track authority, the power to
The other, more accurate, way of regarding trade
negotiate trade agreements that Congress must vote
is as a transaction between individual buyers and
up or down rather than rewrite. Without that author-
sellers. If Americans, looking over the array of goods
ity, other countries have little incentive to negotiate
and services, decide they want to buy Chilean fruit
a deal they know U.S. lawmakers can tweak to death.
or Japanese cars, they are free - or should be free
Mr. Clinton's failure to obtain fast-track has
if individual liberty still matters here - to do SO.
emboldened protectionists on both sides of the polit-
If we want to ensure that American products and
ical spectrum. Organized labor, on whom Democrats
services are the best in the world, the very worst
rely heavily for financial and political support, has
thing we could do would be to protect them from
wielded its opposition like a club on the left. On the
competition. That's an invitation to complacency
right, Pat Buchanan has once again sounded the call
and sloth. What Mr. Clinton should be doing in Chile
for his brand of "economic nationalism." The title of
is promoting still more competition by tearing down
his new book, "The Great Betrayal: How American
tariff walls, then giving consumers everywhere their
Sovereignty and Social Justice Are Being Sacrificed
choice, one consistent with the individual liberties
to the Gods of the Global Economy," speaks for itself.
this country has long upheld.
The Washington Times
FRIDAY, APRIL 17, 1998
country, the Kansas City-based carrier in recent years has been
is running into tough new conflicts between businessmen
assembling a 6,500-mile system called the NAFTA Railway
demanding restriction-free trade and environmentalists calling for
between central Mexico and the Midwest.
greater protection of the region's forests and minerals, which are
The Kansas City Southern owns 49 percent of the Texas Mexican
attracting unprecedented investment from global logging and
Railway (Tex Mex), a regional carrier connecting the KCS trackage
mining companies.
in east Texas with the Mexican border at Laredo. KCS also owns 37
Free trade is a two-sided sword," said Nigel Sizer, of the
percent of Transportacion Ferroviaria Mexicana (TFM), the newly
Washington-based World Resources Institute. ``It generates jobs
privatized section of the former Mexican national railroad that
and economic growth and increases government revenue. But the
provides service from Laredo to Mexico City, the Gulf Coast port
pressures on the environment clearly escalate. It's a very delicate
of Veracruz and the Pacific Ocean port of Lazaro Cardenas.
balance and no one can say how it's going to come out" in Latin
Tellier observed thatd the trucking industry has been somewhat
America.
faster than the railroads to go after new traffic developing because
President Clinton, in Santiago this week for a hemispheric
of the North American Free Trade Agreement (NAFTA).
Summit of the Americas meeting with other democratic leaders,
The Canadian National and Illinois Central are an 18,742-mile
emphasized Thursday at a state meeting with Chilean President
system stretching from New Orleans to Chicago, east through
Eduardo Frei that he believes improved environmental protection,
Montreal to Halifax on the Atlantic Ocean and west to Vancouver,
rather than costing jobs, can "lead to broader, stronger, deeper
B.C., on the Pacific.
economic growth."
The Kansas City Southern and Canadian National-Illinois Central
He and Frei signed a handful of cooperative accords, including a
systems connect in Springfield, III., and Jackson, Miss.
commitment to work together to cut emissions that promote global
The agreement includes the systems granting each other some
warming and to create a pan-American climate forecasting center to
trackage rights on a limited number of lines, and the expansion of
help predict problems like this year's unusually strong El Nino.
facilities in Dallas, Kansas City and Chicago to go after automotive
On Thursday Clinton also spoke with business leaders in Santiago
traffic -- the hauling of automobiles and parts to build them -- as
and visited the lower-class Santiago neighborhood of San Miguel,
well as intermodal traffic -- truck trailers that can be hauled on
where he was cheered by residents.
railroad flatcars and containers that can be transferred between
He plans a speech before Chile's Congress on Friday.
trains, trucks and ships.
While there is not much expectation that this weekend's
The Canadian National was owned by the Canadian government
hemispheric summit will produce key environmental accords,
and was mainly an east-west line across that country with a major
environmentalists hope talks will address an increasingly
spur to Chicago. It was sold in a public stock offering in 1995.
contentious question in Latin America: Where is the proper balance
Since then, it has been aggressively cutting costs to be competitive
between environmental protection and market freedom?
with U.S. railroads, and earlier this year it announced it was
Latin America's environment has recently had anything but a
acquiring the IC in a merger to gain access to the Gulf of Mexico
banner year. Record fires set by settlers scorched large areas of
ports.
Brazil recently, and uncontrolled logging continues unabated in
The Illinois Central is a bidder in a consortium seeking to buy a
much of the Amazon and in countries like Mexico.
1,000-mile section of the Mexican national railroad system between
Overall, however, environmental laws in the region are
Mexico City and the ports of Veracruz and Coatzacoalcos. The
improving, though they are often not enforced.
winning bidder has not been selected.
In Chile, both growing grassroots environmentalism and pressure.
The major U.S. railroads in recent years have been preoccupied in
to create acceptable international norms in an era of globalization
mergers among themselves -- the split up of the Consolidated Rail
have contributed to a strengthening of environmental regulation
Corp between the Norfolk Southern Railway and the CSX Corp's
since 1994, when the country passed its first comprehensive
transportation subsidiary. In the West, the Burlington Northern and
environmental regulation package.
Atchison, Topeka
Chile, the world's third-largest wood exporter despite its relatively
& Santa Fe merged into a single railroad, and the Union Pacific
tiny size, now requires a process of environmental impact
Railroad acquired both the Chicago & North Western and Southern
statements and hearings for new environmentally sensitive projects.
Pacific.
Environmentalists have used the new rules to effectively halt
Widely publicized rail traffic jams in Texas resulting from the
progress on a variety of projects perceived as environmental threats,
mishandling of the Union Pacific/Southern Pacific merger has
from Savia's logging effort to plans for a hydroelectric dam on the
enabled the KCS and Tex Mex to pick up additional traffic from
Bio Bio River.
unhappy shippers there. However, the Canadian National's desire to
``A few years ago the government saw us all as dangerous
get into Mexico, not the Union Pacific's problems, was the major
anti-development terrorists, committed to halting the growth of the
factor behind the alliance.
country," said Adriana Hoffmann, a botanist and head of Defenders
of the Chilean Forest, one of the country's top environmental
groups. Businessmen ran Chile and not just local businessmen but
Free trade brings economic boost, trouble for environment in
international corporations."
Latin America By Laurie Goering Chicago Tribune (KRT)
Now, however, "I think there are some changes in attitude," she
SANTIAGO, Chile Three years ago, U.S.-based Trillium Corp.
said. People see that it's bad business for the country to cut
voluntarily agreed to submit one of Chile's first environmental
everything so quickly for so little financial benefit."
impact statements on its controversial plan to cut an old-growth
Manne, whose Tierra del Fuego timber project would create 600
forest on windswept Tierra del Fuego, at the tip of South America.
jobs in that economically challenged region if it is approved later
Chile, at that time, had few enforceable environmental
this month, sees the situation differently.
regulations. The country's ancient temperate forests were falling at
`A small group of environmental extremists have used the legal
a prodigious rate to meet Japanese demand for wood chips and the
system to block major development," he said. `The message
strongly free-market government dismissed growing environmental
business is getting is that there's no level of certainty here."
outcry as an unpatriotic effort to derail Chile's internationally
Still, many environmentalists say environmental protections have
admired growth.
declined since the rise of globalization, as international capital
Today, however, Trillium finds the logging project, promoted as a
searches out countries with the least regulation and thus the lowest
sustainable break from destructive tradition, mired in a swamp of
cost of doing business, pressuring other countries to similarly
legal challenges, many the product of new laws designed to
reduce protections to compete.
improve environmental protection in Chile.
The company has yet to cut its first tree and our investors are
disappointed, discouraged and confused," said Robert Manne,
president of the Seattle-based project, now renamed Savia
International Inc.
"Chile's supposed to be the economic model for Latin America,"
IMF panel urges stronger world financial standards By Merrill
he said. "But now we have businessmen questioning whether they
Goozner Chicago Tribune (KRT)
want to come to Chile at all."
WASHINGTON Taking stock of its early missteps in dealing
As it rushes to embrace global free trade, Latin America, the
with last year's East Asian financial crises, the International
repository of some of the world's greatest environmental resources,
Monetary Fund's governing committee on Thursday took another
Clinton in pledge
to Latin America
over free trade
By Gerard Baker in Santiago
Al
tricky diplomatic challenges at
the summit. He will also be
President Bill Clinton yesterday
pressed to move more quickly to
kicked off four days of talks with
normalise economic relations
Latin American leaders with an
with Cuba, still the object of a
attempt to reassure them that
comprehensive US embargo.
the US was still serious about
Last month Washington lifted
promoting freer-trade and open-
some minor sanctions such as
ing markets throughout the
restrictions on flights between
region.
the US and Cuba and limits on
Prior to this weekend's Summit
financial remittances. But the
of the Americas, Mr Clinton told
administration made clear the
a group of Chilean and US busi-
steps were a direct response to
ness leaders that he would even-
the Pope's visit to Cuba in Janu-
tually succeed in getting
ary and did not represent the
approval from the US Congress
first stage in a longer-term easing
for fast-track trade negotiating
of sanctions, as many Latin
authority, without which the US
American countries want.
is in effect unable to conclude
Mr Clinton may also face today
trade agreements.
a less serious but equally delicate
"I will continue to work hard
diplomatic problem that symbol-
with the Congress to build sup-
ises the US's complicated role in
port for fast track. Be patient
Latin America over the last few
with us", he said.
decades.
Mr Clinton was trying to head
Among his audience when he
off what is expected to be wide-
addresses a joint session of the
spread criticism of the US at the
Chilean congress is expected to
summit. Anxious to gain access
be General Augusto Pinochet,
to the vast US market, many
who ruled Chile in a military dic-
Latin American governments
tatorship for 15 years but is now
fear the Clinton administration
a senator-for-life in the congress.
has given up on previous com-
The Clinton administration has
mitments to promote free trade.
avoided making direct personal
The trade issue will be particu-
remarks about Mr Pincohet, but
larly sensitive this weekend since
Mr Clinton has never missed an
the summit will mark the formal
opportunity to praise Chile and
launch of negotiations among the
other Latin American countries
countries of the hemisphere
for abandoning dictatorships and
towards creating a Free Trade
turning to democracy. His
Area of the Americas by 2005.
remarks will be closely watched
Mr Clinton was adamant that
for any indirect attacks on the
meaningful negotiation could
Pinochet regime.
begin, even without prior Con-
gressional approval.
State visit, Page 5
The president will face other
Editorial Comment, Page 17
FINANCIAL TIMES
FRIDAY APRIL 17 1998
CLINTON STATE VISIT PRESIDENT SIGNS AGREEMENT ON ENVIRONMENT, EDUCATION AND FINANCE AHEAD OF SUMMIT OF AMERICAS
US in deal to bolster ties with Chile
By Gerard Baker and
even stronger partner and
were anxious to play down
Associated Press in Santiago
friend for the US." It had "an
the potential difficulties for
astonishing record" of prog-
Mr Clinton when the summit
President Bill Clinton agreed
ress in developing a strong
with Latin American leaders
a series of initiatives with
and growing economy open
begins at the weekend.
Chile yesterday at the start
to international partners.
Trade will be the domi-
of his four days of talks with
He said the two nations
nant backdrop to the meet-
Latin American leaders.
would set up a commission
ing, and trade problems -
Mr Clinton, accompanied
to promote investment and
along with Cuba - are sensi-
by a large team of US cabi-
commerce and to resolve
tive issues. But US officials
net members, arrived in
trade disputes.
pointed out progress was
Chile after an overnight
The two presidents agreed
expected at the summit on a
flight from Washington. His
to increase exchanges of stu-
range of other areas, includ-
two-day Chilean state visit
dents and teachers. They
ing tackling drug trafficking,
comes ahead of the second
also plan to increase access
and improving education
Summit of the Americas at
to the internet in classrooms
and health systems.
the weekend.
"so that every child no mat-
"Latin America has made
While Mr Clinton had
ter where he or she may live
enormous progress in the
talks with President
can explore the world of
last 10 years in both estab-
Eduardo Frei, members of
information now available
lishing democratic constitu-
the US cabinet including
with the stroke of a com-
tions and in achieving rapid
Madeleine Albright, secre-
puter keyboard", they said
economic growth," said one
tary of state, had meetings
in a joint statement.
official. "What is now
with Chilean counterparts.
They also pledged to cre-
needed is agreement on a
The two presidents agreed
ate a pan-American weather
range of reforms to build on
to strengthen ties between
forecasting system so as to
those achievements."
their countries with the aim
be better prepared for
The summit leaders are
of improving environmental
destructive weather events
keen to portray their discus-
protection, education, and
such as the El Niño phenom-
sions as an attempt to dem-
financial supervision.
enon. Fighting corruption
onstrate a hemisphere-wide
Praising Chile, Mr Clinton
and drug trafficking were
commitment to improving
said: "It has become a leader
also discussed.
the quality of life for poorer
in our hemisphere, and an
US officials, meanwhile,
Latin Americans.
Standing together: Bill and Hillary Clinton with Eduardo Frei, president of Chile
Reuters
FINANCIAL TIMES
FRIDAY APRIL 17 1998
By JOHN M. BRODER
fused to applaud the speech and gen-
VALPARAISO, Chile, April 17 -
Elections and open
erally sat dourly throughout the
President Clinton, speaking to a joint
President's 19-minute address.
meeting of the Chilean Congress with
markets not enough,
Afterwards Hernan Larrain, a
[one notably empty chair, praised
Senator from the conservative Inde-
Chile for the restoration of democra-
Latins are told.
pendent Democratic Union, criti-
cy but said freedom requires more
cized Mr. Clinton for interjecting
(than elections and open markets.
himself into Chile's internal affairs.
Gen. Augusto Pinochet, who was
"He wouldn't like it if we gave our
voted out of power in 1990 after 17
But the American President is of-
opinions about when the Americans
years of dictatorial military rule,
fering trade, not aid, as the prescrip-
had slavery," Mr. Larrain said. "No-
was not present for the speech, hav-
tion for curing Latin America's lin-
body can tell us how democracy
ing told the President of the Senate
gering inequalities. The 34 leaders
works."
he was too ill to attend. But if he had,
assembled at the summit meeting
Jorge Martinez Bush, a high-rank-
Clinton, in Chile, Calls for Deepening of Restored Democracy
he would have heard the American
will begin a seven-year negotiation
ing Chilean Navy officer in the Pino-
President say, "No one loves free-
aimed at establishing a free trade
chet era, voiced annoyance at Mr.
dom more than those who have had it
zone encompassing the entire hemi-
Clinton's reference to Mr. Aylwin's
and lost it."
sphere by 2005. Mr. Clinton is advo-
victory address.
"Freedom's victory now has been
cating increased spending for
The Chilean Congress meets in
won throughout the Americas," Mr.
schools, courts, clinics and housing,
Valparaiso, a seaside city 90 miles
Clinton said. "With a single excep-
but is offering little American money
from the capital, as a result of one of
tion," he added, referring to Cuba,
to support them, instead counting on
General Pinochet's last official acts.
"the day of the dictators IS over.
international organizations to fi-
He moved the Congress to a large
But Chile and other Latin nations
nance regional social programs.
ungainly building here in an attempt
still must address glaring problems
In his speech, Mr. Clinton said
to decentralize the Government and
before they can truly boast of open,
Chile and other relatively new de-
to distance the legislative branch
free and democratic societies, Mr.
mocracies in the hemisphere must
from the seat of executive, judicial
Clinton said. Corruption remains en-
resolve to cement the transition to
demic, the judicial systems are
democracy and establish a second
and military power in the capital.
weak, wealth is unevenly distributed
generation of social reforms.
Mr. Clinton was introduced by
and freedom of expression is not
"To those anywhere in the Ameri-
Andres Zaldivar Larrain, the Presi-
firmly established, he said.
cas who would seek to take away
dent of the Senate, who described
"Free elections are democracy's
people's precious liberties once
Chile as a country that loves its
essential first step, but not its last,"
again, or rule through violence and
restored democracy.
the President said. "Across the
terror once again, let us reaffirm
President Aylwin's historic words at
"Nothing was more painful for our
Americas, there are still too many
Santiago Stadium, 'Nunca mas.' Nev-
people than to see it interrupted,"
citizens who exercise their right to
vote, but after the election is over,
er again."
Mr. Zaldivar said. "Nothing was
feel few benefits from the decisions
Patricio Aylwin, a Christian Dem-
more pleasurable than to reconquer
made by their officials. This kind of
ocrat, was elected President of Chile
it. We have learned that its conserva-
popular frustration can fuel the am-
after General Pinochet was denied a
tion requires a constant attitude of
bitions of democracy's foes."
second eight-year term in a national
tolerance and respect, and that its
This concept of deepening democ-
plebiscite in 1988. Mr. Aylwin took
perfection demands maturity and
racy and distributing its benefits to
office in 1990; General Pinochet be-
persistence."
all citizens is the core of Mr. Clin-
came a Senator for Life that year but
Mr. Clinton, speaking on the floor
ton's message to Latin American
has not taken an active role in the
of the chamber behind a bulletproof
leaders, who are gathering in Chile's
legislative process.
lectern flown in from Washington,
capital, Santiago, for a two-day Sum-
The general's right-wing allies in
struck much the same note, and
mit of the Americas on Saturday and
the Congress did not react favorably
broadened the message to include
Sunday.
to Mr. Clinton's remarks. They re-
the other nations of the region.
"Now, having resolved to protect
democracy, we must now do much,
much more to perfect democracy,"
the President said. "And we must do
it throughout the hemisphere."
The New York Times
SATURDAY, APRIL 18, 1998
LOS ANGELES TIMES
Clinton Hails Chile's Growth in Democracy (Valparaiso, Chile)
(first-edition) Page 1 for Saturday, April 18, 1998:
By Jonathan Peterson (c) 1998, Los Angeles Times
VALPARAISO, Chile In a legislative hall that once symbolized
Top of page:
tyranny, President Clinton on Friday declared that "freedom's victory
has been won throughout the Americas" but cautioned that the
Col 1: The Canadian government, alarmed over the economic
awakening region must now do much, much more to perfect
impact of depleted fisheries on its Maritime provinces and under
democracy."
political pressure to support a troubled industry, is now backing
"No one loves freedom more than those who have had it and lost it,"
sealers with temporary subsidies and even Coast Guard escorts to
Clinton told a packed joint session of the Chilean congress that was
hard-to-reach ice floes, upsetting environmentalists and sparking
missing its most notorious member, former dictator Augusto Pinochet.
protests. (SEALS, moving Saturday.).
No one prizes it more than those who have lost it and regained it. I
now here I am in a room full of people who love freedom."
Col 2: Three young siblings, whose only crime was their reluctance
The ehamber broke into applause. To the relief of Chilean officials,
to testify against their father, were jailed for 12 days in Los Angeles
Pinochot. who ruled the South American nation until 1990 and now
County's overcrowded Central Juvenile Hall and brought to court in
a senator, said he was ill and stayed home while Clinton
handcuffs and leg chains, according to their attorneys and other court
pokes
officials. (SHACKLE, moved.)
Clinton, speaking on the eve of a hemispheric summit in Santiago,
said that to perfect their fledgling democracies, Chile and its neighbors
Cols 3-5: Wild art of local house on shaky foundation.
should act to strengthen their judicial systems, improve police
professionalism, strengthen the schools, enhance access to health care,
Col 6: Local transit story.
combat corruption and respect press freedoms.
On a separate note, he alluded to his personal embarrassment on
Above fold:
failing to win from the U.S. Congress broader authority to negotiate
trade deals. "We want and will resolutely pursue a free-trade
Col 2: Signaling Mexico's continued economic recovery and a
agreement that includes our two nations," he told legislators of the
possible boost to President Clinton's free-trade initiative, the monthly
nation once touted as the next member of the North American Free
U.S. trade deficit with Mexico in February shrank to its lowest level
Trade Agreement, along with the United States, Mexico and Canada.
since the disastrous peso devaluation in late 1994, the Commerce
"And I will not be satisfied until we achieve that goal."
Department reports. (TRADE-MEXICO, moved.)
But more than anything, Clinton's address was a bid to express in
lofty terms his views on democracy: its flexible nature, the ways to
Below fold:
bolster it and that it can be fleeting. "Democracy is never perfect, but
because it is open and free, it is always perfectible," he said. ``In the
Cols 3-5:After Russia's ornery lawmakers rejected Sergei V.
words of our President Franklin Roosevelt, who tried so hard to be a
Kiriyenko for the post of prime minister for the second time in a week
good neighbor to Latin America, democracy is a never-ending seeking
Friday, those taken with the congenial, young, acting-government
for better things."
chief might have been wondering, What's not to like?" But among
Such lofty sentiments did not seem abstract inside the legislative
the tough-guy Communists and nationalists who dominate the state
chamber of marble and wood. Just nine years ago, Pinochet
Duma, the lower house of the Russian parliament, the soft-spoken,
transferred the national congress from the capital of Santiago to this
bespectacled Kiriyenko is regarded as a nerd. (with art)
coastal city of 300,000, as part of an effort to disperse political power
(RUSSIA-TIMES, moved.)
and potential resistance to his autocratic regime.
The general's political survival, however marginal, has been a
Bottom of page:
source of great controversy in Chile, where many speculated on
whether he would show up for Clinton's speech and embody a
Cols 1-3: What city officials who recruited tenants for an apartment
distracting spectacle to the president's oratory on freedom. "From our
project never anticipated was that once the investment started to go
perspective he (Clinton) was prepared to give the same message
sour, it would lead to a small but militant tenants' movement of
whether Pinochet was there or not," a U.S. national security aide said
Chinese citizens and foreign investors. (with art)
afterward.
(CHINA-TENANTS, moving Saturday.).
And while there have been persistent reports that some major
participants in the upcoming Summit of the Americas want the United
Cols 5-6: Congress may be disappointed if it thinks it can turn many
States to allow Cuba to participate, Clinton in his speech referred to
people off smoking by jacking up the price of cigarettes; even sharply
Cuban President Fidel Castro, saying, With a single exception, the
higher prices probably cannot stop many heavily addicted smokers
day of the dictators is over" in the Americas. The 21st century will
from lighting up. (TOBACCO-SMOKERS, moving Saturday).
be a century of democracy."
Reflecting an overarching theme of the second summit, which
begins Saturday Clinton's message was that initial steps toward free
markets and free elections are insufficient to preserve democracy for
the long haul.
As Chileans understand perhaps more clearly than any of their
fellow Americans, there must be a second generation of reforms,"
Clinton said. "For democracy to thrive, people must know that
everyone who is willing to work will have a fair chance to share in the
bounty of the nation. Leaders must ensure that the political system, the
legal system, the economic system are not rigged to favor those who
already have much, but instead give everyone a stake in shaping the
future."
True democracy requires a strong and independent legislature," he
said, and top-level respect for it, even when lawmakers do not do
what the president would like them to do."
Education, he continued, "is the key," particularly in a time when
liberalized economies can widen the gulf between haves and
have-nots and provide great rewards to those with knowledge while
greatly penalizing those who lack skill. Strong education will
'encourage" the dreams of the young, he said, noting, ``It can give
people the power to overcome the inequalities between rich and poor.
It can give nations the opportunity to fulfill their destiny."
Clinton has gotten a friendly if not ebullient reception in Chile,
where there was a jarring but not significant earthquake and a rebel
grenade attack against a Chrysler auto dealership; no one was injured
in the incident.
As his motorcade entered Valparaiso on Friday morning, a group of
member of the Hispanic Association of Colleges and Universities, told
children cheered and waved. But nearby, a group of onlookers held up
reporters. "As long as everyone is not yet invited to participate or
a sign that said in Spanish, `Clinton: Your Business Is the Poverty of
even compete on a level playing field to demonstrate their aptitude and
Latin America."
potential, affirmative action is needed."
Figures released earlier this month by the University of California
system showed the number of black students accepted for fall's school
U.S. Trade Deficit Widens to Highest Level Since '87 (Washn) By
year by UC Berkeley plunged 66 percent, and the number admitted to
Art Pine (c) 1998, Los Angeles Times
UCLA dropped 43 percent, as the state's premier public institutions
WASHINGTON Reflecting the growing impact of the Asian
selected the first freshman class in two decades without preference for
economic slump, the U.S. foreign trade deficit widened again in
race, ethnicity or gender.
February to its highest level since late 1987, the government reported
Declines among Latinos were smaller but still substantial 53
Friday threatening to intensify protectionist sentiment in Congress.
percent at Berkeley and 33 percent at UCLA.
The United States imported $12.1 billion more in goods and
On the federal level, the Latino groups said they would press for
services than it exported during the month, the Commerce Department
defeat of a congressional amendment proposed by Rep. Frank Riggs,
said, up $500 million from a revised $11.6-billion gap in January.
R-Calif., that would ban affirmative action in college admissions
Although the rising trade deficit is likely to help the economy now
nationwide. The Riggs amendment to the Higher Education Act was
by preventing it from overheating, it is likely to make it harder for
modeled on Proposition 209, the anti-affirmative action measure
President Clinton to win support for his `fast track" trade bill, as he
approved by California voters.
vowed in Chile on Thursday, and for other trade-expansion measures.
While barring recipients of the act's funding which includes
Commerce Undersecretary Robert Shapiro, seeking to head off
virtually every university and college in the country from
protectionist measures, held a press conference to urge Congress to
discrimination and preferences in admission, Riggs said his proposal
join `in working for open trade and open markets" so that `this
would permit schools to recruit qualified women and minorities "to
prosperity can continue." The February deficit was larger than analysts
achieve the twin goals of diversity and minority outreach without the
had expected, prompting economists to speculate that the impact of
need for preferences that favor one minority group over another."
the Asian economic slump here may prove to be somewhat greater
Those participating in Friday's briefing, however, deplored the
than they had forecast. But they said they still expected it to be fairly
prospect of a nationwide drop in minority college admissions similar
mild.
to the trend in California. Esther Aguilera, executive director of the
At the same time, however, economists were struck by the fact that
Hispanic Caucus, said: "We should be seeing an increase in Latinos
the Asian countries did not appear to be trying to export their way out
and other minority students in the University of California system
of their recession by flooding U.S. markets with their products.
because of increases in (Latino) population. We should be striving for
Although the U.S. trade deficit with Japan soared in February, the
multiplicity at all campuses."
deficit with other countries hit hard by the Asian crisis actually shrank
Carmen Joge, representing the National Council of La Raza, said
as exporters in the region continued to experience difficulty obtaining
Latino children have a higher poverty rate than any other group, and
the financing needed to step up their shipments.
too many drop out of school before finishing the eighth grade.
The deficit with South Korea plunged by 31.1 percent, for example,
"Despite this, Latinos are underrepresented in federal education and
while that with Indonesia shrank by 8.2 percent. Analysts attributed
related programs that were designed to serve the neediest of our
those improvements in large measure to normal seasonal patterns and
children," Joge said.
said they might not continue much longer.
Rather, if anything, the figures showed that the biggest impact of the
Asian crisis so far has been to choke off demand in Asia for
Richardson Earns Promise of Peace Talks From Afghan
U.S.-made products such as capital goods, which have become more
Warlords (Kabul) By Dexter Filkins (c) 1998, Les Angeles Times
expensive there as countries' currencies have lost value against the
KABUL, Afghanistan Bill Richardson, the U.S. ambassador to the
dollar.
United Nations, flew into this untamed, shattered land Friday and
Japan bought fewer U.S. goods and services than in any month in
came away with a promise from its competing warlords to talk peace
three years, and the U.S. trade gap with Japan where the deficit
for the first time in more than a year.
jumped to $5.3 billion, from $4.4 billion the previous month.
Richardson, the highest-ranking American diplomat to visit
U.S. officials have been pressuring Japan to stimulate its domestic
Afghanistan since 1974, said he hoped that the agreement secured
economy, but privately they are pessimistic. Although the Japanese
from the ruling Taliban militia and the main rebel groups would end
government proposed a $75 billion economic stimulus package last
fighting that has dragged on for more than 20 years, defied numerous
week, it still has not disclosed the details.
mediators and left more than 1 million people dead.
Many analysts believe the soaring trade deficit with Japan could
Beyond an agreement to begin talks, Richardson's accord contained
prove the administration's biggest problem in warding off
few details and little evidence that either side was willing to share
protectionism in Congress. 'Clearly we're heading for trouble there,"
power. Minutes after he departed from the headquarters of rebel
said Lawrence Chimerine, analyst at the non-partisan Economic
general Abdul Rashid Dostum, the two sides began shelling each
Strategy Institute.
other with the spectacular nighttime bursts visible from Richardson's
Meanwhile, the Federal Reserve Board issued a report showing that
plane.
the U.S. manufacturing sector continued to weaken in March, partly as
Still, Richardson said he was hopeful that the Afghan people were
a result of the collapse in orders from Asia.
so fed up with fighting that they might with high-profile prodding
Although industrial production rose 0.2 percent in March following
from the United States finally be willing to silence their guns.
two months of declines of the same magnitude, the gain came
``I believe the Afghan people want this war to end. I saw it in their
primarily from a sharp increase in the output of utilities.
eyes," he said afterward in Islamabad, Pakistan. ``It appears we have a
Manufacturing production again slowed sharply.
breakthrough."
The increase in the trade deficit for February came despite a sharp
Richardson, the globe-trotting envoy known for his savvy in Third
16.2 percent drop in the value of petroleum imports, reflecting the
World crises, hopscotched across this country in a small,
past few months' drop in oil prices.
propeller-driven plane, from the ruins of central Kabul to the steppes
of northern Afghanistan.
In Kabul, he drove through a city that appeared more moonscape
Latinos Express Concern Over Decreased College Admissions
than metropolis, where the population lives and sleeps amid the
(Washn) By Robert L. Jackson (c) 1998, Los Angeles Times
rubble. In Sheberghan, in northern Afghanistan, he was welcomed by
WASHINGTON Latino leaders on Friday brought to the nation's
ethnic Uzbek horsemen frolicking at "bazkashi," a traditional
capital their concerns about decreased minority college admissions in
polo-like game played with the carcass of a beheaded goat.
California, warning that the poverty and drop-out problems among
"I welcome Ambassador Richardson to Afghanistan," said Dostum,
Latino youth will only worsen unless the trend is reversed.
the battle-hardened leader of the Junbush-i-Milli party, from the
Officials of the Congressional Hispanic Caucus and other
tarmac of his remote air base. "We are honored to have a top
organizations who sponsored a Capitol Hill news briefing said they
American here after so many years."
were determined to overcome anti-affirmative action policies in
Richardson said he came to Afghanistan to jump-start a
California.
U.N.-sponsored peace process that had sputtered
"Racial, gender and ethnic intolerance as well as the existence of
He said his visit highlighted a renewed American interest in the
double standards continues to exist," Angelica Santacruz, a board
region, which has long been overlooked by U.S. diplomats.
Clinton presses summiteers
for '2nd generation' reforms
Exhortation to curb inequities draws mixed reviews
By Warren P. Strobel
them."
THE WASHINGTON TIMES
The nations of the Western
Hemisphere are to gather today in
VALPARAISO, Chile - Presi-
Santiago for a two-day, 34-nation
The United States is
dent Clinton warned yesterday
summit. U.S. officials never tire of
that the Western Hemisphere's
noting that only Cuba, which is not
advocating priority
turn toward democracy will falter
invited, does not have a democrat-
unless freely elected governments
ically elected government.
attention to education,
do more to deliver better lives for
"With a single exception, the day
their people.
especially at the
of the dictators is over," Mr. Clinton
"There must be a second gen-
said. "Having resolved to protect
primary and secondary
eration of reforms beyond free
democracy, we must now do much,
elections and free markets, be-
much more to perfect democracy."
levels, as the best way
cause for democracy to thrive,
There is growing concern in
people must know that everyone
Washington that unless ordinary
out of poverty.
who is willing to work will have a
people in Latin America, which
fair chance to share in the bounty
has one of the world's highest dis-
of the nation," the president said.
parities between rich and poor,
His speech was part praise for
feel improvements in their daily
priority attention to education, es-
Chile and other nations that have
lives, democracy will be seen as a
pecially at the primary and secon-
ended authoritarian rule and part
failed experiment and authoritar-
dary levels, as the best way to lift
exhortation to attack the persistent
ian habits will resurface.
people out of poverty. The 34 lead-
inequities in their societies.
A strong democracy, he said, re-
ers also are expected to announce
The mixed message was deliv-
quires "protecting the rights of
a new regional anti-drug effort and
ered in an address to a joint session
workers, standing up for the rights
a new envoy, under the Organi-
of the National Congress of Chile,
of women and children and minor-
zation of American States, to doc-
which returned to democratic rule
ities, fighting the drugs and crime
ument press restrictions in the
AP
in 1990 after 17 years of dictator-
and terrorism that eat away at de-
hemisphere.
First lady Hillary Rodham Clinton listens as President Clinton addresses the Chilean Congress and military in
ship. Noticeably absent from the
mocracy's foundations, reaching
James Steinberg, Mr. Clinton's
Valparaiso yesterday. They are in Chile for the second Summit of the Americas, opening today in Santiago.
chamber was former military
out across all sectors of society
deputy national security adviser,
leader Gen. Augusto Pinochet,
to ensure that everyone has a stake
said these and other efforts are
now a "senator for life."
in shaping the future."
assume we can keep that [demo-
meant as a preventive strike
chinery of democracy." They have
gion are wrong.
Some officers in the crowd no-
cratic] consensus, unless we're ac-
The package of proposals and
against any backsliding on democ-
made education a policy priority,
"In general, democracy is
ticeably did not join in the ap-
tive, vigilant and engaged."
he said.
ideas that Mr. Clinton brings to the
racy.
stronger today than it was four
plause for Mr. Clinton, whose
Mr. Steinberg said leaders like
Summit of the Americas is aimed
"We need to take these steps now
Richard Feinberg, a former
years ago," when the first Summit
speech included the line that, in a
Chile's Eduardo Frei, Mexico's Er-
at furthering these so-called "sec-
before this becomes a serious
White House expert on Latin
of the Americas was held in Mi-
democracy, the military's job is "to
nesto Zedillo and Brazil's Fer
America who was in the audience
ond-generation reforms."
problem," he said, adding that the
ami, said Mr. Feinberg. "Problems
defend the people, not to rule
nando Henrique Cardoso "realize
The United States is advocating
president's message is: "Let's not
yesterday, said predictions of the
remain, but I think there's been a
it's not enough just to have the ma-
collapse of democracy in the re-
lot of progress."
The Washington Times
SATURDAY, APRIL 18, 1998
who is host of the summit meeting,
By CALVIN SIMS
said today that he hoped the weekend
SANTIAGO, Chile, April 18 -
meetings would give a definitive
President Clinton and 33 other lead-
push toward the creation of "a hemi-
ers from the Western Hemisphere
spheric community."
opened talks here today aimed at
"In a globalized world, the devel-
making good on their commitment
opment of our economies is based on
four years ago to create a free-trade
the liberalization of trade," Mr. Frei
zone stretching from Alaska to Tier-
said. "We must continue fighting
ra del Fuego.
protectionism. It is necessary that
But many Latin American govern-
the talk of free trade translate into
ments, disappointed that Mr. Clinton
real works."
failed to gain so-called fast-track ne-
Although government and trade
gotiating authority from Congress
officials say otherwise, a major indi-
last year, expressed serious doubts
cation that talks have slowed is that
Latin America Fears Stagnation in Trade Talks With U.S.
that a hemispheric agreement on
leaders will spend considerable time
trade would ever be signed.
this weekend discussing other issues,
"There will be a lot of smiling and
like poverty, democracy, freedom of
back-slapping this weekend," said a
expression, justice, education, hu-
Latin American finance minister,
man rights and drug trafficking.
who spoke on condition that he re-
In his speech, Mr. Clinton called on
main anonymous, "but the reality is
Western Hemisphere countries to do
that we are growing frustrated and
more to address the social problems
more and more skeptical that the
that plague the region.
United States is really committed to
"Poverty throughout the hemi-
free trade."
sphere is still too high, income dis-
Trade experts have said that un-
parity is too great, civil society too
less Mr. Clinton gets fast-track nego-
fragile, justices system too weak,"
tiating authority - under which Con-
Mr. Clinton said. "Too many people
gress can approve or reject trade
still lack the education skills neces-
accords negotiated by the White
sary to succeed in the new econ-
House, but not amend them - there
omy."
is little hope of negotiating a free-
The President called for the region
trade pact by 2005, a goal set in 1994
to undertake a second generation of
at the first Summit of the Americas
reforms with priority given to pro-
in Miami.
viding children with education.
Facing strong opposition from
Administration officials said sum-
United States labor unions and mem-
mit leaders planned to announce a
bers of his own party, Mr. Clinton
package of more than $6 billion in
withdrew fast-track legislation in
international support for education.
November after it became clear it
Of that, $3 billion would be in loans
would not be enacted.
from the Inter-American Develop-
In a speech at the opening session
ment Bank and $3 billion would come
of the summit meeting today, Mr.
from the World Bank. Some $130
Clinton promised to persuade Con-
million will come from the United
gress to grant him the authority he
States Agency for International De-
wants.
velopment.
"The United States may not yet
As the United States wavers on
have fast-track legislation but we
ast-track authority, Latin American
will," he said. "I assure you our
countries are forging trade links
commitment to the free-trade areas
among themselves, Canada, Europe
of the Americas will be in the fast
and Asia - alliances that threaten to
lane of our concerns."
put American companies at a com-
Clinton Administration officials
petitive disadvantage.
have said that while fast-track autho-
South America's largest trading
rization will eventually be necessary
nations - Brazil, Argentina, Chile,
to conclude a trade accord, the lack
Paraguay and Uruguay - have
of such authority should not preclude
formed the Mercosur Customs
the start of formal negotiations here.
Union, which accounts for two-thirds
Trade officials from Canada,
of the continent's economic activity.
chairman of the hemispheric negoti-
Talks are already under way to
ations, agreed, saying the discus-
merge the Mercosur alliance with
sions would proceed despite the lack
the five-nation Andean pact, formed
of fast-track authority.
by Venezuela, Colombia, Ecuador,
"Of course it would have been
Peru and Bolivia. Together, the two
preferable for President Clinton to
trading groups would form a market
arrive in Santiago with fast track,
of 310 million consumers.
but the reality is that much work can
In addition, investment between
and will be done at the front end,
Latin American countries is rising as
without fast-track authority," Cana-
more local companies take roles in
da's International Trade Minister,
government privatization through-
Sergio Marchi, said in a speech in
out the region. It is not uncommon,
Toronto this week.
for example, for Chilean or Argen-
The immediate goal for this week-
tine companies to hold major stakes
end, officials said, is to determine the
in utilities, railroads or pension funds
objectives and composition of work-
in Brazil, Bolivia or Peru.
ing commissions that will negotiate
Ricardo French-Davis, a United
Nations economist in Santiago, said
various aspects of the agreement
and to select the site of a third meet-
regional groupings were good dress
ing. Agriculture, services and intel-
rehearsals for a hemispheric pact.
"It's much easier for the United
lectual property are expected to be
States to negotiate with a group of
among tough negotiating areas.
President Eduardo Frei of Chile,
countries that has already ironed out
its internal problems," he said. "I
suggest that everybody take a deep
breath and calm down. A hemi-
spheric trade agreement is going to
take a while
The New York Times
SUNDAY,
APRIL
19,
1998
Clinton
Laments
Americas'
Problems
By ANTHONY FAIOLA
Washington Post Foreign Service
SANTIAGO, Chile, April 18-On
the inaugural day of the second
Summit of the Americas, President
Clinton heralded the United States'
new "partnership" with Latin Ameri-
ca, along with the region's economic
and democratic transition in the
1990s. But at the same time, he
BY GREG GIBSON-ASSOCIATED PRESS
issued a critical analysis of the linger-
In his address, President Clinton praised the hemisphere's economic
ing social problems that leaders here
transition but said too few people "feel the change working for them."
are attempting to grapple with at this
weekend's summit and beyond.
"Poverty throughout the hemi-
cotics trade is still flourishing in
tions agreed, for instance, to improve
sphere is still too high, income dis-
countries such as Colombia and Bo-
extradition procedures for narcotics-
parity is too great, civil society too
livia, despite attempts to combat the
related crimes, but no legislation was
fragile, justice systems too weak, too
problem.
suggested that would make such
many people still lack the education
In efforts to address those issues,
extraditions mandatory.
and skills necessary to succeed in the
several initiatives were agreed to
The first day of the summit also
new economy," Clinton told the
hemisphere's 33 other leaders-all
today-and will be signed in a formal
focused on improving Latin Ameri-
except Cuban President Fidel Castro.
accord Sunday. Clinton agreed to
can literacy rates. The plan includes a
"In short, too few feel the change
launch "security measures" for Latin
doubling of new loans from the
working for them."
America including a "multilateral
Inter-American Development Bank
Clinton's comments cut to the
counter-drug alliance" that would
to $3 billion, and a 50 percent
heart of something that has been
attempt to tighten law enforcement
increase in money from the World
overlooked generally during his state
on money laundering and help fight
Bank to $3 billion. The money would
visit to the summit site in Santiago,
an increase in drug consumption.
be used to improve teacher quality,
the Chilean capital, that began Thurs-
National security adviser Samuel
reduce class sizes and increase tech-
day. Despite how far Latin America
R. "Sandy" Berger said the measure
nology.
has come politically and economical-
was not meant to supplant the United
"A lot of these democracies are
ly, critical problems still plague the
States' policy of "certifying" nations
very new, and the gap in education is
region's fragile democracies.
for drug cooperation. Instead, the
very wide," said U.S. Education Sec-
Although Latin America has expe-
new measure would "supplement" it.
retary Richard W. Riley. "I think it is
rienced overall economic growth of
"Let's see how it evolves-the
noteworthy [that] virtually all these
15 percent since the first Summit of
object of both is to increase and
countries have placed education as a
the Americas in 1994 in Miami, it still
intensify cooperation" in the drug
top priority."
has a disparity between rich and poor
war, Berger said. "This will be anoth-
that is among the greatest in the
er instrument at our disposal."
FOR MORE INFORMATION
world. And while there have been
The measures to be signed in
To read the text of President
leaps from dictatorships into democ-
Sunday's communique, however, ba-
Clinton's opening address at the
racies, trouble spots and lapses in the
sically lay the groundwork for more
summit, click on the above symbol
democratic tradition remain through-
specific agreements-and several
on the front page of The Post's Web
out the region. Meanwhile, the nar-
contained vague language. The na-
site at www.washingtonpost.com
The Washington Post
SUNDAY, APRIL 19, 1998
Latin Journalists Under Fire
Hemisphere's Leaders Move to Protect Endangered Reporters
By ANTHONY FAIOLA
the press] in Latin America, and
nos's huge salary.
Washington Post Foreign Service
there are still crimes of impunity and
There have also been institutional
intimidation that go completely un-
attempts to limit press freedoms. In
SANTIAGO, Chile, April 18-Is-
punished." said White House aide
Argentina, press liberties were dealt
abel Chumpitaz, a radio journalist
Sidney Blumenthal. "We hope this
a blow as the Supreme Court-hand-
championing the rights of poor farm-
new position will be the beginning of
picked by President Menem—
ers in the Peruvian city of Piura, was
real change."
forced the newspaper Pagina 12 to
at home with her family when 12
In 1997, 10 journalists, out of 24
print a response this week from
men stormed in with shotguns and
worldwide, were killed in Latin
Antonio Petric Domagoj, an alleged
pistols earlier this month.
America. And more than 100 docu-
underworld figure, after the paper
The assassins, widely believed to
mented incidents of intimidation and
ran an expose on him and his
be on a mission to silence her
violence were recorded in the region,
connections to Menem.
popular program "The People's
making it the world's most danger-
"Freedom of the press exists, but
Voice," brutally beat her and shot her
ous for journalists, said the Commit-
it is very manipulated by the govern-
to death. Then they tried to rape her
tee to Protect Journalists. In Colom-
ment-a government that still re-
mother.
bia, 43 journalists were killed
sists the idea that they must be held
"The reality is that Latin America
between 1988 and 1997; during the
to account by the public," said Hora-
is still the most dangerous place in
same period, 18 were killed in Peru
cio Verbitsky, a columnist with Pa-
the world to be a journalist," said
and 12 in Mexico.
gina 12, whom Menem called "one of
Joel Simon, program coordinator for
The violence has happened as
the biggest terrorists in Argentina."
the Americas for the Committee to
Latin American journalism has
Menem added that Verbitsky was
Protect Journalists, a New York-
grown more aggressive. Indeed, re-
"passing judgment on honest and
based advocacy group.
porters' jobs have become increas-
decent people."
Even as the era of dictators fades
ingly dangerous as new democracies
"We are living in a time when the
into memory in Latin America, hu-
have emboldened the media to con-
press is trying to emerge to be a
man rights experts say that violence
duct in-depth investigations into gov-
democracy-building force," Verbit-
and intimidation against journalists
ernment corruption and organized
sky said. "But the government isn't
remain among the biggest obstacles
crime, Latin American media and
making this easy."
to strengthening the region's bud-
human rights experts say.
To be sure, not all acts against the
ding democracies.
Though violence can be attributed
press were committed by govern-
In light of the extraordinary vio-
to several sources, many Latin Amer-
ments. But the new OAS press
lence against journalists, some of it
ican governments, most of which are
advocate position is designed to give
linked to governments, President
not accustomed to a prying press,
Latin American journalists another
Clinton and leaders of every other
have not responded well.
way to have their cases studied by
nation in the hemisphere except
Peru has been the site recently of
the international community, pres-
Cuba will sign an accord Sunday
some of the worst acts of intimi-
suring nations to conduct their own
endorsing the creation of a new
dation. Although there is no evi-
investigations and curbing their in-
position of special press advocate at
dence to suggest that the murder of
terference and intimidation of the
the Organization of American States.
Chumpitaz had links to the Fujimori
press.
The advocate will have authority to
government or his private intelli-
Human rights experts, however,
bring such cases before the Inter-
gence agency led by the shadowy
cautioned that the advocate's suc-
American Court on Human Rights.
Vladimiro Montesinos, Peruvian
cess would ultimately depend on
The new position, for which the
journalists believe that the assassina-
whether the OAS would enforce the
United States will grant $300,000 in
tion was related to her role as a
court's judgments, by, say, linking
seed money, was approved today
crusading reporter critical of policies
loans or aid from international orga-
after lobbying by Clinton and U.S.
concerning the poor.
nizations or other governments to
officials. Among the leaders signing
Several other acts are believed to
resolving such cases.
the decree will be Peruvian President
be tied to what appears to be Peru's
"I think we need to see some real
Alberto Fujimori and Argentine
quest to limit press freedom. Last
power in this new position," said
President Carlos Menem, both of
year, Peru revoked the citizenship of
Jose Miguel Vivanco, executive di-
whom have been accused of sanc-
Baruch Ivcher, an Israeli immigrant
rector of Human Rights Watch/
tioning threats toward, limitations
whose Channel 2 produced a series
Americas. "Otherwise, I'm not opti-
on and intimidation of the press.
that looked at torture by the Peruvi-
mistic it will result in any real
"There are still restrictions [on
an Army and examined Montesi-
change."
The Washington Post
SUNDAY, APRIL 19, 1998
Summit opposes U.S. on Cuba
Most hemisphere
CUBA
leaders see no reason to
U.S. officials were
isolate Fidel Castro.
From page Al
particularly cool
democracy there, said U.S. Na-
toward Canadian
By Warren P. Strobel
tional Security Adviser Samuel R.
Berger.
Prime Minister Jean
THE WASHINGTON TIMES
But it is clear that there is little
SANTIAGO, Chile - Nations at-
agreement on the means.
Chretien's planned
tending a Western Hemisphere
U.S. officials were particularly
visit to Cuba.
summit yesterday pressed for new
cool toward Mr. Chretien's planned
overtures toward Cuba, leaving
visit to Cuba, of which he informed
the United States alone in its policy
Mr. Clinton in a phone call several
of trying to isolate Fidel Castro.
alliance that will include mecha-
days ago.
Most dramatic was a report that
"We have not seen much evi-
nisms for evaluating each nation's
Canadian Prime Minister Jean
dence that constructive engage-
progress in fighting drug traffick-
Chretien will visit Cuba sometime
ment with Cuba has produced any
ing. The initiative is aimed at tak-
in the next several weeks. His trip
material results with respect
ing' the sting out of Congress' an-
follows a visit to the island earlier
to human rights or democracy,
nual drug certification process, a
this year by Pope John Paul II.
but I would hope that Prime Min-
unilateral judgment that other na-
Other leaders at the 34-nation
ister Chretien would pursue that
tions regard as insulting and pa-
Summit of the Americas, where
agenda," Mr. Berger said.
tronizing given the U.S. standing as
Cuba is the only nation of the hemi-
There also have been some rum-
the world's No. 1 drug consuming
sphere not invited, called for its
blings about readmitting Cuba to
nation.
inclusion at the next such gather-
the Organization of American
Rep. Benjamin A. Gilman, New
States, although U.S. officials said
York Republican, and Rep. Dennis
ing.
"This should be the last summit
they have heard no formal pro-
Hastert, Illinois Republican, crit-
icized the summit nations' stand on
without Cuba," said Prime Minis-
posal on that score.
ter Owen Arthur of Barbados.
U.S. policy is to keep the Castro
narcotics. "The renewed assault
President Alberto Fujimori of
regime isolated until it undertakes
on the annual drug certification
Peru said that Cuba's exclusion is
democratic reforms, as nations
process sounds pretty much like
"unfair because the country is no
from Nicaragua to Chile have. Ad-
the old 'blame America first'
crowd is back in business, focusing
threat to anybody."
mitting Cuba to the OAS would be
U.S. officials played down the
"mighty ironic," Mr. Berger said,
this time exclusively on drug 'de-
dispute, which came on the first
since its charter now has a provi-
mand' in the United States," they
day of a summit that the United
sion to toss out any country where
said in a statement circulated here.
democracy is overturned.
White House officials said that,
States, the only major power at the
conference, describes as evidence
As to these summits, Orlando
in fact, the sessions yesterday were
that the once-feuding nations of
Rodrigeuz, a representative of the
remarkably free of anti-American
the region are now cooperating on
Cuban opposition group Concilio
rhetoric.
Cubano, said it would be wrong for
Washington's leadership in the
a broad range of issues, from drugs
democracies to invite someone
hemisphere has been called into
to development.
Cuba was not formally on yes-
such as Mr. Castro "who is the op-
question by several developments,
terday's agenda, which dwelt on
posite of what democracy is. It's a
most prominently Congress' re-
ways to bolster the Western Hemi-
question of morals and principles."
fusal to give Mr. Clinton "fast-
sphere's new democracies and im-
Rather, he said, members of
track" trade negotiating authority:
Cuba's democratic opposition
In his opening statement to the
prove its education systems. On
these topics, there were abundant
should be invited to attend at the
summit, the president tried to al-
next summit, which will take place
lay those concerns, saying, "The
signs that leaders from north to
south are on the same wavelength.
in Canada in two or three years.
United States may not yet have
fast-track legislation, but we will."
Even on the subject of Cuba, na-
Complaints from Latin nations
U.S. officials, trying to tread a
tions share the goal of promoting
and Canada as well as Europe
fine line, said it is possible for the
about U.S. policy toward Cuba are
see CUBA, page A4
United States to simultaneously be
nothing new. But they come at a
a leader and a better partner.
time when Washington is trying to
"It's clearly more of a partner-
There's more to Clinton's trips
put its relations with Latin Amer-
ship
But I don't think that takes
than wanting to leave town. A4
ica on a more equal footing, replac-
away from the recognition of our
ing the mutual recriminations and
leadership, the expectation of
suspicions of the recent past.
our leadership," said Thomas F.
For example, the summit lead-
"Mack" McLarty, the president's
ers yesterday agreed to launch a
special envoy to Latin America
new. hemispherewide anti-drug
"One does not preclude the other."
The Washington Times
SUNDAY, APRIL 19, 1998
President Clinton addresses 33 hemisphere leaders at the Summit of Americas in Santiago, Chile, yesterday.
The Washington Times
SUNDAY, APRIL 19, 1998
Wandering Clinton seeks a place to leave his mark
By Warren P. Strobel
THE WASHINGTON TIMES
"Presidents
get
SANTIAGO, Chile - All his life,
interested in
President Clinton wanted nothing
more than to make it to Washing-
international affairs
ton. Now it seems all he wants to
do is leave.
the longer they're in
Since March 22, Mr. Clinton has
spent six full days in Washington.
office. This might be
In the interim, he's been to Ghana,
part of the legacy
Uganda, Rwanda, South Africa,
Botswana, Senegal, Kansas City,
operation."
Chicago, Kentucky's tobacco coun-
try, Camp David, Houston for a fo-
Stephen Hess,
rum on race, tornado-ravaged Ala-
Brookings Institution
bama and now Chile.
SUNDAY, APRIL 19, 1998
The Washington Times
The trite explanation for the
president's wanderlust is that he
as presiding over a "do-nothing
wants to escape the uninviting mi-
Congress," as he plans if they don't
lieu of Washington, where his ad-
pass his legislative priorities, if he
ministration remains mired in the
has been gone all the time himself.
muck of scandal.
The White House has drafted a
That may be part of the story,
hectic in-town schedule for the;
but White House officials and out-
president next week. With Con-
side observers say there is more.
gress returning from recess, it is
Mr. Clinton has long thrived by
designed to demonstrate that the
taking his message outside of
president is active and engaged.)
Washington, where he can meet
He meets Tuesday with Demo-
the voters and go over the heads of
cratic leaders to discuss their leg-
a Republican Congress and a cyni-
islative agenda for the rest of the
cal national media. On Capitol Hill,
year. The president may soon hold
the 1998 midterm election year is
his first Washington news confer-
shaping up as one of the quietest
ence in months.
legislative sessions in recent mem-
"There'll be, certainly, a lot
ory, giving the president less rea-
more action in Washington the
son to hang around.
next few weeks," Mr. Lockhart
And much of his foreign travel,
said.
like the summit of Western Hemi-
While the 12-day Africa trip, to
sphere leaders that opened here
Costa Rican President Jose Maria Figueres greets Chilean President Eduardo Frei at the Summit of the
nations never before visited by a
yesterday, was set long in advance,
Americas as their wives meet in the background. President Clinton joined the leaders yesterday in Chile.
U.S. president. went well logistic-
reflecting the dreams of a second-
ally, Mr. Clinton's hectic interna-
term president who wants to se-
late-June mission to China and
House spokesman Joe Lockhart.
tional schedule is beginning to take
cure a legacy in foreign affairs.
The president's foreign travels
its toll.
possibly Japan; a September tour
The truth is, Mr. Lockhart said,
"Presidential travel probably
bring results, too, the spokesman
of India, Pakistan and Bangladesh;
Fresh advance people have been
the president has a strong agenda
said, citing his previous visit to
goes up the longer a president is in
and a November trip to Malaysia
dragooned into the elaborate prep-
at home, and "he's going to the
Northern Ireland, which the White
office," especially if he wins a sec-
for an annual Asia-Pacific summit.
aration process for a presidential
places where he thinks he can
House believes was instrumental
ond four-year lease, said pres-
"Presidents, particularly Bill
trip abroad. One veteran White
highlight the need to pursue these
idential scholar Stephen Hess of
in spurring the process that led to
Clinton, get interested in interna-
House advance official flew di-
policies." He cited the Kentucky
a peace accord earlier this month.
the Brookings Institution.
tional affairs the longer they're in
rectly from Africa to Germany,
stop, where the president pushed
Mr. Clinton has planned at least
office," Mr. Hess said. "This might
Still, there are signs that Mr.
where Mr. Clinton next month will
anti-smoking legislation the day
Clinton and his aides are worried
four more foreign trips this year,
be part of the legacy operation."
celebrate the 50th anniversary of
after a leading tobacco company
about the amount of time he has
including a May trip to Germany,
Pundits, like Mr. Hess can spec-
the Berlin airlift, returned to the
pulled out of last year's tobacco
England and possibly Ireland; a
ulate all they want, said White
spent on the road lately. The pres-
United States for a day and then
deal.
ident can hardly tar Republicans
went on a scouting trip to China.
FREE-TRADE ZONE
Continued From Page Al
In many of the countries, the execu-
tive branch exercises considerable
control over the judiciary and the
sues," said José Miguel Vivanco, ex-
legislature, which are often dominat-
OF THE AMERICAS
ecutive director of the Americas di-
ed by members of the President's
vision of Humans Rights Watch.
party or by the President's appoint-
"As a matter of principle, this so-
ees.
GIVEN A GO-AHEAD
cial action plan is wonderful because
Clinton Administration officials
it addresses the grave social ills and
abuses of power that these govern-
have long expressed concern about
ments have long ignored. In practi-
making new trade deals with coun-
cal terms, however, this type of rhet-
tries that do not have independent
LEADERS SCHEDULE TALKS
oric often doesn't result in any action
because there's no mechanism for
news organizations to help guard
against corruption. That concern has
accountability."
But Opposition in U.S. Shifts
Education is at the center of the
been echoed by those involved with
international business and invest-
plan, which calls for all governments
ment.
Focus of Summit Meeting
in the region to provide universal
access to elementary school educa-
While the meeting focused less on
to Social Conditions
tion by 2010 and to provide high
trade issues than the organizers had
school education for 75 percent of the
hoped, trade experts said setting a
region's youngsters by the same
date to begin free-trade talks and
Al
year.
establishing a logistical framework
By CALVIN SIMS
"Education is the determining fac-
for those negotiations would hopeful-
SANTIAGO, Chile, April 19 -
tor for political, social, cultural, and
ly keep the momentum for an agree-
Leaders of 34 countries in the West-
economic development of our peo-
ment alive.
ern Hemisphere took a first step
ples," the communiqué says. "In or-
But the experts acknowledged that
today toward creating the world's
der to meet our goals within the
the lack of fast-track authority -
largest free-trade zone, one that
agreed time frames, we affirm our
under which Congress would be able
would span the Americas.
commitment to invest greater re-
to approve or reject a trade agree-
In a joint declaration signed by
sources in this important area."
ment negotiated by the Administra-
President Clinton and 21 other presi-
Under the plan, the region will
tion but not to amend it - had hurt
dents and 12 prime ministers, the
have access to $8.3 billion in new
the United States' credibility on free
leaders said that talks on the subject
loans and grants, mainly from the
trade.
would begin in September and they
international lending organizations.
The Free Trade Area of the Ameri-
pledged to make "concrete
The money would be used for a varie-
cas would have 34 member nations
progress" toward a goal of signing
ty of programs, including a number
(Cuba is not included) with 750 mil-
an agreement by 2005.
that would improve teaching, and to
lion people and a gross domestic
But reaching a final agreement is
buy textbooks and other materials.
product of more than $9 trillion. The
by no means certain, mainly because
As part of the plan, the leaders also
United States accounts for 85 percent
of strong opposition in the United
promised to lower barriers to home
of the region's economy.
States Congress, which has so far
ownership, strengthen democratic
The population would be more
failed to grant Mr. Clinton the so-
institutions, improve training for
than double the 370 million of the 15-
called fast-track negotiating author-
judges and prosecutors and cooper-
nation European Union.
ity that is considered crucial to
ate in the fight against drugs.
Last year, United States exports to
reaching a hemispheric free-trade
Thomas L. McLarty, President
the hemisphere totaled $286 billion,
accord.
Clinton's special adviser for Latin
or 42 percent of its global exports. In
For that reason, the leaders here
America, said in an interview that
the five years since 1992, trade with-
attending the second Summit of the
the social action plan was the next
in the Western Hemisphere has risen
Americas focused much of their at-
to $592 billion, from $375 billion.
tention this weekend not on free
logical step for Latin America as it
trade but on improving social condi-
completes a first round of reforms,
tions in the region.
which have included a return to de-
As part of their final communiqué,
mocracy in many countries and a
the leaders agreed to a sweeping
restructuring of inefficient econo-
social action plan that is intended to
mies.
improve education, reduce poverty,
expand democracy, guarantee hu-
Perhaps the most discussed issue
man rights and fight drug trafficking
of the social action plan was its cre-
in the hemisphere.
ation of the position of rapporteur, or
"We all admit that too many of our
monitor, at the Organization of
citizens have not yet seen their own
America States to report on freedom
lives improved as a result of our
participation as free nations in a
of expression. The rapporteur would
global economy," Mr. Clinton said at
investigate cases of press repression
the meeting's closing ceremony at
and other free-speech abuses.
the Chilean Ministry of Foreign Af-
Despite the rise of democracy in
fairs.
Latin America after decades of mili-
"We have, therefore, committed
ourselves here to a second stage of
tary dictatorship, freedom of the
reforms designed to bring the bene-
press remains a goal rather than a
fits of freedom and free enterprise to
reality across much of the region..
ordinary citizens throughout the
Often those opposed to free speech
MONDAY, APRIL 20, 1998
Americas."
are the democratically elected gov-
Human rights groups, which have
ernments promising to protect it.
long criticized free-trade agree-
ments as failing to address social
In the last decade, at least 120
needs, applauded the social action
journalists have been killed in Latin
plan while questioning whether it
America while reporting on corrup-
would be enforced once the leaders
tion, drugs and human rights abuses.
leave Santiago.
Several Latin American govern-
"This is the silver lining to Clin-
ments, like Argentina's, have intro-
ton's failure to get fast track - a
duced legislation that critics contend
shift away from trade to human is-
would intimidate the press and
Continued on Page A10
quash investigations.
In Latin America, the press is
often the only check on government.
ESTINOL 4
3
=
ENGLISH 1
MONDAY, APRIL 20, 1998
The New York Times
Associated Press
President Clinton, right, and other leaders at Chile talks. The empty chair belonged to President Alberto Fujimori of Peru, who was briefly absent.
Reporter's Notebook
First Lady Visits Real People in Chile
By JOHN M. BRODER
moment, giving a detailed history of
Pranksters Bearing Gifts
SANTIAGO. Chile, April 19 - As
the frustrations he has suffered
It is customary when leaders gath-
34 leaders of the nations of the Amer-
building the school, from the hostility
er that they pose for a group photo-
icas were gathering in a windowless
of the previous military regime to
gra SIV usually a static moment fro-
hotel ballroom here to produce a
the bureaucracy of the current Gov-
zen for the history books. But the
lofty declaration of hemispheric co-
ernment.
solemnity of Saturday's photo ses-
operation, Hillary Rodham Clinton
About 10 minutes into Mr. Reu-
sion was broken by two pranksters
was demonstrating their intentions
may's introduction of the First Lady,
who had obtained press passes.
in action.
a Chilean television reporter, Jeffer-
One appeared with a saxophone,
Mrs. Clinton spent a long day in*
son Adaro, predicted, "This son of a
which he handed to Mr. Clinton, who
southern Chile on Saturday, visiting
gun is going to talk for many min-
paused briefly but returned it with-
utes.'
a Mapuche Indian school, speaking
out playing a note.
And talk he did, for a total of 29
at a clinic run by Mapuches and
Then another prankster handed
British missionaries and meeting
minutes. But Mrs. Clinton hung
the President a copy of the Kama
with women who run small business-
there, attending to every word and
Sutra, the ancient Hindu sex manual.
even waving off an aide who offered
es.
Mr. Clinton took a quick look at the
It was a concrete expression of the
to give Mr. Reumay the hook.
book, laughed heartily and then hast-
concerns of the summit leaders, who
ily returned it to its owner.
today pledged to deepen democracy
Wickedly Funny, Offstage
through education, improved health
Rumor has it that Mrs. Clinton lets
care, protection of indigenous people
a different side of her personality
and more lending to small enter-
show in private than the extreme
prises.
earnestness of her public demeanor.
The programs the First Lady high-
It is said that at lunches with report-
lighted are part of her campaign of
ers she can be wickedly funny, offer-
global good works that have taken
ing astute and biting assessments of
her to similar sites in Bangladesh,
global leaders and American politi-
Uganda, Uzbekistan, Mongolia, Ire-
cians alike. Reports have reached
land and Nicaragua. Everywhere the
Western observers that Mrs. Clinton
message is the same: Without
possesses a sharp analytical mind
schooling, decent health care and the
and deeply believes in the value of
empowerment of women, societies
her missions to bring aid and com-
will remain mired in poverty and
fort to the world's struggling peo-
paternalism.
ples. She has strong opinions and is
"These are all pieces of a bigger
not shy about expressing them.
effort to rebuild civil society and
But all that is off the record, at the
restore the rule of law," she said on
insistence of the First Lady and her
her aircraft en route to Temuco,
staff, who zealously guard Mrs. Clin-
some 500 miles south of Santiago.
ton's privacy and are determined
At a primitive Mapuche Indian
that she not be seen as meddling in
clinic down seven dusty miles of bad
affairs that are properly the prov-
road, Mrs. Clinton was welcomed
ince of her husband.
with a traditional dance and then
toured the site with the local machi, a
Out of Starr's Orbit
shaman whose contacts with the
spirit world are believed to give her
The entourage accompanying the
curative powers.
President and First Lady on this trip
The clinic blends Western medi-
is considerably smaller than the
cine with traditional healing. Tuber-
huge delegation on the recent trip to
MONDAY, APRIL 20, 1998
culosis patients are treated with
Africa. Absent are the business exec-
antibiotics and other modern meth-
utives and campaign contributors
ods under the supervision of Janet
that filled two planes in addition to
Dolder, a missionary nurse from Es-
sex, England, who came to Chile 40
Air Force One on the Africa voyage.
years ago and married a Mapuche.
The Rev. Jesse L. Jackson was no-
But the patients also receive tradi-
where to be seen.
The
tional cures from the machi, who
But the official delegation still in-
brews herbal teas and performs
cludes 77 people, including 6 Cabinet
massages with salves made from the
officers. 5 members of Congress and
local flora. Her presence gives the
6 assistants to the President, not to
Mapuche confidence to submit to the
mention various deputy assistants
20th-century medicine practiced by
and assorted hangers-on.
Mrs. Dolder and her staff.
Among the trip's attractions is
"As a machi, I have been treated
that Santiago is 5,500 miles from
at the hospital and I trust very much
Washington, well out of range of the
in the quality of care," said the ma-
subpoena servers of Kenneth W.
chi, who goes by her honorary title
Starr, the independent counsel. Four
and not her name. "It was difficult
White House officials on the trip -
for me to come here, but I have been
Bruce Lindsey, John Podesta, Sidney
treated very well. I also help in the
Blumenthal and Nancy Hernreich -
treatment of patients; I give them
have been summoned to appear be-
massages.'
fore Mr. Starr's grand jury investi-
Mrs. Clinton applauded the experi-
gating whether Mr. Clinton and oth-
ment in bicultural health care, noting
ers lied about his relationship with
that they blend "different concepts
Monica Lewinsky or asked others to
about health, the body and life."
do so.
With the luxury of distance, the
And Furthermore
four officials could indulge in gallows
humor, competing for bragging
At an earlier event in Temuco, the
rights for the most grand jury ap-
dedication of a school intended to
pearances.
assimilate Mapuche children into
The honor was won by Mr. Lind-
Chilean society while keeping their
sey, deputy White House counsel and
language and traditions alive, Mrs.
the President's closest confidant,
Clinton was introduced by the
with four recent sessions.
school's director, Eusebio E. Reu-
may.
Mr. Reumay took advantage of t
"We saw the [U.S.-Latin America]
negotiations for a proposed Free
Summit
relationship change during this sum-
Trade Area of the Americas, despite
mit," Chilean Foreign Minister Jose
the fact that Clinton arrived in the
Miguel Insulza said in an interview.
Chilean capital without "fast track"
"If Richard Nixon hadn't used the
Ends With
authority-the power to sign trade
term 'mature partnership' to describe
accords that Congress could then
his ignoring of Latin America in the
only vote up or down, without
1970s, that is exactly the term we
amendment. The lack of fast track,
Promises
would be using to describe the rela-
which Clinton failed to win from
tionship today. We are talking more
Congress last November, ironically
equally, and we are no longer having
was viewed here as a deal maker,
34 Leaders Focus On
one-way conversations. The U.S. is
rather than a deal breaker. Countries
listening to us too."
such as Brazil-which had resisted
But U.S. officials were quick to
Trading Zone, Drugs
the initial U.S. format for trade
point out that some changes are not
talks-found the United States now
likely to be immediately forthcoming.
willing to compromise on the struc-
By ANTHONY FAIOLA
AI
In discussing the U.S. drug certifica-
ture of negotiations to keep the
and THOMAS W. LIPPMAN
tion process, national security advis-
prospect of a vast free-trade zone
Washington Post Foreign Service
er Samuel R. "Sandy" Berger de-
alive.
clared: "We would have to obviously
Although it will still be tough to
SANTIAGO, Chile, April 19-
have a long discussion with Congress
The second Summit of the Ameri-
persuade many opponents at home,
before there were any changes in
cas ended here today with Presi-
U.S. Trade Representative Charlene
U.S. law. I think that's not contem-
dent Clinton and 33 other Western
Barshefsky said that the proposed
plated at this point." In general,
free trade area "is embraced by all of
Hemisphere leaders signing a dec-
however, he echoed Insulza's assess-
laration that promised everything
the countries without exception as
ment of the hemispheric relationship.
from a rethinking of the drug war
integration to a broader agenda of
"One of the things that is very
to negotiations that could create
strong democracies, the alleviation of
striking about this meeting," Berger
the world's largest free-trade zone.
poverty and the empowerment of
The leaders treaded lightly on
people and sustainable develop-
said, "is that
there is no sensé of
the challenges to democracy still
ment." In the summit communique,
America trying to dominate [the
looming in Latin American trouble
the nations agreed to sign an accord
other] countries.
There is a
spots from Paraguay to Peru, con-
by 2005, with the first round of
genuine spirit of partnership."
centrating on "a second-genera-
negotiations to begin as early as
tion" of issues, such as education
That new relationship manifested
June.
and economics. The topics reflect-
itself in a number of ways, not all
The 34-page "plan of action" goes
ed what participants labeled an
pleasing to the Americans. One clear
on to address everything from new
overall deepening of Latin Ameri-
indication of hernispheric willingness
techniques to combat the drug trade
ca's transition from dictatorships
to question U.S. policy came in the
to standards for transporting nuclear
to democracies and from state-
form of private calls for reinstate-
waste through the Panama Canal.
ment of Cuba to the OAS and in
owned behemoths to free-market
Other new drug proposals include
public declarations that Cuban Presi-
systems.
hemispheric efforts to crack down on
dent Fidel Castro should be included
Clinton underscored his belief
money laundering, combat drug ad-
in future hemispheric summits.
that a greater pool of people must
diction and support "alternative de-
benefit from those changes if they
On the heels of Pope John Paul IT's
velopment" programs that would
are to hold. The Americas have
visit to Cuba in January, it was
give farmers who grow drug-produc-
revealed this weekend that Canadian
undergone a "profound revolution
ing plants the incentive to cultivate
in the last few years, a revolution of
Prime Minister Jean Chretien, who
peace and freedom and prosperi-
will host the next summit, possibly in
legal crops.
ty," the president said. "Here in
2000, has accepted an invitation to
The summit plan also focused on
visit Havana next week, becoming
Santiago, we embrace our respon-
combating illiteracy and pledged to
the first Canadian leader to do so in
sibility to make these historic
"ensure, by the year 2010, universal
21 years. Meanwhile, other leaders
forces lift the lives of all our people.
access to and completion of quality
It is a future worthy of the new
here spoke of ending Cuba's isola-
primary education for 100 percent of
tion.
children and access for at least 75
Americas in a new millennium."
"The exclusion of Cuba is unfair
In Latin America, which has long
percent of young people to quality
because that country isn't a threat to
secondary education." To reach that
been the inferior partner in a general-
anyone," Peruvian President Alberto
goal, the Inter-American Develop-
Fujimori told reporters. "The Cuban
ment Bank and the World Bank have
See SUMMIT, A14, Col. 2
president should have been allowed
already committed $6 billion in con-
to come here and express his point of
cessionary loans for education over
SUMMIT, From Al
view and to listen to criticism of
the next three years.
him."
The plan calls further for a
ly paternalistic relationship with the
But the Cuba issue was one of the
strengthening of the judicial systems
United States, the summit is widely
few divisive notes in what was gener-
in Latin America-still among the
viewed as a key turning point in
ally a diplomatic love fest. Indeed, the
region's weakest institutions—
equalizing that relationship. Latin
language of the final communique is
through creation of a new justice
officials, for instance, believe a great
so lofty that it almost echoes Marxist
center that would train judges and
leap forward was made in the cre-
utopian rhetoric from bygone genera-
prosecutors on applications of law.
ation here of a Multilateral Counter
tions-the difference being that
The document also outlines a tighter
Drug Alliance that would use the
trade and capital markets, rather
regulation of the region's banking
Organization of American States as a
than economic collectivism, are of-
system, greater cooperation in root-
tool to evaluate each nation's record
fered as the keys to a happier future
ing out money laundering and great-
of combating drug trafficking-ap
for the region.
er participation in U.N. peacekeeping
cess seen here as a potential alterna-
As expected, the summit partici-
missions by Latin America militaries.
tive to the highly disparaged U.S.
pants agreed to a strict schedule of
Indeed, at the same time as the
procedure of "certifying" the anti-
United States engages in a new
drug cooperation of individual na-
partnership mentality toward Latin
tions.
America, the nations in the hemi-
sphere appear more willing to work
with Washington to address their
myriad social and economic prob-
lems. There may be a lingering "us
The Washington Post
VS. them" attitude, especially in South
America, but they were not much on
display here.
"You now have recognition by all
MONDAY, APRIL 20, 1998
these governments of the need to
rebuild civil society at the local level,"
one senior U.S. official said. At the
first summit of the Americas, in
Miami in 1994, he said, "we couldn't
get that recognized. Some of them
wouldn't even talk about it."
First Lady Works Summit's Foothills
By THOMAS W. LIPPMAN
Washington Post Staff Writer
TEMUCO, Chile-Up in Santia-
go, 500 miles to the north, Presi-
dent Clinton and the leaders of 33
other Western Hemisphere na-
tions were signing high-minded
proclamations of their commit-
ment to expand education, eco-
nomic opportunity and access to
justice for all their people.
At the same time Saturday, out-
side this drab highland town, first
lady Hillary Rodham Clinton was
jolting over a dusty gravel road to
visit a rural clinic for the indige-
nous Mapuche people where con-
ventional medicine is blended with
traditional cures.
Despite the difference in setting,
both Clintons were promoting the
same notion: democracy and pros-
perity must be built from the bottom
up, as well as from the top down.
That was the theme of the second
Summit of the Americas, which end-
ed yesterday, and of all of President
Clinton's public statements during
his four days in Chile. Largely at
Clinton's behest, the summit partici-
pants endorsed his premise that de-
BY MARIANA
mocracy means more than elec-
tions-it must be reinforced and
Mapuche artisan Agustina Painiqueo, right, shows Hillary Clinton a spindle and woven products in Temuco, Chile.
made permanent through a "second
generation" of political, legal and
ative development projects that give
but the outcome will be determined
social reforms that give ordinary
work together to make their new
people a stake in it.
villagers a sense of opportunity and
by the day-to-day efforts of ordinary
democratic systems produce.
participation. With her outlook large-
The summit's final declaration,
people reinforcing each other.
The day's final stop was listed on
issued yesterday, could have been
ly shared by Secretary of State Made-
At the Mapuche school and cul-
her schedule as a "micro-credit
written by either Clinton. "The
leine K. Albright and Agency for
tural center-which directors said
event," the second of her visit to
strength and meaning of represen-
International Development Adminis-
was built after years of struggle with
Chile. At the first, Friday, the presi-
tative democracy lie in the active
trator J. Brian Atwood, the adminis-
a central government that discour-
dent also took part. The format calls
participation of individuals at all
tration has been channeling foreign
aged use of the Mapuche language,
for local people who have made
levels of civic life," it said. "The
aid and other resources into devel-
and only with the help of Peace Corps
opments that fit this description—
breakthroughs in their lives with tiny
democratic culture must encompass
volunteers-Mrs. Clinton was greet-
amounts of financial assistance to tell
the entire population."
and especially into Mrs. Clinton's
ed by colorfully dressed women who
their stories and hear words of en-
For the first lady, the trip to
favorite cause, "micro-credit," or
said the center had given them an
modest loans to aspiring entrepre-
couragement.
Temuco provided an opportunity to
opportunity to produce and sell their
Here Mrs. Clinton heard from
practice her husband's policy at the
heurs, mostly women.
rugs and pottery, for which there
retail level. At a new Mapuche school
A summit announcement said AID
previously was little market.
women who banded together in a
and cultural center, at the clinic and
will provide $120 million over three
That was exactly the point, Mrs.
flower-selling cooperative, and from a
at a meeting with women who have
years to finance micro-credit pro-
Clinton told them: Progress begins in
woman who obtained a foundation
started modest businesses, she hailed
grams, and summit participants
the community.
grant to learn goose-raising in
Chile as a model of Latin American
"pledged to work with multilateral
In Santiago, she said, "the leaders
France. All said they were formerly
reform, where people once oppressed
institutions and regional organiza-
will be talking about how to protect
"housewives" raising children but
now see democracy and education as
tions to invest in the range of $400-
democracy, how to create a justice
now are able to contribute financially
their keys to a better future.
$500 million over the next three
system that works for all people, how
to their families.
"During the time of military dicta-
years; combined, donor efforts
to fight poverty and protect human
That is what Mrs. Clinton likes to
torships [in Latin America], civil
should provide new financial resourc-
rights, how to make sure every boy
hear. "I especially like the part about
society was largely destroyed," she
es to over 1 million new microentre-
and girl is educated and every person
how this kind of work makes women
told reporters aboard her plane.
preneurs."
has health care, how to protect the
feel good about themselves," she
"There was no way for people to
They also promised to crack down
rights of indigenous people to be able
said. "I have personally seen how
claim or enforce any of their rights.
on child labor, strengthen health
to use their own language and follow
effective micro-credit is all over the
Now it's necessary to rebuild civil
care, put more money into education,
their own customs, and how to create
world.
It's a very good investment
society," an effort that in her view
"strengthen mechanisms for gender
respect among all people throughout
to make micro-credit loans to women
starts at the grass roots.
equity," protect indigenous cultures
our entire hemisphere."
like the ones we have met here
Mrs. Clinton, who has traveled
and "find ways to ensure that the
That might seem an ambitious,
today." There was no discussion of
through Africa twice, as well as South
rural and urban poor secure title to
not to say utopian, program, but
reactions of any men in this conserva-
Asia and South America, has become
their property."
according to Mrs. Clinton, ordinary
tive society whose wives have now
an enthusiast for small-scale, cooper-
Well and good, the first lady said,
citizens can make it happen if they
gained some independence.
The Washington Post
MONDAY, APRIL 20, 1998
a
is
Studies in Washington.
The Clinton administration
is caught in a dilemma as it
tries to hold out an olive
branch to Iran while carrying
out laws that pre-date Tehran's
conciliatory new tone.
The White House has post-
poned action on a 1996 law
sanctioning foreign oil compa-
nies dealing with Iran. But con-
gressional staffers say the
White House grudgingly
agreed last week to spend $2.6
million on a surrogate broad-
casting station that supporters
want to call Radio Free Iran.
The debate over this year's
terrorist report, which also
evaluates Iraq, Libya and other
countries, was especially heat-
ed, participants said.
Some argued that tough
rhetoric would push the Iran to
curtail links to extremist
groups such as Hezbollah in
Lebanon. Others worried that
it would just antagonize Irani-
ans hostile to the United States.
Undergrads
neglected,
for supporting terrorism
report says
Mohammad Sayyad. AP
By Mary Beth Marklein
co
Khatami: Less vocal critic of
West than predecessors.
members of Kurdish and other
groups opposing Iran.
Some analysts oppose defin-
ing such activity as terrorism.
"This is a political document
that preaches to the converted
and has the intellectual depth
of a mud puddle," said Antho-
ny Cordesman of the Center
for Strategic and International
USA TODAY
AI
Americas
Undergraduates are a "ma-
jor source" of income for re-
search universities, yet many
plan duty
of them graduate "without
knowing how to think logically,
write clearly or speak coher-
free zone
ently," says a scathing report
out today.
By Bill Nichols
The report, a 21/2-year pro-
USA TODAY
AI
ject funded by the prestigious
Carnegie Foundation for the
SANTIAGO, Chile - Lead-
Advancement of Teaching,
ers of the Western Hemi-
J.S.
By Barbara Slavin
USA TODAY
A new State Department re-
port again slams Iran as the
most active state supporter of
terrorism, a finding that could
inflame the debate in the USA
and in Iran over resuming offi-
Rep. Lee Hamilton of Indi-
ana, ranking Democrat on the
House International Relations
Committee, confirmed the
finding of the report, to be is-
sued April 30. "It is a snapshot
of activity in 1997," he said.
Mandated by Congress, the
report acknowledges condem-
nations of terrorism by Iran's
new, more moderate presi-
dent, Mohammad Khatami.
But it is similar to last year's,
which called Iran the "premier
state sponsor" of terrorism.
The report faults Iran for
hosting leaders of groups asso-
ciated with terrorism and links
it to 13 assassinations, mostly of
recommends a radical over-
sphere's 34 democracies ended
haul of undergraduate educa-
the second Summit of the
tion at the nation's 125 re-
Americas Sunday by launching
search universities.
talks to create the world's larg-
It says most undergraduate
est duty-free zone.
programs at research institutes
Trade negotiations could be-
offer "boring" freshman
gin as early as June. But obsta-
courses taught either by inter-
cles remain as Latin American
cial ties.
national graduate students who
leaders expressed concern that
don't speak fluent English or
Congress will not support Presi-
"tenured drones" lecturing
dent Clinton's request for fast-
from yellowed notes.
track trade authority in the for-
The report says the institu-
seeable future.
tions should develop a curricu-
Fast-track authority allows
lum for undergraduates that
U.S. presidents to negotiate
emphasizes research, the hall-
trade deals that can only be ap-
mark of graduate and faculty
proved or voted down by Con-
scholarship. It also suggests
gress, not amended. It was nar-
creating mentoring programs.
rowly defeated in the House of
The report comes at a time
Representatives last fall.
when undergraduate educa-
Leaders at the summit
tion is facing increasing public
agreed that without fast-track,
scrutiny. Research Institutes
the plan to establish a free
also are scaling back doctorate
trade area throughout the re-
programs because the market
gion by 2005 is in jeopardy.
for those students is dwindling.
Clinton assured the leaders
The "timing couldn't be bet-
fast track would pass. But ad-
ter," says Arthur Levine, presi-
ministration officials, both in
dent of Teachers College at Co-
public and private, were un-
lumbia University in New
able to outline any scenario un-
York. "Universities have to do
der which that could happen
something because legislators
anytime soon.
are pushing them, students are
If the United States were not
(behaving) more like consum-
part of any free trade agree-
ers and parents are worried
ment, it could be at a competi-
about costs."
tive disadvantage:
Levine was not involved in
Latin America, which has
creating the report, although
been unilaterally lowering im-
Columbia is one of the schools
port barriers in recent years, is
listed by the foundation as a re-
the fastest growing foreign
search university.
market for U.S. exports.
The ranks of research
Last year Mexico overtook
schools include private univer-
Japan to become the second
sities like Brown, Harvard,
largest importer of U.S prod-
Vanderbilt and Carnegie Mel-
ucts after Canada.
Ion, but most are large state in-
The Americas, including
stitutions such as Penn State,
Canada, accounted for 40% of
Ohio State and the University
$690 billion U.S. exports last
of California at Los Angeles.
year.
"We don't mince words,"
Summit leaders also took
says Shirley Strum Kenny,
steps to address social and eco-
president of State University of
nomic inequalities, and the cor-
New York at Stony Brook and
ruption endemic in some coun-
chair of the commission that
tries that threaten fledgling
USA TODAY
MONDAY, APRIL 20, 1998
prepared the report. "But there
democracies.
is a kind of enlivening excite-
Some of the programs
ment about it."
agreed upon:
The group, made up of facul-
An $8.3 billion internation-
ty and administrators of re-
al loan package for improving
search universities and leaders
education. The Clinton admin-
of nonprofit organizations, an-
istration pledged $130 million.
ticipates a strong response to
A multilateral drug alli-
the report.
ance that would monitor each
It says its recommendations
Latin American country's anti-
"will be controversial; some
drug efforts under the auspices
administrators and faculty will
of the Organization of Ameri-
protest that they are unreach-
can States.
able or impractical
but
it
Easier credit terms to
hopes the report "will stimu-
help start and operate small
late new debate about the na-
businesses.
ture of undergraduate educa-
$5.9 billion in internation-
tion in research universities
al
assistance to fight corrup-
that will produce widespread
tion, promote workers rights
and sweeping reform."
and curb child labor.
Today's debate: Trade in the Americas
U.S. misses out on jobs as
free trade opens S. America
OUR VIEW
Others, including
Mexico and Canada,
not burdened by trade obstacles
President Clinton emerged from the first
Summit of the Americas more than three
years ago with a boast. "Free trade in our
hemisphere has been talked about for years,"
he said, "but it will now become a reality."
Latin American countries took this mes-
sage to heart. Since that meeting concluded,
By Claudia Daut. Reuters
they've cut numerous deals to knock down
Chile Summit: President Clinton and Chile's
trade walls. And the trend is accelerating.
Eduardo Frei at meeting of hemispheric leaders.
On Saturday, for instance, the Mercosur
trading block - Brazil, Argentina, Uruguay
cas. Clinton assured Latin American leaders
and Paraguay - announced plans to strike a
that "our commitment to the Free Trade Area
trade deal with Central American countries,
of the Americas will be in the fast lane of our
which plan to form a free trade bloc. Last
concerns."
Thursday, Andean pact countries inked a sim-
It should be. But without "fast track" nego-
ilar deal with Mercosur. Chile has signed free
tiating authority, countries will do little more
trade agreements with Mexico and Canada.
than talk. Under fast track, Congress can vote
In the midst of all this free-trade frenzy, the
up or down on a trade deal, but it can't amend
U.S. has sat idly by. Of the 30-plus deals oper-
it. Chile walked away from negotiations to
ating in this hemisphere, the U.S. is party to
join NAFTA because Clinton lacks fast-track
only one. Even the modest goal of getting
authority. Back in 1988, negotiations on a
Chile into the North American Free Trade
worldwide trade agreement ground to a halt
Agreement has been put aside.
for eight months when fast track lapsed.
This is a problem with a mounting price.
Last fall, Clinton pulled back a fast-track
U.S. goods bound for Chile, for instance, still
plan in Congress after failing to secure enough
face an 11% tariff. Not so Canadian or Mexi-
votes for passage. Trade protectionists on the
can products. Result: lost jobs and missed op-
left and right scared enough lawmakers away
portunities. Quaker Fabric Company, for in-
to ensure defeat. Few think prospects will im-
stance, forfeited a $1.8 million Chilean
prove in an election year, when parochial in-
contract to a competitor from Mexico because
terests most easily override national priorities.
the Mexican firm could avoid the hefty tariff.
If Clinton is to make good on his promise at
With the Latin American region growing in
this year's summit, he'll have to take a much
size and importance, the U.S. can ill afford to
more decisive leadership role than he has
USA MONDAY, APRIL 20, 1998
be left out. So at the second Summit of the
since the last one. That means convincing the
Americas meeting, which concluded Sunday
public that trade is good medicine. The enor-
in Santiago, Clinton again promised to re-
mous economic opportunity presented by a
charge U.S. free-trade batteries. The goal now:
peaceful, prosperous Latin America is still
a hemispheric Free Trade Area of the Ameri-
ours to lose. Clinton shouldn't let it slip away.
President already has trade power
Clinton wants
trade pacts with what our president says? Spin
OPPOSING VIEW
'fast track' as
and politics, of course, are the answer. Clearly,
the U.S. Constitution gives our president the
a blank negotiating check.
authority to negotiate trade pacts with other
nations. And obviously other nations will ne-
By Pat Choate
gotiate with him without fast track. What our
president really wants is an extra edge in his
The president of Mexico has negotiated a
relationship with Congress - the blank nego-
free-trade pact with Chile. The prime minister
tiating check that comes with fast track.
of Canada has concluded a similar agreement
Between 1934 and 1994, Congress was will-
with Chile. But our president says he is unable
ing to give a succession of presidents those ex-
to do the same.
traordinary powers that fast track provides.
He says that Chile and other nations refuse
However, America faced extraordinary cir-
to negotiate trade treaties with him because
cumstances then - depression, World War II
the U.S. Congress now insists on exercising its
and the Cold War. Today, all that is past.
constitutional duty to oversee. amend and rat-
The U.S. Constitution provides the guide
ify trade treaties.
about what to do now. The president negoti-
He also says that no more trade deals will
ates a trade treaty that is then presented to the
be possible until Congress grants him "fast
U.S. Senate, where ratification requires a two-
track" negotiating authority - that is, until
Congress agrees virtually to pre-approve any
thirds majority vote of those present.
America can have free-trade treaties with
provisions in any trade treaty that he might
Chile, Latin America and the rest of the world
conclude.
now. The principal obstacle, however, is our
Since 1993, however, our president has ne-
president's insistence that he be given a fast-
gotiated more than 220 trade pacts, and has
track shortcut around the U.S. Constitution.
been negotiating the Multilateral Agreement
on Investment with 28 other nations, without
Pat Choate is a Washington-based economist
any fast-track authority.
and author. In 1996, he ran as Ross Perot's vice-
How do we reconcile all these completed
presidential candidate for the Reform Party.
Americas seek free trade,
see need to improve lives
By Warren P. Strobel
AI
Criticism that unlimited free
Appoint a special envoy to doc-
THE WASHINGTON TIMES
trade pushes labor and environ-
ument threats and restrictions
mental standards to the lowest
against the news media in the
SANTIAGO, Chile - The lead-
hemisphere.
common denominator, benefiting
ers of the Western Hemisphere
only elites and multinational cor-
Establish a region-wide alli-
concluded the second Summit of
porations, was responsible for kill-
ance against drugs.
the Americas yesterday by reaf-
ing Mr. Clinton's proposal for "fast-
Take steps to combat corrup-
firming their commitment to free
track" trade negotiating authority.
tion and strengthen judicial sys-
trade but promising to give the
tems.
That would have allowed him to
hard edges of capitalism a human
negotiate trade deals that Con-
Other initiatives were aimed at
face.
gress could approve or reject, but
helping women, small entrepre-
The 34 nations, from the United
not amend.
neurs, indigenous peoples and
States and its $7 trillion economy
Message received, the president
those without title to land.
to small Caribbean island-states,
seemed to be saying during his
"We have heard very often that
as expected launched negotiations
stay here.
the concerns of civic society have
aimed at establishing a free-trade
"Those who want to protect and
been left outside the scope of the
area stretching from the oil fields
enhance the role of working people
summit.
This belief has no basis
of Alaska to the tip of Patagonia by
in the global economy, and those
in reality," said Chilean President
the year 2005.
who remind us that we dare not
Eduardo Frei, the summit host.
But the summit seemed most
notable for the concessions it made
sacrifice our children's planet for
to critics' arguments that global-
present profits should be heard,"
ism and free trade alone are not
he said in an speech Thursday to
the solution to the hemisphere's
U.S. and Chilean business leaders.
ills.
The White House plans another
"We all admit that too many of
attempt to get Congress to approve
our citizens have not seen their
"fast track," although officials
have not yet decided when. Nor
own lives improved as a result of
does there seem much prospect
our participation in the global
that U.S. organized labor will back
economy," President Clinton said
off its implacable opposition to the
in his closing address.
idea.
He and his colleagues declared
The first Summit of the Amer-
in their final communique that
icas, which took place in Miami in
while globalization is generally a
good thing, "it can also heighten
December 1994, was criticized for
the differences among countries
its overemphasis on trade issues.
and within our societies."
The United States and its col-
The summit leaders announced
leagues did not want the same
steps to alleviate poverty, curb in-
thing said about Santiago, Mr.
justice, increase popular partici-
McLarty said.
pation in the political process and
Another thrust of the two-day
assist women and minorities.
summit was to preserve the hemi-
Thomas F. "Mack" McLarty, Mr.
sphere's embrace of democracy.
Clinton's special envoy for the
Cuba, which has the only non-
Americas, said in an interview this
elected leader in the region, was
weekend that without these and
the sole nation not invited.
other reforms, "you get some form
Cuba was the subject of some
of rugged capitalism."
discussion in the closed morning
In that spirit, steps taken at the
summit included:
session. A senior U.S. official said
Announcements of new fund-
Caribbean countries are consider-
ing for education. The World Bank
ing some sort of initiative toward
Cuba, perhaps inviting it to join the
see TRADE, page A10
Caricom trade grouping.
From page A1
"There is a country that is miss-
ing" from the summit, Brazilian
and the Inter-American Develop-
President Fernando Henrique
ment Bank will each make $3 bil-
Cardoso said afterward, expres-
lion in loans for education avail-
sing the wish that Cuba will be able
able over the next three years, and
to come to the next summit in
the U.S. Agency for International
Canada. Mr. Cardoso was greeted
Development will pony up an addi-
with applause and slaps on the
tional $130 million in grants.
back after he spoke.
Pledges to improve labor stan-
"No holdouts and no backslid-
dards. The three agencies will de-
ers," is how Mr. Clinton described
vote $322 million to promote work-
the region's attitude toward de-
ers' rights.
mocracy.
For the first time in any trade
To address the very real threats
negotiation, the creation of a com-
to democracy, the 34 nations
mittee that allows outside groups,
agreed to:
from organized labor to environ-
mental organizations, to have a for-
mal role in the talks.
The Washington Times
MONDAY, APRIL 20, 1998
LOS ANGELES TIMES
Summit Leaders Pitch Free Trade Zone in Americas (Santiago)
(first-edition) Page 1 for Monday, April 20, 1998:
By Sebastian Rotella and Jonathan Peterson (c) 1998, Los
Angeles Times
Top of page:
SANTIAGO, Chile The 34-nation Summit of the Americas that
ended here Sunday offered far more than a chat-fest on such regional
Col 1: Feature on emergency medical transportation.
dilemmas as drugs and poverty: It provided a glimpse of a future in
which the United States and its neighbors struggle more collectively
Col 2: A big what if" hangs over the sanity trial of condemned
than ever before to tackle their problems.
triple-murderer Horace Edward Kelly Jr.: What if the jury charged
The Western Hemisphere's leaders agreed Sunday to move forward
with deciding whether the California inmate is sane enough to be
on plans to create a vast free trade zone throughout the Americas, to
executed concludes that he is not? (DEATHROW-SANITY, moving
formally outlaw corruption and to cooperate on efforts to murture
Monday).
Internet and other electronic commerce in the hemisphere. The leaders
set a September deadline to begin talks in Miami aimed at establishing
Cols 3-5: China's release of student leader Wang Dan represents one
a Free Trade Area of the Americas by 2005.
of the last steps in an extensive package deal secretly negotiated
Moreover, in areas from schools to health care to political freedom,
earlier this year by the Clinton administration and the Chinese
the United States offered itself as an example and partner to the
government, according to administration officials and Chinese
region's junior democracies rather than as the feared and resented
sources. (with art) (CHINA-TALKS, moved).
enforcer of the past.
President Clinton's failure to come to Chile with broader
Col 6: The 34-nation Summit of the Americas that ended in
trade-negotiating authority from Congress was interpreted by some as
Santiago, Chile Sunday offered far more than a chat-fest on such
a sign of diminishing U.S. influence. On Sunday, El Mercurio, Chile's
regional dilemmas as drugs and poverty: It provided a glimpse of a
leading newspaper, ran this headline: "The Timidity of the Giant:
future in which the United States and its neighbors struggle more
Clinton Came to Regain His Leadership." But such sentiments only
collectively than ever before to tackle their problems.
underscored the rising strength and confidence of Brazil, Chile and
(LATIN-SUMMIT-TIMES, moved).
other nations that reacted approvingly to a U.S. approach they saw as
more cooperative and less ostentatious than in the past.
Above fold:
"One of the things that had weakened and hurt the relationship of
the United States and Latin America was the fact of a very powerful
Col 2: In just two years, the Census Bureau faces the staggering task
United States dealing with weak nations," said Genaro Arriagada, a
of counting the U.S. population, and federal officials have chosen
key summit organizer for Chilean President Eduardo Frei, in an
Sacramento, Calif., as the urban test kitchen for the most innovative
interview Sunday. So a leadership that is more friendly, which is the
and controversial census in 200 years. (CENSUS, moving Monday).
type Clinton has adopted but less powerful
is a great opportunity for a better inter-American relationship."
Cols 3-4: Less than 24 hours after his release from a Chinese prison,
Other views of the future expressed at the gathering were downright
prominent political dissident Wang Dan is admitted to a Detroit
warm and fuzzy, such as the multilingual valentine to a changing
hospital for a thorough medical evaluation. (with art)
hemisphere offered by Prime Minister Jean Chretien of Canada during
(CHINA-WANG-TIMES, moved).
closing remarks: ``It is clear that we are becoming more than amigos
(friends). We are becoming 'una gran familia' (a big family)."
Below fold:
To be sure, no one is declaring an end to the practice of power
politics, nor is anyone characterizing Honduras or Barbados as the
Cols 3-4: A bill before the Senate that would provide tax breaks for
head of the hemispheric family. But Clinton, rather than seeming
people saving for private school expenses has broad implications on
worried about supposedly weakened leadership, appeared to be
the future of school financing. (SCHOOLS, moving Monday).
remaking the U.S. approach to keep in step with a region that, having
established democracy and begun economic growth with remarkable
Bottom of page:
speed, has entered a new phase dominated by demands for social
justice and solid institutions in democracies that are still works in
Cols 1-5: Feature on Jews in America.
progress.
And White House officials, sensitive to any perception that their
nation has slipped in stature, pointed out that the United States
accounts for $7 trillion of the hemisphere's annual $9 trillion
economy.
As the leaders reiterated Sunday during an open-format discussion, a
foremost menace to their interdependent societies is drug cartels with
massive firepower and unlimited resources.
"We are not losing the war on drugs, but we are not winning it
either," Colombian President Emesto Samper told his colleagues, in
an assessment viewed by some observers as optimistic at best.
The drug issue exemplifies the still-evolving new partnership
between the United States and its southern neighbors. Leaders this
weekend announced a new alliance against drugs" and approved a
proposal for the Organization of American States, or OAS, to conduct
an annual evaluation of the anti-drug efforts of all nations in the
hemisphere.
The subtext of this accord was an effort by U.S. and Latin officials to
mollify the anger provoked by yearly U.S. "certification" of the
anti-drug performance of nations such as Colombia, which has been
deemed uncooperative two years in a row because of corruption
alleged to reach as high as Samper.
Latin American nations call the U.S. attitude demeaning and
hypocritical because it fails to account for the fundamental role of
demand by U.S. drug users. Some nations see the new OAS
mechanism as a big step toward scuttling certification by the White
House.
But Thomas "Mack" McLarty, Clinton's special envoy to the
Americas, and others made it clear Sunday that, despite the new OAS
role, the U.S. certification process will continue because it is
mandated by federal law.
More than any other issue in Latin America, the drug problem gets
the attention of the U.S. public and subjects the White House to
political cross-fire. Republican members of Congress criticized the
Los Angeles. "People who use the Internet expect to be able to find
announced anti-drug alliance as a capitulation by Clinton to a "blame
information about companies or products by looking for those
America crowd."
trademarks."
The heart of many of these one-sided, ill-informed arguments is
Quinto's company has also sued Network Solutions on behalf of
that the drug crisis is fueled by an insatiable 'demand' in the U.S.,"
Lockheed Martin, alleging that the domain name issuer improperly
said Reps. Benjamin A. Gilman, R-N.Y, and J. Dennis Hastert, R-Ill.,
registered the aerospace company's trademarked Skunkworks name to
in a written statement. Simply put, supply can and does sustain
several other parties. That case was dismissed last year and has been
demand."
appealed to the 9th U.S. Circuit Court of Appeals in San Francisco.
Another perennially divisive issue, the widespread opposition to the
Legal experts say these cases and a growing number like them
hard-line U.S. stance against Cuba, arose Sunday as it does at every
underscore the clash between current trademark law and the nature of
hemispheric gathering. But speculation that Brazil, Argentina, Canada
the Internet. Trademark law recognizes distinctions that allow several
and other key players would make an embarrassing public pitch for a
companies to use the same name, such as United Airlines, United Van
change in U.S. policy was not borne out. The United States and its
Lines and United Parcel Service.
neighbors agreed to disagree.
The way the domain name system is set up is that a domain name
When Caribbean presidents raised the topic of closer ties to Cuba,
is treated as a unique asset," said Edward G. Poplawski, a Los
Clinton responded, according to National Security Adviser Samuel R.
Angeles-based attorney at Pretty, Schroeder & Poplawski, who
"Sandy" Berger, that "we have to keep our eye on the goal here of
represents Network Solutions. "IfI register avery.com, then I'm the
promoting democracy in Cuba, and whatever they do individually, we
only one who can have that."
should not change the nature of the summit and the OAS process."
Herndon, Va-based Network Solutions was also named a defendant
Although he did not visit the region during his first term, this was
in the suit, but Letts dismissed Avery Dennison's claims against the
Clinton's third trip south of the border in a year. His engaging style is
company.
well received in Latin America, as is his celebration of the hemisphere
But the argument that companies have exclusive rights to their
as an economic powerhouse. The president and his advisers
trademarks online doesn't sit well with some cyberlaw experts.
repeatedly cited a litany of statistics showing the explosion of U.S.
A trademark doesn't give you the right to stop anyone from using
trade in the Americas; for example, the U.S. trades more with
the word altogether," said Eugene Volokh, a UCLA law professor.
Argentina than with Russia and more with Chile than with Indonesia.
"Think about Johnson & Johnson. Does it stop people from using the
The next Summit of Americas will be held in Canada, although the
name Johnson? No. But it does stop you from using Johnson for
year has not been announced.
commerce in a way that would cause confusion."
Volokh added: "If this decision is upheld, it would really increase
the number of trademark conflicts that are out there online."
Domain Name Ruling Opens an Internet Can of Werms (Los
The issue could grow as the Internet community prepares to adopt
Angeles) By Jennifer Oldham and Karea Kaplan (c) 1998, Los
new top-level domains, such as firm and .web that can substitute for
Angeles Times
.com and .net. The plan was intended to increase the number of
LOS ANGELES In a decision that could prevent tens of thousands
available domain names. But if companies with trademarks have
of people from using their last names to identify themselves on the
exclusive rights to their names, the benefit of creating new suffixes
Internet, a federal judge in Los Angeles has ruled that a Canadian
will be jeopardized, Sumpton said.
company must relinquish the avery.net and dennison.net domain
In the FreeView case, the company was hurt by its apparent
names to business supplies maker Avery Dennison Corp.
similarity to so-called cybersquatters, who register domain names they
U.S. District Judge J. Spencer Letts last week ordered
think will be valuable to other companies and then try to sell them at
Vancouver-based Free View Listings to sell the domain names to
big profits. Ironically, the ruling makes FreeView a cybersquatter by
Pasadena, Calif.-based Avery Dennison for $300 apiece a $200
forcing the company to turn over the domain names in exchange for
markup over what the company paid for them.
the markup.
Legal experts say the decision could have a far-reaching impact on
the way trademark law is applied to the Internet.
Free View had reserved the names along with thousands of other
1 Killed, 3 Wounded in West Bank Land Confrontation (Maon)
common surnames so it could lease them to people seeking e-mail
By Rebecca Trounson (c) 1998, Los Angeles Times
addresses that contain their last names. FreeView allows people who
MAON, West Bank A long-running dispute over farmland near this
share a surname to use the same domain name for e-mail, as in
Jewish settlement turned deadly Sunday when an Israeli settler was
john(at)doe.net
shot and killed by Palestinians and three other people, including a
Avery Dennison sued FreeView and its founder, Jerry Sumpton, for
Palestinian man, were wounded.
trademark violations and unfair competition.
The confrontation in the hills about 12 miles southeast of Hebron
While corporations routinely trademark their company names, they
began when several settlers tried to force a group of Palestinians to
may not consider registering them as a domain name. Avery Dennison
leave a piece of land that both sides claim. The two groups quarreled
trademarked its brand name, then went on to register
and, according to Isracli army officials, one of the Palestinians
http://www.avery.com and http://www.averydennison.com
grabbed a settler's gun and opened fire, killing Dov Dribben, a
In his ruling, Letts said FreeView's use of the names would dilute
28-year-old resident of Maon.
Avery Dennison's trademark. Sumpton said he will appeal the
Two other settlers were injured, one of them moderately, and a
decision.
Palestinian was shot in the chest, apparently by one of the Israelis. The
The ruling suggests that people who share names with corporations
incident is under investigation, and the army detained several
such as Johnson & Johnson, Procter & Gamble, Sherwin Williams
Palestinians Sunday for questioning.
and Ford may be unable to use their names in e-mail or Web site
Israeli Prime Minister Benjamin Netanyahu, speaking at a news
addresses if companies have already trademarked them.
conference in Jerusalem with visiting British Prime Minister Tony
Sumpton's lawyer said the decision "turns trademark law on its
Blair, called the shooting a ``very serious matter," coming as it did at a
head" by giving companies the exclusive use of people's last names
time of high tension between Israelis and Palestinians over the lack of
online.
progress toward peace.
'The concept that someone with a trademark has a monopoly over
This young man was killed in cold blood," Netanyahu declared.
all given uses has simply never been the law in any case I've ever
``It's straightforward murder."
seen," said Eric Bakri Boustani, an attorney with Monterey,
But others, including Palestinian residents and Israeli security
Calif.-based Davis & Schroeder.
sources in the area where the shooting occurred, said the incident was
According to Boustani, Avery Dennison registered at least 12 new
not so clear-cut. Dribben and the Israeli settlers wounded with him
domain names, including averynet.com, averycorp.com,
had histories of provoking confrontations with Palestinians who lived
dennisonavery.net and dennisonavery.com after Letts' ruling.
nearby, the security sources said, asking not to be quoted by name.
Avery Dennison attorney David Quinto defended the ruling and
The violence Sunday morning broke out just hours before Blair
pointed out that Sumpton could have leased the domain names to the
arrived in Jerusalem in a new effort to revive the deadlocked Middle
company's competitors, who could then have used them to promulgate
East peace process, and it underscored just how difficult his task will
misinformation about the company.
be.
`This is a victory for consumers, who are less likely to be misled by
U.S. peace envoy Dennis B. Ross is scheduled to arrive in the region
people who register other people's trademarks as their domain names,"
at the end of the week on another shuttle mission to persuade Israel
said Quinto, of the firm Quinn Emanuel Urquhart Oliver & Hedges in
and the Palestinians to make progress in the peace talks, which have
They "have clearly the same goal," and while the Clinton
Summit shows major changein U.S. relations with Latin
administration has in the past made efforts to eliminate the
America By Laurie Goering Chicago Tribune (KRT)
certification process, we'll continue to enforce it," McLarty said.
SANTIAGO, Chile When the leaders of this hemisphere's
leeking greater consultation with allies on drug issues, particularly
democracies met for the first Summit of the Americas in Miami four
region where more and more countries now recognize drugs as a
years ago, the United States undoubtedly was the 900-pound gorilla
regional problem, may win the United States new cooperation
hemispheric politics.
issues such as extradition of drug traffickers, he said.
"In an atmosphere of significant distrust, U.S. officials attempted to
The new plan 'has humanized the U.S. image on drugs in the
win their Latin American neighbors over to tougher anti-drug policies,
region," said Eduardo Gamarra, head of the Latin
greater protection of human rights and the environment and a
American-Caribbean Center at Florida International University.
free-trade area that many nations feared could swamp their economies
The problem with the alliance, as Illinois Republican Rep. Dennis
with cheap U.S. imports.
and other certification supporters at the summit in Santiago
Sunday, as the second Summit of the Americas drew to a close
that it may lack even the limited bite of decertification, which
Sentiago, it was abundantly.olgapthat U.S. relations with Latin
ade the loss of certain forms of U.S. aid.
America have undergone assuplution.
Tithout that, the alliance, while welcome, cannot become a
Nations of the region unanimensly agreed Sunday to begin
estitute for certification," Hastert and fellow Republican
negotiations by June to establish a Free Trade Area of the Americas
angressmen wrote in a summit report.
by2005, a pact that might in the long run do little more than formalize
Other agreements at the Santiago summit include:
already explosive growth intrade throughout much of the region.
Endorsement of the creation of a special rapporteur, or ombudsman,
Eatin American leaders, angered by heavy-handed U.S. anti-drug
within the Inter-American Human Rights Commission of the OAS to
efforts at the previous summit, this weekend eagerly launched a new
promote and protect freedom of expression in the region. Over the
multilateral counterdrug alliance, calling drugs one of the greatest
past decade, as investigative journalism has resurged after decades of
threats facing their countries.
dictatorship, 120 journalists have been killed in Latin America and
They also agreed to work together to protect the region's threatened
hundreds of others threatened and harassed.
democracies from Colombia to Paraguay, to protect freedom of the
Creation of a regional center to train judges and prosecutors ``so
press and to battle corruption.
there is better capacity around the hemisphere to ensure justice is fair
Whether the stacks of new agreements signed Saturday and Sunday
and honest," Berger said.
will add up to real changes in the region remains a question. But what
Agreement to expand regional crackdowns on corruption, through
is clear is that efforts by President Clinton to portray the United States
adoption of rules of conduct for public officials and laws requiring
as an equal partner with Latin America, rather than a stick-wielding
open disclosure of their assets.
big brother, are easing tensions and bringing new cooperative
Where summit leaders failed to find any significant agreement was
rewards.
on Cuba and migration, two hot regional issues. At a discussion on
"Here, unlike in Miami, we meet without one country superimposed
democracy Owen Arthur, the prime minister of Barbados, called for
above the rest of us," said Chilean Foreign Minister Jose Miguel
Santiago to be the last summit to exclude Cuba, the only
Insulza. "We're on a more level playing field."
non-democracy in the region. Canadian Prime Minister Jean Chretien
In the negotiating rooms of the summit, that has added up to a
also announced a coming visit to Cuba, a move that clearly
noticeable drop in anti-American sentiment and some of the most
disappointed Clinton officials.
candid discussions in the region's history on everything from free trade
The nations, divided between migrant producers and countries
to fears about the fragility of democracy, diplomats say.
increasingly swamped with migrants, also failed to reach any
There was a very notable degree of frankness," Insulza said.
consensus on policies to regulate migration.
Once we got into the room, many of the fears dissipated."
Clearly the United States remains the hemisphere's dominant giant,
its $7 trillion economy representing more than three-quarters of the
False claims of sexual harassment drawing scrutiny By Judy
region's overall economy.
Peres Chicago Tribune (KRT)
Choosing not to emphasize that disparity, however, and to
CHICAGO Ted Johnson, an Amtrak supervisor from Country Club
emphasize equal partnership is beginning to get the United States past
Hills, III., was attempting to discipline a subordinate when he found
an unfortunate history with the region in which consultation and
himself in a shouting match with the worker and the worker's
partnership were not exactly the watchword of our relationship," said
girlfriend. Five days later, the girlfriend filed a complaint of sexual
Sandy Berger, Clinton's national security adviser.
harassment against him. The charge was dropped after a brief
The most notable of the deals reached over the weekend in Santiago
investigation, Johnson says, but he was fired for breach of the
was an agreement to begin formal negotiations on creation of a
company's employee conduct guidelines. He was out of work for 22
free-trade area from Alaska to Patagonia by 2005 and to make hard
months.
progress toward that goal by the year 2000.
Jim, who asked that his last name not be used, was a sales executive
Brazil and a handful of other nations continue to drag their feet on
whose assistant had started spending too much time on personal phone
efforts to speed implementation of the deal, and the United States has
calls and too little taking care of business. After a number of warnings,
been pushed out of a leadership position by Clinton's failure to win
she was fired. The next day, he says, she returned to the office
key fast-track negotiating authority from Congress.
brandishing a copy of a sexual harassment claim she had filed with the
But summit leaders, who four years ago largely saw the Free Trade
Illinois Department of Human Rights.
Area of the Americas as a U.S. demand, BOW uniformly embrace the
Although Jim ultimately was vindicated the assistant had admitted
project as a regional goal.
to co-workers the charges against him were unfounded the cloud of
Clinton administration officials said the president will continue to
suspicion has never lifted. He was humiliated in front of his wife and
battle to win fast-track, though they acknowledged that the free-trade
children, he has been the butt of continuing jokes, and his relationship
area may now be created not by the United States expanding NAFTA
with his boss has never been the same. He now is switching jobs,
but through negotiations with regional trade pacts like Mercosur,
moving to an industry where no one knows him.
which have seen explosive growth since the 1994 Miami summit.
These Chicago-area men are two examples of what some attorneys
Summit leaders also agreed to launch a so-called multilateral
say is an unwelcome side effect of the growing awareness of sexual
counterdrug alliance, a proposal created largely through the efforts of
harassment in the workplace. As the nation continues to watch the
the U.S. drug czar, Gen. Barry McCaffrey, to promote and coordinate
machinations of Paula Jones' sexual harassment claims against
efforts to cut the production and distribution of illegal drugs in the
President Clinton, in the low-profile working world, employment
hemisphere.
lawyers are seeing men falsely accused of sexual harassment and left
In a region that has chafed under the current U.S. policy of
with virtually no remedy for the financial loss, social stigma and
decertifying as full partners countries such as Colombia that fail to do
emotional distress they suffer.
enough to stem the flow of drugs, the new alliance may one day
Most experts believe the incidence of totally fabricated charges of
become a more cooperative alternative.
sexual harassment is very small certainly far smaller than the number
While calling certification a "blunt instrument," Mack McLarty,
of legitimate complaints. And no one is suggesting the laws should be
Clinton's special envoy for the Americas, emphasized that the new
changed to make it harder for victims of harassment to seek relief. But
drug alliance, which will be created under the Organization of
a number of attorneys who represent workers as well as management
American States, is intended as a supplement to the U.S. certification
believe some employers may be overreacting to complaints of sexual
process, not a replacement.
harassment.
Renariddh the man who won United Nations-sponsored elections in
Debate over
dget surplus likely as Cong
returns this week
1993
By David Hess Knight Ridder Newspapers (KRT)
still tears the nation spart.
WASHINGTON With estimates of this year's federal budget
In the aftermath of the coup Hun Sen staged against his co-prime
surplus soaring to $50 billion or more, a debate over what to do with
minister last July, thousands of Cambodia's most educated sons and
the extra money is likely to mount as Congress returns to work this
daughters have sought refuge and jobs abroad. To some, this is an
week.
ominous echo of the Pol Pot era (1975-79), when his ultra-Maoist
Some Republicans want to use it to pay for big tax cuts. President
fanatics methodically exterminated the educated class, doctors,
Clinton wants to stash it away for Social Security. Liberal Democrats
teachers and, in the end, anyone who wore eyeglasses.
want to use part of it for education, environmental and social
"We have total collapse of the rule of law in Cambodia," complains
programs. And there are at least a dozen other serious variations on
Sam Rainsy, the outspoken opposition leader who was wounded by a
these themes.
grenade attack last year that killed 16 of his followers and injured 100
of consensus on what to do with the surplus cash, which
more. "Parliament sits in fear and passes laws that are unfair,
as much as $100 billion in the next fiscal year, practically
unconstitutional and drafted by the government."
guarantees that nothing will be done with it except whittle down the
The country's richest man, Theng Bunma, president of the
national debt.
Cambodian Chamber of Commerce, has publicly boasted he paid
And that's just fine with many economists who say the federal
Prime Minister Hun Sen and his allies $1 million, most of it in gold
government shouldn't tinker with an economy that's working better
bars, to help them stage the July coup that sent Prince Ranariddh into
than it has in three decades. A tax cut or a spending increase could
exile with many of his followers.
overheat the economy, trigger inflation, force the Federal Reserve
In absentia the prince was convicted of arms smuggling and
Board to start ratcheting up interest rates and induce an economic
collusion with the Khmer Rouge and fined $53 million for the damage
setback, they warn.
caused during the coup. In a typically Cambodian face-saving charade
'The surplus will be, and should be, used to reduce the debt," said
he has since obtained a royal pardon from his father, King Norodom
Stan Collender, an economist with Burson-Marsteller. And that is
Sihanouk.
exactly the right thing to do."
The prince's return to Cambodia earlier this month was widely
After 30 years of deficits we need a period of surpluses," said
reported abroad, but not a single item appeared in the state-controlled
Richard Berner, chief economist of the Mellon Bank in Pittsburgh.
media. He soon flew back to Thailand
"We ought to start paying down the federal debt. That would create a
The Prince's small army is still holding out at the village of O'Smach
lot of really good things lower interest rates, lower-cost home
near the Thai border, fending off periodic attacks by the Cambodian
mortgages, and a stronger position for the period, soon, when the costs
army.
of Medicare and Social Security start shooting up."
Six years after the United Nations and the international community
Despite such sentiments, there is still likely to be a noisy
spent $2 billion to bring democracy to Cambodia, the United Nations
congressional debate over what to do with the spare money that's
Human Rights Commission this week will present a list of nearly 100
expected to flow in to the Treasury. The politics of an election year
supporters of Prince Ranariddh who were executed after the coup.
ensure a steady drumbeat of rhetoric.
The list has enraged Hun Sen's government, which now runs
House Budget Committee chairman John Kasich, R-Ohio, already
Cambodia with little political opposition. The report is sensitive
has served notice that he intends to shoot for a five-year, $60 billion
because Phnom Penh has already lost the bulk of vital foreign aid
tax cut, at a minimum, and says $120 billion is not unreasonable.
accounting for two-thirds of its budget and its seat at the United
Senate Finance Committee chairman William Roth, R-Del., has set his
Nations. Both were suspended because of international outrage over
cap for a $65 billion cut.
the coup.
Kasich would pay for the tax cut largely by shutting down a couple
Since July, many opposition figures have joined Hun Sen's
of federal departments probably Commerce and Energy and closing a
Cambodian Peoples Party, which simply changed its name from the
few corporate tax loopholes. If history is any guide, this will go
old Cambodian Communist Party.
nowhere at the White House, where the president has said repeatedly
"Hun Sen's hegemony has made Cambodia more prone to coup
that he opposes the wholesale obliteration of major federal agencies.
plots. He seems unwilling or unable to neutralize his enemies by
Although Congress holds the power of the purse in squabbles over
non-violent means," said a recent report by the Singapore-based
money, the odds appear to favor Clinton in the emerging
Institute of South-East Asian Studies.
confrontation.
Observes Sam Rainsy: ``If the international community washes its
For one thing, his proposal to pay off part of the federal debt owed to
hands of Cambodia now that Pol Pot is dead and the Khmer Rouge
the Social Security trust fund is popular among voters.
defeated, it will leave Cambodia in the hands of Hun Sen, a former
Moreover, the president can veto legislation and likely sustain it in
Khmer Rouge killer."
any showdown with the GOP-controlled Congress over key budget
In a country whose people have learned from experience to hail the
issues. Although the budget blueprint itself does not go to his desk, all
strongest man, Hun Sen has garnered a considerable following. The
of the enabling bills, including tax and spending legislation, do.
army is loyal to him. Some 6,000 Khmer Rouge defectors have sworn
Any effort to use a surplus for either tax cuts or new spending also
allegiance to his government, and most villages are under CPP
would require a three-fifths majority (or 60 votes) in the Senate.
control.
Without a consensus on what to do with the extra money, it will be
Hun Sen, a regional commander, defected to Vietnam from the
virtually off-limits to would-be tax-cutters and big spenders.
Khmer Rouge in 1977. Installed as prime minister by the Vietnamese
After 1999, however, the impulses in Congress to spend and cut
when they withdrew from Cambodia in 1989 after a 10-year
taxes will be stronger and more difficult to control if as many expect
occupation, he lost the 1993 elections by a narrow margin but
the surpluses continue to roll in.
threatened civil war unless he was included in a power-sharing
"Even if (federal) revenue growth slows to 4 or 5 percent (a year),"
arrangement.
Collender said, "it's not impossible to foresee annual surpluses
Over the years he gradually removed his partners, often by force or
reaching $200 billion. Neither Congress nor the president are going to
threat.
let
them pile up. At some point, a consensus will emerge, and a tax
``If you receive a warning here you either capitulate or you get out.
cut or spending increases, or both, will be deemed appropriate. But
If you play hardball you're dead," said a former independent
not now."
newspaper publisher who has left the country.
Now and then Hun Sen makes a gesture of promoting law and order.
He appointed Gen. Heng Pov as head of a newly created anti-drug
Clinton, other leaders end summit with pledge to negotiate trade
squad after U.S. accusations that Cambodia had become a center for
pact By Steven Thomma Knight Ridder Newspapers (KRT).
illicit drug production as well as a money-laundering center.
SANTIAGO Amid pomp and promise, President Clinton and 33
The general's task force was short-lived. His house was surrounded
other leaders wrapped up their second Summit of the Americas
by military police last month, and he was effectively removed from
Sunday with a pledge to negotiate a trade agreement that would unite
office. His mistake? He had ordered the arrest of a military police
nearly 800 million people in democracy and the marketplace.
officer on charges of drug trafficking.
While years of negotiations lie ahead between Clinton and
Congress and between the United States and other countries the
leaders confidently predicted they had started a process that will lead
to better incomes and lives for people from Alaska to Argentina.
"The people of the Americas have launched a profound
revolution in the last few years, a revolution of peace and freedom and
They denounced barriers to women entering politics "they" being
prosperity," Clinton said at the concluding ceremony. 'We embrace
33 male chiefs of state plus a lone female president from tiny Guyana.
our responsibility to make these historic forces lift the lives of all of
they paid passing tribute to preserving the environment, while
our people."
meeting in one of the most polluted cities in the world.
Chilean president Eduardo Frei said, `This dialogue is aimed at the
The two-day Summit of the Americas that ended here Sunday
creation of an authentic community of nations. A community of
brought U.S. President Bill Clinton together with 33 other national
nations, arising out of the diverse identities within it, is a wager on the
leaders from throughout the hemisphere in a virtual fiesta of promises.
future, a collective dream striving to become reality."
By the end of the weekend, they had vowed to work harder in
The centerpiece of that wager is the proposed trade pact, which Frei
combating drugs, improving education and promoting democracy and
said would be "the largest free trade area in history."
economic reform.
The 34 leaders from North America and South America signed a
Yet the meeting was dogged by grave doubts about how many
joint statement summing up their agreements and hopes for the future,
commitments can be kept chief among them the goal of a hemispheric
which include another summit in Canada in a few years.
frontadazone by 2005.
"We are confident that the Free Trade Area of the Americas will
It'stime, in other words, for a reality check.
improve the well-being of all of our people, including economically
Atthathree hemispheric reunions that have taken place so far,
disadvantaged populations within our respective countries," the
Miami in 1994, Santa Cruz, Bolivia, in 1996 and Chile this past
leaders said in a joint statement after two days of friendly meetings
weekend, delegates have pledged to pursue a grand total of 375
here in the shadow of the Andes.
"action initiatives," according to Robin Rosenberg, co-director of the
Their optimistic launch of trade talks capped two days of talks in
Leadership Council for InterAmerican Summitry in Miami.
which they celebrated the dramatic rise of democracy and booming
The agenda includes such narrow goals as improving property
free market economies through the Western Hemisphere.
registration and such broad, vague visions as promoting the rights of
They promised to shore up those sometimes fragile democracies
migrants.
taking hold in every nation except Cuba by boosting education,
``It's much too ambitious, and the hemisphere doesn't have the
improving health care, fighting corruption, encouraging better
capacity to deliver," Rosenberg said. "There are just too many
treatment of working people, making it easier for the poor to own
initiatives and too few clear targets, timetables or resources."
land, expanding immunizations and improving the quality of drinking
The centerpiece of the process, a Free Trade Area of the Americas
water.
by 2005, seems as dicey as the rest. Latin American leaders doubt the
They also launched a regional Alliance Against Drugs that will
U.S. commitment to pursue it, since Clinton still faces fierce
allow the United States to work more cooperatively with other
opposition from labor and environmental groups at home.
countries to evaluate one another's anti-drug efforts. But the United
Labor leaders worry that freer trade could further depress stagnant
States will continue to act by itself to certify foreign drug efforts as
U.S. wages and induce U.S. companies to flee the country in search of
required by law.
a cheaper workforce. Environmental activists doubt any agreement's
Turning to trade in their final closed-door session Sunday, the
capacity to promote protection of forests, rivers and oceans in nations
leaders set up nine negotiating groups to start work on the free trade
where neglect of natural resources has been rampant.
pact. The groups, negotiating issues like access to markets and
In opening remarks to the summit Saturday, Clinton assured his
intellectual property rights, will meet in Miami for the first three years,
colleagues of his interest in pursuing regional free trade, since more
then Panama, then Mexico.
than 40 percent of U.S. exports already go to neighbors within the
They could start meeting as early as June, with a goal of making
hemisphere.
solid progress by 2000, and a full agreement by 2005.
And indeed on Sunday, the summit delegates pledged to start
At the same time, the countries agreed to work together in other
negotiations for the Free Trade Area of the Americas within the next
areas, including:
two months.
Labor. They promised to work to promote basic labor standards
Yet diplomats throughout the hemisphere say there'll be no real
recognized by the International Labor Organization. International
momentum for the trade talks as long as Clinton can't persuade the
banks will provide $307 million over three years, and the U.S. will
U.S. Congress to grant him "fast-track" authority. That means that
contribute $15 million, to help that effort and to modernize labor
whatever treaty would be reached could be submitted for a simple yes
ministries;
or no vote, rather than loaded down with amendments.
Infrastructure. The Inter-American Development Bank will set
Nor is opposition limited to the U.S. Congress. Latin America's
standards to ensure fair competition among international contractors
top-ranking economic powerhouse, Brazil, now facing its highest
vying for contracts to build new roads, bridges and ports throughout
unemployment rate in 14 years, deeply fears what unrestricted
the hemisphere;
commerce with the highly competitive north might do to its economy.
Energy and environment. The countries will work to integrate
Helio Jaguaribe, a prominent and well-connected Brazilian political
energy markets and encourage movement to cleaner energy systems
scientist, says Brazil may be ready for free trade with the United States
that will alleviate global climate change;
in "20 to 30 years" rather than seven, although he added that
Corruption. They agreed to work on ways to fight corruption and
government officials wouldn't publicly admit that
bribery in business transactions.
"Free trade without any customs protection would destroy South
Mindful of the need to build support at home for international trade,
American industry," Jaguaribe said earlier this month. The year
Clinton aides noted the benefits for the U.S. economy. They said
2005 is too soon. We'd be condemned to produce raw materials and
exports make up a third of U.S. economic growth, that exports to the
semi-manufactured goods and lose our capacity to develop a
Western Hemisphere grew by $42 billion last year, and that exports to
high-technology industrial system."
Latin America and Caribbean in the second half of last year exceeded
As free-trade momentum has waned, the agenda of the periodic
those to the European Union countries.
summits has broadened, encompassing ambitious goals to improve
Clinton and others pushed social reforms as necessary to shore up
education and democratic institutions, case regional economic
popular support for still-fragile democracies and free markets that
integration and reduce poverty. But that has brought up the nagging
only recently replaced dictatorships.
question of who might pay to pursue those longtime dreams.
Chile, for instance, instituted democracy only in 1990, after 17 years
U.S. officials attempted an answer on Saturday, releasing a chart
of dictatorship. And while its newly energized free market economy
that they said showed nearly $45.6 billion might be available over the
and social reforms have cut the poverty rate from a staggering 44
next three years for the four broad goals, mostly in the form of
percent, it still remains at 24 percent.
low-interest loans from multilateral banks. On Saturday, Thomas
'We will redouble our efforts to continue reforms designed to
McLarty, Clinton's special adviser on Latin America, said the
improve the living conditions of the peoples of the Americas and to
available loans 'will be a substantial increase in funding,"
achieve a mutually supportive community," the 34 leaders said in the
representing a doubling of resources from the Interamerican
joint statement.
Development Bank and at least a 50 percent increase from the World
Bank.
Education Secretary Richard Riley clarified that most of those funds
Summit showcases conflict between intent and actual events By
are not necessarily new money" but do reflect an important shift of
Katherine Ellison Knight Ridder Newspapers (KRT)
priorities by the banks.
SANTIAGO, Chile They called it the "education summit" and
Yet critics said even that was an exaggeration.
canceled school throughout the city on its eve, to ease traffic for
The United States wants to show that there's money for all these
visiting dignitaries.'
things, but there's less of a shifting of resources than it appears," said
Peter Hakim, president of the Interamerican Dialogue in Washington.
have to do it within certain limits. As soon as you criticize the regime
Hakim said that some of the touted "new priorities" represented a
or call for its replacement or something different, you're subject to
mere change in semantics. "These are basically things that the banks
harasament."
have been doing all along," he maintained. "Before, the World Bank
Even Wang Dan's mother cautioned about viewing her son's release
would give a loan to build schools and call it infrastructure. Now
as
they'll call it education."
a sign that the atmosphere for dissent was loosening up.
Hakim also noted that the United States is only contributing $1.2
"These are two different things," said Wang Lingyun in a telephone
billion to the funds, complaining, "that's what the U.S. used to give in
interview. One is about Wang Dan himself. But it doesn't mean that
aid over three months, and now it's for three years."
the atmosphere of the whole country is relaxing. That's a totally
Others have criticized what they call a certain ambiguity in the
different matter."
renewed U.S. calls for Latin America to spend more on social
A former history student at the prestigious Beijing University, Wang
programs. Clinton's summit appearance, for instance, was preceded by
belned to lead democracy protesters in Tiananmen Square in the
a two-day state meeting with Chile's President Eduardo Frei, in which
springed 1989. The quiet, intense Wang was one of the more
Clinton tried to persuade Frei to purchase what could amount to $400
intellectual student activists who organized political "salons" on
million in U.S. fighter planes.
campus
But as Costa Rican President Oscar Arias said last fall, What the
During the protests, tens of thousands of students and ordinary
children of Latin America want and need are schools and health
workers occupied the square for several weeks, demanding greater
clinics, not F-16s."
freedoms and democracy. The government sent tanks and battalions of
To be sure, the summit process has achieved some benefits.
soldicants break up the protesters in a hail of machine-gun fire that
In one narrow triumph, 12 countries in the hemisphere have
left hundreds, if not thousands, dead.
eliminated lead from their gasolines since the first meeting in Miami,
Accused of being a ringleader, Wang was named to the country's
and 20 will have done so by 2001.
most-wanted list. He was imprisoned and given an early release in
As Clinton noted Saturday, the summit process also has helped
February 1993. He resumed a low-profile campaign for human rights
encourage hemispheric cooperation in eradicating measles, which he
and political reform, but was sentenced again in 1995 for 11 years.
said has dropped from more than 23,000 cases in 1994 to less than
His mother worked tirelessly for his release. Once a month, she and
500 so far this year.
her husband made a 10-hour train trip to a remote prison in Liaoning
On a broader level, many summit attendees agree the process has
province in northeast China to see their only son. She worried about
eased communication among chiefs of state and their ministers, greatly
his health, as he suffered chronic headaches, sore throats and
smoothing out historic antagonisms.
coughing
That in itself has made it easy to agree on yet one more narrow goal,
Friday afternoon, when contacted at home by telephone, Wang
announced Sunday to meet again, in Canada, at a date to be
Lingyun was not hopeful about her son's release, despite the rumors.
announced.
But late Saturday afternoon, Wang Lingyun got a surprise call from
police. They told her Wang Dan would be taking the first flight to the
United States the next day.
Dissident's release not a sign of improvement in China's political
Police drove her to Lisoning to pick up her son.
environment By Jennifer Lin Knight Ridder Newspapers (KRT)
``I didn't expect it to happen so quickly," she said. "It's hard to
BELJING Wang Dan, imprisoned after the 1989 Tiananmen Square
believe."
protests, flew to exile in the United States Sunday, but human rights
She said his release is only a medical parole and if he returns to
monitors say his release is not a sign of dramatic improvement in
China, he will have to return to jail. Her son told her that after he
China's political environment.
recuperates, he would like to go back to school.
Still, the Clinton administration welcomed news of Wang's release,
``I'm glad he'll be able to see doctors in America," his mother said.
the timing of which was no coincidence. His release for medical
"But I don't know when he'll be able to come back. He'll be so far
treatment was seen as a goodwill gesture to President Clinton as he
away from me. I feel a bit sad about it."
prepares to visit here in late June. The administration has been hinting
Early Sunday, the family said their goodbyes in an airport reception
for weeks that China soon would release its number-one political
room. Wang Dan's sister came with her 8-year-old son, who was
prisoner. Clinton's trip effectively will end nine years of estrangement
especially close to his uncle.
that began after the bloody military crackdown of student protesters in
From his prison cell, Wang Dan had promised his nephew that he
1989.
would buy him a big box of chocolates as soon as he got home.
To justify the trip as well as Clinton's handling of China policy, U.S.
The boy used to tell him it wasn't necessary, that just seeing him
officials have desperately tried to promote the perception that China's
again would be enough of a gift.
respect for human rights is improving. As evidence, they point to
The boy got his wish at the bittersweet reunion at the Beijing airport,
China's recent pledge to sign the United Nations Covenant on Civil
hours before Wang Dan boarded a Northwest Airlines flight bound for
and Political Rights, and to the release of high-profile prisoners such
Detroit.
as Wang.
As Wang left the waiting room, his nephew, Chen Tianlin, turned to
Wang's release is the second time in six months that China has
him and asked, "Uncle, can't you take me with you?"
released a prominent dissident from jail.
Last November, China sent Wei Jingsheng, another well-known
political prisoner, into exile in the United States for medical help after
President Clinton Visits Chile By David LaGesse, The Dallas
a successful U.S.-Sino summit in Washington.
Morning News Knight Ridder/Tribune Business News
Human rights monitors say that while Wang's release is good news,
VALPARAISO, Chile-Apr. 18-President Clinton stood in the
China must do much more to respect human rights.
middle of Chile's ultra-modern congressional building Friday and
This is a good thing for Wang Dan and we welcome his release,
lauded the return of democracy here as a tribute to a `people who
but we'd like to see something that addresses the systemic problems
love freedom.
and this isn't it," said Sophia Woodman, research director for Human
"No one loves freedom more than those who have had it and then
Rights in China
lost it," he said.
"We're always hoping and asking for the release of all the political
Coming on the eve of a hemispheric summit that opens Saturday in
prisoners and some kind of effort to really change the system that puts
Chile, Mr. Clinton used the speech to urge social reforms to buttress
people like Wang Dan in prison in the first place," she said.
nascent Latin American democracies. The region's 34 democratic
The Chinese government admits to having 2,000 political prisoners,
leaders plan to launch a number of multilateral initiatives, such as
but human rights observers think the number is significantly higher.
education and drug-fighting programs.
Wang was jailed twice: He served for 3{ years after the Tiananmen
Without spreading the benefits of growing economies, factions could
Square crackdown, and was sentenced for another 11 years in 1995
grow impatient and threaten fragile Latin America governments, MR.
for `plotting against the government."
Clinton said.
"The sad side of this is he's being expelled, but there are 1,999
"Having resolved to protect democracy, we must now do much,
dissidents who remain in jail," said a Western diplomat.
much more to perfect democracy," he said.
The diplomat said that China understands how to orchestrate the
Chile again provided an appropriate backdrop for his point - as
release of high-profile dissidents to win political favor abroad.
military officers stood behind Mr. Clinton and Chilean legislative
"The big question now is whether it is easier for Chinese people to
leaders during an hourlong ceremony.
make their opinions known," the diplomat said. You can, but you
The country's former military dictator, Gen. Augusto Pinochet, did
not attend the speech. He called in sick, to the relief of some event
Leaders also worry that disillusioned factions could threaten fragile
organizers who view Mr. Pinochet's lifetime seat in Congress as an
governments.
awkward reminder of his brutal regime.
"In our first summit, in 1994, we agreed on a common vision,"
Mr. Clinton noted that Chile was chosen to host this weekend's
President Clinton said at the closing ceremony. "Still, for all of our
summit in Santiago because of its model economic success, coupled
progress too many of our citizens have not yet seen their own lives
with
improve."
a peaceful transition to elected government.
The leaders chose Canada to host the next summit, perhaps in the
"Now there must be a second generation of reform beyond free
year 2000.
elections and free markets."
The friendly tenor of the gathering was tempered by tension over
That he came to Valparaso to meet Chile's Congress, while most of
some issues, including arms sales in the region and the exclusion of
the government remains in Santiago, is a vestige of the Pinochet years.
Cuba from the summit. The United States and other countries opposed
The general ordered the legislature moved away from his seat of
including Cuba because it has not joined the rest of the hemisphere in
power when he somewhat reluctantly allowed it to reopen in 1990.
conducting free elections.
It's only one of many echoes of the junta years in Latin America that
No hisclosing remarks, Brazil President Fernando Henrique Cardoso
leave its citizens nervous about the future.
challenged the United States' stand on Cuba, saying all the region's
Mr. Pinochet remains active in politics, which he entered in a bloody
nations should be included.
1973 coup that overthrew an elected socialist government. The
"There is a country that is missing." he said. Why should we not
deposed president, Salvador Allende, died in the takeover.
do something to encourage democracy there?"
Even today, conservatives say Mr. Pinochet saved the country from
And Canadian Prime Minister Jean Chretien, who will visit Cuba
communism and spurred its ongoing economic miracle. His
later this month, told reporters he hoped Cuba could attend the summit
government abandoned traditional policies of state-owned enterprise
he will host. But he said that was unlikely.
protected from foreign competition by high tariffs.
"The consensus is not there" for Cuba to attend, Chretien said.
Leftists view Mr. Pinochet as a murderer for the estimated 3,000
In his speech at the closing ceremony, held in an elegant room at
who died at the hands of the 17-year military regime. They say Chile
Chile's former congressional building, Chretien said unity among the
paid too high a price for its rapid economic growth, which has grown
34 nations had solidified since Miami. "Instead of just a passive fact
an average of nearly 7 percent since the early 1980s.
of geography, it is becoming an active state of mind," he said.
Even today, some Chileans say the government remains
Analysts applauded the summit's work, but the breadth of the
authoritarian. It is quick to disperse unauthorized protests, including
agreement fueled doubts about the ability of leaders to fulfill their
scores of students at an anti-American demonstration on a Santiago
commitments.
college campus Thursday.
The action plan "is a kitchen sink of many more initiatives than the
``In Chile, we don't have a real democracy. It is one that is overly
inter-American system can seriously tackle," said a statement
protected by the military," said Dr. Tomas Moulia, a professor who
co-signed by Richard Feinberg, a former White House official who
teaches at the college.
helped organize the Miami summit.
Though Mr. Pinochet stepped down this year as Chile's top Army
The leaders also made many commitments without any structure to
officer, the military retains vast influence over the country's politics.
oversee implementation, said Peter Hakim, head of the Inter-American
The constitution written during the general's rule allows the military to
Dialogue. "There's nobody watching to make sure many of these
fill nine of 48 seats in the nation's Senate, where former presidents
things get done," be said.
including Mr. Pinochet - take a seat for life.
Still, U.S. officials said they were heartened by the growing sense of
The military also gets a portion of income from Chile's state-owned
cooperation.
copper company, making it one of the best-equipped armies in Latin
The 1994 summit largely arose from an American desire for a
America.
regional trade agreement, which would reduce tariffs and other
The fragility of democracy in Chile became clear in 1995, when a
barriers to commerce, U.S. Trade Representative Charlene Barshefsky.
former top aide to Mr. Pinochet nearly provoked a showdown between
told reporters.
the military and the civilian government. Courts had found Gen.
That has changed, she said, as other countries at the summit said
Manuel Contreras, who headed the dictator's secret police, guilty of
they openly embrace shared and common, concrete agenda."
ordering the 1976 car-bomb killing of a former Chilean diplomat in
Analysts say trade remains the driving force behind hemispheric
Washington, D.C.
cooperation. The failure of the Clinton administration to win
Mr. Contreras, however, for a while refused to surrender with the
congressional authority to negotiate new pacts disappointed many
help of Army units.
Latin American leaders, but they agreed to proceed anyway with trade
Mr. Pinochet acknowledged that the Army helped Mr. Contreras.
talks. Negotiators assume the United States can resolve its
"We can't allow a general of the republic to be ridiculed."
trade-related differences over labor and environmental issues before
The accused man, however, eventually relented and is serving a
an agreement is ready for signing.
prison term.
Leaders at the summit included labor reforms and environmental
The violence and authoritarian junta has changed the country, where
protections in their action plan.
many community organizations flourished before the coup, some
U.S. officials, meanwhile, hope to regain trade momentum with a
Chileans say.
series of narrow agreements. They say Chile, which long held out for a
Residents emerged from the dictatorship timid and hesitant to
broad trade treaty with the United States, has agreed to pursue smaller
organize themselves, a local politician told Mr. Clinton on Friday.
pacts, such as on customs issues.
The president had stopped in a small village on his way back to
Talks toward a regional agreement will begin later this year, starting
Santiago. "There was a lot of fear." said Filiberto Nuez, who
with three years of Canadian-led talks in Miami. During the last two
described himself as a community organizer.
years leading up to an agreement by 2005, the talks will be run by
But he ended on a hopeful note. After time, that fear went away."
Brazil and the United States, the hemisphere's two largest economies.
Although trade remained the top priority, the Chile summit
expanded to include social issues at the pushing of Latin American
Leaders at hemisphere summit take steps on trade, social issues
countries.
By David LaGesse The Dallas Morning News (KRT)
We are not just talking tariffs and rates, we are talking topics that
SANTIAGO, Chile Leaders of 34 Western Hemisphere
take us to the heart of the concerns of our people," said Cardoso of
democracies united behind a plan Sunday to reduce poverty and to
Brazil.
link their countries under common trade rules.
Despite rapid economic growth in the past decade, the gap between
In closing their second summit in four years, the leaders produced a
the hemisphere's wealthy and poor has widened. Leaders here agreed
34-page plan to reform education, to strengthen democracy against
that poverty and lack of opportunity nurture reactionary and despotic
threats such as drug trafficking, and to promote human rights.
forces" that threaten democracy, Chretien said.
They also launched formal talks toward a hemisphere-wide trade
The countries agreed to $45 billion in loans and grants for
zone, an idea that dominated a 1994 summit in Miami.
social-related causes, such as giving local communities more control
Leaders said this summit's expanded social agenda partly reflected
over schools. Many Latin American countries now administer primary
their concern that democracy and trade have not benefited enough
and secondary schools from their capitals, unlike the U.S. system of
people.
community school boards and taxes.
Diminished public enthusiasm, particularly in the United States, for
It was unclear, however, how much of the spending was new, as it
removing trade barriers already has hampered new agreements.
included aid already planned by development banks and the wealthier
countries.
because of rail traffic's vital role in the U.S. economy. Despite truck
The new counter-drug agreement remained sketchy, as well. The
competition, railroards still carry the largest single share, about 40
countries agreed to evaluate each other's anti-trafficking programs to
percent, of all U.S. intercity freight.
encourage better performance, but they did not decide on a process
At the hearing in early April, shippers asserted that 18 years of
and criteria.
deregulation had shrunk the industry to just a handful of mega-carriers
The counter-drug pact nonetheless holds tremendous political and
as many as nine or as few as four, depending on who's counting and
practical implications, Mexico President Emesto Zedillo told
left customers at a huge disadvantage.
reporters. For one thing, the agreement should reduce finger-pointing
Railroad executives shot back that any federal tinkering could send
between countries that produce or consume drugs, he said.
their industry back to the dark, financially troubled years before
"It underscored the concept of co-responsibility," said the Mexican
passage of the Staggers Rail Act of 1980, when perhaps one-fourth of
president.
the big carriers were under bankruptcy protection.
Mexico, like many countries beset by drug-related problems, bitterly
Stressing a desire for private-sector solutions, the board said Friday
objects to the unilateral evaluations now conducted by the United
railroads, short-line carriers and shippers to share ideas
States.
throng# remselves. But it specified what it wanted addressed, gave
The countries want the drug alliance operating soon, said U.S. drug
deadlines and said some of the meetings would be conducted with an
czar Barry McCaffrey, a key architect of the concept.
administrative law judge.
"I think that is the test," he said "By the next summit, we have to
The board ordered:
have this up and running."
A review of the accounting procedures used to gauge a railroad's
Host country Chile helped spark debate about regional arms sales at
fiscal health. Those measurements, in turn, determine whether certain
Sunday's sessions. Chile's plan to buy modern arms, including
federal regulations might apply to that carrier in railroad-shipper
advanced fighter jets, has raised fears of a new weapons race in South
disputes before the board.
America.
A review of two other regulatory standards now used to determine
"There was some lively discussion of defense modernization,"
whether there is adequate rail competition.
National Security Adviser Samuel F. Berger told reporters.
A progress report by May 11 on ongoing discussions by big and
The countries agreed at the summit to disclose all arms purchases,
small railroads, a response to the short-lines' allegations that their
a change for a region traditionally secretive and suspicious of each
ability to serve more customers is often pinched by their large
other's militaries.
brethren.
"The key point was openness and transparency," Berger said.
Another progress report by May 11 on how railroads are
Overall, U.S. officials said they were upbeat at the change in tenor
establishing formalized dialogue with shipper groups" and with
from Miami. Organizers of that meeting say they had to push many
railroad employees.
countries to participate in what was seen by many as a U.S. agenda.
Railroads have expressed fears that a regulatory review could lead to
This time, the level of discussion and interchange reflected a much
what they consider reregulation. A spokesman for the railroad
more mature, a much more confident relationship with the United
association said the Washington-based trade group was still
States," said Thomas F. "Mack" McLarty, the U.S. special envoy to
examining the transportation board order and would have no comment
the Americas.
Friday. Privately, railroad officials have grumbled that shippers are
using the Union Pacific service disruptions as a political club to
bludgeon concessions out of the rest of the industry.
Federal Regulators Announce Sweeping Review of Railroad
Spokesmen for Union Pacific, a unit of Dallas-based Union Pacific
Regulations By Edward Dufner, The Dallas Morning News
Corp., and Fort Worth-based Burlington Northern Santa Fe Railway,
Knight Ridder/Tribune Business News
the two largest railroads in the American West, deferred any comment
Apr. 19-Heeding complaints from shippers, federal officials
to the railroad association.
announced a sweeping review of railroad regulations Friday that could
Shipper groups were more vocal.
reshape the way carriers and their customers do business.
Diane C. Duff, executive director of the Alliance for Rail
The Surface Transportation Board pledged a "careful, measured
Competition, welcomed the board's recognition of shippers' woes but
approach" in its review, which flows from an unprecedented two-day
faulted the rule-making process outlined in the order. "Too long, too
hearing on rail competition issues earlier this month.
drawn out, and there's no end in sight."
Cautioning that it could not assent to the ``more drastic measures"
"Bizarre," said Charles R. Matthews, chairman of the Texas
proposed by shippers, the board nevertheless agreed that their
Railroad Commission, asking how the board could square its picture
complaints of railroad bullying deserved scrutiny.
of overly powerful big railroads with its directive to have railroads and
"No rail-dependent shippers or shipper groups participated to
shippers negotiate their differences.
express saisfaction with the present state of rail service," the board
said in its order. "The board cannot ignore the pleas of those many
shippers that are concerned with the present state of affairs."
Chinese dissident arrives in U.S. By Gregg Jones The Dallas
The Surface Transportation Board directed railroads and shippers to
Morning News (KRT)
meet and devise their own suggested remedies. It also said it would
BANGKOK, Thailand Wang Dan, China's most prominent
review some rules on its own and report to Congress on "other
dissident, arrived in Detroit Sunday after his release from a Chinese
possible actions."
prison.
Reaction to the order ranged from a no-comment from the
Wang's release and exile were secretly negotiated by the Clinton
Association of American Railroads to a mixture of praise and irritation
administration, human rights activists said.
from shippers and their allies. This camp praised the board's
His freedom comes two months before President Clinton is
acknowledgment of shippers' grievances but criticized the agency as
scheduled to become the first U.S. president to visit China since the
acting far too late.
1989 massacre of pro-democracy activists in Beijing's Tiananmen
In its order, the board itself declared, "We are at a regulatory
Square protests that Wang, 29, helped lead.
crossroads."
Democracy activists and international human rights organizations
A board official said the areas under study had been examined
welcomed the relèase of Wang, who was serving an 11-year sentence
singly, but never before in such a broad, coordinated fashion. "This
for plotting against the government. But they said China's decision,
document contemplates an extensive review of various aspects of
like the November release of dissident Wei Jingsheng, did not signify
railroad regulation," said the official, who spoke on condition of
any change of heart by China's communist leaders when it comes to
anonymity.
respect for human rights and political dissent.
Months of gridlock on Union Pacific Railroad have heightened the
China still holds more than 2,000 political prisoners and has
profile of rail issues and helped prompt Sens. Kay Bailey Hutchison of
continued to deal harshly with dissidents and labor activists in the five
Texas and John McCain of Arizona to urge the transportation board to
months since Wei was sent into exile, human rights organizations said.
look into competition in the first place.
`This is a welcome gesture by the Chinese government, but I would
The areas addressed in Friday's order are highly technical in essence,
have preferred that the conditions for Wang Dan's release would not
the rules of engagement for resolving railroad-shipper disputes in a
require him to leave the country," said Mike Jendrzejczyk, the
deregulated industry.
Washington director of Human Rights Watch, an international
And even though that action occurs far upstream from American
watchdog group.
consumers, the board's deliberations have been watched intently by
"Wang Dan was one of the most outspoken and respected activists
railroads, shippers, politicians, investment analysts and economists
in the Tiananmen era and since. He clearly could have played a pivotal
Strong support for Americas free trade area
By Gerard Baker in Santiago
Al
Frei of Chile, who chaired the
its seriousness about the project,
"Fast track will be enacted,"
regional surveillance to ensure
FINANCIAL TIMES
second summit of the Americas.
the US, along with other coun-
said Charlene Barshefsky, the US
all countries took appropriate
The leaders of North and South
In two days of discussions the
tries at the summit, approved a
trade representative. "We feel
action to stop the narcotics trade.
American countries yesterday
countries of the hemisphere,
detailed timetable of negotiations
very good, very confident about
Over time, officials said, this
promised to press ahead with the
except Cuba, which was
agreed by trade ministers that
this launch as literally did every
system would supersede the cur-
creation of a common market in
excluded, agreed to combat drug
would culminate in the signing of
other country around the table."
rent US certification process by
goods and services by 2005 that
trafficking and called for a co-or-
the agreement by 2005.
In an effort to convince scepti-
which Washington decides if
APRIL 20 1998
would embrace 750m people.
dinated effort to improve access
The Declaration of Santiago
cal members of Congress that a
countries are taking sufficient
The heads of government said
to education for all their people.
said these negotiations will have
free trade area would not lead to
action and can impose sanctions
their goal of a Free Trade Area of
The FTAA was proposed at the
made concrete progress by 2000,
the export of US jobs to countries
if it concludes they are not.
the Americas (FTAA) was realis-
first Summit of the Americas in
including action to improve
with lower labour costs, Mr Clin-
The leaders also agreed on the
tic in spite of doubts about the
Miami in 1994. But US president
transparency and other business
ton persuaded the other summit
need to improve health services
commitment of the US, by far the
Bill Clinton's failure to secure
facilitation measures. Officials
members to make so-called "civil
throughout the region and to
largest country in the region, to
fast-track trade negotiating
insisted the negotiations could
society" issues, such as the envi-
make progress towards the eradi
further trade liberalisation.
authority from the US congress
continue constructively in the
ronment, an explicit part of the
cation of poverty. They pledged
"Here in Santiago the ground
has cast serious doubt on the
absence of fast track in the US.
free trade agreement.
to earmark funds to achieve uni'
has been broken for the creation
prospects for further integration
By the time they were concluded,
In the battle against drugs, the
versal primary education by 2010.
of the largest free trade area in
of trade in the region.
they added, the congress would
US and Latin American countries
history," said President Eduardo
In an attempt to demonstrate
have approved fast track.
agreed to a new system of
Clinton fails to halt doubts, Page 3
Clinton fails
to win over
doubters
By Gerard Baker in Santlago
US officials were eager to
FINANCIAL TIMES
dispel any suggestions that
"The United States invari-
they had come to Santiago
ably does the right thing
weakened by problems at
after it has exhausted every
home. "America's leadership
other alternative." Thus,
has not been stronger in this
quoting Winston Churchill,
hemisphere for over 30
APRIL 20 1998
President Bill Clinton reas-
years.
The president is
sured his fellow heads of
clearly
the central fig-
government at the weekend
ure at this summit. The
Summit of the Americas
agenda is an agenda that
that, for all their fears that
reflects our agenda," said
his administration was mis-
Sandy Berger, the presi-
handling policy in the
dent's national security
Clinton at the summit yesterday: failure to win fast track authority will slow progress on trade
AP
region, all would be right in
adviser.
the end.
And on one level that
fidence the US could contrib-
McCaffrey, Mr Clinton's
they see as US control over
But as the leaders con-
assessment seemed correct.
ute much to the process.
highly effective drugs policy
its own criminal justice
cluded two days of talks yes-
The Clinton administra-
Raising the standard of liv-
co-ordinator, was behind an
jurisdiction.
terday with a pledge to con-
tion had made democracy
ing of the poorest Latin
agreement with Latin Ameri-
In other areas too, there
tinue the integration begun
the central point of the Sant-
Americans required integrat-
can countries that could rad-
was a sense that the US
four years ago at their first
iago summit. The "quiet rev-
ing the region's economies,
ically change the anti-drugs
administration might be
summit in Miami, it was far
olution" which had toppled
opening them to trade, the
battle in the hemisphere.
more kindly disposed
from clear that Latin Ameri-
dictatorships throughout
leaders said. To that end the
The leaders agreed to a
towards its neighbours than
can governments shared Mr
Latin America in the last
summit formally launched
new multilateral evaluation
are US lawmakers. On Cuba,
Clinton's confidence.
decade was, Mr Clinton
the Free Trade Area of the
system to determine
several leaders politely
On a number of important
claimed, as significant as the
Americas - to be completed
whether countries in the
pressed Mr Clinton to do
questions, Latin American
fall of the Berlin Wall. And
by 2005. But without US fast
region are doing enough to
more to liberalise relations
leaders are troubled by the
there was recognition that in
track authority, progress
tackle narcotic production
with Havana, a prospect that
realisation that, whatever
the last decade at least, the
will be slow.
and consumption. This
the US Congress continues
Mr Clinton may promise, a
US had played a positive role
In the meantime, Latin
would, according to Gen
to make highly unlikely.
Congress in Washington
in promoting that demo-
Americans seem certain to
McCaffrey, ultimately make
Of course none of this is
increasingly hostile to for-
cratic revolution.
press ahead with their own
irrelevant the US's own cer-
unfamiliar. When Winston
eign engagement constrains
But the critical challenge
regional trade agreements
tification process despised
Churchill made his famous
the president.
facing Latin America, as US
that could leave the US out
by many Latin American
observation, domestic US
The failure of Mr Clinton
officials insisted on remind-
in the cold. And worse still
governments as a unilateral,
opinion was deeply sceptical
to secure fast track trade
ing everyone, was to under-
for the US, they seem likely
quasi-racist intervention in
about engagement outside
negotiating authority, con-
pin the new democracies
to push for trade pacts with
other countries.
the US. But, however well
gressional hostility to Cuba
with a second generation of
Europe.
But in a reminder of the
respected Mr Clinton may
and suspicions of closer
reforms aimed at improving
On other areas of policy,
constraints on the adminis-
be, there are few prepared to
co-operation with Latin
the social and economic con-
the gap between Clinton
tration, two leading Republi-
bet he will prove to be as
American governments on
ditions of the people.
administration commitments
can congressmen issued a
effective as Franklin D.
drugs may render irrelevant
The summit leaders
and congressional reality
sharply worded warning at
Roosevelt.
much of what Mr Clinton is
pledged urgent action on
was never far from the nego-
the summit against any
trying to do.
this, but there was little con-
tiations. General Barry
attempt to water down what
Lex, Page 14