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U.S DEPARTMENT OF STATE DISPATCH =

VOLUME 6, NUMBER 10, MARCH 6, 1995=20
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS=20
=20
ARTICLES IN THIS ISSUE:=20
1.  The Vital Tradition of American Leadership in the World--President=20
Clinton=20
2.  The United States and Canada: Reaffirming the Partnership--President =

Clinton=20
3.  Fact Sheets:  Canada=20
--U.S.-Canada Trade=20
--U.S.-Canada Environmental Issues=20
--NAFTA: Key Provisions and Supplemental Agreements=20
--U.S.-Canada Air Services Agreement=20
--Global Environmental Issues=20
4.  Country Profile:  Canada=20
5.  Maintaining the Instruments Of America's Global Leadership--
Secretary Christopher=20
6.  U.S. Interests and Russian Reform--Deputy Secretary Talbott=20
7.  American Eagle or Ostrich? The Case for The United States in the=20
United Nations--Deputy Secretary Talbott=20
8.  Department Statements=20
--Suspending Arms Sales to Ecuador and Peru=20
--President Clinton Applauds Ecuador-Peru Peace Declaration=20
--Mexico To Take Action To Curb Violence Along U.S. Border=20
9.  What's in Print--Foreign Relations Of the United States=20
=20
=20
=20
ARTICLE 1:=20
=20
The Vital Tradition of American Leadership in the World=20
President Clinton=20
Remarks to the Nixon Center for Peace and Freedom Policy Conference,=20
Washington, DC, March 1, 1995 [introductory remarks deleted]=20
=20
I am honored to be here tonight. Just a month before he passed away,=20
President Nixon wrote me the last letter I received from him about his=20
last trip to Russia. I told some people at the time that it was the best =

piece of foreign policy writing I had received, which angered my staff=20
but happened to be the truth. And, as with all of our correspondence and =

conversations, I was struck by the rigor of his analysis, the energy of=20
his convictions, and the wisdom of the practical suggestions that he=20
made to me.=20
=20
But more than the specifics of the letter, which basically argued for=20
the imperative of the United States continuing to support political and=20
economic reform in Russia, I was moved by the letter's larger message--a =

message that ran throughout Richard Nixon's entire public life and all=20
of his prolific writings. President Nixon believed deeply that the=20
United States simply could not be strong at home unless we were strong=20
and prepared to lead abroad. And that made a big impression on me. =20
=20
When I was running for President in 1992, even though there was this=20
little sticker up on the wall of my campaign headquarters that said,=20
"It's the economy, stupid," I always said in every speech that we had to =

have two objectives: We had to restore the American dream for all of our =

people, but we also had to make sure that we move into the next century=20
still the strongest nation in the world and the world's greatest force=20
for peace and freedom and democracy.=20
=20
Tonight, I want to talk about the vital tradition of American leadership =

and our responsibilities--those which Henry Kissinger mentioned and=20
those which President Nixon recognized so well. Our mission especially I =

want to discuss--to reduce the threat of nuclear weapons.=20
=20
Today, if we are going to be strong at home and lead abroad, we have to=20
overcome what we all recognize, I think, is a dangerous and growing=20
temptation here in our own land to focus solely on the problems we face=20
here in America. I have tried to do it for the last two years. I look=20
forward to working with this new Republican-led Congress in the next=20
two, but not solely.=20
=20
There is a struggle now going on between those of us who want to carry=20
on the tradition of American leadership and those who would advocate a=20
new form of American isolationism--a struggle which cuts curiously=20
across both party and ideological lines. If we are going to continue to=20
improve the security and prosperity of all our people, then the=20
tradition of American leadership must prevail.=20
=20
We live in a moment of hope. We all know that. The implosion of=20
communism and the explosion of the global economy have brought new=20
freedoms to countries on every continent. Free markets are on the rise.=20
Democracy is ascendant. The slogan says, "after victory."  Today, more=20
than ever before, people across the globe do have the opportunity to=20
reach their God-given potential. And because they do, Americans have new =

opportunities to reach theirs as well.=20
=20
At the same time, the post-Cold War world has revealed a whole web of=20
problems that defy quick or painless solutions--aggression of rogue=20
states, transnational threats like overpopulation and environmental=20
degradation, terrible ethnic conflicts, and economic dislocation. But at =

the heart of all these complex challenges, I believe, lies an age-old=20
battle for power over human lives--the battle between the forces of=20
freedom and tyranny, tolerance and repression, hope and fear. The same=20
idea that was under attack by fascism and then by communism remains=20
under attack today in different ways all across the world--the idea of=20
the open society of free people.=20
=20
American leadership is necessary for the tide of history to keep running =

our way and for our children to have the future they deserve. Yet, there =

are some who would choose escapism over engagement. The new=20
isolationists oppose our efforts to expand free trade through GATT or=20
NAFTA, through APEC and the Summit of the Americas. They reject our=20
conviction that democracy must be nurtured with investment and support--
a conviction that we are acting on from the former Soviet Union to South =

Africa. And some of them, being hypocritical, say that we must trumpet=20
the rhetoric of American strength. At the same time, they argue against=20
the resources we need to bring stability to the Persian Gulf or to=20
restore democracy to Haiti, or to control the spread of drugs and=20
organized crime around the world, or even to meet our most elemental=20
obligations to the United Nations and its peacekeeping work.=20
=20
The new isolationists--both on the left and the right--would radically=20
revise the fundamentals of our foreign policy that have earned=20
bipartisan support since the end of World War II. They would eliminate=20
any meaningful role for the United Nations which has achieved, for all=20
of its problems, real progress around the world, from the Middle East to =

Africa. They would deny resources to our peacekeepers and even to our=20
troops, and, instead, squander them on Star Wars. They would refuse aid=20
to the fledgling democracies and to all those fighting poverty and=20
environmental problems that can literally destroy hopes for a more=20
democratic, more prosperous, more safe world.=20
=20
The new isolationists are wrong. They would have us face the future=20
alone. Their approach would weaken this country, and we must not let the =

ripple of isolationism that has been generated build into a tidal wave.=20
=20
If we withdraw from the world today, mark my words, we will have to=20
contend with the consequences of our neglect tomorrow and tomorrow and=20
tomorrow. This is a moment of decision for all of us without regard to=20
our party, our background, or our accent. This is a moment of decision.=20
=20
The extraordinary trend toward democracy and free markets is not=20
inevitable, and as we have seen recently, it will not proceed easily in=20
an even, uninterrupted course. This is hard work, and at the very time=20
when more and more countries than ever before are working to establish=20
or shore up their own freedom in their fragile democracies, they look to =

us for support. At this time, the new isolationists must not be allowed=20
to pull America out of the game after just a few hours of debate because =

there is a modest price attached to our leadership.=20
=20
We now know, as President Nixon recognized, that there must also be=20
limits to America's involvement in the world's problems--limits imposed=20
by clear-headed evaluation of our fundamental interests. We cannot be=20
the world's policemen; we cannot become involved in every problem we=20
really care about. But the choice we make must be rooted in the=20
conviction that America cannot walk away from its interests or its=20
responsibilities.=20
=20
That is why, from our first day in office, this Administration has=20
chosen to reach out, not retreat. From our efforts to open markets for=20
America to support democracy around the world, to reduce the threat=20
posed by devastating weapons and terrorists, to maintaining the most=20
effective fighting force in the world, we have worked to seize the=20
opportunities and meet the obligations of this moment.=20
=20
None of this could have happened without a coalition of realists--people =

in both Houses of  Congress and, importantly, people from both parties;=20
people from coast to coast in our towns and cities and communities who=20
know that the wealth and well-being of the United States depends upon=20
our leadership abroad. Even the early leaders of our republic who went=20
to great pains to avoid involvement in great power conflicts recognized=20
not only the potential benefits, but the absolute necessity of engaging=20
with the world.=20
=20
Before Abraham Lincoln was elected President, our farmers were selling=20
their crops overseas. We had dispatched the trade mission all the way to =

Japan trying to open new markets--some problems don't go away--and our=20
Navy had already sailed every ocean. By the dawn of this century, our=20
growing political and economic power already imposed a special duty on=20
America to lead--a duty that was crystallized in our involvement in=20
World War I. But after that war, we and the other great powers abandoned =

our responsibilities, and the forces of tyranny and hatred filled the=20
vacuum, as is well-known.=20
=20
After the Second World War, our wise leaders did not repeat that=20
mistake. With the dawn of the nuclear age and the Cold War, and with the =

economies of Europe and Japan in shambles, President Truman persuaded an =

uncertain and weary nation, yearning to shift its energies from the=20
front lines to the home front, to lead the world again.=20
=20
A remarkable generation of Americans created and sustained alliances and =

institutions--the Marshall Plan, NATO, the United Nations, the World=20
Bank, the IMF--the things that brought a half century of security and=20
prosperity to America, to Europe, to Japan, and to other countries all=20
around the world. Those efforts and the special resolve and military=20
strength of our own nation held tyranny in check until the power of=20
democracy, the failures of communism, and the heroic determination of=20
people to be free consigned the Cold War to history. Those successes=20
would not have been possible without a strong, bipartisan commitment to=20
America's leadership.=20
=20
Senator Arthur Vandenburg's call to unite our official voice at the=20
water's edge joined Republicans to Truman's doctrine. His impact was all =

the more powerful for his own past as an isolationist, but as Vandenburg =

himself said, Pearl Harbor ended isolationism for any realist.=20
=20
Today, it is Vandenburg's spirit that should drive our foreign policy=20
and our politics. The practical determination of Senators Nunn and Lugar =

to help Russia reduce its nuclear arsenal safely and securely; the=20
support from Speaker Gingrich and Leader Gephardt, from Chairman=20
Livingston and Representative Obey for aid to Russia and the New=20
Independent States; the work of Senators Hatfield, Leahy, and McConnell, =

and Chairman Gilman, and Representative Hamilton for peace in the Middle =

East; the efforts of Senator Warner to restructure our intelligence--all =

these provide strong evidence of the continuing benefits and vitality of =

leadership with bipartisanship.  If we continue to lead abroad and work=20
together at home, we can take advantage of these turbulent times. But if =

we retreat, we risk squandering all these opportunities and abandoning=20
our obligations which others have entrusted to us and paid a very dear=20
price to bring to us in this moment in history.=20
=20
I know that the choice to go forward in a lot of these areas is not easy =

in democracies at this time. Many of the decisions that America's=20
leaders have to make are not popular when they are made, but imagine the =

alternative. Imagine, for example, the tariffs and barriers that would=20
still cripple the world trading system for years into the future if=20
internationalists coming together across party lines had not passed GATT =

and NAFTA. Imagine what the Persian Gulf region would look like today if =

the United States had not stepped up with its allies to stop Iraqi=20
aggression. Imagine the ongoing reign of terror and the flood of=20
refugees at our borders had we not helped to give democracy a second=20
chance in Haiti. Imagine the chaos that might have ensued if we had not=20
moved to help stabilize Mexico's economy. In each case, there was=20
substantial and sometimes overwhelming majority opinion against what=20
needed to be done at the moment. But because we did it, the world has a=20
better chance at peace and freedom.=20
=20
But above all, now I ask you to imagine the dangers that our children=20
and grandchildren--even after the Cold War is over--can still face if we =

do not do everything we can to reduce the threat of nuclear arms, to=20
curb the terrible chemical and biological weapons spreading around the=20
world, to counter the terrorists and criminals who would put these=20
weapons into the service of evil. As Arthur Vandenburg asked at   the=20
dawn of the nuclear age, after a German V-1 attack had left London in=20
flames and its people in fear, "How can there be isolation when men can=20
devise weapons like that?"=20
=20
President Nixon understood the wisdom of those words. His life spanned=20
an era of stunning increases in humankind's destructive capacity--from=20
the biplane to ballistic missiles, from mustard gas to mushroom clouds.=20
He knew that the atomic age could never be won, but could be lost. On=20
any list of his foreign policy accomplishments, the giant steps he took=20
toward reducing the nuclear threat must stand among his greatest=20
achievement. As President, I have acted on that same imperative.=20
=20
Over the past two years, the United States has made real progress in=20
lifting the threat of nuclear weapons. Now, in 1995, we face a year of=20
particular decision in this era--a year in which the United States will=20
pursue the most ambitious agenda to dismantle and fight the spread of=20
weapons of mass destruction since the atom was split. =20
=20
We know that ours is an enormously complex and difficult challenge.=20
There is no single policy, no silver bullet, that will prevent or=20
reverse the spread of weapons of mass destruction, but we have no more=20
important task. Arms control makes us not only safer, it makes us=20
stronger. It is a source of strength. It is one of the most effective=20
insurance policies we can write for the future of our children.=20
=20
Our Administration has focused on two distinct but closely connected=20
areas--decreasing and dismantling existing weapons and preventing=20
nations or groups from acquiring weapons of mass destruction and the=20
means to deliver them. We have made progress on both fronts.=20
=20
As the result of an agreement President Yeltsin and I reached, for the=20
first time in a generation Russian missiles are not pointed at our=20
cities or our citizens. We have greatly reduced the lingering fear of an =

accidental nuclear launch. We put into force the START I Treaty with=20
Russia that will eliminate from both our countries delivery systems that =

carry more than 9,000 nuclear warheads--each with the capacity to=20
incinerate a city the size of Atlanta.=20
=20
START I--negotiated by two Republican Administrations and put into force =

by this Democratic Administration--is the first treaty that requires the =

nuclear powers actually to reduce their strategic arsenal. Both our=20
countries are dismantling the weapons as fast as we can, and, thanks to=20
a far-reaching verification system, including on-site inspections which=20
began in Russia and the United States today, each of us knows exactly=20
what the other is doing. And, again, through the far-sighted program=20
devised by Senators Nunn and Lugar, we are helping Russia and the other=20
New Independent States to eliminate nuclear forces in transport and=20
safeguard and destroy nuclear weapons and material.=20
=20
Ironically, some of the changes that have allowed us to reduce the=20
world's stockpile of nuclear weapons have made our non-proliferation=20
efforts harder. The breakup of the Soviet Union left nuclear materials=20
dispersed throughout the New Independent States. The potential for theft =

of nuclear materials, therefore, increased. We face the prospect of=20
organized criminals entering the nuclear smuggling business. Add to this =

volatile mix the fact that a lump of plutonium the size of a soda can is =

enough to build a bomb, and the urgency of the effort to stop the spread =

of nuclear materials should be clear to all of us.=20
=20
That is why from our first day in office, we have launched an=20
aggressive, coordinated campaign against international terrorism and=20
nuclear smuggling. We are cooperating closely with our allies, working=20
with Russia and the other New Independent States, improving security at=20
nuclear facilities, and strengthening multilateral export controls.=20
=20
One striking example of our success is Operation Sapphire, the airlift=20
of nearly 600 kilograms of highly enriched uranium--enough to make=20
dozens of bombs from Kazakhstan to the United States for disposal. We=20
have also secured agreements with Russia to reduce the uranium and=20
plutonium available for nuclear weapons, and we're seeking a global=20
treaty banning the production of fissile material for nuclear weapons.=20
=20
Our patient, determined diplomacy also succeeded in convincing Belarus,=20
Kazakhstan, and Ukraine to sign the Non-Proliferation Treaty and give up =

the nuclear weapons left on their territory when the Soviet Union=20
dissolved. One of our Administration's top priorities was to assure that =

these new countries would become non-nuclear nations, and now we are=20
also achieving that goal.=20
=20
Because of these efforts, four potential suppliers of ballistic=20
missiles--Russia, Ukraine, China, and South Africa--have all agreed to=20
control the transfer of these missiles and related technology. Pulling=20
back from the nuclear precipice has allowed us to cut U.S. defense=20
expenditures for strategic weapons by almost two-thirds, a savings of=20
about $20 billion a year--savings which can be shifted to vital needs=20
such as boosting the readiness of our armed forces, reducing the=20
deficit, and putting more police on our own streets. By spending=20
millions to keep or take weapons out of the hands of our potential=20
adversaries, we are saving billions in arms costs and putting it to=20
better use.=20
=20
Now, in this year of decision, our ambition for the future must be even=20
more ambitious. If our people are to know real lasting security, we have =

to redouble our arms control, non-proliferation, and anti-terrorism=20
efforts. We have to do everything we can to avoid living with the 21st-
century version of fallout shelters and duck-and-cover exercises to=20
prevent another World Trade Center tragedy.=20
=20
In just four days, we mark the 25th anniversary of the Non-Proliferation =

Treaty. Nothing is more important to prevent the spread of nuclear=20
weapons than extending the treaty indefinitely and unconditionally. And=20
that is why I have asked the Vice President to lead our delegation to=20
the NPT conference this April and to work as hard as we can to make sure =

we succeed in getting that indefinite extension.=20
=20
The NPT is the principal reason why scores of nations do not now possess =

nuclear weapons; why the doomsayers were wrong. One hundred and seventy-
two nations have made NPT the most widely subscribed arms limitation=20
treaty in history for one overriding reason; it is in their self-
interest to do so. Non-nuclear weapons states that sign on to the treaty =

pledge never to acquire them. Nuclear weapons states vow not to help=20
others obtain nuclear weapons, to facilitate the peaceful uses of atomic =

energy, and to pursue nuclear arms control and disarmament--commitments=20
I strongly reaffirm, along with our determination to attain universal=20
membership in the treaty.=20
=20
Failure to extend NPT indefinitely could open the door to a world of=20
nuclear trouble. Pariah nations with rigid ideologies and expansionist=20
ambitions would have an easier time acquiring terrible weapons, and=20
countries that have chosen to forego the nuclear option would then=20
rethink their position; they would certainly be tempted to reconsider=20
that decision.=20
=20
To further demonstrate our commitment to the goals of the treaty, today=20
I have ordered that 200 tons of fissile material, enough for thousands=20
of nuclear weapons, be permanently withdrawn from the United States=20
nuclear stockpile--two hundred tons of fissile material that will never=20
again be used to build a nuclear weapon.=20
=20
A second key goal of ours is ratifying START II. Once in effect, that=20
treaty will eliminate delivery systems from Russian and American=20
arsenals that carry more than 5,000 weapons. The major reductions under=20
START I, together with START II, will enable us to reduce by two-thirds=20
the number of strategic warheads deployed at the height of the Cold War. =

At my urging, the Senate has already begun hearings on START II, and I=20
am encouraged by the interest of the senators from both parties in=20
seeking quick action. I commend the Senate for the action taken so far,=20
and I urge again the approval of the treaty as soon as possible.=20
=20
President Yeltsin and I have already instructed our experts to begin=20
considering the possibility after START II is ratified for additional=20
reductions and limitations on remaining nuclear forces. We have a chance =

to further lift the nuclear cloud, and we dare not miss it.=20
=20
To stop the development of new generations of nuclear weapons, we must=20
also quickly complete negotiations on a comprehensive test ban treaty.=20
Last month, I extended a nuclear testing moratorium that I put into=20
effect when I took office, and we revised our negotiating position to=20
speed the conclusion of the treaty while reaffirming our determination=20
to maintain a safe and reliable nuclear stockpile.=20
=20
We will also continue to work with our allies to fully implement the=20
agreement we reached with North Korea--first to freeze, then to=20
dismantle its nuclear program, all under international monitoring. The=20
critics of this agreement, I believe, are wrong. The deal does stop=20
North Korea's nuclear program, and it does commit Pyongyang to roll it=20
back in the years to come. I have not heard another alternative proposal =

that isn't either unworkable or foolhardy, nor one that our allies in=20
the Republics of Korea and Japan--the nation's most directly affected--
would fail to support.=20
=20
If North Korea fulfills its commitment, the Korean Peninsula and the=20
entire world will clearly be less threatened and more secure. The NPT,=20
START II, the comprehensive test ban treaty, the North Korean Agreed=20
Framework: They top our agenda for the year ahead. There are other=20
critical tasks we also face if we want to make every American more=20
secure, including winning Senate ratification of the Chemical Weapons=20
Convention, negotiating legally binding measures to strengthen the=20
Biological and Toxin Weapons Convention, clarifying the ABM Treaty so as =

to secure its viability while permitting highly effective defenses=20
against theater missile attacks, continuing to support regional arms=20
control efforts in the Middle East and elsewhere, and pushing for the=20
ratification of conventional weapons which, among other things, would=20
help us to reduce the suffering caused by the tens of millions of anti-
personnel mines which are plaguing millions of people all across this=20
world.=20
=20
My friends, this is a full and challenging agenda. There are many=20
obstacles ahead. We cannot achieve it if we give in to a new=20
isolationism, but I believe we can do no less than make every effort to=20
complete it.=20
=20
Tonight, let us remember what President Nixon told the joint session of=20
Congress when he returned from his historic trip to Moscow in 1972. He=20
said:=20
=20
We have begun to check the wasteful and dangerous spiral of nuclear=20
arms. Let us seize the moment so that our children and the world's=20
children can live free of the fears and free of the hatreds that have=20
been the lot of mankind through the centuries.=20
=20
Now it is within our power to realize the dream that Richard Nixon=20
described over 20 years ago. We cannot let history record that our=20
generation of Americans refused to rise to this challenge; that we=20
withdrew from the world and abandoned our responsibilities when we knew=20
better than to do it; that we lacked the energy, the vision, and the=20
will to carry this struggle forward--the age-old struggle between hope=20
and fear.=20
=20
So let us find inspiration in the great tradition of Harry Truman and=20
Arthur Vandenburg--a tradition that builds bridges of cooperation, not=20
walls of isolation; that opens the arms of Americans to change instead=20
of throwing up our hands in despair; that casts aside partisanship and=20
brings together Republicans and Democrats for the good of the American=20
people and the world. That is the tradition that made the most of this=20
land, won the great battles of this century against tyranny, and secured =

our freedom and our prosperity.=20
=20
Above all, let's not forget that these efforts begin and end with the=20
American people. Every time we reduce the threat that has hung over our=20
heads since the dawn of the nuclear age,      we help to ensure that--
from the far stretches of the Aleutians to the tip of the Florida Keys--
the American people are more secure. That is our most serious task and=20
our most solemn obligation.=20
=20
The challenge of this moment is matched only by its possibility. So let=20
us do our duty.   (###)=20
=20
=20
=20
ARTICLE 2:=20
=20
The United States and Canada:  Reaffirming the Partnership=20
President Clinton=20
Remarks to the Canadian Parliament, Ottawa, Canada, February 23, 1995=20
=20
Mr. Prime Minister and Mrs. Chretien, Mr. Speaker of the Senate, Mr.=20
Speaker of the House of Commons, honorable senators and members of the=20
House of Commons, distinguished members of the diplomatic corps, ladies=20
and gentlemen:=20
=20
I have pondered for some time the differences between the Canadian=20
political system and the American one, and when the Prime Minister=20
pointed out the unanimous resolution you passed yesterday, I realized=20
that, in one respect, clearly, you are superior. We do not control the=20
weather in Washington, DC, and I am grateful that you do. I also thank=20
the Prime Minister for his history lesson. I have never believed in the=20
iron laws of history so much as I do now. =20
=20
I thank the Prime Minister and all of you for welcoming me to this=20
magnificent capital city. The Prime Minister first came to this chamber=20
to represent the people of Canada when President Kennedy was in the=20
White House. I resent that because when President Kennedy was in the=20
White House, I was in junior high school--and now the Prime Minister has =

less gray hair than I do. He does, in spite of the fact that since that=20
time he has occupied nearly every seat in his nation's cabinet. The=20
first time I met him, I wondered why this guy could not hold down a job. =

I can tell you this: We in the United States know that his service to=20
this nation over so many years has earned him the gratitude and the=20
respect of the Canadian people. It has also earned him the gratitude and =

the respect of the people of the United States. =20
=20
I know it is traditional for American presidents, when they address this =

body, to speak of their affection for their ties to the Canadian people. =

On behalf of the United States, let me stay with that tradition and say, =

l'amitie solide. But let me say to you that it is a big part of our=20
life. I remember so well, more than a decade ago, when Hillary and I,=20
with our then very young daughter, came to Canada to celebrate the new=20
year. We started in Montreal and drove to Chateau Montebello. Along the=20
way, we drove around Ottawa, and we watched all those wonderful people=20
skating along the canal. I come from a southern State. I could not=20
imagine that anybody could ever get on skates and stand on any body of=20
water for very long. I could see that always--Hillary has had in the=20
back of her mind all this long time how much she would like to be=20
skating along this canal. I think, tomorrow, Mrs. Chretien is going to=20
give her her wish, and we are looking forward to that. =20
=20
My wife has visited Toronto, and we had a wonderful, wonderful family=20
vacation in Western Canada--in Victoria and Vancouver back in 1990--one=20
of the best times that all of us have ever had together anywhere. We are =

deeply indebted to your culture. Our daughter's name was inspired by=20
Canadian songwriter Joni Mitchell's wonderful song, Chelsea Morning.=20
=20
All of you know that in the spring of 1993, the first time I left the=20
United States as President, I came to Vancouver for the summit with=20
President Yeltsin. Both of us, at that time, were under a significant=20
amount of stress as we tried to reaffirm our relationship and solidify=20
democracy in Russia. I can say, without any equivocation, that the=20
reception we received from the people of Canada, as well as from the=20
government and the Prime Minister, made it very, very easy for us to=20
have a successful meeting. For that we are very grateful.=20
=20
I come here today to reaffirm the ties that bind the United States and=20
Canada, in a new age of great promise and challenge--a time of rapid=20
change, when both opportunity and uncertainty live side by side in my=20
country and in yours; a time when people are being lifted up by new=20
possibilities and held down by old demons all across the world. I came=20
here because I believe our nations together must seize the opportunities =

and meet the challenges of this new age. We must--I say again--do this=20
together. =20
=20
From the oil from Alberta that fires factories in the United States to=20
the silicon chips from California that power your computers, we are=20
living proof of the value of partnerships and cooperation. Technologies=20
produced in your nation save lives in our hospitals, while food from our =

farms line your supermarkets.=20
=20
Our horizons have broadened because we in the United States have=20
listened  to the CBC. Our culture is much richer because of the=20
contributions of writers like Robertson Davies--whom Hillary had the=20
pleasure of meeting last week after reading him for years--and Margaret=20
Atwood, and because of the wonderful photography of Josef Karsh, whose=20
famous picture of Churchill I just saw. He took some pictures of Hillary =

and me that are not so distinguished, but I love them anyway. As a=20
musician, I have =20
to thank you especially for Oscar Peterson, a man I consider to be the=20
greatest jazz pianist.=20
=20
Ours is the world's most remarkable relationship--the Prime Minister=20
said--whether we like it or not. I can tell you that, on most days, I=20
like it very, very, much. =20
=20
We have to strengthen that relationship. We have to strengthen it for=20
our own benefit through trade and commerce and travel. We have to=20
strengthen it because it is our job to help spread the benefits of=20
democracy, freedom, prosperity, and peace beyond our shores. We are=20
neighbors by the grace of nature. We are allies and friends by choice.=20
=20
There are those in both our nations who say we can no longer afford to--
and perhaps we no longer even need to--exercise our leadership in the=20
world. When so many of our people are having their own problems, it is=20
easy to listen to that assertion. But it is wrong.=20
=20
We are two nations blessed with great resources and great histories, and =

we have great responsibilities. We were built, after all, by men and=20
women who fled the tyranny and intolerance of the old world for the new. =

We are the nations of pioneers--people who were armed with the=20
confidence they needed to strike out on their own and to have the=20
talents that God gave them shape their dreams in a new and different=20
land.=20
 Culture and tradition, to be sure, distinguish us from one another in=20
many ways that we are still learning about every day. But we share core=20
values, and that is more important--a devotion to hard work, an ardent=20
belief in democracy, a commitment to giving each and every citizen the=20
right to live up to his or her God-given potential, and an understanding =

of what we owe to the world for the gifts we have been given.=20
=20
These common values have nourished a partnership that has become a model =

for new democracies all around this world. They can look at us and see=20
just how much stronger the bonds between nations can be when their=20
governments answer the citizens' desires for freedom and democracy and=20
enterprise, and when they work together to build each other up instead=20
of working overtime to tear each other down.=20
=20
Of course, we have our differences. Some of them are complex enough to=20
tear your hair out over. But we have approached them directly and in=20
good faith--as true friends must. We in the United States come more and=20
more every day to respect and understand that we can learn from what is=20
different about your nation and its many people.=20
=20
Canada has shown the world how to balance freedom with compassion and=20
tradition with innovation in your efforts to provide health care to all=20
your citizens; to treat your senior citizens with the dignity and=20
respect they deserve; and to take on tough issues such as the move afoot =

to outlaw automatic weapons designed for killing, not hunting. I might=20
say--since you applauded so--you are doing it in a nation of people who=20
respect the right to hunt and understand the difference between law and=20
order and sportsmanship.=20
=20
Those of us who have traveled here especially appreciate the reverence=20
you have shown for the bounty of God's nature--from the Laurentians to=20
the Rockies. In a world darkened by ethnic conflicts that literally tear =

nations apart, Canada has stood for all of us as a model of how people=20
of different cultures can live and work together in peace, prosperity,=20
and respect.=20
=20
The United States, as many of my predecessors have said, enjoys its=20
excellent relationship with a strong and united Canada, but we=20
recognize--just as the Prime Minister said to us a moment ago, with=20
regard to your relationships--that your political future is, of course,=20
entirely for you to decide. That is what a democracy is all about.=20
=20
Now I will tell you something about our political system. You want to=20
know why my State of the Union address took so long? It was because I=20
evenly divided the things that would make the Democrats clap and the=20
Republicans clap. We doubled the length of the speech in common=20
enthusiasm.=20
=20
I ask you--all of you--to remember that we do look to you, and to=20
remember what our great President of the postwar era, Harry Truman, said =

when he came here in 1947. "Canada's eminent position today," he said,=20
is a tribute to the patience, tolerance, and strength of character of=20
her people. Canada's notable achievement of national unity and progress=20
through accommodation, moderation, and forbearance can be studied with=20
profit by sister nations.  =20
=20
These words ring every bit as true today as they did then.=20
=20
For generations, our countries have joined together in efforts to make=20
the world more secure and more prosperous. We have reached out together=20
to defend our values and our interests--in World War I, on the beaches=20
of Normandy, and in Korea. Together, we helped to summon the United=20
Nations into existence. Together, we stood fast against communist=20
tyranny and prevailed in the Cold War. Together, we stood shoulder to=20
shoulder against aggression in the Gulf War. Now our nations have=20
stepped forward to help Haiti emerge from repression and to restore its=20
democracy. I thank the Prime Minister for what he said about that. When=20
it was not popular anywhere in the world to worry about poor,=20
beleaguered, abandoned Haiti, Canada was truly a friend of Haiti.=20
=20
In one international forum after another, we stand side by side to shape =

a safer and better world. Whether it is at the World Population=20
Conference, pushing together for an indefinite extension of NPT, or in=20
any number of ways--we are working together.=20
=20
We know that for Canada, this history of action is a matter of deep=20
tradition and personal conviction. The tradition runs from Lester=20
Pearson to Jean Chretien. It says we must be engaged in the affairs of=20
the world. You have always shown the wisdom of reaching out instead of=20
retreating, of rising to new responsibilities instead   of retrenching.=20
Your tradition of engagement continues to this day, and, believe you me, =

it earns respect all around the world from people of all races,  ethnic=20
groups, and political systems.=20
=20
In places such as Cyprus and the Sinai, Canadian troops have played an=20
invaluable role in preventing more violence in those critical hot spots. =

Today, your 2,000 peacekeepers in the former Yugoslavia are courageously =

fulfilling their mission in the midst of one of the most intractable,=20
difficult situations in our lifetime.=20
=20
For a half century, the United States has shared your philosophy of=20
action and consistent exercise of leadership abroad. I am determined,=20
notwithstanding all the cross-currents in our country, that we shall=20
preserve that commitment. These times may be turbulent, but we have a=20
historic opportunity to increase security and prosperity for our own=20
people and for people all around the world. I want you to know that I=20
intend to do everything in my power to keep our country constructively=20
involved in the problems that we must face if we are going to guarantee=20
that our children will live in a peaceful, sane, and free world.=20
=20
Imagine what the Persian Gulf would look like today if we had not risen=20
to the challenge of Iraqi aggression. Imagine what tariffs and barriers=20
would plague the world trading system if we had not worked so hard=20
together over such a long period of time, from the end of World War II=20
to the events the Prime Minister described--to NAFTA, to GATT, to the=20
Asia-Pacific cooperation, to the Summit of Americas that was held in=20
Miami in December. Imagine how different it would have been. Imagine how =

much worse the horrible tragedy in Rwanda would have been if we had not=20
been there to provide essential help in those refugee camps to keep=20
people alive.=20
=20
We cannot let anyone or anything break this great tradition of our=20
nations. In our partnership, we will find the key to protecting our=20
people and increasing their prosperity and the power to reach beyond our =

shores in the name of democracy and freedom--not only because it is=20
right, but because it is in our interest to do so.=20
=20
Just before we came down here, the Prime Minister and I agreed again=20
that if we are going to meet these new challenges in the 21st century,=20
we must adapt the institutions that helped us to win the Cold War so=20
they can serve us as well in the 21st century. We have to do that. Some=20
have evolved with the changing world. Some have, clearly, already=20
discarded their old missions and assumed new roles. But we have also=20
seen that the end of the East-West  conflict, the advent of 24-hour=20
financial markets, sudden environmental disasters, the rise of=20
international terrorism, the resurgence of ancient ethnic hatreds--all=20
these things have placed new demands on these institutions that the=20
statesmen of 50 years ago simply did not imagine. The 21st century will=20
leave behind those who sit back and think that these problems will be=20
solved automatically. We simply have to face these challenges and ask=20
ourselves what we have to change and how are we going to do it.=20
=20
For example, to meet the security needs of the future, we must work=20
together to see that NATO--the most successful military alliance in all=20
of history--adapts to this new era. That means that we must make certain =

that the inevitable process of NATO expansion proceeds smoothly,=20
gradually, and openly. There should be no surprises to anyone about what =

we are about. We will work so that the conditions, the timing, and the=20
military implications of NATO expansion will be widely known and clearly =

understood in advance.=20
=20
To parallel the enlargement of NATO, we have to develop close,  strong=20
ties with Russia. I have worked hard for that, and so has the Prime=20
Minister. We must continue working together at the United Nations, where =

our nations have, together, taken the lead in efforts to reform our=20
peace-keeping operations--to control the costs, to improve information=20
gathering, and to make sure we have the right kind of command and=20
control system before the young people who put on our uniforms are put=20
in harm's way.=20
=20
We also must continue to work at reforming the international economic=20
institutions. We already have made great strides in reshaping the new=20
global economy with the passage of GATT, which is the most comprehensive =

trade agreement in history. But the work is only beginning. At the=20
upcoming G-7 summit in Halifax, which we are very much looking forward=20
to, we will be working to ensure that our international trading=20
institutions advance the cause of trade liberalization in ways that=20
produce   tangible gains for the people of the countries involved.=20
=20
We also have to re-examine the institutions that were created at the=20
time of Bretton Woods--the IMF and the World Bank--to make sure that=20
they are going to be able to master the new and increasingly complex=20
generation of transnational problems that face us-- problems such as=20
explosive population growth and environmental degradation and problems=20
such as those we have been facing together in Mexico and throughout=20
Latin America during the recent financial crisis. Real progress in these =

areas will depend, not only on our willingness to be involved, but our=20
willingness to lead as partners. Together, Canada and the United States=20
are striving to seize all the advantages the new global economy has to=20
offer. Trade produces high-wage jobs; we know that--the kinds of jobs=20
that give our people the opportunity to care for their families, to=20
educate their children, and to leave the next generation better off than =

they were; a dream that has been called into question in many advanced=20
economies in the last few years.=20
=20
The success of NAFTA, which is generating new jobs and creating new=20
markets from Monterrey to Medicine Hat is the proof. Now, as the Prime=20
Minister has said so well, we in NAFTA are on our way to becoming the=20
"Four Amigos." That phrase will go down in history; I wish I had thought =

of it. We will soon start our consultations with Chile for accession in=20
NAFTA; it will be a very good partner. The addition of that thriving=20
economy will only continue to increase the benefits for all of us.=20
=20
I want to take another moment here to thank Canada for its recent=20
support during the financial crisis in Mexico. You understood what we=20
had on the line--that more than Mexico was involved; that jobs, trade,=20
futures, and our support for democracy and stability throughout Latin=20
America were at issue. You understood it, and we are grateful. Because=20
we stood shoulder to shoulder, we have a chance to preserve this=20
remarkable explosion of democracy that we saw at the Summit of the=20
Americas, and we should continue to do that.=20
=20
I want to say a word, if I might, about the environment. As we expand=20
trade, we have to remember: We must defend that which we have inherited=20
and enhance it if we can. The natural riches of this continent we share=20
are staggering. We have cooperated to such great effect on our continent =

in the past: Our air quality agreement is solving the acid rain problem; =

the Great Lakes are on the road to recovery; and the eagles have=20
returned to Lake Erie. Now we have to build on those accomplishments.=20
=20
With the NAFTA Environmental Commission located in Montreal, your=20
country will play a key role in ensuring that we protect the=20
extraordinary bounty that has been given us for our children and=20
grandchildren. NAFTA is only one of several fronts on which we can work=20
together to both increase our prosperity and protect our environment: We =

must do both.=20
=20
Our nations are building on the progress of last year's Summit of the=20
Americas, as well. It will create a free trade area embracing the entire =

hemisphere. Across the Pacific, as the Prime Minister said, we paved the =

way for new markets and for free trade among the dynamic economies in=20
the Asia-Pacific area. That was a very important thing for us to do=20
because they are growing very fast, and we did not want this world to=20
break up into geographical trading blocks in ways that would shrink the=20
potential of the people of Canada and the United States for decades to=20
come.=20
=20
These efforts will only enhance what is now the greatest trading=20
relationship--yours and ours. Every day, people, ideas, and goods stream =

across our border. Bilateral trade now is more than $1 billion Canadian=20
every day--I learned to say that--and about $270 billion U.S. last year-
-by far the worlds largest bilateral relationship.=20
=20
Our trade with each other has become an essential pillar in the=20
architecture of our economies. Today, 4.5 million Americans have jobs=20
that involve trade between our two countries. Those are the concrete=20
benefits of our partnership. Between 1988 and 1994, trade between our=20
nations rose about 60%. Last year alone, it increased by 15%.=20
=20
But the statistics do not give the human reality behind the flourishing=20
exchange of goods and ideas. Our trade is creating real jobs for real=20
people. In Boscawen, New Hampshire, for example, a small company called=20
Secure Care Products produces monitoring systems for patients in nursing =

homes.=20
=20
Recently, Secure Care began exporting its products to Canada. Sales=20
there are already growing fast, and the company expects them to triple=20
this year. So Secure Care is hiring people like Susan Southwick, the=20
granddaughter of Quebeckers, the mother of two, and now the company's=20
26th employee. Giving Susan and her husband a shot at the dream which=20
Canadians and American share--that is what this partnership is all=20
about.=20
=20
Much further away from you, in Greensboro, North Carolina, another small =

company called Createc Forestry Systems is showing how our trade helps=20
people turn their hopes into realities. It was founded by a man named=20
Albert Jenks in his family's kitchen. Createc makes hand-held computers=20
that track lumber mill inventories. Those computers help managers better =

assess their needs so fewer trees are cut unnecessarily. A few years=20
ago, Createc began to export to Canada, and now those sales accounts=20
have risen to nearly 20% of their total business. That means a more=20
secure future for the company, for Mr. Jenks, and for his son, Patrick,=20
who works with his father in the family business. That shows how our=20
trade can increase our prosperity and protect the environment as well.=20
=20
Your companies are thriving in our markets, bringing tangible benefits=20
to Canadians. Whether it is repairing the engines of some of the U.S.=20
Air Force's largest planes, manufacturing software to manage our natural =

resources, or building some of the Olympic Village for Atlanta's 1996=20
games, Canadian firms are a strong presence in the United States. Their=20
successes there help your people turn their hopes into facts and their=20
dreams into reality.=20
=20
The example of our biggest industry shows another side of this remark-=20
able story. Working together, U.S. and Canadian companies have=20
integrated North America's auto industry and staged one of the most=20
remarkable comebacks in the history of the Industrial Revolution. We=20
have drawn on each other's strengths, and, today, our companies work so=20
closely that we no  longer speak of U.S. or Canadian in these vehicles,=20
but of North American content--whether it is a Chrysler minivan made in=20
Windsor or a Chrysler jeep made in Detroit. I think that was the=20
ambassador from Michigan--I mean from the United States clapping down=20
there.=20
=20
Productivity and employment have risen to such a point that when I=20
visited Detroit last fall, the biggest complaint I heard in a state that =

was given up as lost economically a decade ago--the biggest complaint I=20
heard from the auto workers was that they were working too much=20
overtime. Now, where I come from, that is known as a high-class problem. =

The auto industry now provides more than 1 million jobs in our=20
countries. =20
=20
To reinforce our commitment to NAFTA and to dramatically expand an=20
important market, tomorrow, the United States and Canada will sign an=20
agreement to open the skies between our nations. This agreement, which=20
allows for a dramatic expansion of U.S. and Canadian service to each=20
other's nations, will create thousands of new jobs and billions of=20
dollars of economic activities in our cities--yours and mine. We have=20
reached a fair solution that will make life easier for travelers on both =

sides of the border, that will profit both Canadian and U.S. airline=20
carriers, and that will increase the mutual travel and interconnection=20
of our people. That we have done so amicably provides yet another model=20
of how neighboring nations can settle their differences. Friendship,=20
engagement--Canada and the United States have shown the best there is in =

partnerships between nations; all the great potential that awaits all=20
the free people of this earth if they can join in common cause. We are,=20
as the monument at the St. Lawrence Seaway declares, two nations whose=20
frontiers are the frontiers of friendship, whose ways are the ways of=20
freedom, whose works are the works of peace.=20
=20
Every day, we see the enormous benefits this partnership gives to us in=20
jobs, in prosperity, and in the great creative energy that our=20
interchanges bring. But we have seen only the beginning. For the Susan=20
Southwicks who want a chance to build better lives and the companies=20
such as Createc that are trying to build solid businesses that will=20
last, this partnership of ours holds a great promise with horizons as=20
vast as our great continent.=20
=20
Together, we have turned our energies toward improving the world around=20
us for nearly a century. Today, more than ever, let us reaffirm and=20
renew that great tradition. Let us engage and confront the great=20
challenges of the end of this century and the beginning of the next. We=20
must sustain our efforts. We must enhance our efforts. We must maintain=20
our partnership. We must make it stronger. This is our task and our=20
mission. Together, we will be equal to it. The border separates our=20
people, but there are no boundaries to our common dreams.  (###)=20
=20
=20
=20
ARTICLE 3:=20
=20
Fact Sheets:  Canada

U.S.-CANADA TRADE=20
=20
Canada and the United States share the world's largest bilateral trading =

relationship, with each serving as the largest market for the others'=20
goods. Total U.S.-Canada goods and services trade was estimated at $270=20
billion in 1994 and should reach $300 billion in 1995. Canada sent 84%=20
of its 1994 exports to the U.S. It buys twice as much from the U.S. as=20
does Japan, and its trade accounts for 17% of U.S. exports. The=20
estimated merchandise trade deficit with Canada for 1994 was $14=20
billion.=20
=20
The two countries trade many of the same kinds of products, which=20
reflects the close integration of the two economies. This is=20
particularly seen in two-way autos and auto parts trade, which accounts=20
for about one-third of bilateral merchandise trade. Other major Canadian =

exports to the U.S. include resource-based products--lumber, paper, and=20
energy--and high-tech goods. Manufactured goods, such as electronics,=20
plastics, and steel, make up most of U.S. exports to Canada.=20
=20
Over the years, the two countries have worked to deepen and expand this=20
successful trade relationship. Bilateral efforts began 30 years ago with =

the 1965 Auto Pact that allowed for duty-free trade for most autos and=20
auto parts. Free trade was broadened considerably by the U.S.-Canada=20
Free Trade Agreement (CFTA), which came into effect in 1989. The CFTA=20
eliminated many trade barriers and provided for consultative management=20
of trade disputes. CFTA gains were broadened by the signing of the North =

American Free Trade Agreement (NAFTA), which added new areas of economic =

activity--additional service sectors and investment--and a new country--
Mexico. With the establishment of the CFTA and NAFTA, trade has grown=20
rapidly, with growth averaging more than 7% annually for each of the=20
last 5 years. =20
=20
Foreign direct investment (FDI) has increased along with trade flows.=20
U.S. FDI in Canada reached $68.4 billion in 1992, a 7% increase since=20
the FTA became effective. Canadian FDI in the United States was $38.9=20
billion, a 29% increase during the same period. =20
=20

U.S.-CANADA ENVIRONMENTAL ISSUES=20
=20
The United States and Canada have one of the world's oldest and most=20
effective partnerships for environmental protection and preservation.=20
Cooperation on measures related to air, water, and flood control in=20
shared watersheds spans a border of more than 5,000 miles and involves=20
17 U.S. states, eight Canadian provinces and the Yukon territory, many=20
eco-regions, and three oceans.=20
=20
The environmental relationship dates from the 1909 Boundary Waters=20
Treaty, which was set up to ensure cooperation on water uses, levels,=20
and flows, and to protect water quality in the Great Lakes and other=20
boundary waters. It put in place an enduring pattern of joint efforts to =

conserve and protect the environment.=20
=20
International Joint Commission=20
=20
Established by the 1909 treaty, the U.S.-Canada International Joint=20
Commission (IJC) is a small, binational organization which has=20
contributed to the governments' efforts to restore and clean up boundary =

waters. Under the 1909 treaty, it has issued numerous recommendations to =

protect water quality. It carries out multi-year monitoring duties on=20
the Great Lakes and the St. Croix, Rainy, and Red Rivers. In addition,=20
it responds to joint requests from the governments for studies and=20
advisory activities. =20
=20
The Great Lakes=20
=20
The Great Lakes are on the road to recovery from past pollution. Both=20
countries' adoption of a more coordinated ecosystem approach for the=20
protection of the Great Lakes contributed to this progress. Such=20
protection efforts included a U.S. investment of more than $8 billion in =

municipal wastewater treatment around the lakes in the 1970s and 1980s=20
and major changes in industrial and agricultural practices. The results=20
have been dramatic. For example, pollution discharges nearly killed Lake =

Erie in the 1960s, but now  eagles have returned to the Lake Erie basin, =

and its fisheries are a great boon to recreation and tourism.=20
=20
Air Quality Agreement=20
=20
In 1991, the IJC assumed a new responsibility--assisting the governments =

with public comment on the Air Quality Agreement, which was signed that=20
year after a decade of debate. This agreement, also called the "Acid=20
Rain" agreement, includes important measures to improve air quality. The =

two countries are working toward reducing sulfur dioxide and nitrous=20
oxide emissions in Canada and the United States. Under the U.S. Clean=20
Air Act, the United States will continue its aggressive programs to=20
address the problem of ground-level ozone known as smog and its effects=20
on health. The United States is reviewing its ozone standard with a view =

toward formal revision in 1997.=20
=20
Future Challenges=20
=20
The challenge today is to continue close cooperation within separate=20
national frameworks. Canada's National Round Table on Economics and the=20
Environment, Model Forests Program, and federal and provincial linkages=20
represent innovative opportunities for cooperation. The U.S. Great Lakes =

Initiative will set new goals for water quality. The U.S. Clean Air Act=20
and U.S. Toxics Release Inventory are comprehensive tools that enable=20
the U.S. to engage in important common efforts with Canada.=20
=20
Following the President's visit to Ottawa in February 1995, the two=20
countries will sign an agreement on national parks and undertake=20
cooperation on regional ground-level ozone concentrations affecting=20
citizens in both countries. On-going cooperation will continue to=20
improve air and water quality, reduce and eliminate certain toxic=20
discharges, maintain hazardous materials emergency preparedness and=20
response capability, and address pollution prevention and waste=20
management. Other cooperative efforts include sharing "planet earth"=20
data obtained from joint ventures in space, devising approaches to=20
climate change via "sister forests" and other environmentally=20
sustainable North American programs, and joint efforts to protect=20
wildlife and critical habitats. =20
=20
Broader International And Global Agenda=20
=20
Both nations support the North American Commission for Environmental=20
Cooperation, consult regularly on G-7 environmental issues, work=20
together to make cost-effective progress in response to UN sustainable=20
development challenges, and develop new environmental protection=20
approaches and technologies. =20

=20
NAFTA: KEY PROVISIONS AND SUPPLEMENTAL AGREEMENTS=20
=20
Overview=20
=20
U.S. leadership in the next century will depend on its ability to=20
compete in the global marketplace. The North American Free Trade=20
Agreement (NAFTA) created the world's largest market: 380 million people =

producing nearly $8 trillion of goods and services. NAFTA expands export =

markets in Mexico and Canada for U.S. goods and services, boosts=20
economic growth, creates jobs, strengthens cooperation with our=20
neighbors on labor standards and the environment, and enables us to=20
better compete against Europe and Asia. It builds on the 1989 U.S.-
Canada Free Trade Agreement (FTA) and enhances free trade in goods and=20
services between the United States, Canada, and Mexico by eliminating=20
import restrictions--such as tariffs, quotas, and licenses--and=20
restrictions on foreign ownership and investment.=20
=20
Key Provisions=20
=20
Tariffs. NAFTA eliminates all tariffs on U.S., Mexican, and Canadian=20
goods by 2008. Many were removed immediately, and others will be phased=20
out over 5, 10, and 15 years.=20
=20
Customs. NAFTA expands and improves on procedures in the U.S.-Canada FTA =

and provides for uniform regulations to ensure consistent=20
interpretation, application, and administration of the rules of origin.=20
=20
Quotas. NAFTA eliminates import and export quotas unless consistent with =

rules of the World Trade Organization (WTO--successor organization to=20
the General Agreement on Tariffs and Trade) or explicitly mentioned in=20
the agreement. =20
=20
National Treatment. NAFTA reaffirms WTO principles preventing=20
discrimination against imported goods.=20
=20
Standards. NAFTA prohibits use of product standards as a trade barrier=20
but preserves each country's right to establish and enforce its own=20
product standards, particularly those designed to promote health and=20
safety and to protect human, animal, and plant life and the environment. =

=20
Government Procurement. NAFTA opens new procurement markets in Mexico,=20
particularly the petrochemical, heavy electrical, and pharmaceutical=20
areas.=20
=20
Safeguards. NAFTA partners can impose a safeguard action during the=20
transition period if increased imports constitute a "substantial cause=20
or threat" of "serious injury" to a domestic industry. This follows WTO=20
practice.=20
=20
Agriculture. NAFTA eliminates immediately or phases out tariffs on=20
agricultural goods. It converts most quotas and other quantitative=20
restrictions to tariff rate quotas, which allow a certain quantity of a=20
product to enter duty-free. These tariff rate quotas will apply to U.S.=20
exports of corn, dry beans, powdered milk, poultry, malted barley,=20
animal fats, potatoes, and eggs. For some products--such as wheat,=20
grapes, tobacco, other dairy products, and day-old chicks--quotas and=20
other quantitative restrictions will be converted to tariffs, which then =

will be phased out. U.S. standards regarding food imports will be=20
maintained. Special agricultural safeguards for certain import-sensitive =

products will be available to limit the impact of sudden import surges.=20
=20
Energy. NAFTA lifts investment restrictions on most of the basic=20
petrochemicals industry and on most electricity-generating facilities.=20
It eliminates or phases out tariffs on oil and gas field equipment and=20
on coal.=20
=20
Autos. NAFTA provides for the immediate reduction of Mexican duties on=20
vehicle imports and a timetable for their elimination. It eliminates=20
Mexican quotas on new auto imports. It also removes tariffs on certain=20
automotive parts and phases out others. It reduces the Mexican domestic-
content requirement to zero over 10 years and reduces Mexico's trade-
balancing requirement. Most U.S.-Canada auto trade was already duty-free =

under the 1965 U.S.-Canada Auto Pact, which was incorporated into the=20
FTA.=20
=20
Textiles and Apparel. NAFTA eliminated some tariffs immediately and=20
phases out others over a 10-year period. It removes quotas on imports=20
from Mexico that qualify under the rules of origin.=20
=20
Financial Services. NAFTA allows investment by U.S. and Canadian firms=20
in the Mexican banking market. It provides for the elimination of all=20
restrictions on such investment by January 2000. U.S. and Canadian=20
insurance firms with existing joint ventures in Mexico may increase=20
their ownership to 100%. The agreement also permits U.S. insurance=20
companies to issue reinsurance policies and establish subsidiaries in=20
Mexico. It allows U.S and Canadian companies to invest in the brokerage=20
industry in Mexico.=20
=20
Transportation. NAFTA eliminates, over a five-year period, restrictions=20
on access by U.S. and Canadian trucking companies to Mexico. It gives=20
charter and bus tour operators full access to the Mexican market. It=20
allows U.S. and Canadian investment in Mexican bus and truck companies,=20
in international cargo subsidiaries, and in Mexican port facilities. The =

agreement does not alter U.S. safety standards.=20
=20
Telecommunications. NAFTA eliminates duties and non-tariff barriers on=20
most Mexican imports of telecommunications equipment, including private=20
branch exchanges, cellular systems, satellite transmission, earth=20
station equipment, and fiber optic transmission systems. It also=20
eliminates restrictions on foreign investment in voice mail and other=20
value-added and information services. North American firms will have=20
access to and use of public telecommunications  networks and services.=20
=20
Investment. NAFTA provides for member state investors to receive the=20
more favorable of national or MFN treatment in setting up operations or=20
acquiring firms. It phases out most performance requirements over 10=20
years and states that NAFTA partners may not impose new ones. The=20
agreement guarantees the free transfer of capital and profits and that=20
investors will be compensated at the fair market value of the investment =

in cases of expropriation.=20
=20
Intellectual Property. NAFTA protects North American producers in two=20
new areas: computer programs and compilations of individually protected=20
material. It establishes a minimum 50-year term for the protection of=20
sound recordings and motion pictures. The agreement requires companies=20
to register both service marks and trademarks. It prohibits compulsory=20
licensing or mandatory linking of trademarks. It provides protection for =

independently created industrial designs and for trade secrets and=20
proprietary information.=20
=20
Environment. NAFTA maintains existing federal and sub-federal standards. =

It allows a country to prohibit entry of goods that do not meet its=20
standards. The agreement states that parties, including states, may=20
enact tougher standards, and it permits each country to impose=20
environmental requirements on foreign investment.=20
=20
Implementation. The Free Trade Commission ensures that NAFTA is=20
implemented properly. Commission working groups monitor implementation=20
of the various chapters of the agreement.=20
=20
Rules of Origin. Rules of origin define goods eligible for NAFTA=20
treatment and prevent "free riding" by third countries. Only goods=20
produced in North America qualify for NAFTA treatment. Goods containing=20
imported components qualify if they are transformed enough to result in=20
a tariff classification change. In some cases, goods also must have a=20
specified percentage of North American content. There is a special rule=20
of origin for textiles and apparel.=20
=20
Dispute Settlement. NAFTA extends the dispute settlement provisions of=20
the U.S.-Canada FTA to Mexico while providing new safeguards to ensure=20
fairness. It establishes the  North American Free Trade Commission and a =

Secretariat to administer the panel review system. The mechanism for=20
resolution is as follows:=20
=20
-- Notification and consultation between parties;=20
=20
-- If no resolution, referral to the commission;=20
=20
-- If necessary, referral to a panel of private sector experts; and=20
=20
-- Resolution or retaliation.=20
=20
If the defending party does not comply with the panel ruling, the other=20
party may suspend equivalent trade benefits until the dispute is=20
resolved.=20
=20
Supplemental Agreements=20
=20
The three parties also have concluded supplemental agreements on the=20
environment, on labor, and on import surges.=20
=20
Environment. The NAFTA supplemental agreement on environmental=20
cooperation creates the Commission on Environmental Cooperation. The=20
commission is located in Montreal, Canada, and its activities include:=20
=20
-- Providing expertise to dispute settlement panels in cases where one=20
party has failed to enforce its laws affecting a sector involving traded =

goods and services;=20
=20
-- Considering the environmental implications of processing and=20
production methods; and=20
=20
-- Promoting greater public access to information about hazardous=20
substances.=20
=20
Labor. The NAFTA supplemental agreement on labor creates the Commission=20
on Labor Cooperation, which promotes labor principles, laws, and=20
standards and their effective application and enforcement. The supple-=20
mental agreement provides that each country will promote public=20
awareness of its laws as well as ensure compliance.=20
=20
These agreements provide for the use of fines and trade sanctions as a=20
last resort if a party believes that another is demonstrating a=20
persistent pattern of failure to enforce labor or environmental laws.=20
=20
Import Surges. The NAFTA supplemental agreement on import surges allows=20
parties to impose trade restrictions if increased imports cause or=20
threaten serious injury to a domestic industry.=20
=20
Additional Activities=20
=20
Border Cleanup. The United States and Mexico have established the Border =

Environment Cooperation Commission (BECC) and the North American=20
Development Bank (NADBank). These innovative institutions help=20
coordinate and finance environmental infrastructure projects, including=20
those focusing on water pollution along the U.S.-Mexico border.=20
=20
Anti-dumping and Countervailing Duties Working Groups. The three=20
countries established these working groups to build on the results of=20
the Uruguay Round and seek solutions that reduce the possibility of=20
disputes concerning the issues of subsidies, dumping, and the operation=20
of trade remedy laws regarding such =20
practices. =20
=20

U.S.-CANADA AIR SERVICES AGREEMENT=20
=20
Growing economic interdependence among nations--the "globalization" of=20
the world economy--rapidly has expanded demand for international air=20
services and challenged governments to rethink approaches to regulating=20
this vital sector of the economy. Nowhere was the need for new thinking=20
more important than in the U.S.-Canada bilateral aviation market--the=20
world's largest air passenger market. The United States and Canada have=20
just completed a new air transport agreement, thereby demonstrating a=20
commitment to cooperation and economic progress in this key area.=20
=20
Breakthrough Agreement=20
=20
The new U.S.-Canada transborder aviation agreement, which was signed=20
during the President's visit to Ottawa in February 1995, dramatically=20
improves air services for consumers on both sides of the border. It=20
replaces a highly restrictive regime with a liberal agreement which will =

allow significantly increased integration of the two countries' domestic =

air transportation networks. This result is consistent with the open=20
border which traditionally has symbolized the excellent relationship=20
that the two countries enjoy.=20
=20
Based on the same fundamental open-market principles as NAFTA, this new=20
aviation agreement will contribute to economic expansion in both=20
countries as it is implemented over a three-year, phase-in period. =20
By modernizing the critical infrastructure pillar which air transport=20
represents, the new agreement not only reinforces, but also expands the=20
benefits of NAFTA by allowing for a fuller realization of its potential. =

=20
U.S. International Air Transportation Policy=20
=20
The new air transport agreement also represents a milestone in the=20
Administration's efforts to promote freer trade and clearly meets the=20
objectives outlined in the Clinton Administration's international=20
aviation policy statement of 1994. The new agreement will provide the=20
aviation industry with the opportunities it needs to meet new demands=20
and compete effectively in this market. It will provide consumers and=20
shippers with more and better service options and contribute to:=20
=20
-- Expanding the international aviation market;=20
=20
-- Increasing service opportunities for airlines;=20
=20
-- Raising productivity and skilled job opportunities within the=20
aviation industry; and=20
=20
-- Promoting aerospace exports.=20
=20
The World's Largest Bilateral Market=20
=20
The U.S.-Canada aviation market is the largest bilateral market in the=20
world in terms of passenger movements, even though it has, until now,=20
been severely constrained by one of the most restrictive aviation=20
regimes. Despite the constraints of an outdated agreement--which has not =

allowed direct service between the two capitals and which had prevented=20
one-third of the top 50 city-to-city markets from having any direct=20
service--13 million people still traveled across the border on=20
commercial flights in 1993. This cross-border movement generated more=20
than $2.5 billion in direct revenues and many times this amount in=20
indirect benefits to the travel and tourism industries in both=20
countries.=20
=20
It is difficult to estimate precisely this agreement's potential=20
economic impact due to the scale and scope of liberalization. Comparison =

with the growth achieved in other aviation relationships, though, offers =

some indication of its magnitude. Since 1978, for example, U.S.-Canada=20
air travel has grown by less than 4% annually, while other U.S. aviation =

markets have grown several times faster.=20
=20
Air cargo carriers and the businesses which rely on specialized, time-
sensitive air deliveries also will see immediate benefits from the=20
agreement. Severely hampered by the former agreement's limitations on=20
aircraft size and package weight and dimensions and by constraints on=20
routes and frequencies, all-cargo carriers now will be freed of many=20
restrictions immediately and largely deregulated within 12 months.=20
=20
Key Elements of New Agreement=20
=20
-- This agreement substantially frees this huge aviation market from the =

governmental regulation which has hindered its growth in the past and=20
permits introduction of the passenger and cargo services demanded by the =

U.S. and Canada's expanding economic ties.=20
=20
-- Canadian airlines will have immediate open access to all points in=20
the U.S.=20
=20
-- U.S. carriers will achieve open access to Canada after a short,=20
three-year transitional phase.=20
=20
-- The markets for all-cargo and charter services will be largely=20
liberalized.=20
=20
-- Numerous U.S. cities will receive new and better service.=20
=20
-- This air agreement is an essential complement to the NAFTA and =20
the U.S.-Canada Free Trade Agreement. =20
=20

GLOBAL ENVIRONMENTAL ISSUES=20
=20
The environmental challenges confronting the world today are greater=20
than at any time in recent history. Threats to the global environment--
such as climate change, stratospheric ozone depletion, and the loss of=20
biological diversity and forests--affect all nations, regardless of=20
their level of development. As a result, the environment is increasingly =

important to U.S. foreign policy. The United States accords high=20
priority to addressing global environmental problems and pursues wide-
ranging actions to protect the environment and promote sustainable=20
development.=20
=20
Global Climate Change=20
=20
The possibility that human activities may cause climate change is one of =

the most serious international environmental concerns. The United States =

has been a leader in the effort to respond to this threat. Negotiations=20
on a Framework Convention on Climate Change, which began near=20
Washington, DC, in early 1991, culminated in an agreement that received=20
more than 150 signatures at the UN Conference on Environment and=20
Development (UNCED) in Rio de Janeiro in June 1992; the convention=20
entered into force on March 21, 1994.=20
=20
The climate change convention began an effective process for confronting =

this global issue. Industrialized countries are developing specific=20
action plans to limit their emissions of greenhouse gases and enhance=20
forests and other greenhouse gas "sinks," or absorption areas. Other=20
countries are to take similar actions in the future.=20
=20
President Clinton announced in April 1993 that the U.S. intends to=20
return its greenhouse gas emissions to their 1990 levels by the year=20
2000. In October 1993, the President presented the national Climate=20
Change Action Plan, containing nearly 50 domestic measures designed to=20
meet the U.S. commitment.=20
=20
The United States made its national submission under the climate change=20
convention in September 1994. The U.S. Climate Action Report details=20
U.S. actions in all areas to address the threat of global climate=20
change. It includes a U.S. Initiative on Joint Implementation to promote =

cooperation between countries on projects that will reduce or sequester=20
greenhouse gas emissions. In early February 1995, the first seven=20
projects for inclusion in the initiative were announced. Partner=20
countries include Belize, Costa Rica, Czech Republic, Honduras, and=20
Russia. It is hoped that these programs and others like them will serve=20
as a model for an international joint implementation regime.=20
=20
During fiscal years 1993 and 1994, the United States provided $25=20
million in financial support and technical assistance to developing=20
countries and countries in transition to market economies for studies to =

help establish analytical foundations to address the threat of climate=20
change. Eligible studies included inventories of greenhouse gas=20
emissions, vulnerability studies, and analyses of options to address=20
vulnerabilities and reduce greenhouse gas emissions. The United States=20
works with more than 50 countries on such studies.=20
=20
The U.S. urges that a discussion on "next steps" for the post-2000 era=20
be part of the February 1995 preparatory session for the First=20
Conference of Parties to the Framework Convention on Climate Change as=20
well as part of the conference itself, which is to be held in Berlin,=20
Germany, March 27-April 7, 1995.=20
=20
Protection of the Ozone Layer=20
=20
The depletion of the ozone layer continues to be another serious=20
problem. The U.S. has led efforts to address this threat to the=20
atmosphere, beginning with a decision in 1978 to ban the use of=20
chlorofluorocarbons (CFCs) in non-essential aerosols. Because protection =

of the ozone layer is possible only if all countries participate, the=20
U.S. urged the conclusion of an agreement to restrict the use of CFCs=20
and other ozone-depleting substances.=20
=20
This effort has led to a succession of landmark international agreements =

since 1985 designed to protect the ozone layer, including the 1985=20
Vienna Convention and the 1987 Montreal Protocol. Based on an amendment=20
under which countries will completely phase out the production of CFCs=20
and most other ozone-depleting substances by the end of 1996, the U.S.=20
has met its commitments to phase out halons by the end of 1994 and=20
continues toward meeting phase-out targets for CFCs and allied=20
substances by January 1, 1996.=20
=20
UN Conference on Environment And Development=20
=20
The June 1992 UNCED was a landmark event in addressing the global=20
environment. Unlike other environmental conferences, UNCED focused on=20
sustainable development--economic growth that takes into account=20
environmental concerns. UNCED resulted in adoption of three key=20
documents:=20
=20
-- Agenda 21--an action program to guide national and international=20
environmental and development efforts into the 21st century;=20
=20
-- The Rio Declaration--a statement of principles regarding the=20
environment and development;  and=20
=20
-- A statement of principles for the conservation and sustainable use of =

forests worldwide.=20
=20
Based on UNCED recommendation, the United Nations established a new=20
Commission on Sustainable Development (CSD) to monitor implementation of =

Agenda 21 recommendations. The U.S. strongly sup- ports the CSD as a=20
primary international body for promoting sustainable development=20
worldwide. The CSD will convene its next annual meeting in April 1995 to =

follow up on the Rio Conference.=20
=20
The United States works domestically to implement the recommendations=20
made at the Rio Conference. On June 14, 1993, President Clinton=20
announced the formation of the President's Council on Sustainable=20
Development (PCSD) to develop specific policy recommendations for a=20
national strategy on sustainable development that can be implemented by=20
the public and private sectors. The PCSD represents a groundbreaking=20
commitment to explore and develop policies that encourage economic=20
growth, job creation, and effective use of natural resources.=20
=20
In addition to the treaties on biodiversity and climate change, UNCED=20
also endorsed a convention to combat desertification, particularly in=20
Africa. Negotiation of this new treaty was completed in Paris, France,=20
on June 18, 1994.=20
=20
Conservation of Biological Diversity=20
=20
The United States is party to a large number of bilateral and=20
multilateral agreements designed to protect endangered species and=20
ensure wildlife conservation. One of the most important is the=20
Convention on International Trade in Endangered Species of Wild Fauna=20
and Flora (CITES), by which the 122 CITES signatories monitor and=20
control international trade in wild species. CITES was crucial in=20
efforts by the U.S. and other countries to protect the African elephant=20
by banning trade in elephant ivory, and it is now involved in efforts to =

protect the rhinoceros and tiger. The Ninth CITES Conference of Parties=20
was held in Fort Lauderdale, Florida, on November 7-18, 1994.=20
=20
While CITES has been effective in protecting species that are threatened =

as a direct result of international trade, the main cause of species=20
loss is habitat destruction. The U.S. seeks to address this issue=20
through a variety of means, such as increased funding for forest=20
conservation programs, the establishment of protected areas under the=20
World Heritage Convention and other agreements, and the Ramsar Treaty on =

International Wetlands. The U.S. Agency for International Development=20
provides more than $160 million annually in assistance for tropical=20
forestry and biological diversity programs.=20
=20
On June 4, 1993, the U.S. signed the UN Convention on Biological=20
Diversity, which establishes a framework for countries to work together=20
to protect the earth's species. The treaty is now before the U.S. Senate =

for ratification. The United States believes that the convention=20
presents a unique opportunity for nations not only to conserve the=20
world's biological diversity, but also to realize economic benefits from =

the conservation and sustainable use of its genetic resources.=20
=20
Population and Environment=20
=20
During the 1990s, world population growth will be greater than ever,=20
with annual increases between 90 and 100 million. Unaddressed, global=20
population will almost certainly double and could triple before the end=20
of the next century. The implications of such growth for global=20
economic, political, social, and environmental security are profound.=20
=20
The third UN International Conference on Population and Development=20
convened in Cairo, Egypt, September 5-13, 1994. The Cairo conference=20
provided a once-in-a-decade opportunity to marshal resources behind a=20
comprehensive global effort   to stem rapid population growth. The U.S.=20
worked with its international partners to develop comprehensive=20
programs, which include addressing the unmet need and demand for family=20
planning and reproductive health services; developing strategies for=20
improving women's health needs and improving child survival; improving=20
the social, economic, and political status of women; and mobilizing=20
institutional and financial resources to meet these goals. All these=20
initiatives influence population growth and are most effective when=20
pursued together ; efforts in this regard will continue. =20
=20
Financing Environmental Protection=20
=20
The U.S. supports effective use of resources and institutions to promote =

sustainable development and environmental protection. It long has been a =

leader among bilateral donors in supporting environmental programs=20
abroad and ensuring that environmental considerations are taken into=20
account in assistance programs. The U.S. foreign assistance budget=20
emphasizes sustainable development, including programs for reducing=20
natural resource degradation, reducing greenhouse gas emissions, and=20
supporting biological diversity.=20
=20
Multilateral institutions remain essential to efforts to promote=20
economic reforms and development in a rapidly changing world; they also=20
are important instruments to promote sustainable development and=20
environmental protection. The United States helps ensure that the=20
multilateral development banks take environmental considerations into=20
account in all lending programs. The U.S. also strongly supported=20
creation of the Global Environmental Facility, which helps fund projects =

that provide global environmental benefits, such as those related to=20
climate change and the loss of biodiversity.=20
=20
Marine Conservation and Pollution=20
=20
The world's oceans are threatened by human activities such as=20
unsustainable resource use and pollution. The United States long has=20
played an active role in ocean conservation programs, from the efforts=20
in the early 1980s to protect whales to a UN-sponsored moratorium in=20
1992 on the destructive practice of driftnet fishing. Work also is=20
underway to ensure that fishing practices by tuna and shrimp fleets=20
minimize impacts on populations of dolphins and sea turtles.=20
=20
The United States is a leading proponent of two major international=20
agreements to address  marine pollution: the Convention for the=20
Prevention of Pollution from Ships, which regulates discharges of=20
harmful substances during the normal operation of ships at sea and the=20
London Convention, which bans the ocean disposal of a number of wastes=20
and lists others that may be disposed of only with special care.=20
=20
Because pollution from land-based sources represents the most serious=20
threat to the marine environment, the United States promotes efforts to=20
address this concern. Delegates to UNCED adopted a U.S. proposal calling =

for an Inter-governmental Conference on the Protection of the Marine=20
Environment from Land-based Activities. This important conference will=20
be hosted by the United States in Washington, DC, from October 23 to=20
November 5, 1995. (###)=20
=20
=20
[BOX]
Climate Action Report
Copies of the U.S. Climate Action Report may be obtained from the=20
Superintendent of Documents, U.S. Government Printing Office at a cost=20
of $14.  The GPO stock number is 004-000-02416-1.  Call (202) 512-1800=20
for further ordering information.

The report also is available on-line through:

--  GPO=E2s Federal Bulletin Board Service (in Environment under Global=20
Issues) by dialing (202) 512-1387; or
-- The Internet (under Publications and Major Reports) at gopher=20
dosfan.lib.uic.edu.

(###)


=20
ARTICLE 4:=20
=20
Country Profile:  Canada=20
Official Name:  Canada=20

Geography=20
=20
Area: 9.9 million sq. km. (3.8 million=20
sq. mi.); second-largest country in the world. =20
Cities: Capital--Ottawa pop. 833,000. Other major cities--Toronto 3.5=20
million, Montreal 2.9 million, Vancouver 1.4 million. =20
Terrain: Mostly plains with mountains in the west and lowlands in the=20
southeast. =20
Climate: Temperate to arctic.=20
=20
People=20
=20
Nationality: Noun and adjective--Canadian(s). =20
Population (1994 est.): 29 million. =20
Annual growth rate: 1.5%. =20
Ethnic groups: British 28%, French 23%, other European 15%,=20
Asian/Arab/African 6%, indigenous Indian and Eskimo 1.5%, mixed=20
background 26%. =20
Religions: Roman Catholic 46%, Protestant 41%. =20
Languages: English, French.=20
Education: Literacy--99% of population aged 15 and over have at least a=20
ninth grade education. =20
Health: Infant mortality rate--7/1,000. Life expectancy--75 yrs. male,=20
82 yrs. female. =20
Work force (13.8 million, 1992): Trade--18%. Manufacturing--15%.=20
Transportation and communications--8%. Finance--7%. Public=20
administration--7%. Construction--6%. Agriculture--4%. Forestry and=20
mining--2%. Other services--33%.=20
=20
Government=20
=20
Type: Confederation with parliamentary democracy. =20
Independence: July 1, 1867. =20
Constitution: The amended British North America Act of 1867 patriated to =

Canada on April 17, 1982, Charter of Rights and Freedoms, and unwritten=20
custom.=20
Branches: Executive--Queen Elizabeth II (head of state, represented by a =

governor general), prime minister (head of government), cabinet.=20
Legislative--bicameral parliament (104-member Senate, 295-member House=20
of Commons). Judicial--Supreme Court.=20
Political parties: Progressive Conservative Party, Liberal Party, New=20
Democratic Party, Reform Party, Bloc Quebecois.=20
Subdivisions: 10 provinces, 2 territories. =20
Suffrage: Universal at 18.=20
Flag: A red maple leaf on a white background flanked by vertical red=20
bands.=20
=20
Economy=20
=20
GDP (1994): $550 billion. =20
Annual growth rate: 6.8% =20
Per capita GDP (1994 est.): $19,000.=20
Natural resources: Petroleum and natural gas, hydroelectric power,=20
metals and minerals, fish, forests, wildlife.=20
Agriculture: Products--wheat, livestock and meat, feed grains, oilseeds, =

dairy products, tobacco, fruits, vegetables.=20
Industry: Types--motor vehicles and parts, machinery and equipment,=20
aircraft and components, other diversified manufacturing, fish and=20
forest products, processed and unprocessed minerals.=20
Trade (1994 est.): Exports--$146 billion: motor vehicles and parts,=20
lumber, wood-pulp and newsprint, crude and fabricated metals, natural=20
gas, crude petroleum, wheat. Partners--U.S. 84%, EU 5%, Japan 4%.=20
Imports--$135 billion: motor vehicles and parts, industrial machinery,=20
crude petroleum, chemicals, agricultural machinery. Partners--U.S. 74%,=20
EU 5%, Japan 4%.=20
Exchange rate: U.S.$1=3DC$0.73.=20
=20
Principal Government Officials=20
=20
Prime Minister--Jean Chretien=20
Minister of Foreign Affairs--Andre Ouellet=20
Ambassador to the U.S.--Raymond Chretien=20
Ambassador to the UN--vacant  (###)=20
=20
=20
=20
ARTICLE 5:=20
=20
Maintaining the Instruments Of America's Global Leadership=20
Secretary Christopher=20
Statement before the Subcommittee on Commerce, Justice, and State of the =

Senate Appropriations Committee, Washington, DC, March 1, 1995=20
=20
Good morning. I am pleased to appear before this subcommittee. I am here =

to give you an overview of our proposed fiscal 1996 budget and to=20
highlight the objectives that it supports--in particular, those which=20
fall under this subcommittee's jurisdiction.=20
=20
The American people justifiably expect that their government will do=20
what is necessary to protect our nation's interests in the world. At the =

same time, the American people rightly demand that we apply the most=20
rigorous standards to federal spending. We have been tough-minded in=20
putting together an austere budget.=20
=20
The international affairs budget represents only 1.3% of total federal=20
spending. It has absorbed substantial real cuts in the last several=20
years and is now 45% lower in real terms than it was in 1984. Despite=20
the extraordinary challenges we face, our 1996 spending request is=20
essentially what we are spending in the current fiscal year. Indeed, the =

resources we are requesting are the rock-bottom minimum that we need to=20
advance our nation's vital interests.=20
=20
Last November's elections, Mr. Chairman, certainly changed a great many=20
things. But they were not a license to lose sight of our global=20
interests or to walk away from our commitments in the world. Approving=20
this budget will be a test of our willingness to devote the necessary=20
resources to protect the security and prosperity of the American people. =

It will be a stern test of our commitment to lead.=20
=20
Our foreign policy strategy is driven by four principles:=20
 =20
First, the imperative of American leadership in the world; =20
=20
Second, the need to maintain effective relations with the world's most=20
powerful nations; =20
=20
Third, the importance of adapting and building institutions that will=20
promote economic and security cooperation; and =20
=20
Fourth, the need to continue to support democracy and human rights.=20
=20
In my oral testimony today, I would like to devote particular emphasis=20
to the first--the imperative of American leadership.=20
=20
The end of the Soviet empire removed the central threat to American=20
security, but it did not eliminate in any way our vital stake in=20
international engagement. I think a clear-eyed assessment of our=20
interests makes it plain that American leadership remains essential.=20
=20
The spread of open societies and open markets gives us an unprecedented=20
opportunity to advance our interests. But we must not be complacent.=20
Aggression, intolerance, and tyranny still challenge the march of=20
democracy and threaten our interests in many regions of the world. And=20
problems such as nuclear proliferation, terrorism, and environmental=20
degradation pose growing dangers to our nation.=20
=20
As we address both these opportunities and threats, we must set strict=20
priorities that are consistent with our interests. But we also know that =

we cannot assure our security and prosperity by building a wall around=20
our nation or by abandoning the instruments of global leadership.=20
=20
Today, America faces a series of choices: between engagement and=20
retreat; between the concrete benefits of integration and the illusion=20
of isolation; between sharing burdens and responsibilities with others=20
and shirking them altogether. We are the nation that spent trillions of=20
dollars to defend the free world during the four decades of the Cold=20
War. It would be a historic mistake if we now refused to spend a=20
fraction of that sum to consolidate the remarkable gains we have made.=20
=20
Of course, there is room to differ on specific issues--on the best ways=20
to make peace-keeping more effective, for example, or the best possible=20
targeting of our assistance programs. But, nevertheless, I believe that=20
the wholesale rejection of all the instruments of our engagement would=20
undermine America's ability to lead.=20
=20
Those who say they are for a strong America have a responsibility to=20
help keep America strong. We simply cannot have it both ways. We cannot=20
be the world's most powerful nation if we do not marshal the resources=20
to stand by our commitments. We cannot lead if we do not have all the=20
tools of leadership at our disposal. Preventive diplomacy is often the=20
first line of defense. Those who would undermine our diplomatic capacity =

threaten our national interest at a vital stage in the process when=20
peaceful solutions are still possible.=20
=20
To maintain our leadership, we must always be ready to back our=20
diplomacy with credible threats of force. Yet no American believes that=20
our soldiers should have to take all the risks or that our taxpayers=20
should have to pay all the bills. That is why leveraging our power=20
through institutions such as the United Nations is a sensible bargain=20
that the American people support.=20
=20
There is no question that the UN can be and should be more effective. We =

are committed to the reform and reinvention of the UN system. Some=20
progress is being made, and we will press for more. But some people seem =

to argue that we should back away from the UN entirely. That, in my=20
judgment, would be a terrible mistake.=20
=20
In the last two years, we have developed clear peace-keeping guidelines=20
designed to ensure that tough questions are answered before new missions =

are approved and that tough measures are taken to ensure that money is=20
not wasted. And we are improving our consultation with Congress at every =

step. As a result, there have been fewer new missions and better=20
management of existing ones. And the UN has established an inspector=20
general, who is aggressively working on oversight questions.=20
=20
But two weeks ago, the House of Representatives passed legislation--the=20
so-called National Security Revitalization Act--which would end,=20
intentionally or not, over four decades of U.S. support for UN peace-
keeping. That would violate a solemn treaty commitment--something we as=20
a great nation should not do. If our NATO allies and Japan were to adopt =

similar policies, UN peace-keeping would end overnight. We would lose a=20
tool that every American President since Harry Truman has used to=20
advance American interests. And the United States would be left with an=20
unacceptable choice whenever an emergency arose--a choice between acting =

alone and doing nothing.=20
=20
In connection with our second principle--the importance of constructive=20
relations with the world's most powerful nations--let me take a moment=20
to discuss our relations with Russia.=20
=20
There is little doubt that the conflict in Chechnya has clearly been one =

of the most serious crises for reform in Russia since the Soviet Union=20
collapsed. We have been deeply concerned about the use of excessive and=20
indiscriminate force in Chechnya and the corrosive implications that has =

for Russia's future as a democratic, multi-ethnic state. We have=20
emphasized strongly to the Russian Government that the fighting must end =

and that a process of reconciliation must begin. And we strongly support =

the call of the Chairman-in-Office of the OSCE for a continuous OSCE=20
presence in Chechnya.=20
=20
But the tragedy of Chechnya has not altered our interest in helping=20
Russian reformers build a nation finally at peace with itself and its=20
neighbors. Our assistance to Russia is important precisely because it=20
advances that interest. It supports the dismantlement and safe transport =

of nuclear weapons and the development of a private economy in Russia.=20
It backs solemn commitments we made to encourage Russian troops to leave =

the Baltic states.=20
=20
It is important to recognize that most assistance is distributed not=20
through the government but through private groups, in areas outside=20
Moscow. Cutting aid now would hurt the friends of democracy in Russia--
the very people who have been most critical of the Chechnya operation.=20
=20
At the same time, let me stress that the pace and substance of Russia's=20
dealings with the United States and with institutions such as NATO and=20
the G-7 will depend in large measure on the pace and direction of=20
Russia's transformation. To the extent the Russian Government upholds=20
international norms in its internal and external policies, the cause of=20
Russia's integration is bound to advance. But further violence in=20
Chechnya will only set back that cause.=20
=20
With respect to our third guiding principle--adapting and revitalizing=20
institutions of security and economic cooperation--we are requesting=20
funds in this budget for our assessed contributions to more than 50=20
international bodies. This includes the UN, NATO, and the Organization=20
of American States--bodies that promote peace, democracy, and economic=20
development around the world.=20
=20
Our budget request also supports our fourth principle--our commitment to =

democracy and human rights. That commitment is based on a sober=20
assessment of our interest in a world where the rule of law protects not =

just political rights but international stability and the essential=20
elements of free market economies. In this respect, our budget includes=20
funds to enable the United States Information Agency to continue to=20
foster American ideals and international understanding in an=20
interdependent world.=20
=20
To give you a sense of my priorities for 1995, let me mention five areas =

that offer particularly significant opportunities this year.=20
=20
First, we must sustain the momentum we have generated through the GATT,=20
APEC, and the Summit of the Americas--a momentum toward the open trading =

system that is vital to American exports and American jobs. At the same=20
time, it is essential that American companies and workers be in a=20
position to take advantage of the opportunities that an open trading=20
system provides. That is why I sit behind what I call the America Desk=20
at the State Department and why I am determined to keep economic and=20
commercial diplomacy at the core of the Department's work.=20
=20
I think we really have changed the culture of the State Department in=20
this respect. I am pleased to see several CEOs quoted in national=20
publications saying they have never seen our Department and our=20
embassies more supportive of American business around the world. Seldom=20
a week goes by that I don't get a letter to that effect.=20
=20
In a second area of opportunity, we are taking concrete steps to build a =

new security architecture in Europe. Our focus is on maintaining strong=20
relations with Western Europe, consolidating democracy in Central Europe =

and the former Soviet Union, and engaging Russia in promoting European=20
security.  With American leadership, we and our allies have begun a=20
steady and open process that will lead to NATO expansion.=20
=20
The third area of opportunity is advancing comprehensive peace in the=20
Middle East. We stand at a decisive moment in the peace process. The=20
President and I are determined to do all we can to sustain the momentum. =

Next week, I will be traveling to the region once again to consult with=20
key parties about how best to move the negotiations forward. I do not=20
want to underestimate the challenges we face. But neither can we=20
underestimate the opportunities to work for a lasting peace.=20
=20
The fourth area of emphasis is to intensify our efforts to stop the=20
spread of weapons of mass destruction and their means of delivery. Our=20
global and regional strategies for 1995 comprise what I am quite=20
confident is the most ambitious non-proliferation effort in history,=20
beginning with the indefinite and unconditional extension of the Non-
Proliferation Treaty. Our 1996 budget supports the Arms Control and=20
Disarmament Agency, including funds for implementing the Chemical=20
Weapons Convention.=20
=20
As a fifth area of opportunity, we plan to implement a comprehensive=20
strategy to combat international terrorists, criminals, and drug=20
traffickers. And, as the President has announced, we will be proposing=20
legislation to combat alien smuggling and illegal immigration. The=20
President has also transmitted our proposed Omnibus Counterterrorism Act =

of 1995, which will give the executive branch new tools to improve=20
prevention, investigation, and prosecution of terrorism.=20
=20
Beyond these five key areas, I want to stress that we will continue to=20
address many other issues important to our nation's interests, such as=20
promoting stability and democracy in Asia, Africa, and Latin America.=20
And we will ensure that global challenges such as environmental=20
degradation and rapid population growth have an important place on our=20
foreign policy agenda.=20
=20
Our nation's ability to achieve all these objectives, Mr. Chairman,=20
depends on the dedicated men and women who serve our nation's foreign=20
affairs agencies. At 266 diplomatic posts overseas, these men and women=20
help our companies open markets and create American jobs. They protect=20
their fellow citizens abroad. They help keep our borders secure and keep =

drugs off our streets. They even, on occasion, provide assistance to=20
congressional delegations.=20
=20
I know that every member of this Congress is committed to America's=20
defense readiness. I believe that we must maintain the same level of=20
diplomatic readiness as one of the most effective ways to avoid having=20
to call upon our armed forces. Our foreign affairs personnel must be=20
equipped to fight for America's interests. They must have access to=20
modern information technology. They must work in facilities that help,=20
not hinder, their productivity.=20
=20
As we seek to meet these challenges, we have a continuing obligation to=20
make our operations as efficient as possible. As you know, Vice=20
President Gore has been heading up a major effort to reinvent=20
government. I have taken the strong position that the foreign affairs=20
agencies are far from exempt from that process. Each of the foreign=20
affairs agencies is proceeding vigorously with streamlining efforts. I=20
also support the Vice President's decision that each of these agencies--
ACDA, AID, and USIA--has a distinct mission that can best be performed=20
if they remain distinct agencies.=20
=20
At the State Department, we have been involved in the National=20
Performance Review process since the outset. Let me tick off some of the =

things we have done in the last two years. We have closed 17 posts=20
overseas. We have 1,100 fewer people at State than when I arrived. We=20
have abolished 20% of our deputy assistant secretary positions. We have=20
absorbed a 26% increase in passport workload with no increase in staff.=20
We have reduced total senior officer positions to the point where we=20
will meet congressional targets ahead of schedule. We have reduced=20
overseas allowances and eliminated cash awards for senior officers.=20
After four years of essentially flat budgets, this year's request of=20
$2.6 billion for State Department operations represents a significant=20
decrease in real terms.=20
=20
Pushing for greater efficiency and higher productivity in the management =

of our foreign affairs is a personal commitment of mine. I am working=20
hard on a strategic plan to change the way we do business.=20
=20
We have a lot of work to do in the next few years. Here are some of the=20
areas I've targeted. =20
=20
-- We will streamline our overseas missions. =20
=20
-- We will close 15 more posts. =20
=20
-- I want to push decision-making and responsibility downward by a=20
further reduction in mid-level managers. =20
=20
-- We need to significantly cut back on administrative overhead. I want=20
to expand the use of teams to better coordinate policy development at=20
the Department and among different agencies in Washington. =20
=20
-- And I want to better focus our reporting and analysis to be sure we=20
are not duplicating what other agencies do and what we can get on the=20
open market.=20
=20
But, Mr. Chairman, I would be neglecting my responsibility as Secretary=20
if I did not tell this subcommittee that some of the recent budget=20
cutbacks have taken a toll on our readiness. Because we have not had=20
adequate funding for language training, 50% of our language-designated=20
positions are filled by people who have not reached the targeted=20
proficiency levels. Almost 75% of the telephone systems serving our=20
overseas posts are outdated--so outdated that when we needed repairs in=20
our vital 24-hour operations center, the AT&T repairman had to =
consult=20
with Bell Labs on how to service the antiquated equipment. Almost 80% of =

our automated data processing equipment is obsolete--our computer system =

is so old that we can't get maintenance contracts any longer, and we=20
can't locate spare parts.=20
=20
That is why our FY 1996 request supports a modest $32.8 million Capital=20
Investment Fund. This will be used to upgrade information systems,=20
replace overseas telephone systems, and purchase a classified mainframe=20
computer. It will improve our efficiency and productivity, reduce our=20
maintenance costs on antiquated equipment, and help us continue to do=20
more with less.=20
=20
Mr. Chairman, since my first week in office, I have consulted closely=20
with both parties in Congress on every important issue on our agenda. I=20
commit myself to continue to do so. I am committed to do all I can to=20
sustain the bipartisan foreign policy that is America's tradition and=20
strength. And I am committed to make our operations cost-effective and=20
efficient, so that we can devote more of our resources to the domestic=20
challenges the American people demand we meet. I look forward to=20
continuing to work with you and with members on both sides of the aisle=20
to provide American leadership to build a more peaceful, free, and=20
prosperous world. (###)=20
=20
=20
=20
ARTICLE 6:=20
=20
U.S. Interests and Russian Reform=20
Deputy Secretary Talbott=20
Excerpts of remarks before the Arms Control Association, Washington, DC, =

February 23, 1995=20
=20
We are, indeed, looking ahead with resolve--but also with realism--to=20
several big tests coming up soon.  Secretary Christopher has called the=20
global and regional arms control challenges we face in 1995 "the most=20
ambitious non-proliferation agenda in history." It includes no fewer=20
than 13 key initiatives.=20
=20
--  We're working toward a Comprehensive Test Ban Treaty, a convention=20
cutting off the production of fissile material, and, of course, the=20
indefinite extension of the Non-Proliferation Treaty. I know that Tom=20
Graham spoke to many of you on this last subject at the ACA annual=20
luncheon two months ago.=20
=20
--  We're pushing for START II ratification in both the U.S. Senate and=20
the Russian Parliament; we're intensifying our effort to use the Nunn-
Lugar program--one of the most important and positive pieces of=20
legislation of the post-Cold War era--to dismantle and destroy nuclear=20
weapons and provide peaceful alternative professional outlets for the=20
skills and expertise of nuclear weapons scientists in the former Soviet=20
Union; and we're working to complete the ABM treaty talks on the=20
demarcation between theater and strategic missile defenses. =20
=20
--  We're seeking Senate ratification of the Chemical and Toxic Weapons=20
Convention and also ratification of the Convention on Conventional=20
Weapons, with its restrictions on the use of landmines; we're=20
negotiating legally binding measures that will ensure compliance with=20
the Biological Weapons Convention; and we're developing a new=20
international exports control regime to succeed COCOM. =20
=20
--  We're committed to blocking Iraq and Iran's attempts to develop a=20
nuclear weapons capability; to implementing the Agreed Framework with=20
North Korea; and we're trying to head off a destabilizing competition in =

nuclear weapons and ballistic missiles between India and Pakistan. =20
=20
In short, we're going all-out to take full advantage of the historic=20
opportunities presented by the end of the Cold War and the collapse of=20
the Soviet Union.=20
=20
Our success will depend, in large measure, on the political context in=20
which we pursue that ambitious arms control agenda.  There are many=20
factors that will determine that context, but the single-most important=20
is what happens in the former Soviet Union. Quite simply and starkly, if =

the 12 New Independent States that used to make up the U.S.S.R. evolve=20
in the direction of stability, democracy, market economics, and=20
integration with the rest of the world, then arms control and non-
proliferation will be more likely to succeed--globally as well as=20
regionally. If, however, that vast area slips back into the past or=20
veers off into any of a number of dangerous and ugly possibilities for=20
the future, the worthy enterprises to which the ACA is so deeply=20
devoted--and to which it so consistently and significantly contributes--
will suffer.=20
=20
There is plenty of reason for concern about what will happen in the=20
former Soviet Union during the months and years ahead, and I will speak=20
to that point in a moment. But we should maintain some sense of=20
perspective; we should balance our apprehensions about the future with=20
appreciation of what has been accomplished to date.  =20
=20
Let me, in this connection, recall our discussion the last time we met.=20
It was 26 months ago, in December of 1992, at the ACA annual luncheon. I =

was in my final days at Time magazine, worrying only about how Professor =

Keeny would grade my columns--an easier course than the one in which I'm =

now enrolled. In my remarks to you then, I stressed three concerns about =

future developments in the New Independent States.=20
=20
First, I warned of "the possibility that there could end up being three=20
or four nuclear-weapons states where before there was one." I sketched a =

few nightmare scenarios--one involving instability and conflict both=20
within and between adjacent nuclear weapons states in the NIS and=20
another featuring a nuclear arms buildup involving not only the New=20
Independent States themselves but, in the future, other European powers=20
as well.=20
=20
Second, I argued that the fate of Ukraine was key to stability in=20
Central Europe--that if Ukraine could develop as an independent,=20
sovereign nation, secure in its current borders, with normal, peaceful=20
relations with its neighbors, then the entire region would have a better =

chance for peace and prosperity.=20
=20
Third, I argued that it would be a blunder of historic proportions to=20
abandon our support for Russian reform. I argued that President-elect=20
Clinton needed to follow through on the Bush Administration's promises=20
of economic assistance, and that, whenever possible, he needed to=20
cooperate with--rather than browbeat--the Russian reformers.=20
=20
Looking back at these points two years later, I'm struck not by what a=20
splendid crystal ball I had--the points I was making were pretty much=20
self-evident; rather, I'm struck by how far we've come in the right=20
direction on all three fronts.=20
=20
Thanks in large part to President Clinton's leadership, issue number=20
one--the danger that the Soviet Union would give way to four nuclear=20
weapons states in the NIS--is well on its way to being resolved. In=20
Budapest two months ago, at the ceremony for START I's entry into force, =

we saw Ukraine, Belarus, and Kazakhstan accede to the Non-Proliferation=20
Treaty as non-nuclear weapons states.  After persistent efforts on our=20
part, these nations have also joined wholeheartedly in innovative Nunn-
Lugar initiatives, such as Operation Sapphire, which airlifted nearly=20
600 kilograms of highly enriched uranium from Kazakhstan to secure=20
storage in the United States. =20
=20
We've also seen encouraging progress on issue number two--the=20
independence of Ukraine. In October, after a year-and-a-half of patient=20
encouragement by President Clinton, Vice President Gore, Secretary=20
Christopher, and other Administration officials, the Ukrainians took the =

courageous step of launching genuine, broad-gauge economic reform. The=20
benefits of that policy will help cement the bonds of nationhood;=20
Ukrainians from Donetsk to Simferopol to Lviv now share a common stake=20
in reform and a common interest in strengthening the sovereignty and=20
unity of the Ukrainian state.=20
=20
Russia has done its own part to encourage the chances that Ukraine will=20
survive and, ultimately, prosper.  Moscow has reaffirmed its acceptance=20
of current borders and kept a prudent distance from ethnic separatist=20
movements in the Crimea and elsewhere.  The Russian and Ukrainian=20
Governments have worked cooperatively to manage a number of difficult=20
issues, such as START I implementation, and the status of the Black Sea=20
Fleet.=20
=20
Good Russian-Ukrainian relations have helped to facilitate Russia's=20
relations with the other nations of Central Europe. On August 31 of last =

year--after years of patient but firm diplomacy by Presidents Bush and=20
Clinton--Russian troops withdrew from Germany and the Baltics. To the=20
south, Russia is committed to withdraw its 14th army from Moldova by=20
1997, in accordance with the agreement that those two governments=20
reached last October. The door is now open for Russia to build=20
effective, mutually beneficial economic ties to all of these nations. =20
=20
That brings me to the third and final issue I flagged in December 1992--
the doubts we all felt then about the fate of internal reforms in Russia =

and concern over what, if anything, the United States could do to=20
influence events there. Only three days before I spoke to you, Boris=20
Yeltsin had named as his Prime Minister Victor Chernomyrdin, a baron of=20
the oil and gas sector, to replace Yegor Gaidar, the Russian=20
Government's most visible champion of economic reform.  Chernomyrdin was =

widely presumed to be a throwback to the Soviet managerial mentality,=20
wedded to the command economy, and to authoritarian methods. Meanwhile,=20
Foreign Minister Kozyrev had just observed April Fool's Day in December=20
by delivering a speech in Stockholm that proclaimed "the resumption of=20
the Cold War" and Moscow's intention to launch "a campaign of bringing=20
the 15 republics together again." Having thus gotten his audience's=20
attention, Kozyrev said he was just kidding--but not entirely: He was=20
warning that forces precisely so disposed were alive and well and=20
growing stronger in Russia.=20
=20
In retrospect, of course, that cluster of scary moments two years and=20
two months ago was merely the calm before the storm--repeated storms, in =

fact.  In the spring of 1993, President Yeltsin was locked in a=20
confrontation with the Soviet-era parliament and fought to win a=20
national referendum on his leadership; in September 1993, he suspended=20
the parliament; in October, he ordered troops to attack the White House=20
after supporters of mutinous deputies took to the streets with automatic =

weapons and rocket-propelled grenades.  Two months later, Vladimir=20
Zhirinovsky, ultranationalists, unreconstructed communists, and other=20
opponents of reform made sweeping gains through the ballot box.=20
=20
At each of those critical, worrisome junctures, many commentators--in=20
both Russia and the West--believed that reform was mortally wounded,=20
perhaps even dead. With the benefit of some hindsight, we can now see=20
that the interim verdict should have been more qualified: Reform was=20
down but not out--threatened, yes; defeated, no.  Incidentally--or,=20
perhaps, I should say, not incidentally--one reason that reform survived =

was that Prime Minister Chernomyrdin did not live up to his ominous=20
billing; he established himself as an effective proponent of economic=20
reform and a key figure in U.S.-Russian cooperation, largely through the =

extraordinary working relationship he has developed with Vice President=20
Gore.=20
=20
Now, in Chechnya, there is a new crisis for reform in Russia--the most=20
serious to date. On Wednesday, Defense Minister Grachev said that "there =

should be no more cease-fire talks" with the Chechens, and the fighting=20
on the outskirts of Groznyy continues. We are now hearing reports that=20
there already have been as many as 25,000 civilian casualties in Groznyy =

alone and that some 300,000-400,000 people have been displaced from=20
their homes by the fighting. =20
=20
But Chechnya is more than an on-going tragedy and outrage in a remote=20
corner of the North Caucasus.  Chechnya is, literally and figuratively,=20
broadcasting to the world an image that conjures up the worst memories=20
of Russia's past and clouds the best visions of her future. People all=20
over the globe, including a great many Russians, are now asking: How can =

Russia develop as a multi-ethnic democratic state while its central=20
government is waging an all-out war against tens of thousands of its own =

people? And how will Russia continue on a course of economic reform=20
while its human and financial resources are being squandered on an ill-
conceived military operation against one of its own cities? =20
=20
Disturbing as these questions are, they are not new. From the day that=20
the hammer and sickle came down over the Kremlin and the Russian=20
tricolor went up in its place, we--and most Russians, too--have been=20
asking ourselves where Russia is going. What kind of state it will be in =

the next century? Chechnya has sharpened the debate over what might be=20
called the existential question about Russia--about its very nature,=20
past, present, and future. But Chechnya did not begin that debate, nor=20
will its resolution answer the fundamental questions.=20
=20
There are plenty of voices--some quavering and some strident--arguing,=20
in effect, that the debate is over; they are saying, in effect, "We told =

you so."  They believe that Chechnya confirms, decisively and=20
conclusively, the worst about Russia; that it proves Russia is a country =

doomed--for reasons of geography, political culture, and history--to an=20
authoritarian, if not totalitarian, domestic order, and to aggressive,=20
imperialistic international behavior.=20
=20
Our view is different. We don't believe in historical or geographical=20
determinism. History and geography are hugely important factors, of=20
course, in any state's identity and destiny.  =20
=20
But we should beware of stereotypes about national character,=20
particularly ones that would--if they become the basis of policy--
consign whole peoples to dictatorship on the perverse theory that that=20
is the kind of government they deserve, or the political system encoded=20
in their genes. That's the lesson that Nelson Mandela, F.W. de Klerk,=20
and the people of South Africa have taught the world: Nations can turn=20
back from a disastrous course, alter their destinies, and transform=20
their identities--and they are especially likely to do so in the age of=20
global interdependence and the communications revolution.=20
=20
That is not, however, an argument for determinism of a utopian sort. =20
There is nothing automatic or guaranteed about happy endings, either in=20
history or in our increasingly interdependent but still highly uncertain =

future. We do not--we cannot--know for sure what kind of state Russia=20
will be in the 21st century. What we do know is that there is a titanic=20
struggle going on between forces of reform and those of regression,=20
between the new and the old, and between various visions of the new,=20
some hardly more savory than the old. The outcome of this struggle is=20
anything but foreordained, and it is precisely because we cannot bet on=20
a predetermined outcome that we have invested in measures intended to=20
affect the course of events in a way that is consistent with our=20
interests and values. President Clinton underscored this premise of our=20
policy when he visited Moscow just over a year ago. In a town meeting at =

Ostankino television studio, broadcast throughout Russia and around the=20
world, he asked the Russian people: "How will you define your role in=20
the world as a great power? Will you define it in yesterday's terms, or=20
tomorrow's?"=20
=20
These were not merely rhetorical questions.  The President did not imply =

that he knew the answer. He made quite clear that it is up to the=20
Russian people themselves to find their own answer. But he also made=20
clear that he--and all of us--have our own hopes about what answers will =

eventually emerge, and that our nation's relationship with Russia will,=20
ultimately, depend on the choices that the Russian people make. =20
=20
In order to get a sense of the very different possibilities for Russia's =

future, it's important to keep in mind the many transformations that are =

now taking place in Russian villages and cities all across that vast=20
land. Many of the most visible of these changes are thoroughly bad news. =

I'm thinking of the emergence of increasingly sophisticated organized=20
criminal syndicates or ultranationalistic, often anti-democratic=20
political groups. But there are also a lot of reformers among the 150=20
million people who live across the 11 time zones of Russia. =20
=20
We have seen President Yeltsin and his advisers in the Kremlin take a=20
giant step backward in Chechnya. But at the same time, an active, highly =

critical press is accurately reporting what is going on throughout the=20
crisis and playing a vital role in shaping public opinion. Those opposed =

to Kremlin policy are speaking out freely, and often angrily, on Russian =

television, and they are traveling abroad to encourage international=20
criticism of their government's behavior. The Russian Parliament is=20
vigorously and openly debating what has happened and what is to be done. =

Regional leaders such as Presidents Boris Nemtsov of Nizhny-Novgorod and =

Mikhail Nikolayev of Sakha are voicing their disapproval of the=20
Kremlin's handling of Chechnya as well. =20
=20
A majority of Russians and of Russian leaders now accept the idea that=20
political combat should be waged on the floor of the parliament, in the=20
press, and on the hustings, rather than on the streets or underground.=20
That doesn't mean that we will always welcome the results of Russian=20
domestic politics. But it is, I would contend, a net positive that real=20
politics is emerging as the basis of the system that governs the largest =

country on earth.=20
=20
For President Yeltsin, Chechnya has been a personal and political=20
debacle.  The brutality and ineptitude of the military campaign has=20
shrunk his political base and reduced his approval in Russia to an all-
time low. And it has jeopardized his international support as well.=20
=20
The main question now is what lessons will he and the rest of the=20
Russian leadership learn from Chechnya? Will they uphold the rule of law =

and human rights, or will they try to give priority to "order" and=20
"security" in a fashion that ends up undermining both, as it did so=20
spectacularly and fatally during the Soviet period of Russian history?=20
Will they embrace the obligations that come with membership in the=20
international community, or will they choose the path of self-enforced=20
isolation, and economic and political backwardness?=20
=20
The most recent indications of President Yeltsin's own thinking--from=20
his speech last Thursday to the Russian parliament--are mixed. While he=20
took the opportunity to reiterate his commitment to democratic reform,=20
he stopped short of calling for a peaceful political settlement in=20
Chechnya--in our judgment, the only genuine resolution to this crisis=20
that is consistent with democratic principles.=20
=20
As I've already said, one way to look at what is happening in Russia=20
today is as a struggle between the forces of reform and reaction,=20
between the old and the new. Another way is as a struggle between the=20
forces of integration and disintegration.  Chechnya obviously represents =

disintegration. Moreover, it stands as a warning for the future: If the=20
central Russian Government attempts to enforce unity with brute=20
strength--if it insists on imposing integration on people who feel=20
disenfranchised or oppressed--the result will likely be more=20
disintegration, more violence, more instability, and more insecurity for =

Russia itself and also for her neighbors.=20
=20
Our own policy in this regard is clear: We support the sovereignty and=20
territorial integrity of a democratic Russian Federation within its=20
current borders. We want to see Russia develop as a strong, prosperous=20
state in the 21st century, but we have also made clear that we think=20
that will happen only if Russia continues to develop a pluralistic=20
political system, a constitutional order, and federal structures that=20
permit all the peoples of Russia to identify themselves as citizens of a =

multi-ethnic state rather than as subjects of Moscow. =20
=20
Integration is also a goal of Russian foreign policy. The Yeltsin-
Chernomyrdin-Kozyrev government has, to its credit, placed a high=20
premium on participating in and benefiting from the various=20
organizations that make up the international order. These include GATT,=20
the European Union, the G-7, the ASEAN Regional Forum, and, perhaps most =

important, the newly emerging arrangements that will define a post-Cold=20
War security order for an undivided Europe: the OSCE, the Partnership=20
for Peace, and, in due course, some sort of relationship between Russia=20
and NATO.=20
=20
Since integration serves the goal of Russian reform, it serves American=20
national interest as well. Indeed, it is the hallmark of the Clinton=20
Administration's foreign policy to strengthen existing international=20
structures and build new ones that will serve the interrelated=20
objectives of open markets and open societies--of global peace and=20
prosperity. We want Russia to be as much a part of those structures as=20
possible and as soon as possible.=20
=20
At the same time, the pace, tone, and content of Russia's dealings with=20
the outside world will depend, in large measure, on the pace, tone, and=20
direction of Russia's ongoing internal transformation. Continued=20
integration with the West will enhance Russia's security and expand its=20
access to capital. But it also carries with it an obligation to the=20
political norms and market practices that undergird the strength of the=20
industrialized democracies. The way in which Russia defines statehood=20
internally will be a major factor in how quickly and fully Russia=20
achieves its laudable goal of membership in the community of democratic=20
nations. =20
=20
That, too, is part of the lesson of Chechnya: When the Russian=20
Government violates international norms in its handling of an internal=20
crisis, as it has unquestionably and egregiously done in Chechnya, the=20
cause of external as well as internal integration suffers.=20
=20
That said, however, what we should not do is to treat each and every=20
disagreement we have with the Russians as some sort of final, "High-
Noon" showdown that puts the entire relationship, including support for=20
reform, on the line. Obviously, our aid will be calibrated to be sure=20
that it does what it is intended to do: namely, support reform.  But=20
threatening to pull the plug on our reform assistance programs is a card =

we can play exactly once. Having done it, we won't be able to do it--or=20
even plausibly threaten to do it--again.=20
=20
The key point here, however, is that support for economic and political=20
reform in Russia is in our own national interests--even, and I'd say=20
especially, when there are tensions in the overall, government-to-
government relationship.  Just as the Nunn-Lugar program and START II=20
are defense by other means, so, too, are our assistance programs an=20
investment in a safer future. Encouraging the growth of democracy and=20
economic freedom in Russia remains the best and least- expensive=20
investment we can make in our own security and in the security of all=20
the peoples of Europe. Reformers have, indeed, come under fire in recent =

months, but that seems to us to be all the more reason to step up our=20
efforts to help them. As President Clinton said in Cleveland last month, =

"if the forces of reform are embattled, we must renew, not retreat from, =

our support for them."=20
=20
In conclusion, let me say that I appreciate your allowing me to wander=20
so far afield from those subjects that are of most intense and immediate =

interest to your organization--from those subjects, in other words, that =

Stan Resor and I used to talk about on the park bench on the New Haven=20
Green. But I hope you agree that there is the tightest possible=20
connection between arms control on the one hand and the future of=20
Russian politics and foreign policy on the other, and that connection is =

more than just because the latter provides a context for the former.=20
It's also because one of the principles that served us so well during=20
the arms control negotiations of the Cold War will also serve us well=20
now that the Cold War is over and now that we have a much broader,=20
deeper, more complicated agenda in our dealings with the former Soviet=20
Union. That principle is steadiness; it's consistency, continuity, and=20
determination; it's keeping our eye on the big picture and the long-term =

objective.=20
=20
Many of you here tonight preached, and practiced, that principle when=20
the issue was how to work with the Soviet Union on virtually the only=20
issue on which we had a common interest, which was diminishing the=20
danger that we'd blow each other up. That same principle of steadiness=20
is crucial now that we have a chance to work with Russia, Ukraine, and=20
the other New Independent States of the former Soviet Union on the less=20
apocalyptic--but no less difficult and no less important--task of=20
building a more peaceful, prosperous, and integrated world. . . . (###)=20
=20
=20
=20
ARTICLE 7:=20
=20
American Eagle or Ostrich? The Case for The United States in the United=20
Nations=20
Deputy Secretary Talbott=20
Remarks to the Denver World Affairs Council, Denver, Colorado, February=20
28, 1995=20
=20
Thank you both for that kind introduction and for inviting me to Denver=20
today. I've been a frequent visitor to Colorado over the years--not just =

for purposes of risking life and limb on the slopes of Vail, Snowmass,=20
and Telluride, but also because for nearly 15 years the Aspen Institute=20
provided me with an opportunity each August to spend a week in some of=20
the loveliest country on earth thinking and talking with colleagues and=20
mentors about the U.S. role in the world.=20
=20
That is my topic this afternoon. More specifically, I would like to talk =

about the need for vigorous American engagement and leadership in the=20
world. More specifically still, I'd like to talk to you about the United =

States in the United Nations, why we're in it, and what's in it for us.=20
I chose this topic precisely because it is controversial; I chose it=20
because the UN, and America's leadership of it, are under attack from a=20
number of quarters--and because it's important that the debate take=20
place not just inside the Washington beltway, or on the floor of the=20
U.S. Congress, but in the country as a whole.=20
=20
Let me start with the general issue of international engagement. I know=20
that I don't need to lecture this audience on how U.S. foreign policy=20
can affect every community in every state of the union. Denver companies =

are doing record amounts of business overseas and are actively pursuing=20
opportunities to expand further--in industries ranging from mining to=20
telecommunications to agricultural processing to environmental=20
technology. =20
=20
Back in Washington, we were pleased to hear when the Colorado House of=20
Representatives unanimously supported NAFTA. One of the follow-ups to=20
NAFTA will take place here in Denver on June 30, when U.S. Trade=20
Representative Mickey Kantor will host a hemispheric trade ministers'=20
meeting, followed by a commercial forum co-hosted by Commerce Secretary=20
Ron Brown.  =20
=20
These international ventures--the quest to create good jobs at home by=20
developing markets abroad--are an important aspect of one of the central =

themes of the era and of the world in which we live: namely, global=20
interdependence. That's a somewhat fancy, slightly suspect term because=20
it smacks of what Clare Booth Luce dubbed, a half century ago,=20
"globaloney."  But the phenomenon is real; to a steadily increasing=20
extent, what happens beyond our borders affects us here in the United=20
States--sometimes for better, sometimes for worse. For instance, the=20
lives of our children and grandchildren will be dramatically influenced=20
by our efforts to ensure sustainable population growth, combat threats=20
to the global environment, and win the struggle against drug=20
traffickers. These last three challenges are the focus of my friend and=20
colleague Tim Wirth's work since he came to the State Department as=20
Under Secretary for Global Affairs.=20
=20
With interdependence among nations comes the need for global cooperation =

among them. The consolidation of a liberal international trading order=20
and the opening of markets for American trade and investment are more=20
important than ever. But there's much more at stake here beyond=20
economics and commerce. We can't free our own neighborhoods from drug-
related crime unless we work closely with countries where drugs are=20
produced. We can't track down terrorists, such as Carlos the Jackal or=20
World Trade Center bombing suspect Ramzi Ahmed Yousef--both of whom are=20
now in custody--without help from the police of other countries. And we=20
can't keep nuclear weapons from falling into the hands of dictators and=20
terrorists through our own vigilance alone.  All this should be obvious, =

but not everyone seems to get it. =20
=20
Today, as there was in the aftermath of other great struggles earlier in =

our nation's history, there is a temptation to draw back into ourselves, =

to turn our attention and our resources to fixing our own problems, and=20
let other countries take care of themselves. This is particularly=20
evident in Congress, where there are those, in each party, who counsel=20
us to duck--not deal with--the international challenges that we face.=20
=20
This sentiment echoes that of the narrow-visioned naysayers of the=20
1920s, who rejected the League of Nations, embraced protectionism,=20
downplayed the rise of Mussolini, Hitler, and Stalin; who opposed help=20
to the victims of aggression and inadvertently endangered our security--
chanting all the while the crowd-pleasing mantra of "America first."=20
=20
Arguments that would turn the American eagle into an ostrich have always =

had a certain appeal, in part, because we're separated by vast oceans=20
from both Europe and Asia, because we've long been at peace with our=20
immediate neighbors on this continent, and because our Founding Fathers' =

advice to avoid foreign entanglements still rings in our ears.=20
=20
But the leaders of the great coalition that triumphed in the Second=20
World War learned several, if not all, of the lessons from the aftermath =

of the First. Instead of humiliating and impoverishing their defeated=20
enemies, the victors of World War II helped rebuild Japan and Germany.=20
Through the Marshall Plan, GATT, and the international financial=20
institutions born at Bretton Woods, the diplomats who were present at=20
the creation of the post-World War world established the basis for a=20
community of Western democracies and for an increasingly interdependent=20
and prosperous global economy. And they created a mechanism to further=20
the cause of enduring peace through the UN Charter--a document inspired=20
by American ideals and largely written by American statesmen.=20
=20
It's natural that internationalism is more likely to be popular when=20
there is a clear-cut enemy, such as Soviet communism. During the Cold=20
War, much of what we were for was dictated by what we were against.  The =

imperative of containing communism permeated our policies. We formed=20
alliances to defend against Soviet expansion; we doled out assistance to =

maintain our influence against encroachments; and we strove to counter=20
the Soviets in every forum, including the United Nations.=20
=20
With the end of the Cold War, we face historic opportunities, not just=20
to combat threats and enemies, but also to help build a world that is=20
ordered according to our interests and values.  =20
=20
Nonetheless, with the collapse of the Soviet Union and the Warsaw Pact,=20
it's natural that the old isolationist instinct would twitch again in=20
the American body politic. It's twitching now. It's twitching in calls=20
for us to reject free trade agreements, or to have nothing to do with=20
any foreign conflict, or in the fantasy that we can build multi-billion- =

dollar space-based shields that will keep us safe from any military=20
attack. =20
=20
The argument against isolationism and in favor of internationalism is=20
simple; its rooted in our history and in our national interest: As this=20
century has amply demonstrated, our freedom, security, and prosperity=20
cannot be ensured without the active help of other free peoples, all of=20
whom are looking to us for leadership.=20
=20
Now, the ultimate guarantor of our security remains our capacity and=20
willingness to act forcefully and unilaterally when our interests are=20
threatened. Our military must remain modern, mobile, ready, and strong,=20
and--as President Clinton pledged in his State of the Union address--it=20
will. But we must also preserve the option of acting through NATO and=20
other coalitions. That brings me to the United Nations.=20
=20
As our President who was in office when the Cold War ended, President=20
Bush observed that the United Nations was "emerging as a central=20
instrument for the prevention and resolution of conflicts and the=20
preservation of peace."  Former President Reagan called for "a standing=20
UN force, an army of conscience--equipped and prepared to carve out=20
humanitarian sanctuaries through force if necessary."=20
=20
That was yesterday. Today, some of the loudest voices in our national=20
debate propound something quite different. The UN is "the longtime=20
nemesis of millions of Americans," says one leader on Capitol Hill. It=20
is "a totally incompetent instrument anyplace that matters," says=20
another. =20
=20
A bill, the so-called National Security Revitalization Act, has been=20
passed by the House--and is now making its way through the Senate. It's=20
part of the so-called Contract with America. It is designed not to=20
reform UN peace-keeping but to kill it. If enacted into law, this=20
proposal would be a blunder--a giant step backward--of truly historic=20
proportions.=20
=20
Under the guise of being a Contract with America, it would abrogate the=20
United States' half-century-old contract with the international=20
community--the contract that Harry Truman signed, that the U.S. Senate=20
ratified, and that every President since has reaffirmed. =20
=20
The National Security Revitalization Act would be an out-and-out=20
repudiation of our treaty obligations under the UN Charter. It would=20
cancel our entire UN peace-keeping payment. Other nations--Japan and our =

NATO allies--would surely follow by withholding their own funds, and UN=20
peace-keeping would end virtually overnight. =20
=20
This would cause massive disruptions and quite possibly mean the=20
resumption of a number of conflicts. I can think of few quicker ways to=20
undermine global stability than to yank UN peacekeepers out of Cyprus,=20
Lebanon, Kashmir, and the border between Kuwait and Iraq. Furthermore,=20
if America reneges on its commitments under the UN Charter, it would=20
undermine our ability to argue that other nations should meet their=20
obligations under international law. This would particularly impair our=20
ability to maintain sanctions against rogue states such as Libya, Iraq,=20
and Serbia.=20
=20
Those are negative arguments--bad things that would happen if we pulled=20
the plug at the UN. Here's the positive one for strengthening the UN=20
through U.S. leadership: Peace-keeping, itself, is a vitally important=20
enterprise in which we must remain engaged. It has the capacity, under=20
the right circumstances, to separate our adversaries, maintain cease-
fires, speed the delivery of humanitarian relief, enable refugees to=20
return home, demobilize combatants, and create conditions under which=20
free elections may be held. In so doing, it can nurture new democracies, =

lower the global tide of refugees and the huge cost of rescuing and=20
sustaining them, reduce the likelihood of unwelcome interventions by=20
regional powers, and prevent small wars from growing into larger=20
conflicts which would be far more costly in lives and treasure.=20
=20
Speaking of cost, let me emphasize this point: peace-keeping--and UN=20
peace-keeping in particular--is a good investment for the United States. =

The per capita price to Americans, for the entire UN system--from blue=20
helmets for peacekeepers to polio vaccines for babies--is less than $7=20
per year. That is about the price of a ticket to our nation's most=20
popular movie which, by the way, currently is a film called "Dumb and=20
Dumber."  =20
=20
Our own country's direct participation in UN peace operations is modest. =

As of January 1, 1995, the U.S. ranked 26th among nations in the number=20
of troops participating in peace-keeping operations around the world--
behind not only Canada and Poland, but also Ghana and Zambia. All this=20
said, obviously, we do not look to the UN to defend America's vital=20
interests. That we're prepared to do on a moment's notice by ourselves=20
if necessary. =20
=20
We know that UN peace-keeping cannot be effective where the swift and=20
decisive application of military force is required. But in many=20
circumstances, acting through the UN will enable us to influence events=20
without assuming the full burden of costs and risks. Let me mention a=20
few of those operations.=20
=20
--  On the tense border between India and Pakistan, UN troops monitor a=20
cease-fire between two regional rivals presumed to have nuclear weapons. =

=20
--  In El Salvador, where America spent more than $1 billion in economic =

and military aid during the 1980s, the UN brokered an end to the civil=20
war, disarmed and reintegrated the rebel forces into society, monitored=20
human rights and elections, and oversaw the creation of a new civilian=20
police. =20
=20
--  In Cambodia, where I was a few weeks ago, the UN has succeeded in=20
clearing mines, repatriating refugees, and organizing elections, thus=20
making an astonishing transition to democracy possible.=20
=20
One of the myths that has gained currency in recent months is that the=20
United States is running around the world doing the bidding of the UN,=20
regardless of, if not contrary to, its own interests and priorities.=20
Many would argue that the reverse is closer to the truth. Under the UN=20
Charter, it is the Security Council that has responsibility for=20
authorizing responses to lawless international behavior, including=20
threats to peace. As a permanent member of the Council, with veto=20
powers, we have enormous influence over what it decides. =20
=20
Frequently, a Council resolution will lend international backing to=20
causes we support and make it easier to bring others aboard for military =

operations or sanctions enforcement--thereby allowing us to share in the =

costs and the risks assumed in defense of our interests. For instance,=20
the UN Security Council played a key role in bringing together the=20
multinational coalition for Operation Desert Storm in Kuwait, and the=20
Council performed a similar service for Operation Uphold Democracy in=20
Haiti. As Secretary Christopher puts it, were there no United Nations,=20
"it would leave us with an unacceptable option each time an emergency=20
arose: a choice between acting alone or doing nothing."=20
=20
Now there is a small minority of Americans who will always mistrust the=20
UN because they fear it will evolve into a world government--that it=20
represents globaloney run amuck--which is nonsense; or they are upset=20
that it's so full of foreigners, which, I guess, probably can't be=20
helped.=20
Far more serious are concerns about the effectiveness of UN operations,=20
decision-making, and management.=20
=20
Here, some of the critics have several valid points: The United Nations=20
does not always offer the perfect response.  But, then again, neither=20
does NATO, nor does unilateral action, nor does unilateral inaction. The =

right cure for the ills of UN peace-keeping is not to call for the=20
services of Dr. Kevorkian, which is what the Contract with America=20
prescribes, but rather to administer sound treatment--to work to make=20
this tool as useful and efficient as possible--and that is exactly what=20
the Clinton Administration is doing.=20
=20
At our insistence, the UN Security Council is now more disciplined about =

when and under what circumstances to begin a peace mission. Today, the=20
tough questions are asked before such a mission is started or renewed.=20
We are ensuring that UN operations have clear and realistic objectives,=20
that peacekeepers are properly equipped, that money is not wasted, and=20
that an endpoint to each UN mission can be identified. This policy has=20
resulted in fewer and smaller new operations and better management of=20
existing ones. =20
=20
Some opponents of UN peace-keeping feel that the United States is=20
somehow being played for a sucker; that we are turned to constantly for=20
help by those who are unwilling to pay their own way or to take their=20
own fair share of risks. This perception is not new. In the years=20
immediately following World War II, similar emotions prompted opposition =

to American participation in NATO and to the Marshall Plan. When=20
President Roosevelt devised Lend Lease to save a Great Britain that was=20
under daily bombardment by Nazi planes, the predictable complaints were=20
heard: We can't afford it; the British already owe us money; this is=20
Europe's battle, not our own.=20
=20
Such feelings are understandable, and sometimes play well at home. But=20
in each instance, when we have come to the aid of others, we have also=20
acted in our own interest. That was true of Lend Lease; it was true of=20
the costly, but necessary, steps we took to contain communist expansion; =

it is true of our participation in, and support for, UN peace-keeping=20
and enforcement of UN resolutions against Libya and Iraq. America is not =

just another country; we are a global power with global interests--and=20
if we do not lead, we cannot expect that others will. Our position in=20
the world may, to some, be grounds for complaint, but to most Americans, =

it is grounds for pride and a sense of security. =20
=20
The Administration is committed to taking full advantage of the=20
opportunities and to confronting squarely the dangers that we face with=20
the end of the Cold War. We have a responsibility in our own time, as=20
our predecessors did in theirs, to build a world not without conflict,=20
but in which conflict is contained; a world, not without repression, but =

in which the sway of freedom is enlarged; a world not without lawless=20
behavior, but in which the law-abiding are progressively more secure.=20
=20
We have the responsibility to lead in building such a world for three=20
reasons: first, because of the strength and global appeal of our=20
democratic values and institutions; second, because of the strength of=20
our economy, which depends on global peace and stability --on open=20
societies and open markets; and third, because of the strength of our=20
military power. In short, we have the heart, the brains, and the muscle=20
to lead in a world that often looks to us for all three.  (###)=20
=20
=20
=20
ARTICLE 8:=20
=20
Department Statements=20

Suspending Arms Sales To Ecuador and Peru=20
Statement by Department Deputy Assistant Secretary/Spokesman Christine=20
Shelly, Washington, DC, February 10, 1995.=20
=20
In response to the continuing conflict on the border between Ecuador and =

Peru, the U.S. Government has suspended deliveries of defense articles=20
through the U.S. Foreign Military Sales program as well as new=20
International Military Education and Training assignments to those two=20
countries. =20
=20
In addition, the Department of State has suspended all previously issued =

licenses and approvals authorizing the export or other transfer of=20
defense articles or defense services to Peru or Ecuador. It is also the=20
policy of the U.S. Government to deny all applications for licenses and=20
other approvals to export or otherwise transfer defense articles or=20
services to Peru or Ecuador. How- ever, exceptions to this policy may be =

made with regard to certain U.S. Munitions List Category XIII(b)(1)=20
items for banking and financial institutions.=20
=20
We understand that the other Rio guarantor countries--Argentina, Brazil, =

and Chile--are taking similar measures.=20
=20

President Clinton Applauds Ecuador-Peru Peace Declaration=20
Statement by White House Press Secretary Michael McCurry, Washington,=20
DC, February 17, 1995.=20
=20
The President welcomes the peace declaration signed early today in=20
Brasilia by Ecuador and Peru. The agreement brings to an end the=20
hostilities which caused tragic loss of life and marred the principle of =

peaceful resolution of disputes that is a hallmark of our hemisphere.=20
=20
The declaration was signed in the presence of the negotiators of the=20
four guarantor nations--Argentina, Brazil, Chile, and the United States-
-who worked tirelessly to broker the accord.=20
=20
The President wrote to President Duran of Ecuador and President Fujimori =

of Peru on February 2 to urge an immediate cease-fire. Secretary=20
Christopher and other senior Administration officials worked intensively =

with the two warring parties to bridge their differences.=20
=20
We are working with the other guarantors to organize and deploy as soon=20
as possible an observer mission.  In addition, the guarantors have=20
issued a statement in Brasilia calling on resolution of the border=20
dispute which sparked these hostilities. The United States and the other =

guarantor countries are prepared to offer their good offices to assist=20
Ecuador and Peru in finding a durable solution to their remaining=20
problems.=20

=20
Mexico To Take Action To Curb Violence Along U.S. Border=20
Statement by Department Deputy Assistant Secretary/Spokesman Christine=20
Shelly, Washington, DC, February 16, 1995.=20
=20
Yesterday, delegations from the U.S. and Mexico issued a joint=20
communique in which Mexico states that it will take several concrete=20
actions to curb violence and crime along the border in California,=20
Texas, Arizona, and New Mexico.=20
=20
The commitments were made during discussions on a broad range of=20
migration issues at the first working group meeting of the Binational=20
Commission held since the inauguration of President Zedillo. The meeting =

took place February 13 and 14 in Mexico.=20
=20
In the communique, Mexico states that it will:=20
=20
-- Strengthen and expand Grupo Beta, a successful law enforcement effort =

that has effectively curtailed  criminal trafficking in migrants as a=20
result of its efforts to prevent violence against them. The Mexican=20
Govern- ment will bolster the current efforts of Grupo Beta in San Diego =

and Nogales and expand its operations to two other border cities.=20
=20
-- Deploy sufficient personnel and equipment to ensure the safe=20
operation of border bridges and crossings, particularly in San Diego,=20
Nogales, =20
El Paso, and Laredo. This effort will address the serious problem of=20
lane and port runners that has arisen in reaction to strengthened U.S.=20
border enforce- ment.=20
=20
-- Take immediate action to close the remaining access to the Nogales=20
flood tunnels.=20
=20
--  Work with the U.S. to delineate procedures for interior repatriation =

within Mexico of certain illegal aliens.=20
=20
INS Commissioner Doris Meissner said "These actions by Mexico represent=20
significant progress in our efforts to ensure a border that is safe and=20
functional."=20
=20
The U.S. informed Mexico of the Clinton Administration's commitment to=20
control and prevent illegal migration and facilitate and support legal=20
migration. The President's FY 1996 budget proposal to bolster border=20
enforcement and return of criminal and other deportable aliens was also=20
discussed. The U.S. also informed Mexico on the Immigration and=20
Naturalization Service's efforts to facilitate naturalization and=20
improve border crossing card issuance procedures.=20
=20
Both delegations committed to continued strengthening of border liaison=20
mechanisms, including plans for Mexico to convene a regional conference=20
addressing migration patterns in North and Central America, and joint=20
research to better understand the Mexican-U.S. migration phenomenon. =20
(###)=20
=20
=20
=20
ARTICLE 9:=20
=20
What's in Print=20
Foreign Relations Of the United States=20
=20
The Department of State has recently released additional volumes in the=20
Foreign Relations of the United States  series. They are a microfiche=20
supple- ment to Foreign Relations, 1958-1960, Volumes XVII (Indonesia)=20
and XVIII (Japan; Korea); and Foreign Relations, 1961-1963, Volume=20
XXIII, Southeast Asia.=20
=20
Microfiche Supplement To Foreign Relations 1958-1960=20
=20
The supplement includes approximately 1,310 pages of documentation on=20
Indonesia, 540 pages on Japan, and 1,310 pages on Korea. It supplements=20
the documentation of U.S. relations with these countries printed in=20
Volumes XVII and XVIII. =20
=20
The efforts of President Dwight D. Eisenhower's Administration to deal=20
with the potential communist threat to Indonesia, the modernization and=20
rationalization of the Republic of Korea's defense forces, and security=20
and trade issues with Japan are recorded. The supplement is designed to=20
be used in conjunction with the print volumes, providing more detail and =

information.=20
=20
This latest supplement is part of the official record in the Foreign=20
Relations series about the East Asian region during the 1958-1960=20
period. In addition, supplements have been published concerning Vietnam; =

South and Southeast Asia; and the East Asia-Pacific region, Cambodia,=20
and Laos. Volume XIX on China is scheduled to be published later this=20
year.=20
=20
A printed guide with a preface that describes the methodology used to=20
select documents and to evaluate the results of their declassification=20
review is contained.=20
=20
This microfiche supplement (GPO Stock No. 044-000-02420-9) may be=20
purchased for $23 postpaid ($28.75 for foreign orders).=20
=20
Foreign Relations, 1961-1963, Volume XXIII, Southeast Asia=20
=20
This volume documents U.S. policy deliberations and decisions concerning =

Southeast Asia beyond Vietnam and Laos. It contains a regional=20
compilation of documents that focus on the role of the Southeast Asia=20
Treaty Organization (SEATO) and bilateral compilations on U.S. relations =

with Burma, Cambodia, Indonesia, Malaysia, the Philippines, and=20
Thailand.=20
=20
The wars in South Vietnam and Laos encouraged the Government of Thailand =

to seek additional security commitments from the United States. The most =

public confirmation of these assurances was the March 1962 joint=20
communique of then Secretary of State Dean Rusk and Foreign Minister=20
Thanat Khoman. Private assurances were given as well, and in mid-1962,=20
the U.S. dispatched troops to Thailand both as a signal to the North=20
Vietnamese and their allies in Laos and as an overt assurance to=20
Thailand. The conflict in South Vietnam caused friction between Prince=20
Sihanouk of Cambodia and the United States. U.S. relations with Burma=20
were not as directly tied to the conflicts in Laos and South Vietnam as=20
was U.S. policy toward SEATO.=20
=20
U.S. objectives in Southeast Asia were complicated further by opposition =

by the Philippines and Indonesia to the creation of the Federation of=20
Malaysia. U.S. relations with Australia also were influenced by these=20
events.=20
=20
The documents in this volume were drawn from the Departments of State=20
and Defense, the White House, the Central Intelligence Agency, and from=20
papers of key participants.=20
=20
This volume (GPO Stock No. 044-000-02389-0) may be purchased for $46=20
postpaid ($57.50 for foreign orders).=20
=20
Both items may be purchased using VISA, MasterCard, or personal check=20
from:=20
=20
U.S. Government Printing Office=20
Superintendent of Documents=20
P.O. Box 371954=20
Pittsburgh, PA 15250-7954=20
=20
To order by phone, call (202) 512-1800;  to fax your order, call (202)=20
512-2250.=20
=20
For further information, contact the Office of the Historian, Chief of=20
the Asia and Americas Division, Edward C. Keefer at (202) 663-1131 or=20
fax (202) 663-1289. =20


(###)
=20
[END OF DISPATCH VOL 6, NO 10]

To=20 the top of this page

Index=20 of Dispatch Magazine Archives 1995 Issues|| Index= of=20 Dispatch Magazine Archives|| Index of "Briefings = and=20 Statements"
Index of = Electronic=20 Research Collections ERC Reference Desk || Alphabetic = Index || Sitemap || ERC Homepage =
Last=20 modified: Jun. 8, 1999
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