future growth, but the investment climate remains clouded, weighted down by the heavy debt burden. Under the Brady plan, we are making significant progress. The agreements reached with Mexico and Costa Rica and Venezuela are already having a positive impact on investment in those countries. Mexico, to take just one example, has already seen a reversal of the destructive capital flight that drained so many Latin American nations of precious investment resources. That's critical. If we restore confidence, capital will follow. As one means of expanding our debt strategy, we propose that the IDB add its efforts and resources to those of the International Monetary Fund and the World Bank to support commercial bank debt reduction in Latin America and the Caribbean, and as in the case of World Bank and IMF, IDB funds should be directly linked to economic reform. While the Brady plan has helped nations reduce commercial bank debt, for nations with high levels of official debt-debt owed to governments rather than private financial institutions-the burden remains heavy. And today, across Latin America, official debt owed to the U.S. Government amounts to nearly $12 billion, with $7 billion of that amount in concessional loans. And in many cases, the heaviest official debt burdens fall on some of the region's smallest nations, countries like Honduras and El Salvador and Jamaica. That's a problem we must address today. As the key component in addressing the region's debt problem, I am proposing a major new initiative to reduce Latin America and the Caribbean's official debt to the United States for countries that adopt strong economic and investment reform programs with the support of international institutions. Our debt reduction program will deal separately with concessional and commercial types of loans. On the concessional debt, loans made from AID or Food for Peace accounts, we will propose substantial debt reductions for the most heavily burdened countries. And we will also sell a portion of outstanding commercial loans to facilitate these debt-for-equity and debt-for nature swaps in countries that have set up such programs. These actions will be taken on a case-by-case basis. One measure of prosperity and the most important long-term investment any nation can make is environmental well-being. As part of our Enterprise for the Americas Initiative, we will take action to strengthen environmental policies in this hemisphere. Debt-for-nature swaps are one example, patterned after the innovative agreements reached by some Latin American nations and their commercial creditors. We will also call for the creation of environmental trusts, where interest payments owed on restructured U.S. debt will be paid in local currency and set aside to fund environmental projects in the debtor countries. These innovative agreements offer a powerful new tool for preserving the natural wonders of this hemisphere that we share. From the vistas of the unspoiled Arctic to the beauties of the barrier reef off Belize to the rich rain forests of the Amazon, we must protect this living legacy that we hold in trust. For an increasing number of our neighbors, the need for free-market reform is clear. These nations need economic breathing room to enact bold reforms, and this official debt initiative is one answer, a way out from under the crushing burden of debt that slows the process of reform. I know there is some concern that the revolutionary changes we've witnessed this past year in Eastern Europe will shift our attention away from Latin America; but I want to assure all of you here today, as I've assured many democratic leaders in Central and South America and the Caribbean and Mexico, the United States will not lose sight of the tremendous challenges and opportunities right here in our own hemisphere. And indeed, as we talk with the leaders of the G-24 about the emerging democracies in Europe-I've been talking to them also about their supporting democracy and economic freedom in Central America. Our aim is a closer partnership between the Americas and our friends in Europe and in Asia. Two years from now, our hemisphere will celebrate the 500th anniversary of an epic event: Columbus' discovery of America, our New World. And we trace our origins, our shared history, to the time of Columbus' voyage and the courageous quest for the advancement of man. Today the bonds of our common heritage are strengthened by the love of freedom and a common commit ment to democracy. Our challenge, the challenge in this new era of the Americas, is to secure this shared dream and all its fruits for all the people of the Americas-North, Central, and South. The comprehensive plan that I've just outlined is proof positive the United States is serious about forging a new partnership with our Latin American and Caribbean neighbors. We're ready to play a constructive role at this critical time to make ours the first fully free hemisphere in all of history. Thank you all for coming and God bless the peoples of the Americas. Thank you very, very much, indeed. Note: The President spoke at 2:48 p.m. in the East Room at the White House. In his opening remarks, he referred to Secretary of the Treasury Nicholas F. Brady; U.S. Trade Representative Carla A. Hills; Secretary of Commerce Robert A. Mosbacher; William H. Webster, Director of Central Intelligence; Barber B. Conable, Jr., President of the World Bank, which is also known as the International Bank for Reconstruction and Development; and Richard D. Erb, Deputy Managing Director of the International Monetary Fund. The President also referred to the Group of 24, the industrialized democracies that have pledged support for economic and political reform in Poland and Hungary. Message to the Congress Reporting Budget Rescissions June 28, 1990 To the Congress of the United States: In accordance with the Impoundment Control Act of 1974, I herewith report eight proposed rescissions totalling $327,375,000. The proposed rescissions affect programs of the Department of Defense. The details Statement on the Japan-United States Last year the United States and Japan launched a new cooperative endeavor in economic policy called the Structural Impediments Initiative. This initiative is designed to address underlying structural problems in both of our economies with the goal of contributing to more open and competitive markets and to the reduction of payments imbalances. A joint working group was formed to identify and solve these problems. Over the past year, these discussions have demonstrated the constructive and cooperative spirit which characterizes the relationship between our two countries. The joint report of the SII working group has just been issued in Tokyo, following up an interim report issued in April. I welcome and endorse this joint report. Both countries have identified structural impediments, taken initial corrective actions, and made commitments to take further steps to resolve a wide range of structural problems. We expect that the structural policy actions to be taken will have a positive effect on our economies, encouraging open and competitive markets, promoting sustained world economic growth, contributing to a reduction in global payments imbalances, and enhancing the quality of life in both Japan and the United States. Although our efforts on SII are bilateral, the effects will be beneficial for the entire world. I particularly welcome the clear commitment by Japan to reduce further its current account surplus and view the SII process as an important framework in which the underlying causes of trade imbalances can be removed. Removing structural impediments is a two-way street. As Japan tackles its structural problems, so must the United States. In particular, I look forward to working closely with the Congress on efforts to strengthen both public and private saving and to reduce our budget deficit through the negotiations now underway. Both our governments recognize that further effort will be necessary in order to address fully these structural problems and to maintain the momentum of our adjustment efforts. I am pleased that an effective follow-on mechanism has been established. Continuing success on SII can help us move away from trade disputes, thus allowing us to focus our efforts on more positive activities as we continue to develop a global partnership between our two countries. The personal efforts of Prime Minister Kaifu were responsible in large measure for the substantial progress on our joint effort to address these structural problems. I commend Prime Minister Kaifu for his strong and courageous political leadership. I look forward to a full range of discussions with Prime Minister Kaifu when we meet July 7 in Houston. Proclamation 6151—Modification of By the President of the United States A Proclamation 1. Prior to January 1, 1989, the President by various proclamations had imposed fees or quantitative limitations on the importation of certain agricultural commodities and products thereof under the authority of section 22 of the Agricultural Adjustment Act of 1933, as amended (7 U.S.C. 624) (hereinafter section 22). Section 22 requires the President to impose fees or quantitative limitations on the importation of any article if he finds, on the basis of a recommendation by the Secretary of Agriculture and an investigation and report of findings by the United States International Trade Commission, that such fees or quantitative limitations are necessary to prevent such article from being imported into the United States under such conditions and in such quantities as to render or tend to render ineffective, or materially interfere with, any program or operation undertaken by the Department of Agriculture with respect to any agricultural commodity or product thereof, or to reduce substantially the amount of any product processed in the United States from any agricultural commodity or product thereof with respect to which any such program or operation is being undertaken. Such fees and quantitative limitations imposed by the President pursuant to section 22 were set forth in part 3 of the Appendix to the Tariff Schedules of the United States (TSUS) and are now provided for in subchapter IV of chapter 99 of the Harmonized Tariff Schedule of the United States (HTS). 2. In addition, by Proclamation No. 4334 of November 16, 1974 (39 Fed. Reg. 40739), the President had established an import quota for certain sugars, syrups and molasses, to become effective on January 1, 1975, as provided for in headnote 3 to subpart A, part 10, schedule 1 of the TSUS. Subsequent proclamations have modified such quota. In issuing Proclamation No. 4334 and to such subsequent proclamations, the President acted in conformity with headnote 2 to subpart A, part 10, schedule 1 of the TSUS (the sugar headnote). The provisions of headnotes 2 and 3 of subpart A, part 10, schedule 1 of the TSUS are now set forth, respectively, in additional U.S. notes 2 and 3 to chapter 17 of the HTS. The current provision authorizes the President modify any quota limitation established for certain sugars, syrups and molasses provided for in subheadings 1701.11, 1701.12, 1701.91.20, 1701.99, 1702.90.30, 1702.90.40, 1806.10.40 and 2106.90.10 of the HTS if he finds that such modification is required or appropriate to give due consideration to the interests in the United States sugar market of domestic producers and materially affect ed contracting parties to the General Agreement on Tariffs and Trade (GATT). 3. Section 1204(a) of the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act) (19 U.S.C. 3004(a)) enacted the HTS, effective January 1, 1989. The structure and rules of interpretation of the HTS are different from the structure and rules of interpretation of the TSUS. While every effort was made to take account of these differences in the conversion to the nomenclature and structure of the HTS of import restrictions previously imposed under the authority of section 22 and in conformity with the sugar headnote, unforeseen changes occurred in the treatment of certain imported agricultural products with respect to these import restrictions. 4. Section 1211(c) of the 1988 Act (19 U.S.C. 3011(c)) provides that the President may proclaim changes in subchapter IV of chapter 99 of the HTS and in additional U.S. note 2 to chapter 17 of the HTS to conform them to part 3 of the Appendix to the TSUS and headnote 2 of subpart A of part 10 of schedule 1 of the TSUS, respectively. Such changes may be proclaimed if the President determines that conversion from the TSUS to the HTS has resulted in articles previously subject to import restrictions proclaimed pursuant to section 22, or covered by such sugar headnote, being excluded from those restrictions, or articles previously excluded from the import restrictions proclaimed pursuant to section 22, or not previously covered by such sugar headnote, being included within such restrictions. 5. I find that the conversion of import restrictions proclaimed pursuant to section 22 from part 3 of the Appendix to the TSUS to subchapter IV of chapter 99 of the HTS has resulted in certain articles previously subject to such restrictions being excluded from the restrictions and that certain other articles not previously subject to such restrictions being covered by such restrictions. Such changes in the coverage of those restrictions have occurred for the following articles: sweetened dried low fat milk classifiable in subheading 0402.10; sweetened dried whey classifiable in subheading 0404.10.40; dried yogurt classifiable in subheading 0403.10; acidified milk, dried fermented milk and milk powder containing added lactic ferments or crystalline acid classifiable in subheading 0403.90.80; edible mixtures of animal fats and vegetable oils classifiable in subheading 1517.90.40; certain fish preparations classifiable in subheadings 1604.20.05, 1605.10.05 and 1605.90.05; sugar syrups subject to section 22 fees classifiable in heading 1702; sugar confectionery not ready for consumption classifiable in subheading 1704.90.60; white chocolate classifiable in subheading 1704.90.40; filled chocolates classifiable in subheading 1806.31; certain edible preparations containing cocoa classifiable in subheadings 1806.20.80, 1806.32.40, 1806.90 and 1901.90.80; mixes and doughs classifiable in subheading 1901.20; mixtures of nonfat dry milk and anhydrous butterfat containing over 5.5 percent but not over 45 percent by weight of butterfat classifiable in subheading 1901.90.30; certain casein mixtures classifiable in subheading 1901.90.40; rusks and toasted bread classifiable in subheading 1905.40; mixed canned fruit classifiable in subheading 2008.92.90; sauces and sauce preparations classifiable in subheading 2103.90.60; edible ices containing cocoa classifiable in subheading 2105.00; and sherbet and other edible ice with a basis of milk or cream classifiable in subheading 2105.00. I further find that the modifications hereinafter proclaimed of the import restrictions set forth in subchapter IV of chapter 99 of the HTS are necessary and appropriate to conform that subchapter to the fullest extent possible to part 3 of the Appendix to the TSUS. 6. I find that the conversion from headnote 2 of subpart A of part 10 of schedule 1 of the TSUS to additional U.S. note 2 to chapter 17 of the HTS has resulted in an article, edible molasses classifiable in subheading 1702.90.40, that was not previously covered by such headnote being included in the coverage of the quota set forth in additional U.S. notes 3 and 4 to chapter 17 of the HTS. I further find that the modifications, hereinafter proclaimed, of additional U.S. note 2 to chapter 17 of the HTS and of the quota on the importation of certain sugars, syrups and molasses set forth in additional U.S. notes 3 and 4 to chapter 17 of the HTS are required or appropriate to give due consideration to the interests in the United States sugar market of domestic producers and materially affected contracting parties of the GATT and to conform such quota to the fullest extent possible to the coverage of the quota previously established in conformity with headnote 2 of subpart A of part 10 of schedule 1 of the TSUS. 7. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the provisions of that Act and of other Acts affecting import treatment and of actions taken thereunder. Now, Therefore, I, George Bush, President of the United States of America, acting under the authority vested in me by the Constitution and laws of the United States, including but not limited to section 1211(c) of the Omnibus Trade and Competitiveness Act of 1988, additional U.S. note 2 to chapter 17 of the HTS, and section 604 of the Trade Act of 1974, do proclaim that: (1) The HTS is modified as provided in the annex to this proclamation. (2) The modifications made by this proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 1990. In Witness Whereof, I have hereunto set my hand this twenty-eighth day of June, in the year of our Lord nineteen hundred and ninety, and of the Independence of the United States of America the two hundred and fourteenth. George Bush [Filed with the Office of the Federal Register, 5:02 p.m., June 28, 1990] Note: The annex to the proclamation was printed in the "Federal Register" of July 2. Message to the Senate Transmitting Protocols to Soviet-United States Treaties on Underground Nuclear Testing June 28, 1990 To the Senate of the United States: I transmit herewith, for the advice and consent of the Senate to ratification, the Protocol to the Treaty Between the United States of America and the Union of Soviet Socialist Republics on the Limitation of Underground Nuclear Weapon Tests, and the Protocol to the Treaty Between the United States of America and the Union of Soviet Socialist Republics on Underground Nuclear Explosions for Peaceful Purposes (the Protocols). The Protocols were signed at Washington on June 1, 1990. I transmit also, for the information of the Senate, the Report of the Department of State on the Protocols, including section-by-section analyses of the Protocols and letters exchanged by the Heads of Delegation to the Nuclear Testing Talks, which will implement certain aspects of the Protocol to the Treaty on the Limitation of Underground Nuclear Weapon Tests. The Protocols provide for effective verification of compliance with the Treaty on the Limitation of Underground Nuclear Weapon Tests, signed on July 3, 1974, and the Treaty on Underground Nuclear Explosions for Peaceful Purposes, signed on May 28, 1976 (the Treaties). These Treaties, which limit the yield of nuclear weapon tests and individual nuclear explosions for peaceful purposes to no more than 150 kilo tons, were transmitted to the Senate for its advice and consent to ratification on July 29, 1976. The Protocols replace, and should be substituted for, the protocols that were submitted with the Treaties at that time. In addition, the Administration remains com |