[Congressional Record Volume 140, Number 144 (Thursday, October 6, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 6, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
            NEW OPPORTUNITIES ABROAD FOR AMERICAN BUSINESSES

                                 ______


                         HON. GARY L. ACKERMAN

                              of new york

                    in the house of representatives

                       Thursday, October 6, 1994

  Mr. ACKERMAN. Mr. Speaker, Energy Secretary Hazel O'Leary has just 
returned from a highly successful mission to Pakistan, which has opened 
new doors to American business leaders and may represent as well an 
important turning point in our diplomatic relationship with Pakistan.
  Secretary O'Leary was accompanied by 80 American business executives, 
primarily from the energy sector. The O'Leary trip resulted in the 
signing of 16 contracts worth nearly $4 billion--breathing life into 
President Clinton's hope that ``this mission will strengthen our mutual 
ties and advance free trade, sustainable development and private 
investment in South Asia.''
  In the White House message Secretary O'Leary carried with her to 
Pakistan, President Clinton also called attention to the key role Prime 
Minister Benazir Bhutto has played in reforming Pakistani institutions 
to encourage international investment and United States economic 
partnerships.
  Mr. Speaker, in view of the importance of the O'Leary mission, I urge 
my colleagues to read President Clinton's message and an article about 
the trip which appeared in the Christian Science Monitor. Both are 
reprinted below:

 President Clinton's Message to the Two-Day Energy Conference in Lahore

       I am pleased to join secretary Hazel O'Leary in introducing 
     the members of the Presidential mission on Energy Investment 
     in Pakistan. The United States highly values our rich history 
     of friendship with the people of Pakistan. I hope that this 
     mission will strengthen our mutual ties and advance free 
     trade, sustainable development and private investment in 
     South Asia.
       Prime Minister Bhutto initiated this mission with her 
     personal invitation. She had made market-driven energy 
     development her chief priority in expanding Pakistan's 
     economy. Through her leadership the Government of Pakistan 
     has made great strides in reforming its institutions to 
     encourage international investment and U.S. partnerships in 
     energy projects.
       In response, Secretary O'Leary has recruited a 
     distinguished delegation. Its membership signifies the U.S. 
     business community's positive appraisal of Pakistan's dynamic 
     market. This delegation represents the best that America has 
     to offer from a broad spectrum of energy companies, 
     financiers, environmental groups and government specialists. 
     It includes those with expertise in traditional energy 
     production as well as in innovative renewable and energy 
     efficiency technologies--all selected for particular 
     viability in meeting Pakistan's energy needs. Most 
     importantly, they possess the creativity and ingenuity to 
     make this mission successful and historic.
       The delegation is led by Secretary O'Leary, one of our 
     nation's foremost leaders in sustainable energy development. 
     Her background as a business executive, government official 
     and community leader provides a unique asset that will enrich 
     the mission.
       It is my fervent hope that this mission will demonstrate 
     that, through free and fair competition, international 
     partnerships can flourish. These partnerships can also 
     reconcile economic growth with protection of the global 
     environment, upon which our prosperity ultimately depends.
       I commend these delegates to you in the hope that together 
     you will build lasting friendships and forge enduring 
     partnerships which can serve the people of both our great 
     nations.

          [From the Christian Science Monitor, Sept. 28, 1994]

           Big US Contracts Won in Pakistan Help Mend Fences

                          (By Farhan Bokhari)

       Islamabad, Pakistan.--American investment prospects in 
     Pakistan appear to have been livened up after the recent 
     return to Washington of Hazel O'Leary, the United States 
     Energy secretary, following a five-day presidential mission 
     to the Asian nation. Business executives accompanying Ms. 
     O'Leary used the opportunity to sign 16 contracts worth 
     roughly $4 billion, mainly in power-generation and oil-
     exploration sectors.
       That investment commitment is one of the largest in the 
     history of Pakistan. In the past 47 years, American 
     businesses have invested only about $450 million in equity in 
     Pakistan. O'Leary's visit also marks a turning point in the 
     two countries' bilateral relations, which were at their 
     lowest point until recently.
       Less than two years ago, Washington considered declaring 
     Pakistan a terrorist state. The US cut military and economic 
     aid to the country for almost four years under a US 
     congressional provision, dubbed the Pressler Amendment. It 
     restricts assistance unless Islamabad accepts international 
     safeguards on its nuclear facilities.
       However, the two sides appear to be trying to expand 
     contacts through areas such as private business investment. 
     These are not barred under the Pressler law. ``[O'Leary's] 
     visit here signifies the broadening of the US-Pakistan 
     relationship; this is a multidimensional relationship,'' 
     declared Benazir Bhutto, the Pakistani prime minister, as she 
     presided over a ceremony celebrating the signing of the 
     contracts.
       Other officials from the US and Pakistan acknowledge that 
     the two countries are trying to contain the difficulties over 
     the nuclear issue so that the issue does not harm a broad 
     range of potential contacts, especially business 
     opportunities.
       This month, the Clinton administration announced a $10 
     million grant for nongovernmental groups working to improve 
     Pakistan's social sector. And Pakistani officials are 
     examining prospects for purchase of up to $20 million in US 
     soybean oil.
       These amounts may seem small compared with the more than $7 
     billion committed by the US in military and economic aid to 
     Pakistan during the height of the 1980s cold war when 
     Islamabad played a key role in supporting the Western 
     alliance against the Soviet occupation of Afghanistan. But 
     they have added to the enthusiasm of Pakistani officials, who 
     say the two countries are now out of the crisis mold.
       ``We have brought in the US delegation of businesspeople, 
     the best experts that we have to offer,'' O'Leary said at the 
     end of her visit. She repeatedly commended Pakistan's energy 
     policy during her stay. That policy, which has now opened the 
     doors for American businesses, has been welcomed by a wide 
     range of businesspeople since its announcement this year.
       Under the policy, a complicated procedure to seek official 
     permission for setting up an electricity-generating plant has 
     been replaced by a ``one window'' government office in 
     Islamabad. There prospective investors can get the official 
     paperwork processed at a fast pace.
       Also, the government's decision to assure investors a bulk 
     tariff rate of 6.5 cents per kilowatt hour for electricity 
     generated in such new plants marks one of the most attractive 
     incentives the Pakistan government has ever offered.
       Pakistan officials hope progress over the energy projects 
     will help attract US investments in other sectors, too. Many 
     officials here are heartened about the $10 million grant and 
     the possible soybean-oil sale.
       These initiatives represent an important shift at a time 
     when, despite little movement over the nuclear issue, 
     Pakistan wants to mend fences with the US.

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