[Federal Register Volume 61, Number 225 (Wednesday, November 20, 1996)]
[Presidential Documents]
[Pages 59171-59172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29867]


      

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Part IV





The President





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Presidential Determination No. 97-01 of November 8, 1996--Assistance 
Program for the New Independent States of the Former Soviet Union
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  Federal Register / Vol. 61, No. 225 / Wednesday, November 20, 1996 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 59171]]

                Presidential Determination No. 97-01 of November 8, 
                1996

                
Assistance Program for the New Independent States 
                of the Former Soviet Union

                Memorandum for the Secretary of State

                Pursuant to subsection (o) under the heading 
                ``Assistance for the New Independent States of the 
                Former Soviet Union'' in Title II of the Foreign 
                Operations, Export Financing and Related Programs 
                Appropriations Act, for fiscal year 1996 (Public Law 
                104-107) and fiscal year 1997 (Public Law 104-208), I 
                hereby determine that it is important to the national 
                security interest of the United States to make 
                available funds appropriated under that heading without 
                regard to the restriction in that subsection.

                You are authorized and directed to notify the Congress 
                of this determination and to arrange for its 
                publication in the Federal Register.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, November 8, 1996.
                Memorandum of Justification Regarding Determination 
                Under Title II of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act 
                (Public Laws 104-107 and 104-208)

                    The Administration shares the deep concern of the 
                Congress over Russian nuclear cooperation with Iran. 
                Such cooperation, which could contribute over time to a 
                nuclear-armed Iran, continues to be a threat not only 
                to U.S. security interests, the Middle East Peace 
                Process, and global stability, but also to Russian 
                security interests as well. In dealing with this 
                pressing issue, the Administration has repeatedly and 
                strenuously objected to any form of nuclear cooperation 
                with Iran. The President has raised the important issue 
                repeatedly and directly with President Yeltsin, 
                including during their April 1996 meeting in Moscow. 
                The Vice President discussed our concerns with Prime 
                Minister Chernomyrdin most recently during their July 
                Meeting in Moscow. The Administration has also 
                established a multi-level dialogue with the Russians 
                and continues to give this issue the necessary high 
                priority on the bilateral agenda. In addition, we have 
                made clear to the Russians that we are not prepared to 
                renew or expand the current U.S.-Russian Agreement on 
                S&T Cooperation in the Field of Peaceful Uses of Atomic 
                Energy because of Russia's ongoing nuclear cooperation 
                with Iran. In addition, we informed the Russians in 
                1995 that a Section 123 agreement would not be possible 
                while Russian nuclear cooperation with Iran continues.
                    Subsection (o) under the heading, ``Assistance for 
                the New Independent States of the Former Soviet 
                Union,'' in Title II of the FY 1996 and FY 1997 Foreign 
                Operations Appropriations Acts contain a restriction on 
                assistance to Russia unless there is a Presidential 
                determination that the Government of Russia has 
                terminated implementation of arrangements to provide

[[Page 59172]]

                Iran with technical expertise, training, technology, or 
                equipment necessary to develop a nuclear reactor or 
                related nuclear research facilities or programs. Given 
                present circumstances, the President is unable to make 
                this determination. In order to further the national 
                security interest of the United States, the President 
                is exercising the authority provided by the Congress in 
                subsection (o) to make funds available to Russia under 
                these Acts without regard to this restriction.
                    The President takes this action because it remains 
                important to the national security interest of the 
                United States to continue support for the reform 
                process in Russia. Assisting Russia and the other New 
                Independent States in their transitions to democratic 
                systems of government and market economies continues to 
                be one of the Administration's highest foreign policy 
                goals. As we noted in our previous determination, the 
                outcome of this historic reform effort will have a 
                critical impact on the future of regional and 
                international peace and stability as well as the 
                national security interests of the United States. Much 
                has already been accomplished along the uncharted road 
                to reform in Russia, including Russia's unprecedented 
                1996 Presidential elections. The transformation of 
                Russia into a more democratic, market-oriented society, 
                however, is a long-term proposition, and the outcome is 
                far from certain. The United States and the world 
                community must remain steadfast in support of the 
                people of Russia and the other New Independent States 
                (NIS) during this important period of transition.
                    Our assistance and other cooperative programs 
                continue to play a vital role promoting basic U.S. 
                interests by furthering the reform process in Russia 
                and bolstering fledgling democratic, market-oriented 
                processes and institutions. With the Russian 
                presidential elections complete, Russia must now 
                accelerate major structural reforms, such as building 
                the legal and institutional structures to support a 
                market economy. To cut off assistance and thereby 
                sharply cut back the influence Americans are having on 
                Russian reform at this important juncture in Russia's 
                history would be counterproductive. Most significantly, 
                a withdrawal of assistance would undercut those in 
                Russia who seek to build relations of a new kind with 
                the United States, who support democratic and market 
                economic principles, and who are helping to integrate 
                Russia into global economic and security systems.
                    We must continue to support two worthy foreign 
                policy goals: supporting the reform process in Russia 
                and ending Russian nuclear cooperation with Iran. 
                Carefully designed and implemented assistance programs 
                will help us to achieve the former, which in turn will 
                help lessen the incentive for Russia to cooperate with 
                Iran on nuclear programs. Active engagement with Russia 
                at the highest levels will also help us accomplish this 
                latter objective. We will continue to work with the 
                Congress to achieve our mutual goals in this regard.
                    The President has made this determination because 
                it is essential to enable us to continue to pursue with 
                Russia our policy of pragmatic engagement, in which we 
                seek to support U.S. national security and other 
                interests by helping to integrate Russia into global 
                economic and security systems as a cooperative, 
                peaceful, and prosperous member of the world community.

[FR Doc. 96-29867
Filed 11-19-96; 8:46 am]
Billing code 4710-10-M