    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [April 25, 1991]
    [Pages 429-430]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Memorandum on Modifications of the Generalized System of Preferences
    April 25, 1991

    Memorandum for the United States Trade Representative

    Subject: Actions Concerning the Generalized System of Preferences

        Pursuant to subsections 502(b)(4) and 502(b)(7) and section 504 of
    the Trade Act of 1974, as amended (the 1974 Act) (19 U.S.C. 2462(b)(4),
    2462(b)(7), and 2464), I am authorized to make determinations concerning
    the alleged expropriation without compensation by a beneficiary
    developing country, to make findings concerning whether steps have been
    taken or are being taken by certain beneficiary developing countries to
    afford internationally recognized worker rights to workers in such
    countries, and to modify the application of duty-free treatment under
    the Generalized System of Preferences (GSP) currently being afforded to
    such beneficiary developing countries as a result of my determinations.
        Specifically, after considering a private sector request for a
    review concerning the alleged expropriation by Peru of property owned by
    a United States person allegedly without prompt, adequate, and effective
    compensation, without entering into good faith negotiations to provide
    such compensation or otherwise taking steps to discharge its
    obligations, and without submitting the expropriation claim to
    arbitration, I have determined that it is appropriate to continue to
    review the status of such alleged expropriation by Peru.
        Second, after considering various private sector requests for a
    review of whether or not certain beneficiary developing countries have
    taken or are taking steps to afford internationally recognized worker
    rights (as defined in subsection 502(a)(4) of the 1974 Act (19 U.S.C.
    2462(a)(4))) to workers in such countries, and in accordance with
    subsection 502(b)(7) of the 1974 Act (19 U.S.C. 2462(b)(7)), I have
    determined that Benin, the Dominican Republic, Haiti, and Nepal have
    taken or are taking steps to afford internationally recognized worker
    rights, and I have determined that Sudan has not taken and is not taking
    steps to afford such internationally recognized rights. There-

    [[Page 430]]

    fore, I am notifying the Congress of my intention to suspend the GSP
    eligibility of Sudan. Finally, I have determined to continue to review
    the status of such worker rights in Bangladesh, El Salvador, and Syria.
        Further, pursuant to section 504 of the the 1974 Act, after
    considering various requests for a waiver of the application of section
    504(c) of the 1974 Act (19 U.S.C. 24e(c)) with respect to certain
    eligible articles, I have determined that it is appropriate to modify
    the application of duty-free treatment under the GSP currently being
    afforded to certain articles and to certain beneficiary developing
    countries.
        Specifically, I have determined, pursuant to subsection 504(d)(1) of
    the 1974 Act (19 U.S.C. 2464(d)(1)), that the limitation provided for in
    subsection 504(c)(1)(B) of the 1974 Act (19 U.S.C. 2464(c)(1)(B)) should
    not apply with respect to certain eligible articles because no like or
    directly competitive article was produced in the United States on
    January 3, 1985. Such articles are enumerated in the list of Harmonized
    Tariff Schedule of the United States (HTS) subheadings in Annex A.
        Pursuant to subsection 504(c)(3) of the 1974 Act (19 U.S.C.
    2464(c)(3)), I have also determined that it is appropriate to waive the
    application of section 504(c) of the 1974 Act with respect to certain
    eligible articles from certain beneficiary developing countries. I have
    received the advice of the United States International Trade Commission
    on whether any industries in the United States are likely to be
    adversely affected by such waivers, and I have determined, based on that
    advice and on the considerations described in sections 501 and 502(c) of
    the 1974 Act (19 U.S.C. 2461 and 2462(c)), that such waivers are in the
    national economic interest of the United States. The waivers of
    application of section 504(c) of the 1974 Act apply to the eligible
    articles in the HTS subheadings and the beneficiary developing countries
    set opposite such HTS subheadings enumerated in Annex B.
        These determinations shall be published in the Federal Register.

                                                                 George Bush

                        [Filed with the Office of the Federal Register, 4:33
                            p.m., April 25, 1991]

                        Note: The annexes which accompanied this memorandum
                            were printed in the ``Federal Register'' of
                            April 29. The related proclamation of April 25
                            is listed in Appendix E at the end of this
                            volume.