    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [June 24, 1991]
    [Page 720]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 720]]

    Letter to Congressional Leaders on Trade With Mongolia
    June 24, 1991

    Dear Mr. Speaker:  (Dear Mr. President:)
        In accordance with section 407 of the Trade Act of 1974 (Public Law
    93-618, January 3, 1975; 88 Stat. 1978), as amended (the ``Trade Act''),
    I am transmitting a copy of a proclamation that extends
    nondiscriminatory treatment to the products of the Mongolian People's
    Republic. I also enclose the text of the ``Agreement on Trade Relations
    Between the Government of the United States of America and the
    Government of the Mongolian People's Republic,'' including exchanges of
    letters that form an integral part of the Agreement, which was signed on
    January 23, 1991, and which is included as an annex to the proclamation.
        The Agreement will provide a nondiscriminatory framework for our
    bilateral trade relations, and thus strengthen both economic and
    political relations between the United States and the Mongolian People's
    Republic. Conclusion of this Agreement is an important step we can take
    to provide greater economic benefits to both countries. It will also
    give further impetus to the progress we have made in our overall
    diplomatic relations since last year.
        I believe that the Agreement is consistent with both the letter and
    the spirit of the Trade Act. It provides for mutual extension of
    nondiscriminatory tariff treatment, while seeking to ensure overall
    reciprocity of economic benefits. It includes safeguard arrangements to
    ensure that our trade with the Mongolian People's Republic will grow
    without causing disruption to the U.S. market and consequent injury to
    domestic firms or loss of jobs for American workers.
        The Agreement also confirms and expands for American businesses
    certain basic rights in conducting commercial transactions both within
    the Mongolian People's Republic and with Mongolian nationals and
    business entities. Other provisions include those dealing with
    settlement of commercial disputes, financial transactions, and
    government commercial offices. Through this Agreement, the Mongolian
    People's Republic also undertakes obligations to modernize and upgrade
    very substantially its protection of intellectual property rights. Once
    fully implemented, the Mongolian intellectual property regime will be on
    a par with that of our principal industrialized trading partners. This
    Agreement will not alter U.S. law or practice with respect to the
    protection of intellectual property.
        On January 23, 1991, I waived application of subsections (a) and (b)
    of section 402 of the Trade Act to the Mongolian People's Republic. I
    determined that this waiver will substantially promote the objectives of
    section 402, and, pursuant to section 402(c)(2) of the Trade Act,
    notified the Congress that I have received assurances that the
    emigration practices of the Mongolian People's Republic will henceforth
    lead substantially to achievement of those objectives.
        I urge that the Congress act as soon as possible to approve the
    ``Agreement on Trade Relations Between the Government of the United
    States of America and the Government of the Mongolian People's
    Republic'' and the proclamation extending nondiscriminatory treatment to
    products of the Mongolian People's Republic by enactment of a joint
    resolution, referred to in section 151 of the Trade Act.
        Sincerely,

                                                                 George Bush

                        Note: Identical letters were sent to Thomas S.
                            Foley, Speaker of the House of Representatives,
                            and Dan Quayle, President of the Senate. The
                            letter was released by the Office of the Press
                            Secretary on June 25. The Agreement on trade
                            relations and the exchange of letters between
                            U.S. and Mongolian officials were printed in the
                            ``Federal Register'' of June 28. The related
                            proclamation on trade with Mongolia is listed in
                            Appendix E at the end of this volume.