[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.