[Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
[June 27, 1991]
[Pages 727-730]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks Commemorating the First Anniversary of the Enterprise for the 
Americas Initiative and an Exchange With Reporters
June 27, 1991

    Please be seated. Welcome, distinguished Members of Congress and 
both Houses. Let me salute our Secretary of the Treasury and another 
Cabinet member, Ambassador Carla Hills; Minister Foxley of Chile; 
Minister de Franco of Nicaragua; Minister Alfaro of Panama. I could not 
be more pleased to have you all join me up here today. And look at this 
audience, sweating out there. [Laughter] Change that--perspiring out 
there.
    Bob Mosbacher is here, our Secretary of Commerce; and Ed Madigan, 
General Scowcroft, Bill Reilly, Mike Boskin, Larry Eagleburger--and I'm 
going to get in trouble--Mr. Robson, and many, many more. Fred Zeder, 
and John Macomber of the Ex-Im, Ron Roskens of AID. You have our top 
people here, and it's very symbolic and important that they be here. I 
think that this shows vividly our commitment to building a better and 
more prosperous hemisphere.
    We're also pleased to have with us Mr. Enrique Iglesias of the 
Inter-American Development Bank. It seems like he just left. He was just 
here the other day, and we

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welcome him back. The Ambassadors from Latin America and some of the 
Caribbean countries; from the OAS, the Secretary General here--we salute 
you, sir; and many members of the diplomatic corps. To everyone I would 
say, my warmest greetings to you on this historic day. Feel free to take 
your coats off. If it weren't for these cameras, I'd take mine off. 
[Laughter]
    I'm just delighted, again, that you're all here. And we've come here 
today to celebrate the first anniversary of the Enterprise for the 
Americas Initiative. As you know, this initiative wasn't a unilateral 
thing; it grew out of talks between many of us here today. I heard many 
of your concerns about building a prosperous hemisphere, of throwing off 
the deadening weight of debt and economic stagnation, and building 
strong ties of idealism and self-interest. With the Enterprise for the 
Americas Initiative, we vowed to encourage free trade, stimulate 
investment, and reduce the debt burden that overwhelms so many of our 
neighbors and our colleagues.
    We've made great progress. In just 1 year we've signed eight 
bilateral framework agreements for trade and investment--with Chile, 
Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Peru, and 
Venezuela. Make that 10 agreements, because today Carla Hills will sign 
bilateral framework agreements with Minister de Franco of Nicaragua and 
Minister Alfaro of Panama. We also are negotiating with Guatemala and 
the 13-nation English-speaking Caribbean Community.
    Last week, right here, Ambassador Hills also joined representatives 
of Argentina, Brazil, Paraguay, and Uruguay in signing what we call the 
Rose Garden Agreement, the first regional framework accord under the 
Enterprise for the Americas Initiative. Carla has been very busy, and 
I'm glad to see her bringing a lot of these things to fruition. I 
congratulate her and Dave Mulford and so many others who have worked 
tirelessly on these projects.
    Ambassador Hills and her counterparts will pull down tariff and 
nontariff barriers, protect patents and intellectual property, 
strengthen investment environments, and make it possible for firms to 
repatriate their profits. In short, we will build a solid foundation for 
economic cooperation and prosperity.
    We've also begun making our hemisphere more hospitable to 
investment. The Inter-American Development Bank has approved its first 
investment sector loan--it's $150 million to Chile. Minister Foxley and 
President Iglesias completed arrangements for this loan today, I am 
told.
    President Iglesias, I want to thank you, sir, and congratulate 
everyone at the IDB for this important step. And we should congratulate 
Chile for the impressive free-market reforms that it has undertaken. 
Through these loans, the IDB will help Latin America and the Caribbean 
countries compete for capital and embrace reforms that foster economic 
growth.
    For years the world experimented with the fantasy that experts could 
manage economies. The utter failure of the communism system demonstrated 
that expert cadres can no more manage growth than they can manage the 
weather or anything else. Free markets reward people who have ideas, not 
just those who have connections. They allow poor people to become rich. 
They make possible unprecedented levels of social mobility. And of 
course, they mean jobs. They teach people hard study, hard work, and 
commitment to others. Those commitments produce real wealth.
    I'm also pleased to report that our proposal for a $1.5 billion 
multilateral Investment fund has gotten off to a great start. Japan has 
pledged $100 million for each of the next 5 years. Canada, France, 
Portugal, and Spain have expressed keen interest in supporting the fund, 
which will provide targeted support for countries that undertake the 
difficult reforms necessary to encourage investment and stimulate free 
enterprise.
    Pillar three of our proposal, debt reduction, also has gotten off to 
a rousing start. Five nations already have negotiated far-reaching 
reductions in commercial debt through the provisions of the Brady plan. 
Other nations will take advantage of the plan as their economic reforms 
take shape.
    Congress has agreed to reward economic reform and trade 
liberalization by reducing a portion of a nation's debt,the food 
assistance loans contracted under P.L. 480. Con-

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gress also supported our recommendation to use interests on remaining 
debt for grassroots environmental projects. And this ambitious, 
innovative plan already has produced results. Today, the U.S. will sign 
an agreement with Chile, slashing Chile's P.L. 480 debt 40 percent, to 
$23 million. This is the first example of bilateral debt reduction under 
EAI. We look forward to reaching an understanding soon on the 
environmental component of this agreement.
    So now, just briefly, let me talk about what lies ahead. As you 
know, Congress recently voted not to terminate the Fast Track trade 
procedures that enable us to deal in good faith with you--and with 
Congress--in trade negotiations. Our goal is to create a free trade zone 
that will cover all of North America. This trade zone--360 million 
consumers and markets that produce more than $6 trillion in annual 
output--will set the stage for something even more dramatic, a whole 
hemispheric zone of free trade.
    I was very proud and pleased the way so many countries south of 
Mexico and in the Caribbean supported the FTA, the Fast Track authority, 
with Mexico. It's broad vision, because it should sweep through--this 
whole concept of free trade must sweep through our whole hemisphere.
    The Enterprise for the Americas Initiative can link our nations with 
their diverse cultures, work forces, and creative forces. I know some 
have worried that the EAI might indicate a reduction in our commitment 
to the multilateral trading system. Not so, we remain fully committed 
and fully determined to make that system work.
    Indeed, as part of the Uruguay round, we have joined our Latin 
American and our Caribbean allies in trying to pull down protectionist 
barriers in Europe and in Asia. I want to stress the importance of 
reaching a successful conclusion to the round. It can establish a basis 
for worldwide free and fair trade. Without it, we're going to have great 
difficulty moving forward.
    We live in an extraordinary place at an extraordinary time. When 
Cuba embraces democracy, ours will become the first truly democratic 
hemisphere in the world. That is a major goal, a major accomplishment by 
most countries already; Cuba being this holdout.
    There's no accident of history here. From the northern tip of Alaska 
to the southernmost point of Tierra del Fuego, we share common 
heritages. Our people can trace their roots to all the nations of the 
world. We share ties of culture and of blood and of common interest. And 
now, as democracy sweeps the world, we share the challenge of leadership 
through example.
    We can lead the way to a world freed from suspicion and from 
mercantilist barriers, from socialist inefficiencies. We can show the 
world how prosperity preserves the social order, and the land, air, and 
water as well. We can show the rest of the world that deregulation, 
respect for private property, low tax rates, and low trade barriers can 
produce vast economic returns. We can show the rest of the world how to 
build upon each other's strengths, rather than preying upon weaknesses.
    Today, I simply want to pledge to you, our friends, my full effort 
to make the Enterprise for the Americas Initiative a total reality. I 
urge Congress to pass promptly the legislation necessary to enact EAI. 
This includes debt reduction authority and authority for the United 
States to contribute its share to the Multilateral Investment Fund.
    In 1876--I think I mentioned this the other day when President 
Collor was here--the Brazilian Emperor, Dom Pedro II, visited the United 
States and stopped in St. Louis, among other places. And he noted that 
local craftsmen were using only the sturdiest materials in building a 
customs house. The emperor was stunned. ``But an iron building would 
last 400 years,'' he noted. ``You do not mean to tell me that there will 
be any custom houses in 400 years.''
    We meet today to honor Dom Pedro's vision of a hemisphere shorn of 
customs houses and jammed with thriving markets. If we can build a 
hemisphere devoted to freedom, one that prefers enterprise to envy, 
we've going to create our own new world order.
    We've worked miracles in one year, and so let us shape a revolution 
in the next because I honestly believe that together, we

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can make our hemisphere's freedom first and best for all.
    Thank you, and God bless you. And thank you all for coming down here 
on this very hot, but very significant occasion. Thank you.

[At this point, Secretary Brady and Ambassador Hills signed trade 
agreements with Chile, Nicaragua, and Panama.]

    One half of it done.

Resignation of Supreme Court Associate Justice Marshall

    Q. Mr. President, have you thought about a successor to Thurgood 
Marshall?
    Q. Mr. President, what do you want in a Marshall successor, sir?
    Q. And how soon? How soon will we have a successor?
    Q. Have you got a successor, Mr. President?
    The President. Now, what was that one question? What was the one 
question?
    Q. Thurgood Marshall, sir. What about a successor to Mr. Marshall?
    The President. Well, it just happened, I mean. But we'll move 
promptly; we'll move very swiftly. I paid my respects to Justice 
Marshall in a statement that we put out. He served his country with 
great distinction. And, you know, it's very pleasant for Barbara and 
me--I knew nothing about this, of course--but he and Mrs. Marshall were 
our guests up at Camp David a while back. And we had a very warm and 
relaxed and entertaining visit. I say entertaining from him, he fired 
off a few jokes for us. And it was very pleasant.
    So, in the personal relationship, we feel sad about this, but he's 
served his country well. And we're going to move----
    Q. Wasn't there some notice at all, sir?
    The President. No, no. This is really the--literally, the first I 
heard when we went up to the Hill.
    Q. What about----
    Q. Will it be a minority?
    Q. Mr. Sununu has issued another apology. What do you have--do you 
have anything to say about?
    The President. I've said all I really care to say about that.
    Q. What qualities will you look for in a replacement?
    Q. What about a replacement, sir? A successor?
    The President. Somebody that believes in the Constitution of the 
United States, as all nine of those Judges do that are on the court now, 
and somebody with experience, obviously, and somebody that will be able 
to serve a while. So, that's it.
    All right. Thank you all.

                    Note: The President spoke at 4:05 p.m. in the Rose 
                        Garden at the White House. In his remarks, he 
                        referred to Secretary of the Treasury Nicholas 
                        F. Brady; U.S. Trade Representative Carla A. 
                        Hills; Finance Minister Alejandro Foxley Riesco 
                        of Chile; Economy Minister Silvio de Franco of 
                        Nicaragua; Commerce Minister Roberto Alfaro of 
                        Panama; Secretary of Commerce Robert A. 
                        Mosbacher; Secretary of Agriculture Edward R. 
                        Madigan; Brent Scowcroft, Assistant to the 
                        President for National Security Affairs; William 
                        K. Reilly, Administrator of the Environmental 
                        Protection Agency; Michael J. Boskin, Chairman 
                        of the Council of Economic Advisers; Lawrence S. 
                        Eagleburger, Deputy Secretary of State; John E. 
                        Robson, Deputy Secretary of the Treasury; Fred 
                        M. Zeder, President and Chief Executive Officer 
                        of the Overseas Private Investment Corporation; 
                        John D. Macomber, President and Chairman of the 
                        Export-Import Bank of the United States; Ronald 
                        W. Roskens, Administrator of the Agency for 
                        International Development; Enrique V. Iglesias, 
                        President of the Inter-American Development 
                        Bank; Joao Clemente Baena Soares, Secretary 
                        General of Organization of American States; 
                        David C. Mulford, Under Secretary of the 
                        Treasury for International Affairs; President 
                        Fernando Collor de Mello of Brazil; Thurgood 
                        Marshall, Associate Justice of the Supreme 
                        Court, and his wife, Cecilia; and John H. 
                        Sununu, Chief of Staff to the President.