[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[January 6, 1992]
[Pages 37-40]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks at the American and Korean Chambers of Commerce Luncheon in 
Seoul

January 6, 1992
    Well, thank you all very much, and good afternoon. And let me first 
say thank you to our master of ceremonies, my old friend and our very 
able Ambassador here, Don Gregg. Thank you for that introduction.
    And I'd like to also acknowledge Minister Han Pong Su, the Minister 
of Trade, and of course our able Secretary of Commerce, Bob Mosbacher. 
He is heading up, as I think everyone here knows, our delegation of top 
American business leaders as they come here to explore new opportunities 
for American goods and services, not just here but all around the world.
    I also want to single out and thank our hosts, Don Myers of the 
AmCham and Kim Sang Ha of the Korean Chamber of Commerce, for bringing 
together some of the

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top business leaders from both countries this afternoon. This American 
Chamber of Commerce in Seoul is leading the way toward free and open 
trade throughout Asia. And it's playing what I am told is a vital role 
in expanding business ties between the United States and Korea, ties 
which are growing into a true economic partnership.
    Let me begin by telling you why I'm here. As you might expect, with 
tough times at home in the United States, my highest priority is 
stimulating economic growth and jobs for Americans. And one way to get 
our economy growing is to increase trade between our two nations. 
Opening more markets here in Korea for quality American goods and 
services clearly means more exports and more good jobs in America. And 
as you all know, that also holds true for Korea as well.
    And so, I've come to the capital of one of the world's leading 
economic success stories, success based on hard work, market 
orientation, and access to international capital and markets. Your 9-
percent growth rate may seem mediocre to you compared to some previous 
years, but back home, I'd settle for that, like that. [Laughter]
    With a generation, Korea has transformed itself from one of the 
world's poorest states into the world's 13th largest economy, on the 
cutting edge of high-tech growth. The generation that created that 
success knows that enduring security comes not through aggression but 
through hard work and effort by free people working through free 
markets. And if we are to secure the opportunities of the post-cold-war 
era, we must rise to the call of three daunting demands: The new 
requirements of peace and security, the challenge of fostering 
democracy, and the summons to generating greater economic growth and 
prosperity for the peoples of the world.
    First, the challenge of ensuring peace and security. The world has 
learned that weakness tempts the warlike. We saw, with Saddam Hussein's 
naked aggression, that the misery of war results when tyrants doubt the 
commitment of the powerful to defend the security of the powerless. And 
that's why, as long as I'm President, the United States will remain 
absolutely opposed to isolationism. As a nation straddling two great 
oceans, the U.S. remains committed to engagement in both the Atlantic 
community and the emerging community of the Asia-Pacific region.
    The emerging post-cold-war era that we face presents the United 
States with an opportunity to restructure its defenses. Now, I know 
there's been some concern about how we'll proceed with that complex and 
difficult task. But let me assure you and your Asia-Pacific neighbors 
that our restructuring, such as the closing of bases in Subic there in 
the Philippines, does not mean the end of American engagement in the 
Pacific area. We will remain a visible, credible security presence in 
the Asia-Pacific area with our forward-deployed forces and through 
bilateral defense arrangements with our friends.
    And let me be clear, maintaining our security presence is not some 
kind of a charitable exercise. Your security and your economic growth 
are in our interests because together we will thrive in a stable, 
developing world. An unstable Asia does not serve our interests, and nor 
does a poverty-stricken or repression-ridden Asia. We need an Asia-
Pacific region that is free and productive. And our security presence 
provides a foundation for mutual prosperity and for shared defense.
    Strong, stable security arrangements enable us to meet the second 
challenge, and that is the call to democracy. The tyranny of 
totalitarianism is dead, and freedom is being born and reborn in nations 
from Latin America to Eastern Europe to Cambodia and to Mongolia. The 
Soviet Union as we've known it has vanished, and with it the delusions 
of communism.
    The Republic of Korea has stood strong for democracy, particularly 
since the momentous events of 1987. This year, Korea will put this 
renewed faith in democratic institutions to the test in several 
elections. And I am confident that again this year the Korean people 
will demonstrate that freedom's way is the way of the future in Asia. 
Nations which build their prosperity on the freedom of their people know 
that there is no alternative.
    This worldwide movement toward de-

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mocracy leads us to the third challenge that's awaiting us, that of 
promoting economic growth and building a world of free and open markets.
    Korea and the United States have a tremendous amount at stake in 
their economic relations. The U.S. is Korea's largest export market, and 
Korea is our sixth largest export market. The business executives with 
this wonderful team that we brought out with us today believe in 
building stronger economic ties with you. They stand ready to work side 
by side with Korean businessmen. And like you, they seek to build even 
more growth, opportunity, and stability for our two nations.
    In building this world of free enterprise and economic growth, we 
know we have much to do. The United States is taking steps to boost our 
own competitiveness in foreign markets: Improving education, working to 
bring down our budget deficit, and enhancing productivity. We're working 
overtime to produce quality products at affordable prices, products that 
win in the marketplace.
    And while Korea has made great progress in removing visible trade 
barriers to foreign business over the last 5 years, doing business in 
Korea is still more difficult than it should be for such a proud and 
successful country. Korea must address fundamental problems that stifle 
the ability of foreign firms to compete in your great country, problems 
like certain unjustified standards and regulations, or cumbersome 
customs procedures, delays in scheduled reductions of duties, and these 
financing restrictions.
    Attitude towards imports must change. And while the notion of 
frugality isn't inherently bad, import restrictions hurt your own 
consumers and weaken the competitiveness of your firms. And while 
numerous restrictions in foreign trade have been lifted, such as certain 
performance requirements and sectoral restrictions, we look to Korea to 
remove all nontariff barriers to free trade.
    Free trade has propelled Korea into a position of economic 
prominence and leadership. And because of this, Korea has a growing 
responsibility to lead in strengthening the whole world trade and 
financial system. The General Agreement on Tariffs and Trade, GATT, can 
play an especially crucial role in expanding economic frontiers. On each 
stop of this trip, I've called for urgent action on behalf of the 
international trading system. And I am urging the world's trading 
nations to join with us in working towards a successful conclusion of 
that all-important Uruguay round with GATT Director Dunkel's proposed 
draft agreement, incidentally, as its basis.
    And while every one of us has problems with some portions of that 
draft, none of us can afford to let the progress that it symbolizes slip 
through our fingers. The time has come for a strong collective response. 
A successful conclusion to the Uruguay round will pave the way for even 
greater trade liberalization in the coming years, with greater 
prosperity for absolutely everyone.
    In order for Korea to build upon its own spectacular growth, it will 
need a more open financial system. I know that American businesses are 
particularly concerned with restrictions in the financial system here 
which prevent them from trading and investing in the Korean economy. But 
the bottom line is that broader access for foreign financial firms is in 
your best interest; it is in Korea's best interest because a more open 
economy will benefit Korean businesses and their customers.
    But there's more to it than that. During the last 50 years, 
engagement and free trade have produced peace and prosperity. Here, in 
Korea it's been remarkable, throughout the Asia-Pacific region, in 
Europe, and indeed, in the United States. This prosperity has gone hand-
in-hand with the growth of democracy, a fact that illustrates the 
indivisibility of security and political and economic liberty.
    In the emerging post-cold-war era, economic engagement and expanded 
markets will ensure prosperity and stability for the people of the 
world. And that's why we've come here today. We want to build hope for a 
better life for our people. We want to create opportunity for all men 
and women. And we want to leave as our legacy peace for our children. 
And so, it is in that spirit of hopeful anticipation that I say thank 
you to all of you. What a remarkable, what a great job you have done. 
And yet what tre-

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mendous work lies ahead for us all.
    May God bless your wonderful country. May God bless the relationship 
between our countries. And thank you for this opportunity to speak to 
such a distinguished group of business leaders. Thank you very, very 
much.

                    Note: The President spoke at 1:24 p.m. at the Hotel 
                        Shilla.