[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[April 1, 1992]
[Pages 522-526]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference on Aid to the States of the Former 
Soviet Union

April 1, 1992
    The President. I have a statement that is a little longer than the 
normal, but let me just say that I have just met with the congressional 
leadership to request their bipartisan backing for a new, comprehensive, 
and integrated program to support the struggle of freedom underway in 
Russia, Ukraine, and the other new States that have replaced the Soviet 
Union.
    The revolution in these States is a defining moment in history with 
profound consequences for America's own national interests. The stakes 
are as high for us now as any that we have faced in this century. And 
our adversary for 45 years, the one nation that posed a worldwide threat 
to freedom and peace, is now seeking to join the community of democratic 
nations. A victory for democracy and freedom in the former U.S.S.R. 
creates the possibility of a new world of peace for our children and 
grandchildren. But if this democratic revolution is defeated, it could 
plunge us into a world more dangerous in some respects than the dark 
years of the cold war.
    America must meet this challenge, joining with those who stood 
beside us in the battle against imperial communism: Germany, the United 
Kingdom, Japan, France, Canada, Italy, and other allies. Together we won 
the cold war, and today we must win the peace.
    This effort will require new resources from the industrial 
democracies, but nothing like the price we would pay if democracy and 
reform failed in Russia and Ukraine and Byelarus and Armenia and the 
States of Central Asia. It will require the commitment of a united 
America, strengthened by a consensus that transcends even the heated 
partisanship of a Presidential election campaign. And today I call upon 
Congress, Republicans and Democrats alike, and the American people to 
stand behind this united effort.
    Our national effort must be part of a global effort. I've been in 
contact with Chancellor Kohl, Prime Minister Major, President 
Mitterrand, other key allies to discuss our plans and to assure them of 
the high priority I place on the success of this endeavor. To this end, 
I would like to announce today a plan to support democracy in the States 
of the former Soviet Union.
    This is a complex set of issues which took months to sort out, 
working within the administration, working with our major allies and 
with the leaders of the new independent States of the former Soviet 
Union. A number of things had to come together to make sure we got it 
right.
    Let me give you a little bit of the history.

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I asked Secretary Baker to outline our fundamental approach in his 
December 12th speech at Princeton. I spoke again on the need to embrace 
Russia and the other new States of the former Soviet Union in my January 
22d speech at the Washington conference to coordinate the humanitarian 
assistance. On February 1st, Boris Yeltsin and I discussed these issues 
at Camp David. And that same day, Secretary Brady met with Boris 
Yeltsin's key economic adviser, Yegor Gaydar, to discuss how we could 
support Russian reforms. A week later, Jim Baker followed up during his 
meeting with Kozyrev, Foreign Minister Kozyrev, and Boris Yeltsin in 
Moscow. And just yesterday, the IMF reached tentative agreement with 
Russia on its market reform program. After weeks of intensive 
consultations in the G-7, Chancellor Kohl, currently serving as Chairman 
of the G-7, has announced today G-7 support for an IMF program for 
Russia.
    The program that I'm announcing today builds on this progress and 
includes three major components. First, the United States has been 
working with its Western allies and the international financial 
institutions on an unprecedented multilateral program to support reform 
in the newly independent States. The success of this program will depend 
upon their commitment to reform and their willingness to work with the 
international community.
    Russia is exhibiting that commitment. And I'm announcing today that 
the U.S. is prepared to join in a substantial multilateral financial 
assistance package in support of Russia's reforms. We're working to 
develop, with our allies and the IMF, a $6 billion currency 
stabilization fund to help maintain confidence in the Russian ruble. The 
U.S. will also join in a multilateral effort to marshal roughly $18 
billion in financial support in 1992 to assist Russian efforts to 
stabilize and restructure their economy. We've been working with the 
Russian Government for 3 months to help it develop an economic reform 
plan to permit the major industrialized countries to provide support. We 
will work to complete action on this approximately $24 billion package 
by the end of April. And I pledge the full cooperation of the United 
States in this effort.
    Secondly, the United States will also act to broaden its own 
capacity to extend assistance to the new States. I'm transmitting to 
Congress a comprehensive bill, the ``FREEDOM Support Act,'' to mobilize 
the executive branch, the Congress, and indeed, our private sector 
around a comprehensive and integrated package of support for the new 
States. Now, this package will:
    Authorize a U.S. quota increase of $12 billion for the IMF, which is 
critical to supporting Russia and the other new States. The IMF and 
World Bank will be the primary source of funding for the major financial 
assistance needs of the new governments. The U.S. quota increase for the 
IMF was specifically assumed in the budget agreement and does not 
require a budget outlay;
    Support my existing authority to work with the G-7 and the IMF to 
put together the stabilization program for Russia and support possible 
subsequent programs for other States of the former Soviet Union as they 
embarked on landmark reforms, including up to $3 billion for 
stabilization funds.
    It would also repeal restrictive cold war legislation so that 
American business can compete on an even footing in these new markets. 
And I'm determined that American business be given the chance to invest 
and trade with the new States. And to that end, I've also directed that 
the United States negotiate trade and bilateral investment and tax 
treaties with these countries just as soon as possible. Significant new 
trade relationships can create jobs right here in this country.
    The package will broaden the use of $500 million appropriated by 
Congress last year to encompass not only the safe dismantling and 
destruction of nuclear weapons but also the broader goals of nuclear 
plant safety, demilitarization, and defense conversion.
    It will also establish a major people-to-people program between the 
United States and the States of the former Soviet Union to create the 
type of lasting personal bonds among our peoples and Russian 
understanding of democratic institutions so critical to long-term peace. 
This effort will complement our existing programs to bring hundreds of 
businessmen to the United States

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from the Commonwealth and then send hundreds of Peace Corps volunteers 
to the new States.
    In sending this authorization legislation to Congress, I call upon 
the Congress to act concurrently to provide the appropriations necessary 
to make these authorizations a reality.
    Third, in addition to the 3.75 billion already extended by the U.S. 
since January 1991, I'm announcing today 1.1 billion in new Commodity 
Credit Corporation credit guarantees for the purchase of American 
agricultural products. Six hundred million of that will go for U.S. 
sales to Russia and an additional 500 million for U.S. sales to the 
Ukraine and other States.
    Now, let me close on a personal note. I think every day about the 
challenge of securing a peaceful future for the American people. And I 
believe very strongly that President Yeltsin's reform program holds the 
greatest hope for the future of the Russian people and for the security 
of the American people as we define a new relationship with that great 
country. President Yeltsin has taken some very courageous steps for 
democracy and free markets. And I am convinced that it is in our own 
national interest to support him strongly.
    For more than 45 years, the highest responsibility of nine American 
Presidents, Democrats and Republicans, was to wage and win the cold war. 
It was my privilege to work with Ronald Reagan on these broad programs 
and now to lead the American people in winning the peace by embracing 
the people so recently freed from tyranny to welcome them into the 
community of democratic nations.
    I know there are those who say we should pull back, concentrate our 
energies, our interests, and our resources on our pressing domestic 
problems. And they are very important. But I ask them to think of the 
consequences here at home of peace in the world. We've got to act now. 
And if we turn away, if we do not do what we can to help democracy 
succeed in the lands of the old Soviet Union, our failure to act will 
carry a far higher price. And if we face up to the challenge, matching 
the courage of President Yeltsin, of Ukrainian President Kravchuk, of 
Armenian President Ter-Petrosyan, many other future generations of 
Americans will thank us for having had the foresight and the conviction 
to stand up for democracy and work for peace in this decade and into the 
next century.
    That's the end of this statement. I'll be glad to take just a 
handful of questions, and then Jim Baker and Secretary Brady--I think 
Secretary Baker will go into more detail on the legislation, and 
Secretary Brady and others will be available. I think Ed Madigan will 
talk to you about the agricultural sect of it.
    Terry [Terence Hunt, Associated Press]?
    Q. Mr. President, you mentioned several figures in your statement. 
Overall, what's the cost of this to taxpayers, and where's the money 
going to come from?
    The President. Most of it will come from the IFI's, from the 
international financial institutions. About a fifth of the total is 
assigned to the--about a fifth of it, 20 percent of it, is our share. 
And there's not a lot of new money. It's our feeling and the feeling of 
the partners that we ought to go use these international financial 
organizations who were set up to do this very job. Now, we have a 
significant commitment to these organizations. But that's the fact as to 
how this breaks out.
    Q. Was there any kind of figure that you could provide? You say 
there's not much new money. What----
    The President. I'll let Jim Baker give you the details on it, but 
yes, we can. There is some new money in it. There's some new credits in 
it, you know, agricultural credits. But let him give you the details on 
what's going to be in the bill. It's not a tremendous amount of money. 
Our commitment is very, very substantial.
    Yes, Helen [Helen Thomas, United Press International].
    Q. Mr. President, not in the either-or sense, you've acknowledged 
the pressing domestic problems. What are you going to do to help the 
American people, the financially strapped States, the decaying cities? 
Is there a post-cold-war Marshall plan for America in view of its 
problems? And why do we have to have 150,000 troops in Europe when the 
enemy has disappeared from the screen?

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    The President. We are working on programs that will help the cities, 
including trying to get through a significant block grant that would 
help, including a crime bill, including a brand-new revolutionary 
approach to education that, longer run, is terribly significant. And 
yes, it is very important we do these things.
    But my point to the American people is we have a major stake in the 
success of democracy in Russia and in these other States. And the cost 
of risking doing nothing, the cost of doing nothing could be exorbitant, 
could far transcend the money that we have spent in the past. And I just 
don't want to risk that.
    In terms of the troops, it is important that the United States stay 
involved in guaranteeing against any unforeseen action. We saw the need 
to be involved a year ago in Desert Storm. And if we had listened to the 
critics that would have suggested that we disarm and unilaterally pull 
back, we would be in terrible shape today. And we're not in terrible 
shape today. We have a vital stake in European security. Our allies and 
ourselves agree that the United States should remain there with troops, 
and we will stay there with troops.
    Q. Mr. President, if the risks are so great, the stakes so high, why 
did you wait until 3 months into an election year to outline this 
program and begin the push for it, especially when, as you say, there's 
little new money involved?
    The President. Because--we haven't waited. If you listen to what I 
said earlier, we spelled out our determination to do this in December. 
We have been working with our allies constructively to bring about 
agreement on this international financial institution approach. That was 
hammered out this weekend by Secretary Brady's people overseas. The 
formulation of the bill has just been completed. And we've just gotten 
agreement from--this morning I talked to Kravchuk and to Yeltsin, once 
again, both of them on this. I might say that they both sounded quite 
enthusiastic about it.
    A lot of work has been going into it. And rather than kind of 
posturing out there, we wanted to have a sound program that will have 
strong international support. And that is exactly, thanks to the 
cooperation of the allies, what we have. So this isn't any Johnny-come-
lately thing, and this isn't driven by election year pressures. It's 
what's right for the United States.
    And I must say, without committing anybody to anything, that the 
reception from the joint leadership seemed quite positive, Brit [Brit 
Hume, ABC News]. I was very pleased, but we'll let them speak for 
themselves, but most of them saying we should be doing this.
    Q.  Well, sir, whether you are posturing or not, have you not waited 
a while before beginning this sales pitch----
    The President. I don't know that----
    Q. ----in the knowledge that you were going to have to do something 
along these lines?
    The President. I said something about it in January. Jim Baker 
mentioned it in December. I've been talking about it. The question, 
though, is not a lot of political rhetoric; the question is getting 
something done that's positive. And when you're dealing with a whole 
bunch of allies and you're dealing with many new countries, you want to 
be sure that you do it in a sensible way. And the fact that it's coming 
out now is because we now have, with great cooperation from the allies, 
working with them, come up with this approach that we think makes sense. 
And it's not something that's new.
    Q. Sir, the reason there is this skepticism is, back when Pat 
Buchanan was beating you about the head in New Hampshire, you weren't 
out there in New Hampshire, you weren't in New Hampshire saying, ``We've 
got to help Boris Yeltsin. We've got to help Kravchuk.'' You weren't 
talking about that at all. You weren't preparing American public 
opinion. Today Bill Clinton's out there talking about his plan for 
Russia and the republics. That's why it looks a little weird.
    The President. Well, that I've explained to you, John [John Cochran, 
NBC News], that there's a great deal of diplomacy. I remember when one 
of the people that used to sit proudly in this room accused me of not 
being emotional about Germany, about trying to get a reunited Germany 
when the wall came down. I said--what I was saying

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to myself: Much less interested in emotion, much more interested in 
getting something positively done; use the power of the Presidency of 
the United States to see if you can't have that be accomplished in a 
very peaceful way.
    And we have been doing the diplomacy that is necessary to come 
forward with a program that I hope will have the support of the American 
people, that I am proud to take to the American people, even though some 
people are going to be saying, ``Well, you shouldn't be doing this in an 
election year.'' You've got to be, you know--along the lines of Helen's 
question, people will be suggesting that. But I'm going to fight for 
this because I believe in it.
    Yeah, and then I'm getting out of here.
    Q. Our recent poll showed that 55 percent of the public thinks that 
foreign aid should, in fact, be cut, and another 40 percent thinks that 
it shouldn't be increased at all. How are you going to persuade the 
public that this, in fact, is worthwhile when they look around and see 
roads deteriorating and schools in trouble and so forth?
    The President. Simply make the case that to do nothing would be 
irresponsible, that the United States must continue to lead, and that we 
have an enormous stake, personal stake, for every American in the 
success of these democracies, and to risk their failure by doing nothing 
is very short-sighted. And so that's the case I'm going to make.
    And I will also be saying we have a lot of blessings in this 
country, and one of them today is peace. Your kids and mine don't go to 
sleep at night as worried about nuclear weapons as some of the preceding 
generations here. And I want to be sure that I can certify to the 
American people I've done everything I can as President to see that that 
continues, that democracies are strengthened, that freedom is on the 
march and continues to stay on the march. And this approach we're taking 
is the way to do what we can to guarantee that.
    Q. Well, then to flip the question around a little bit, what do you 
say to those who are also going to say that this really isn't that much, 
that in fact Germany has already contributed $45 billion to this effort, 
and that compared to what we could do we aren't doing enough, if so much 
in fact is at stake?
    The President. I will say that I think it is enough and that it's 
what we ought to do right now and fight like heck for what we believe in 
here. And I think it is. And I must say I was very pleased with the 
response by President Yeltsin, the response by President Kravchuk this 
morning. And I would cite that as evidence of their enthusiasm for what 
we're doing.
    But I guess you're right, some people will attack you for doing too 
much, and some for not doing enough. I think this is right. I believe 
Congress will give it the proper support. And I want the American people 
to support it because I know that it is in the best interest of world 
peace. And the failure of world peace has a staggering price tag on it 
that I don't want to even contemplate. So I'll continue to work for 
this.
    Now, let me turn it over to Jim.

                    Note: The President's 125th news conference began at 
                        11:04 a.m. in the Briefing Room at the White 
                        House. Following the President's remarks, the 
                        news conference continued with Secretary of 
                        State James A. Baker III, Secretary of the 
                        Treasury Nicholas F. Brady, and Secretary of 
                        Agriculture Edward A. Madigan.