[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[April 3, 1992]
[Pages 537-539]
[From the U.S. Government Publishing Office www.gpo.gov]



Message to the Congress Transmitting the FREEDOM Support Act Proposed 
Legislation

April 3, 1992
To the Congress of the United States:
    I am pleased to transmit a legislative proposal entitled the 
``Freedom for Russia and Emerging Eurasian Democracies and Open Markets 
Support Act of 1992'' (the FREEDOM Support Act of 1992). Also 
transmitted is a section-by-section analysis of the proposed 
legislation.
    I am sending this proposal to the Congress now for one urgent 
reason: With the collapse of the Soviet Union, we face unprecedented 
historical opportunity to help freedom flourish in the new, independent 
states that have replaced the old Soviet Union. The success of democracy 
and open markets in these states is one of our highest foreign policy 
priorities. It can help ensure our security for years to come. And the 
growth of political and economic freedom in these states can also 
provide markets for our investors and businesses and great opportunities 
for friendship between our peoples.
    While this is an election year, this is an issue that transcends any 
election. I have consulted with the congressional leadership and have 
heard the expressions of support from both sides of the aisle for active 
American leadership. I urge all Members of Congress to set aside 
partisan and parochial interests.
    Just as Democrats and Republicans united together for over 40 years 
to advance the cause of freedom during the Cold War, now we need to 
unite together to win the peace, a democratic peace built on the solid 
foundations of political and economic freedom in Russia and the other 
independent states.
    This proposal gives me the tools I need to work with the 
international community to help secure the post-Cold War peace. It 
provides a flexible framework to cope with the fast-changing and 
unpredictable events transforming Russia, Ukraine, Armenia, and the 
other states. This proposal will allow us to:
    Mobilize fully the executive branch, the Congress, and the 
            private sector to support democracy and free markets in 
            Russia and the other independent states of the former Soviet 
            Union;
    Address comprehensively the military, political, and 
            economic opportunities created by the collapse of the Soviet 
            Union, targeting our efforts and sharing responsibilities 
            with others in the international community; and
    Remove decisively the Cold War legislative restrictions that 
            hamstring the Government in providing assistance and impede 
            American companies and businesses from competing fairly in 
            developing trade and investment with the new independent 
            states.

[[Page 538]]

    Passage of this proposal will enable the United States to maintain 
its leadership role as we seek to integrate Russia and the other new 
independent states into the democratic family of nations. Without the 
tools this proposal provides, our policy of collective engagement will 
be constrained, our leadership jeopardized.
    This proposal has 10 key elements:
    First, this proposal provides the necessary flexibility for the 
United States to extend emergency humanitarian assistance to Russia and 
the other new independent states.
    Emergency humanitarian assistance will help the peoples of the 
former Soviet Union to avoid disaster and to reduce the danger of a 
grave humanitarian emergency next winter. In this endeavor, the United 
States will not go it alone but will continue to work closely with the 
international community, a process we initiated at the Washington 
Coordinating Conference in January and will continue in the months ahead 
in regular conferences with our allies. By dividing our labors and 
sharing our responsibilities, we will maximize the effects of our 
efforts and minimize the costs.
    Second, this proposal will make it easier for us to work with the 
Russians and others in dealing with issues of nuclear power safety and 
demilitarization. This proposal broadens the authority for Department of 
Defense monies appropriated last fall for weapons destruction and 
humanitarian transportation to make these funds, as well as foreign 
military financing funds, available for nonproliferation efforts, 
nuclear power safety, and demilitarization and defense conversion.
    Third, technical assistance can help the Russians and others to help 
themselves as they build free markets. Seventy years of totalitarianism 
and command economics prevented the knowledge of free markets from 
taking a firm hold in the lands of Russia and Eurasia. By providing 
know-how, we can help the peoples and governments of the new independent 
states to build their own free market systems open to our trade and 
investment. It will also allow agencies authorized to conduct activities 
in Eastern Europe under the ``Support for East European Democracy (SEED) 
Act of 1989'' to conduct comparable but separate activities in the 
independent states of the former Soviet Union. Through organizations 
such as a Eurasia Foundation, we will be able to support a wide range of 
technical assistance efforts.
    Fourth, this proposal will allow us to significantly expand our 
technical assistance programs that facilitate democratization in the new 
states, including our expanding rule of law program. It will authorize 
support for programs such as ``America Houses.'' It also provides 
support for expanded military-to-military programs with Russia and the 
other new independent states to cultivate a proper role for the military 
in a democratic society.
    Fifth, this proposal provides a clear expression of bipartisan 
support to continue to extend Commodity Credit Corporation credit 
guarantees to Russia and the other new independent states in light of 
the progress they are making toward free markets. As they overcome their 
financial difficulties, we should take into account their commitment to 
economic freedom in providing credit guarantees that will help feed 
their peoples while helping American farmers.
    Sixth, for American business, this proposal expands authority for 
credit and investment guarantee programs such as those conducted by the 
Overseas Private Investment Corporation (OPIC) and the Export-Import 
Bank. It will allow us to waive statutory ceilings on credit guarantee 
programs of the Export-Import Bank Act and other agencies that applied 
to the Soviet Union and the restrictions of the Johnson Debt Default Act 
on private lending. In this way, it will expand U.S. exports to and 
investment in Russia and the other new independent states.
    Seventh, this bill will facilitate the development of the private 
sector in the former Soviet Union. This bill removes Cold War 
impediments while promoting outside investment and enhanced trade. It 
will also allow waiver of restrictions on imports from the independent 
states of the former Soviet Union beyond those applied to other 
friendly countries. It will support efforts to further ease Coordinating 
Committee

[[Page 539]]

(COCOM) restrictions on high technology. The bill will also allow the 
establishment of Enterprise Funds and a capital increase for the 
International Financial Corporation.
    Eighth, this proposal will allow the United States to work 
multilaterally with other nations and the international financial 
institutions toward macroeconomic stabilization. At the end of World War 
II, the United States stood alone in helping the nations of Western 
Europe recover from the devastation of the war. Now, after the Cold War, 
we have the institutions in place--the International Monetary Fund (IMF) 
and the World Bank--that can play a leading role in supporting economic 
reform in Russia and Eurasia.
    Therefore, this proposal endorses an increase in the IMF quota for 
the United States. This will help position the IMF to support fully a 
program of macroeconomic stabilization. I request the Congress to pass 
both the authorization and appropriations necessary for this purpose.
    Ninth, this proposal endorses a significant U.S. contribution to a 
multilateral currency stabilization fund. Working with the international 
financial institutions and the other members of the G-7, we are putting 
together a stabilization fund that will support economic reform in 
Russia and the other independent states.
    Tenth, this proposal provides for an expanded American presence in 
Russia and the other new independent states, facilitating both 
government-to-government relations and opportunities for American 
business. Through organizations such as the Peace Corps and the Citizens 
Democracy Corps, we will be able to put a large number of American 
advisors on the ground in the former Soviet Union.
    In sending this authorization legislation to the Congress, I also 
request concurrent action to provide the appropriations necessary to 
make these authorizations a reality. In order to support fully 
multilateral efforts at macroeconomic stabilization, I urge the Congress 
to move quickly to fulfill the commitment of the United States to the 
IMF quota increase. And I urge prompt enactment of the appropriations 
requests for the former Soviet Union contained in the Fiscal Years 1992 
and 1993 Budget requests presently before the Congress.
    I call upon the Congress to show the American people that in our 
democratic system, both parties can set aside their political 
differences to meet this historic challenge and to join together to do 
what is right.
    On this occasion, there should be only one interest that drives us 
forward: America's national interest.

                                                             George Bush

The White House,
April 3, 1992.