[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[June 17, 1992]
[Pages 951-953]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks at the United States-Russia Business Summit

June 17, 1992
    Thank you all very much. Mr. President. Thank you, Barbara. Please 
be seated. Let me just say what a joy it is to be here with Secretary 
Franklin, who's really taken off and doing a superb job for us at 
Commerce, and then, of course, giving me this opportunity in front of 
all our business leaders to salute President Yeltsin.
    Yesterday was indeed an historic day, and I was proud to be at his 
side as we carved out a whole new approach to arms reduction; something 
big, something important, something that's going to benefit not only 
present generations but generations to come. And so you are most welcome 
here, sir.
    Let me, before we hear from our special guest, President Yeltsin, 
let me just make a few comments on the business side of things. The 
U.S.-Russian Business Conference is important work. I will follow up in 
every way I can with the United States Congress to get them to pass the 
``FREEDOM Support Act.'' Let me be very clear to the American people: We 
are not supporting the ``FREEDOM Support Act'' simply because it 
benefits Russia. It is my view that the ``FREEDOM Support Act'' will 
benefit the United States of America and will benefit world peace and 
will benefit democracy and freedom.
    So I ask the support of everyone in this

[[Page 952]]

room, after yesterday's historic accomplishments, to join me in working 
that Hill up there, Congress, get them to go along and support the 
``FREEDOM Support Act.'' President Yeltsin will be talking about this, 
I'm sure, when he makes an historic address to the United States 
Congress, but I just wanted everyone here to know how committed we are. 
And yes, it's a tough political time and all of that, but it is in the 
interest of the United States of America to pass this act, and I need 
your help.
    Later today we're going to conclude major treaties and agreements 
related to this new foundation between us: trade, bilateral investment 
and tax treaties, as well as the OPIC and Ex-Im agreements. Also 
effective today the United States will properly extend most-favored-
nation status to Russia.
    But my message to this conference is simple: Neither Government 
programs nor multilateral assistance is going to get this job done. 
Neither of those can do it. Private sector participation in the 
economies of Russia and the other states, especially involvement by 
American business, is critical to the success of Russia's bold venture 
into free markets. And that participation must be on a vast scale, 
measured in billions of dollars, for the challenge to be met.
    To that end, I'm pleased to announce that OPIC, headed by Fred 
Zeder, who's so well-known to everybody here, OPIC is going to have an 
agreement between the U.S. and Russia, and that one enters into force 
today. This agreement's going to permit OPIC to provide investment 
insurance to American private investors. It's also going to provide 
additional financing and investor services for joint ventures in other 
products in the Federation. With OPIC and Ex-Im, everyone wins. Russia 
can tap into the ingenuity of American business in our capital goods, 
our know-how, and our technology, which are indeed the best in the 
entire world. In my view that help will enable Russia to develop its 
food and health sectors, recover its energy resources, privatize state 
industries, and convert military plants to civilian production.
    Now Boris Yeltsin, President Boris Yeltsin, talked to us in great 
detail about this yesterday. I can just assure you from what he told me 
then and from what our business-oriented and able Ambassador, Bob 
Strauss, has been telling me all along, he understands this. He 
understands their need for change. He understands the fact that they've 
got to do some streamlining themselves.
    But what we want him to know while he's here is that we are 
interested in moving forward vigorously with private-sector 
participation to help not only Russia but certainly to help ourselves. 
That's the approach that I'll be taking as we encourage investment and 
as we encourage change in Russia to accommodate the needs of the 
business community. American businesses, by investing in trading with 
Russia, are going to create thousands of jobs here at home, and I think 
that's a point we ought to keep in mind.
    With the OPIC in agreement, now in effect, Fred Zeder is going to be 
leading a group of 26 business representatives to Moscow and other 
Russian cities on one-on-one business meetings and site visits to 
develop private sector deals. This is just the beginning of what surely 
will become one of the largest two-way trading relationships in the 
entire world.
    In '91, exports of American manufactured goods to Russia and other 
states have grown by almost 40 percent. We all know that the totals are 
not that large yet, but that's an enormous jump in just the one year. 
For the first time, Russia is participating in the community of free 
market international organizations. You know what they are: IMF and the 
World Bank and, at some point, the GATT. This would have been 
unthinkable just a few years ago. We will invite Russia and the other 
states to join with COCOM members in this new, informal, cooperative 
forum to provide significantly wider access to the high technology goods 
that previously were banned, previously denied.
    So, as I said, the historic transformation of the Russian economy is 
one of the great challenges of our time. The hundreds of billions of 
dollars in capital and technologies that Russia will need will come, in 
large measure, not from governments but from private businesses. And as 
we all know, neither command economies nor any other

[[Page 953]]

government can produce wealth. Wealth is produced by the initiative and 
the energy of individual entrepreneurs.
    So, let me conclude, but just signal once again the importance of 
business investment, business participation. I will do my level-best to 
make that climate, that business climate, good for investment abroad and 
to do what we can to facilitate the changes that are needed here to 
guarantee the utmost cooperation with the private sector here, with the 
cooperation with the private sector there.
    I would be remiss if I didn't tell you of my high regard for 
President Yeltsin. He came in with that great show of courage that just 
excited every single American, standing on top of that tank standing up 
for democracy and freedom, standing against totalitarianism. The big 
thing--I will just stay standing because he's coming on in a minute--but 
the big thing is, Mr. President, we are going to support you. You've 
shown the way towards democracy and freedom in Russia, and it's in the 
interest of the United States of America to follow through. And we will. 
Thank you, sir.

                    Note: The President spoke at 9:12 a.m. at the J.W. 
                        Marriott Hotel.