[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[June 17, 1992]
[Pages 963-964]
[From the U.S. Government Publishing Office www.gpo.gov]



Joint Russian-American Declaration on Defense Conversion

June 17, 1992
    The United States of America and the Russian Federation recognize 
that defense conversion is a key challenge of the post Cold War era and 
essential for building a democratic peace. Both parties realize the 
hardships involved in defense conversion efforts. But the parties 
realize, too, that the successful conversion of resources no longer 
needed for defense is in the long-term economic and national security 
interests of their peoples. Therefore, the United States of America and 
the Russian Federation declare their intention to devote priority to 
cooperation in advancing defense conversion.
    Recognizing the important role of the private sector and of 
practical participation by business communities in the complex task of 
defense conversion, the United States of America and the Russian 
Federation are establishing a U.S.-Russian Defense Conversion Committee 
to facilitate conversion through expanded trade and investment. The 
intergovernmental committee will be established within the framework of 
the U.S.-Russian Business Development Committee and will be designed to 
facilitate the exchange of information and the promotion of trade and 
investment, including through the development of contacts between 
interested groups, the expansion of information exchange on enterprises 
undergoing conversion, and, the improvement of conditions for commercial 
activities in both countries through the identification and removal of 
obstacles to expanded trade and investment. The Committee will inform 
the governments of both countries on a regular basis of the results of 
its activities, in order that they may take timely and effective 
measures to eliminate impediments to bilateral cooperation in the area 
of conversion.
    With the aim of promoting successful cooperation in conversion, each 
of the parties intends to take a number of practical steps in the near 
future.
    The Russian Federation intends to establish on its territory a 
favorable political, economic, legal, and regulatory climate for 
American trade and investment, including the adoption of macroeconomic 
reforms necessary to institute convertibility of the ruble; the pursuit 
of complementary microeconomic reforms to support the privatization and 
demonopolization of industry; the enactment of laws to guarantee 
contract and property rights; and, the dissemination of internationally-
accepted standards of basic business and financial information on 
enterprises undergoing conversion.
    The United States intends to facilitate U.S. business engagement in 
commercially-viable conversion projects in Russia, including joint 
ventures, through the placement of long-term defense conversion resident 
advisers to serve as catalysts for U.S. business engagement and to 
provide expertise to local leaders and enterprise directors; the 
establishment in Russia of business centers with translation, education, 
and training facilities for U.S. businesses operating in 
Russia; the creation of a business information service (``BISNIS'') in 
Washington to match businesses in Russia with potential investors in the 
United States; and, the involvement of the Trade and Development 
Program, the Overseas Private Investment

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Corporation, and the Export-Import Bank to provide incentives to 
American private investment in commercially viable defense conversion 
projects.
    The United States of America and the Russian Federation endorse the 
COCOM Cooperation Forum on Export Control as a means to heal Cold War 
divisions and advance conversion through helping to remove barriers to 
high technology trade, assisting in the establishment of COCOM-
comparable export control regimes in Russia and the other new 
independent states, and establishing procedures to ensure the civil end-
use of sensitive goods and technologies on matters of common concern. 
Both parties agree that this process is based on their mutual 
determination strictly to adhere to world standards of export controls 
in the area of the non-proliferation of weapons of mass destruction and 
related technologies, missiles and missile technology, destabilizing 
conventional armaments, and dual-use of goods and technologies.
    The parties strongly encourage the expansion of bilateral defense 
and military contacts and the work of the North Atlantic Cooperation 
Council in addressing the full range of military issues that are 
critically linked to the success of conversion including civilian 
control of the military in a democracy; defense planning, budgeting, and 
procurement in a market economy; base closings and conversions; and 
demobilization and retraining as well as social protection.