    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [November 22, 1994]
    [Pages 2117-2120]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Summit Statement by the Presidents of the United States and
    Ukraine
    November 22, 1994

        On the occasion of his State visit to the United States on November
    21-23, 1994, Leonid D. Kuchma, President of Ukraine, met with William J.
    Clinton, President of the United States, to open a qualitatively new
    stage in the growing U.S.-Ukrainian partnership aimed at furthering
    bilateral and multilateral cooperation on a broad range of issues
    between the two countries.
        The Presidents renewed their shared commitment to broaden the
    bilateral democratic partnership into which the two countries have
    entered. President Clinton underscored the importance the United States
    attaches to the independence, sovereignty and territorial integrity of
    Ukraine. In this context, President Clinton assured President Kuchma
    that the United States will continue to give high priority to supporting
    Ukraine in its efforts to achieve genuine economic independence, its
    transition to a market economy and its integration into the global
    economic system.

    Bilateral Relations

        In keeping with their commitment to strengthen bilateral relations,
    President Clinton and President Kuchma signed the Charter of American-
    Ukrainian Partnership, Friendship and Cooperation. The Presidents
    praised the Charter as the framework for developing closer relations
    over the coming years. President Clinton noted in particular Ukraine's
    valuable contribution to this new framework by its momentous decision to
    accede to the Nuclear Non-Proliferation Treaty, which is an historic
    step forward on the road toward strengthening the international nuclear
    weapons nonproliferation regime and global security and stability.
        The Presidents inaugurated this new framework of bilateral relations
    by signing an Agreement on Cooperation in the Exploration and Use of
    Outer Space for Peaceful Purposes and agreed to work closely to explore
    additional bilateral cooperative space-related opportunities in the
    future. They noted that this process had begun with a U.S.-Ukraine
    discussion of Ukraine's interest in the commercial launch market.
        Both Presidents expressed their determination to broaden bilateral
    cooperation in a range of new areas. During the visit, the two
    governments brought into force a bilateral customs cooperation agreement
    and announced their intention to conclude negotiations on a bilateral
    civil aviation agreement. The Presidents recognized the threat that
    organized crime and corruption pose for reform and expanded business
    activity

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    in Ukraine, and they agreed to cooperate in combating crime and
    promoting the rule of law as an essential safeguard of social stability
    and civil and human rights. The Presidents will encourage exchanges
    among Ukrainians and Americans in the fields of science, technology and
    education. The Presidents, noting the valuable role of culture in
    bringing nations closer together, voiced support for wide-ranging
    cultural contacts between the United States and Ukraine. Both Presidents
    also recognized the importance of health care for the well-being of
    their people, and President Clinton announced that the United States
    would provide Ukraine hospital equipment, medical supplies and
    assistance with health programs.
        The Presidents intend to maintain frequent high-level bilateral
    contacts to assure timely and effective implementation of activities.
    President Kuchma invited President Clinton to make an official return
    visit to Ukraine at the earliest convenient opportunity. President
    Clinton accepted this invitation with pleasure.

    Economic Cooperation

        The Presidents agreed that market-oriented economic reform provides
    the surest path to Ukraine's economic revival and its integration into
    the world economy. President Clinton reaffirmed full U.S. support for
    the reform policies recently adopted by President Kuchma's government
    and its conclusion of an IMF Systemic Transformation Facility program.
    President Kuchma outlined plans for accelerating the process of economic
    reform. These plans include intensifying structural reform efforts to
    encourage competition through enhanced macroeconomic stabilization and
    increased privatization. President Clinton commended President Kuchma
    for his leadership on economic reform and encouraged him to work toward
    early completion of negotiations with the IMF on a stand-by program. He
    stressed the importance of Ukraine's reform measures and the United
    States' readiness to support Ukraine in their implementation.
        President Clinton announced that the United States would provide
    $200 million in new assistance to Ukraine in Fiscal Year 1995. Of this
    amount, $103 million will finance technical and economic assistance
    activities. The remaining $97 million will provide balance of payments
    support, consisting of $72 million in an energy sector grant and $25
    million in USDA concessional food credits, as provided in agreements
    signed by the two Governments during the State visit. When combined with
    $3 million of pharmaceuticals and other commodities from Fiscal Year
    1994, the United States will provide $100 million in balance of payments
    support in the next few months to reinforce Ukraine's IMF program.
        This United States economic support is in recognition of Ukraine's
    major initiative to launch a comprehensive economic reform program. This
    support is in addition to the $350 million in economic assistance
    committed to Ukraine in March 1994, the major part of which will take
    effect once reforms have begun. The Presidents reviewed the progress
    made in the implementation of economic assistance programs for Ukraine
    and agreed to work together to accelerate delivery and ensure the full
    disbursement of all current and previous commitments, as well as the
    effectiveness of these programs.
        President Kuchma expressed appreciation for United States leadership
    in mobilizing international support for Ukraine, particularly the prompt
    United States response to the Ukrainian request for balance of payments
    support. Looking to the future, President Clinton reaffirmed United
    States commitments made at the Washington donor session and the Winnipeg
    G-7 conference in October and his intention to continue the United
    States' leading role in encouraging international support for Ukrainian
    reform.
        The Presidents recognized the important contribution the private
    sector can make to Ukraine's economic prosperity through expanded trade
    and investment. President Clinton welcomed Ukraine's ratification of the
    bilateral investment treaty and noted that the Western NIS Enterprise
    Fund has now opened its offices in Kiev. President Kuchma expressed the
    hope that the U.S. Senate would ratify the treaty at an early date. The
    leaders emphasized the importance of privatization if expanded
    cooperation between American enterprises and an emerging private sector
    in Ukraine is to begin in earnest.
        On November 21 President Kuchma and members of his government
    participated in an OPIC-sponsored business conference which reviewed
    investment opportunities in Ukraine. Both Presidents agreed that there
    was enormous potential for private sector cooperation in developing key
    sectors of the Ukrainian economy. They specified, in particular,
    agriculture and food processing; pharmaceuticals and medical

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    equipment; energy, including fossil and environmentally sound and safe
    nuclear power; aerospace, consistent with international obligations;
    civil aviation; telecommunications; environment and defense conversion.
        The two leaders noted that the first session of the Joint U.S.-
    Ukrainian Commission on Trade and Investment is meeting during the State
    visit to discuss ways of promoting business cooperation and removing
    barriers to expanded trade and increased investment in Ukraine. The
    Commission is discussing the tax, legal and regulatory changes that
    Ukraine will need to adopt to support private business activity.
    President Clinton recognized the special circumstances facing economies
    in transition, such as Ukraine's, which seek to expand export markets,
    and offered to consult with the U.S. Congress on appropriate ways of
    reflecting this in U.S. trade legislation. The Presidents noted that
    expanded trade will be critical to the success of Ukrainian economic
    reform and agreed to make the expansion of trade and investment a
    priority in their economic cooperation efforts.
        The Presidents also agreed to work toward expanding economic
    cooperation within a multilateral framework and to promote Ukraine's
    integration into the global economy. President Clinton reaffirmed the
    United States' support for Ukraine's accession to the GATT/WTO, and
    noted that the United States is providing assistance to the Ukrainian
    government to support this process. The United States is also chairing
    the working group in Geneva overseeing Ukraine's accession.
        The Presidents noted that the resolution of Ukraine's energy
    problems would have an important and positive impact on Ukraine's
    economic recovery. President Kuchma welcomed the United States' decision
    to provide part of its special balance of payments assistance in the
    form of an energy sector grant. Both leaders reviewed the progress that
    has been made in implementing cooperative programs aimed at the
    restructuring and reforming of Ukraine's energy sector and improving
    nuclear reactor safety. President Kuchma informed President Clinton of
    the recent agreement Ukraine reached with IAEA on the application of
    IAEA safeguards to all nuclear materials, except those for nuclear
    propulsion, utilized in Ukraine.
        The Presidents agreed to continue to work together for the full
    implementation of the G-7 Naples Action Plan, and recognized that this
    will require G-7 cooperation and assistance. President Clinton drew
    attention to the significant resource commitments made at Naples, Corfu
    and Winnipeg and to the importance of receiving early assurances that
    the Chornobyl reactors would be shut down in accordance with the G-7
    Action Plan. President Kuchma assured President Clinton that Ukraine
    takes seriously the international community's concerns about the
    continued operation of the Chornobyl nuclear power plant. He expressed
    Ukraine's readiness to work with the G-7 nations in the implementation
    of the Naples Action Plan, noting that its successful implementation is
    connected with a series of measures, including preparing the closure of
    the nuclear reactors, minimizing the social impact on the plant's
    personnel, and ensuring that sufficient economically-priced electricity
    is available to meet Ukraine's domestic needs. He also stressed the
    importance that Ukraine places on improving the stability of the shelter
    installed over the damaged reactor. Both Presidents agreed on the need
    for further close work in the G-7/Ukraine Task Force to ensure the
    future closure of Chornobyl, as envisioned in the G-7 Action Plan, as an
    integral part of a comprehensive solution to Ukraine's energy problems.

    Defense and Security

        The Presidents expressed satisfaction with the accomplishments and
                pace of implementation of the January 14 Trilateral
                Statement signed by the Presidents of the United States,
                Ukraine, and the Russian Federation. In addition, they
                renewed their commitment to international efforts to reduce
                sharply the threat and proliferation of nuclear weapons.

        President Clinton congratulated Ukraine on its decision to accede to
    the Treaty on the Non-Proliferation of Nuclear Weapons and the historic
    renunciation of nuclear weapons which it represents and reaffirmed the
    U.S. commitment to provide security assurances to Ukraine in connection
    with its accession to the NPT by signing a Memorandum on Security
    Assurances on the margins of the Budapest CSCE Summit.
        The Presidents look forward to early entry into force of the START-I
    treaty and agreed that the Lisbon Protocol Signatories should exchange
    instruments of ratification on the margins of the Budapest CSCE Summit.
    Both Presidents reiterated their views that the START-

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    I treaty would not only serve the mutual interests of both countries,
    but also would serve to strengthen global peace and stability.
        Both Presidents agreed to work closely to ensure the timely
    implementation of Nunn-Lugar programs intended to facilitate the
    dismantlement of strategic offensive arms and the security of nuclear
    weapons, achieve our joint non-proliferation objectives, and help in the
    conversion of Ukraine's defense industries. The Presidents agreed on the
    importance of identifying as soon as possible programs of assistance
    under the Nunn-Lugar program, using the $75 million allocated to Ukraine
    out of Fiscal Year 1995 Nunn-Lugar funds. Both acknowledged the progress
    that had been made to date, noting in particular the utility of U.S.
    deactivation assistance, procurement of missile fuel storage tanks and
    the imminent completion of a U.S.-Ukraine communications link. The
    Presidents also recognized the significant contribution of the fourteen
    Western countries and the European Union in providing $234 million of
    dismantlement and related assistance for Ukraine.
        The Presidents discussed the evolving European security structure.
    They agreed that this process should be managed in a manner that
    strengthens the stability and security of all nations of Europe. As a
    tangible example of Ukraine's overall importance in European security
    and the U.S. commitment to expanded Ukrainian cooperation with NATO,
    President Clinton announced that the United States would make funds
    available to Ukraine under the Warsaw Initiative to support Ukrainian
    participation in the Partnership for Peace. The funds will contribute to
    Ukraine's ability to promote the objectives of the Partnership.
        The two leaders announced that the two countries had agreed to move
    forward with a $600,000 International Military Training and Education
    Program to assist in the professional development of Ukraine's armed
    forces. The Presidents also pledged to continue to expand military and
    defense contact programs designed to assist Ukraine in the restructuring
    of its defense establishment which is now under civilian leadership for
    the first time. In addition, the sides announced that Ukraine will host
    a U.S.-Ukraine combined peacekeeping training exercise late next spring.
    In the area of defense industry conversion, President Clinton informed
    President Kuchma that the United States would continue to provide
    assistance to U.S.-Ukraine joint ventures and would seek new partners
    for the important work of defense conversion.
        The Presidents noted the importance of proceeding with defense
    industry conversion priorities and the need to expand opportunities for
    trade and investment in high technology industries. They also
    underscored the importance of the bilateral U.S.-Ukraine Memorandum of
    Understanding on the Transfer of Missile Equipment and Technology signed
    last May 13. The Presidents also recognized the importance of broader
    international cooperation in ensuring reliable control over exports of
    sensitive materials and technology. President Clinton expressed the hope
    that Ukraine would become a member of the MTCR at an early date and
    reiterated that the U.S. would support Ukraine in achieving this goal.
    They agreed to work together toward Ukraine's full participation in a
    successor regime to COCOM. President Clinton was pleased to note that a
    Science and Technology Center, funded by the United States and other
    donors, will soon begin operations in Ukraine and that this would assist
    Ukraine in redirecting the work of former defense scientists and
    engineers to civilian purposes.

    Diplomatic Endeavors

        Consistent with the new stage of bilateral relations, the Presidents
    also underscored the importance of ensuring that the diplomatic missions
    of both countries be fully capable of conducting their operations
    without hindrance. With this in mind, the Presidents announced the
    exchange of diplomatic notes to lift employment restrictions on
    diplomatic personnel and their families. President Clinton also used
    this occasion to welcome Ukraine's newly appointed Ambassador to the
    United States, Yuriy Shcherbak, to Washington, D.C.