    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [October 17, 1996]
    [Pages 1863-1864]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Amendment of the Generalized System
    of Preferences
    October 17, 1996

    Dear Mr. Speaker:  (Dear Mr. President:)
        The Generalized System of Preferences (GSP) program offers duty-free
    treatment to specified products that are imported from designated
    developing countries. The program is authorized by title V of the Trade
    Act of 1974, as amended.
        Pursuant to title V, I have determined that Malaysia should be
    graduated from the GSP program because it is sufficiently advanced in
    economic development and improved in trade competitiveness. I have also
    determined that certain products from Pakistan should be sus-

    [[Page 1864]]

    pended from duty-free treatment under the GSP program because it is not
    making sufficient progress in protecting basic labor rights. In
    addition, I have determined that Botswana and Western Samoa should be
    deleted from the list of least-developed beneficiary developing
    countries and Angola, Ethiopia, Madagascar, Zaire, and Zambia should be
    added to that list. Finally, I have determined that Cyprus, Aruba,
    Macau, the Netherlands Antilles, Greenland, and the Cayman Islands meet
    the definition of ``high income'' country as defined by the statistics
    of the International Bank for Reconstruction and Development and are
    subject to mandatory graduation.
        The action regarding Malaysia and designation of least-developed
    beneficiary developing countries is effective January 1, 1997. The
    action against Pakistan is retroactive to July 1, 1996. The mandatory
    graduation of high income countries is effective January 1, 1998.
        This notice is submitted in accordance with the requirements of
    title V of the Trade Act of 1974.
            Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Newt Gingrich, Speaker of the House
    of Representatives, and Albert Gore, Jr., President of the Senate. The
    related proclamation of October 17 is listed in Appendix D at the end of
    this volume.