[Weekly Compilation of Presidential Documents Volume 29, Number 18 (Monday, May 10, 1993)]
[Pages 765-771]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks to the Export-Import Bank Conference

 May 6, 1993

    Thank you very much. Good morning everyone. I'm delighted to see all 
of you here in such large numbers. I want to thank my good friend Ken 
Brody for inviting me to come and speak with you for a few moments. He's 
the President-designate of the Ex-Im Bank. That's a delicate way of 
saying that it takes a long time to get confirmed in today's Washington. 
[Laughter] I know a little about that in another context.
    I have thought a good deal about what I wanted to say to you today 
about the subject which brings you here. I hope you will understand if I 
ask for a few moments to address the situation in Bosnia first, not only 
because the national press is here but because you are very much a part 
of the world which will

[[Page 766]]

be affected by what happens there and how that impacts our friends and 
neighbors in Europe and particularly in the Mediterranean area.
    Over the past week we saw some very encouraging progress toward a 
negotiated settlement of the tragic conflict in Bosnia and Herzegovina. 
Two of the three Bosnian parties signed the Vance-Owen agreement. The 
third party, the Bosnian Serbs, signed contingent on approval by their 
self-styled parliament. Progress unfortunately was stopped by the 
Bosnian Serb assembly's de facto rejection yesterday of the Vance-Owen 
agreement. Their action is a grave disappointment to all of us who seek 
an early and peaceful resolution to what has been a very brutal 
conflict. It abrogates the earlier approval of the peace plan by the 
Bosnian Serb leader Karadzic.
    Their call for a referendum on the peace plan can only be seen as a 
delaying tactic to further consolidate the gains they have made because 
of the enormous advantage they have in heavy artillery coming as it does 
from the former Yugoslav army. It ignores the reality that everybody 
else in the world has recognized: Sooner or later, an enduring peace can 
only come from good-faith negotiations that lead to a peace plan 
acceptable to all the parties.
    The international community, I believe, must not allow the Serbs to 
stall progress toward peace and continue brutal assaults on innocent 
civilians. We've seen too many things happen, and we do have fundamental 
interests there, not only the United States but particularly the United 
States as a member of the world community.
    The Serbs' actions over the past year violate the principle that 
internationally recognized borders must not be violated or altered by 
aggression from without. Their actions threaten to widen the conflict 
and foster instability in other parts of Europe in ways that could be 
exceedingly damaging. And their savage and cynical ethnic cleansing 
offends the world's conscience and our standards of behavior.
    Therefore, I have this morning directed Secretary Christopher to 
continue to pursue his consultations with our allies and friends in 
Europe and Russia on tougher measures which can be taken collectively, 
not by the United States alone but collectively, to make clear to the 
Serbs that we are embarked on a course of peace, and they are embarked 
on a costly course.
    The vote last night simply makes this Christopher mission more 
important. Secretary Christopher will be insistent that the time has 
come for the international community to unite and to act quickly and 
decisively. America has made its position clear and is ready to do its 
part. But Europe must be willing to act with us. We must go forward 
together.
    Your presence here, your understanding of the importance of exports 
to America's future, to the blending of our Nation and our culture and 
our values with those of like-minded persons throughout the world should 
only reinforce our determination to confine, inasmuch as the 
international community can possibly confine, savage acts of inhumanity 
to people solely because of their ethnicity or their religion, and to 
confine insofar as we possibly can as an international community the 
ability of one country to invade another and upset its borders, and 
certainly to try to confine this centuries old series of ethnic and 
religious enmities to the narrowest possible geographical boundaries.
    That is what we seek, not to act alone, not to act rashly, not to do 
things which would draw the United States into a conflict not of its own 
making and not of its own ability to resolve but simply concerted action 
that the international community can and should take to deal with these 
issues. I'll have more to say about it later, but in view of what 
happened today, I thought I ought to say this.
    For 59 years, since President Franklin Roosevelt created it to help 
increase foreign aid and trade with the Soviet Union, the Ex-Im Bank has 
assisted United States companies to sell more than $270 billion in our 
exports all around the world. And now the Bank's role in helping our 
economy and helping our exports has never been more important. You are 
the people who generate an enormous portion of our high-wage, high-
growth jobs. Without expanding our exports, this country cannot grow, 
cannot grow economically and cannot create more jobs.

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    In the global economy which we now are shaped by we see a critical 
part of every economy's functioning is related to its level of 
productivity, especially in the export sector. We also know that America 
has some special problems entirely of our own making without regard to 
what we may or may not think of every aspect of our trade policy. We 
have relatively low savings and investment. We have an enormous budget 
deficit which we ran up not in investing in productive investments at 
home that would produce later wealth but largely in increasing 
consumption. Indeed, for the last 5 years, the spiraling growth of the 
Government's deficit has been related almost entirely to paying more for 
the same health care and to bigger and bigger interest payments on 
accumulated debt. This is a terrible burden on the economic performance 
of this country as well as on our future.
    Finally, we have, as I said earlier, in putting more of our 
Government's money to health care, we've also seen more private sector 
dollars go to health care, so that now we are spending 35 percent more 
of our national treasure on health care than any other nation in the 
world, imposing significant new burdens on American businesses as they 
seek to compete within the American market and beyond the American 
market.
    We now, therefore, face an interesting set of challenges, 
particularly for a country used to looking for simple answers and 
dealing with one issue at a time. That is, indeed, one of the great 
debates in which I am engaged here. Some people say, ``Well, you just 
ought to do one thing. Just reduce the deficit, no matter what.'' For 
the last 12 years we were on a track that, at least at election time, 
was focused on one thing: Just lower taxes, no matter what. Never mind 
what happens to the deficit. Never mind what happens to the investment 
of the country. Never mind what happens to the long-term economic 
health.
    Do we need to reduce the deficit? Yes, we do. Do we also need a 
targeted program of investment in the education and training of the 
American work force and in the technologies that will shape this economy 
into the future? Yes, we do. Do we have anything so far to replace the 
steep, steep cuts in defense spending which have gone to the very heart 
of a lot of our high-wage, high-tech economy, with many spinoffs 
benefiting the commercial economy to date? No, we don't. But we need a 
technology policy and a defense conversion policy that attempts to 
replace that. So we need to bring down the deficit, and we need a 
targeted program of investments in jobs technology and training.
    Thirdly, I would argue that we will never reduce the deficit to zero 
and never restore fundamental health to this economy until we address 
the health care crisis in terms of providing security to Americans and 
controlling the cost. And that is obviously a big part of what we're 
about up here.
    I do not believe we should be forced into the false choice of saying 
we must do one or the other. In the past, our governments have come to 
people saying, well, we'll just spend money and solve your problems for 
you, or we'll just cut taxes and solve your problems for you. Today, we 
have to have a much more disciplined and coherent approach that says we 
are going to bring the deficit down, we are going to target investments 
in technology and training, and we are going to do something about the 
health care crisis. But we must have an economic policy that is more 
than investments, that involves doing the right things with technology 
policy, the right things with defense conversion, the right things with 
the Ex-Im Bank, the right things to expand our commitment to exports. 
Indeed, the economy, I think, must continue to be the number one 
priority of our country, and therefore, the number one priority of this 
administration.
    The work that exporters and the Ex-Im Bank do to expand jobs and 
growth is fundamentally important, because every time we sell $1 billion 
of American products and services overseas, we create about 20,000 jobs. 
In all, more than 7 million Americans clearly owe their jobs to exports. 
And because those workers in export-related jobs make about 17 percent 
more than the average worker, we need more of those jobs.
    I have this chart here I wanted to show. It's the only one I brought 
today. I'm trying to resist my policy-wonk impulses. [Laughter] But I do 
want to--you can't see it over there--it shows that in all industries, 
export-related jobs have average hourly wages of

[[Page 768]]

$11.69 as compared with $10.02 for nonexport-related jobs. In 
manufacturing, the figures are virtually the same, $11.93 to $10.83. And 
in services, the margin is even bigger, $11.30 to $9.83. It is clear, 
therefore, that one of the answers to the wage stagnation which has 
gripped the American economy for almost 20 years now with most hourly 
wage workers in the country working longer work weeks for stagnant or 
lower wages--one of the answers to that is to increase our exports.
    In the last 5 years, exports have accounted for almost half of our 
Nation's economic growth. Goods and services exports made up 10.7 
percent of our GDP in 1992, up dramatically from only 7.5 percent in 
1985, just 7 years earlier.
    Your work is important, because if U.S. technology, whether it is 
related to the environment, energy, transportation, or 
telecommunications, is to secure its preeminence, it must have a global 
reach. Only with world markets can we afford the research and 
development to stay competitive. Export expansion obviously encourages 
our most advanced industries. I am committed to promoting these exports, 
and what's where the Ex-Im Bank plays an important role.
    In fiscal year 1992, the Ex-Im Bank fostered more than a quarter 
million American jobs that were an outgrowth of the Bank's support for 
$14 billion in exports. That's pretty impressive, but it won't be enough 
just to hold our own ground. I know we can top that by strengthening the 
partnership between our Government and the private sector through the 
Ex-Im Bank.
    It's helped to send abroad everything from machine tools to computer 
software. It's been at the forefront of the new export industry that our 
Vice President has championed, the environmental industry, one that is 
so important that I have directed Commerce Secretary Ron Brown to work 
with the Ex-Im Bank, the EPA, and the Department of Energy to craft a 
national strategy for environmental exports. These efforts will not only 
help to clean up the planet, they will put a lot more Americans to work.
    We have several environmental services exporters with us here today. 
One of them, Harza Engineering of Chicago, helped a rural community in 
Venezuela to fight off the threat of cholera and other diseases by 
channeling a fresh water supply. At the same time it created more than a 
thousand jobs for Americans. That's just one case among many.
    We want to increase exponentially these successes in all areas of 
exports. We can also make ourselves more competitive by streamlining our 
programs, an action long overdue. Right now, there are more than 150 
different export promotion programs in more than 10 Agencies. They are 
tangled like a ball of yarn. And our goal is to untangle them. We want 
to end the duplication and overlap to make sure all these programs are 
customer-driven. We want our guide to be the needs of the exporters and 
the lenders.
    Our vehicle to a coherent export promotion plan will be the Trade 
Promotion Coordinating Committee, an interagency group created by the 
Congress largely through the efforts of Senator Don Riegle. The 
Secretary of Commerce Ron Brown chairs the group, which has been meeting 
daily. And once he is confirmed, Ken will also have hands-on involvement 
in that effort.
    With the Department of Commerce and the Trade Promotion Coordinating 
Committee, Ex-Im will help lead the way toward developing an export 
mentality throughout our Government and throughout our Nation. At the 
same time, the Bank will become more of an active consumer-friendly 
bank, one that will give more attention to small and medium-sized 
businesses. For every applicant, the Bank will aim to bypass unnecessary 
redtape.
    Right now, it takes the staff about 6 months to process a 
preliminary commitment application and only one in six such preliminary 
commitment leads to an actual export sale. But with new procedures the 
Bank will be able to respond to most requests within 7 days. Now, that's 
reinventing Government.
    The staff will be able to process more cases and support more real 
deals. In short, the Ex-Im Bank will use better management measures to 
do more without spending more. In these days of deficit reduction, the 
Bank will have to live within its means like all other Government 
agencies. But Ken has assured me that he has a number of ways to make

[[Page 769]]

your tax dollars work harder and more effectively.
    What we do domestically and how we do internationally are 
inseparable. As I said earlier in my remarks, as the Ex-Im Bank builds 
exports markets abroad, we have to do more to assure that our workers 
are equipped with the skills that they need. The average worker will now 
change jobs eight times in a lifetime. We have to do a better job of 
their education and training.
    We need to become better students of economics. The old ways of 
doing business simply don't translate into reality today. One of the 
first things I did when I became President was to establish a National 
Economic Council. It just made good sense to me. We had a National 
Security Council that met with the President on a regular basis to deal 
with security issues, but a great deal of our security is in the 
economic area. And there was no regular discipline mechanism by which 
all the economic decisions were considered in terms of their impact on 
one another, and the United States could develop a coherent policy.
    Today, we have that mechanism, and it works. It works well, and 
we're working hard to make it work better.
    One of the reasons I was so gratified to get congressional approval 
of the overall budget plan that I presented in record time--it was the 
first time in 17 years that Congress had passed a budget resolution 
within the legal mandate--which reduces the deficit by over $500 billion 
through spending cuts and tax increases. And there will not be one 
without the other, I can tell you that; I'm not about to raise your 
taxes unless the spending cuts are there first. There will be no budget 
without both.
    This is very important in the export area. I can't tell you how many 
years--you probably know this as well as I do--how many years the United 
States would show up at some meeting of the G-7 or another international 
meeting and all of our trading partners would spend all their time 
telling us that we ought to get our financial house in order, we ought 
to bring our deficit down, we ought to do something to clean up our own 
backyard before we lectured our trading partners about changes in 
policy.
    But now we're in a different position. When I go to the G-7 meeting 
in July in Tokyo, the United States will be a success story in the 
making. For starters, we have a responsible budget plan that does reduce 
the deficit. Our interest rates as a result have fallen in many areas to 
historic lows, allowing American homeowners and businesses to refinance 
with ways that, if we can keep these rates down for a year, virtually 
all economists concede will put $100 billion-plus back into this 
economy, simply because of lower interest rates.
    In this room today I bet there are scores of people who have 
refinanced their home mortgages or been able to have lower business 
loans as a result of these interest rates. This is the ultimate stimulus 
for the American economy if we can pass the budget that reduces the 
deficit and keep these rates down. It is very, very important.
    When we can point to these accomplishments it makes it much easier 
for us to work with the Japanese in getting them to stimulate their 
economy and buy more exports. It makes it much easier for us to argue to 
our friends in Germany that it's a good thing to keep bringing interest 
rates down. It makes it easier to try to help work together with a 
coordinated economic policy to lift the world out of the economic 
stagnation that we now see in Europe and the Pacific, as well as in 
North America.
    These things are very, very important. But there is more that we 
have to do. After 7 years of talks, I would very much like to see a 
successful completion of the Uruguay round of the GATT by December the 
15th. World economic prosperity depends on it. It's the foundation of 
the global trading system. A few days ago, I met with the Finance 
Ministers and the Central Bankers of the G-7 nations, and I told them 
that the United States was prepared to make extraordinary efforts to 
complete the Uruguay round successfully, that we were willing to go the 
extra mile in doing that, but we needed their help and support. And I 
hope we will get it.
    The GATT agreement would be a blessing for the United States 
exporters because it will lower foreign tariffs, curb subsidies that 
tilt the playing field, and strengthen the protection of intellectual 
property, the piracy of

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which costs our companies about $60 billion a year. In the GATT and in 
all of our trade talks, we have put our trading partners on notice that 
I expect access to their markets comparable to the access we want to 
extend to them. But we welcome foreign products and services and 
investments here, as long as our products, services, and investments 
have a chance to be welcomed in other countries as well. It's fair, and 
it's good business.

    These are the principles that will underscore not only our 
multilateral but our bilateral relationships as well. With the right 
markets at home and the right rules in international markets, our export 
opportunities are virtually limitless.

    I want to say a special word about our opportunities in our own 
backyard in Latin America. Latin America is reining in its debt and what 
is emerging from a more stable economy is a populace clamoring for 
consumer products and entrepreneurs who are shopping for capital goods. 
It's a market for our exports that is growing at 3 times the rate of any 
other market in the world. That is why I strongly support the North 
American Free Trade Agreement, with the supplemental agreements we are 
presently negotiating with Canada and Mexico relating to labor and the 
environment.

    NAFTA will help us to unlock a market that will create hundreds of 
thousands of high-paying jobs. And NAFTA, therefore is a high priority 
for this administration. The reason it is so controversial is that the 
American people have seen 12 years in which their wages have gone down 
and 3 years in which we actually have fewer private sector jobs. And 
everybody is afraid of change. But the only way a rich country can grow 
richer is by exporting more and by having more partners in economic 
progress. And if we can make this agreement with Mexico work, then we 
can move forward to the other market economies of Latin America, to 
Chile, to Argentina, to any number of other nations who want to be a 
part of this kind of partnership. I think it is very, very important.

    Just listen to this: Exports to Canada already support 1.5 million 
American jobs. And in the past 5 years, the number of American jobs tied 
to Mexico have grown from 300,000 to 700,000 jobs, almost exclusively 
because of the unilateral reduction of trade restrictions by Mexico, 
which have allowed the volume of trade two-ways to go up and the trade 
deficit to be erased. These are very encouraging signs. We project 
another 200,000 good jobs if we can have a successful implementation of 
the NAFTA process.

    Mexico is a valued customer for another reason. We also believe that 
this new economic thinking, if it works, will help to spread all across 
the developing world. We know that there are an impressive array of 
political and economic leaders in Mexico, and I know that the Secretary 
of Finance Pedro Aspe is with us today. I want to welcome him and extend 
my best wishes to President Salinas for our emerging partnership.

    Outside this hemisphere, I think we have to look increasingly to the 
newly industrializing countries of Asia. I know we have someone here 
from Indonesia. Indonesia is the fifth biggest country in the world. 
Indonesia is now the leader of the nonaligned nations. They have a 
resolution on Bosnia actually being debated in the Untied Nations today. 
Maybe they can figure out how to do a better job with this.

    We have enormous opportunities there. When I go to the G-7 meeting 
in Japan, I'm going to meet with the President of Indonesia to send a 
signal to the nonaligned nations, to the emerging nations of the world, 
that the United States wants to be their partner in new trade relations, 
that there are all kinds of things that we can continue to do that we 
have not done before.

    Finally, let me say just a little word about Russia. The Bank is now 
setting out to do what it was originally set up to do because Russia may 
be able to absorb its efforts. To date, the Bank has approved $205 
million in final commitments to Russia. It's working on an oil and gas 
agreement framework that could support as much as $2 billion in American 
goods and services for Russia's energy sector. As I told President 
Yeltsin when we met in Vancouver, the United States once

[[Page 771]]

had a famous citizen named Willie Sutton who was asked why he was 
devoting his entire life to robbing banks, and he said, ``Because that's 
where the money is.'' [Laughter] In Russia, energy is where the money 
is. If we can work it out, we can make a huge partnership there in ways 
that are enormously beneficial for the American economy and good for the 
Russians as well.

    At different junctures in this century, our country has shown itself 
to be a catalyst for global reform. We have faced off facism and 
communism. We helped to build the international institutions after World 
War II that made so many good things happen in the noncommunist world 
and now, because of the collapse of communism, are coming into their own 
with the real potential to fully flower.

    The world of tomorrow will reward those of us who not only have the 
values which made these institutions possible but which behave in ways 
that will be rewarded in the hard glare of international economic 
competition.

    I just saw today another set of figures showing that in the first 
quarter of this year, there was another huge increase in productivity in 
the American manufacturing sector. We want those manufacturers who are 
increasing their productivity. We want their workers who are the source 
of that increased productivity to be rewarded. I am convinced that the 
only way we can do it is by opening markets to the United States and 
giving the American people the chance to enjoy the benefits, the fruits 
of their labor and giving other countries the chance to grow through 
mutual trade and development.

    You are on the frontlines of that. I came here to salute you and to 
assure you that through the Ex-Im Bank and every other means at this 
administration's command we will do our best to have the kind of trade 
policy that will grow the American economy and benefit the entire world.

    Thank you very much.

Note: The President spoke at 11:02 a.m. at the J.W. Marriott. In his 
remarks, he referred to Radovan Karadzic, leader of the Bosnian Serbs.