[Weekly Compilation of Presidential Documents Volume 30, Number 9 (Monday, March 7, 1994)]
[Pages 435-436]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Joint Statement on Development of U.S.-Ukrainian Friendship and 
Partnership

March 4, 1994

    On the occasion of their March 4, 1994 meeting in Washington, D.C., 
the President of the United States of America, William J. Clinton, and 
the President of Ukraine, Leonid M. Kravchuk, agree to open a new era in 
relations between their two nations.
    In doing so, they agree to undertake to broaden the context of 
bilateral relations on the basis of partnership and mutual trust and 
respect; shared commitment to democracy, human rights and the rule of 
law; common goals in preventing the proliferation of weapons of mass 
destruction; and, in the joint interest of promoting free trade, 
investment, and economic cooperation between the two countries.
    By embracing these principles, the United States and Ukraine agree 
to work in friendship in the interests of the mutual well-being of their 
peoples and in pursuit of an enduring global peace. Embarking on this 
new era, the two leaders agree to work actively to implement the 
following comprehensive program of cooperation:

I. Security Assurances

    President Clinton and President Kravchuk discussed security 
assurances for Ukraine and agreed on the importance of such assurances. 
The sovereignty, independence, and territorial integrity of Ukraine are 
of key importance to the United States. In this regard, as agreed in the 
January 14 Trilateral Statement, the United States and other nations are 
prepared to extend in the form of a multilateral document security 
assurances to Ukraine once the START I Treaty enters into force and 
Ukraine becomes a non-nuclear-weapon state party to the Nuclear Non-
Proliferation Treaty.

II. Nuclear Arms Reduction Assistance (``Nunn-Lugar'')

    Under the framework of the Agreement Between the United States of 
America and Ukraine on the Elimination of Strategic Nuclear Arms, and 
the Prevention of Proliferation of Weapons of Mass Destruction of 
October 25, 1993, the United States of America has committed 177 million 
dollars in assistance to Ukraine. The United States intends to provide 
an additional 175 million dollars in Fiscal Year 1994 and Fiscal Year 
1995. Of this, 100 million dollars will be made available in Fiscal Year 
1994 for projects in the following areas:
    --the conversion of the defense industry of Ukraine to civilian 
      activities;
    --the elimination of strategic nuclear arms;
    --the establishment of a system of export control for the prevention 
      of proliferation of weapons of mass destruction; and,
    --the development of state systems of control, accounting, and 
      physical protection of nuclear materials.
    The United States will also seek an additional 75 million dollars in 
``Nunn-Lugar'' assistance for Ukraine in Fiscal Year 1995.
    The Government of the United States of America, in consultation with 
the Government of Ukraine, shall expeditiously decide on the appropriate 
allocation of proposed assistance among these four areas. Once this 
decision has been made, the two sides shall expeditiously seek to 
conclude an agreement and three amendments specifying this proposed 
increase in assistance.
    For defense conversion assistance, the two sides shall work to 
conclude a new implementing agreement between the Department of Defense 
of the United States of America and the Ministry of Engineering, 
Military-Industrial Complex and Conversion of Ukraine.
    For additional strategic nuclear weapon elimination assistance, 
including assistance for the elimination of SS-19 and SS-24 missiles and 
silos, for additional export control assistance, and for additional 
assistance relating to control, accounting, and physical protection of 
nuclear materials, the two sides shall work to amend the respective 
implementing agreements concluded in December 1993.

III. Economic and Commercial Cooperation

    The two leaders agree that expanded bilateral economic ties and 
commercial coopera- 

[[Page 436]]

tion can make a significant contribution to strengthening U.S.-Ukrainian 
relations and developing free markets, economic growth and jobs in the 
two countries. In this regard, both countries attach great significance 
to their bilateral Agreement on Trade Relations which came into force on 
June 22, 1992, and are committed to carrying out its full provisions. 
The United States and Ukraine also agree to establish a special 
Bilateral Commission on Trade and Investment to expand commercial 
relations.
    Both countries will work to reduce barriers to trade and investment 
in order to expand access to each other's market. The United States 
appreciates the importance of market access for economies in transition, 
such as Ukraine. The United States has already extended to Ukraine the 
benefits of the U.S. Generalized System of Preferences. In their efforts 
to expand trade, both sides will be guided by the principles of the 
GATT. The United States supports Ukraine's interest in formally applying 
for GATT membership and is prepared to provide technical assistance to 
help Ukraine implement a trade regime consistent with GATT rules.
    U.S. private investment in Ukraine can make an important 
contribution to Ukraine's transition to a market economy. Both sides 
agree that the signing of an Avoidance of Double Taxation Treaty and a 
Bilateral Investment Treaty, providing comprehensive protection for 
investors, are important steps to stimulate private capital flows, but 
that they need to be accompanied by Ukrainian actions to improve its 
overall investment climate if the full potential for foreign direct 
investment is to be achieved.
    Both sides agree on the importance of cooperation and information 
exchange in the area of science and technology. The conclusion of a 
bilateral Science and Technology Agreement will help formalize 
government-to-government cooperation in this area. In addition, the U.S. 
and Ukrainian governments agree to establish a special Joint Commission 
to facilitate cooperation in high technology and scientific research and 
development. The two governments agree to cooperate in the field of 
outer space and to hold early meetings of experts to consider specific 
issues and areas of cooperation in this field.
    The two leaders continue to place the highest priority on the 
success of political and economic reform in Ukraine. The United States 
will provide up to 350 million dollars in bilateral economic assistance 
in Fiscal Year 1994 to support Ukraine's transition to a market-oriented 
economy and a democratic society. The United States and Ukraine also 
agree that international financial institutions, particularly the IMF 
and the IBRD, have an essential role to play in providing financial 
resources to facilitate Ukraine's transition to a market economy. The 
United States encourages Ukraine to work closely with the IMF and the 
IBRD in implementing a program of bold economic reforms. The United 
States, for its part, is prepared to exercise leadership within the G-7 
to mobilize additional, multilateral assistance to support a 
comprehensive reform program.

Note: An original was not available for verification of the content of 
this joint statement.