[Weekly Compilation of Presidential Documents Volume 33, Number 25 (Monday, June 23, 1997)]
[Pages 900-901]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement Announcing the Middle East Peace and Stability Fund

June 17, 1997

    I am delighted to announce today the creation of the Middle East 
Peace and Stability Fund. This new U.S. fund will draw on existing 
allocations of economic assistance to respond to urgent new needs in 
that region. The fund's initial focus will be on assisting Jordan as it 
pursues economic modernization and reform.
    King Hussein has courageously led Jordan down the path of peace, 
exemplifying the wisdom and tenacity necessary to negotiate and carry 
out peace treaties. King Hussein's concern about his people and all the 
peoples of the Middle East is abundantly evident in his actions to bring 
about peace and reconciliation.

[[Page 901]]

    The fund we are creating today will draw its resources from 
redirection of a small percentage of the economic support funds supplied 
to Israel and Egypt. Prime Minister Netanyahu and President Mubarak both 
recognize the strategic importance of supporting economic growth in the 
region. They share my conviction that it is extremely important for the 
people of the Middle East to see tangible benefits when they turn from 
conflict to cooperation.
    We envision a fund beginning with $100 million this year, and it is 
our intention, in close consultation with Congress, to support the 
development of the fund over the next several years. In the coming days, 
we will work closely with the Jordanian authorities to identify the best 
ways to integrate these resources into existing development plans. Over 
time, this fund will be flexible enough to be used to support other 
regional priorities as needed.
    We have had discussions with the Congress regarding this effort, and 
we will work together closely as we proceed. At a time of limited 
resources, we believe this fund is the most effective and practical way 
to respond to new needs. I will also be discussing this plan with other 
leaders at our summit in Denver next week, encouraging them to seek 
creative ways to meet the emerging needs in the Middle East.
    I look forward to meeting Crown Prince Hassan on June 18 to discuss 
this initiative as well as other developments in the region.