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complete the winding down of their Libyan operations after the effective dates of the prohibitions in Executive Order No. 12543. In all cases, the specific licenses were issued to foster the orderly withdrawal of these companies from Libya in an attempt to avoid substantial economic windfalls to the Government of Libya through the outright forfeiture of U.S. assets located in Libya. Each specific license authorizing an extension of Libyan operations expired on or before June 30, 1986. Additional specific licenses have been issued on a one-time basis to authorize routine banking transactions commenced prior to the issuance of Executive Order No. 12543.

9. The expenses incurred by the Federal government in the 6-month period from January through June 1986 that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at $1,264,562, of which approximately $1,109,979 represents wage and salary costs for Federal personnel, and approximately $154,583 represents out-of-pocket expenses for travel. Personnel costs were largely centered in the Department of the Treasury (particularly in the Office of Foreign Assets Control, the Customs Service, the Office of the Assistant Secretary for Enforcement, the Office of the Assistant Secretary for International Affairs, and the Office of the General Counsel), the Department of State, the Department of Commerce, the Department of Justice, the Federal Reserve Board, and the National Security Council.

10. The policies and actions of the Government of Libya continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. I shall continue to exercise the powers at my disposal to apply economic sanctions against Libya as long as these measures are appropriate and will continue to report periodically to the Congress on significant developments, pursuant to 50 U.S.C. 1703(c).

The White House, July 30, 1986.

Ronald Reagan

Japan-United States Semiconductor Trade Agreement

Statement by the President. July 31, 1986

I am announcing today that the United States and Japan have reached an agreement on semiconductor trade. This agreement represents an important step toward freer and more equitable world trade and will enhance the ability of our semiconductor manufacturers to compete fairly in the Japanese market. It will also help prevent Japanese manufacturers from dumping semiconductors in the United States and in third countries.

This agreement successfully addresses a series of trade complaints raised by the U.S. semiconductor industry and this administration charging Japanese chip manufacturers with impeding U.S. access to their market, while dumping semiconductors on world. markets and violating U.S. dumping laws.

With the agreement of the Government of Japan to this landmark pact, the United States suspends the pending 301 market case and EPROM semiconductor

access

dumping case. The 256K semiconductor dumping case will be suspended August 1.

By holding to our free market principles, but at the same time insisting on fair trade, we have created a climate in which the U.S. semiconductor industry should substantially increase its sales position in Japan. We have also set an important precedent to help prevent future unfair trade practices in other high technology industries.

As I have said time and again, we will not stand idly by as American workers are threatened by unfair trading practices. We have and we will take the tough actions that are necessary to ensure that all nations play by the same rules. Today's agreement shows that vigorous enforcement of existing laws can open markets. To succumb to the temptation of protectionism will benefit no

one.

This is an historic agreement. U.S. Trade Representative Yeutter, Secretary of Commerce Baldrige, and the U.S. negotiating team are to be commended for their tenacity, skill, and resoluteness during the months of intense negotiations.

White House Office

Appointment of Charles M. Kupperman as Special Assistant to the President and Deputy Director of the Office of Administration. July 31, 1986

The President today announced the appointment of Dr. Charles M. Kupperman to be Special Assistant to the President and Deputy Director of the Office of Administration.

Dr. Kupperman was formerly the Executive Assistant to the Director of the Office of Personnel Management. Previously Dr. Kupperman was the Executive Assistant to the Acting Administrator of NASA and the Executive Director of the General Advisory Committee of the U.S. Arms Control and Disarmament Agency. Prior to joining the Reagan administration, Dr. Kupperman served in the 1980 Reagan-Bush campaign as a defense adviser. From 1978 to 1980, he was the senior defense analyst for the Committee on the Present Danger.

Dr. Kupperman graduated from Purdue University (B.A., 1972), the University of British Columbia (M.A., 1973), and the University of Southern California (Ph.D., 1980).

He is married and has two children.

Sequestration of Funds for Fiscal Year 1986

Statement on Signing H.J. Res. 672 Into Law. July 31, 1986

I have signed today H.J. Res. 672. This act reaffirms the fiscal year 1986 sequestration of funds that was ordered by me on February 1, 1986, pursuant to the Balanced Budget and Emergency Deficit Control Act. of 1985 (Gramm-Rudman-Hollings). The original order was invalidated by the United States Supreme Court in Bowsher v. Synar because the Court ruled the Comptroller General's role in Gramm-RudmanHollings was unconstitutional. This joint resolution also reaffirms the effect on the order of laws enacted after February 1, 1986, and before this act.

I recognize that the budget cuts resulting from the fiscal year 1986 sequestration order represent an imperfect way to reduce the Federal budget deficit. However, I remain firmly committed to the goal of a balanced budget and continue to believe that Gramm-Rudman-Hollings provides valuable incentives and tools to reach that goal. It is my hope that the Congress will act to avoid the necessity of a sequestration in fiscal year 1987 by enacting a budget that meets the deficit target of not more than $144 billion.

Note: As enacted, H.J. Res. 672 is Public Law 99-366, approved July 31.

Japan-United States Semiconductor Trade Agreement

Memorandum From the President. July 31, 1986

Memorandum for the United States Trade Representative

Subject: Determination Under Section 301

of the Trade Act of 1974

Pursuant to Section 301(d)(2) of the Trade Act of 1974, as amended (19 U.S.C. 2411(d)(2)), I have determined that the Agreement between the Governments of Japan and the United States of America Regarding Trade in Semiconductors, to be implemented by an exchange of letters, is an appropriate and feasible response to the practices of the Government of Japan with respect to trade in semiconductors. These practices have been investigated by the United States Trade Representative in response to a petition filed under Section 301 on June 14, 1985, by the Semiconductor Industry Association.

The Agreement, which will be in effect until March 31, 1991, will open up the Japanese market to U.S. exports of semiconductors and will help prevent dumping of semiconductors in the United States and third country markets. It achieves a key objective of Section 301, which is to open foreign markets to U.S. exports. The satisfactory resolution of this problem demonstrates our

ability to help U.S. industries and to resolve contentious trade disputes through the negotiating process.

Fulfillment of the objectives and commitments in the Agreement is of critical importance. Therefore, I hereby determine that any future failure by the Government of Japan to meet the commitments and objectives of the Agreement would be inconsistent with a trade agreement or an unjustifiable act that would burden or restrict U.S. commerce. Therefore, I instruct the United States Trade Representative to report to me on: (1) the results of each of the periodic consultations held pursuant to the Agreement; and (2) annual improvements in foreign-based semiconductor firms' access to the Japanese market. I also direct the United States Trade Representative and the Secretary of Commerce to take any further action that may become appropriate to implement the Agreement. Finally, the Section 301 proceeding on semiconductors shall be suspended and shall remain suspended as long as the objectives and commitments of the Agreement are fulfilled.

This determination shall be published in the Federal Register.

Ronald Reagan

[Filed with the Office of the Federal Register, 10:37 a.m., August 1, 1986]

Eleventh Anniversary of the Final Act of the Conference on Security and Cooperation in Europe

Statement by the President. August 1, 1986

Eleven years ago today the United States, Canada, and 33 European countries signed in Helsinki the Final Act of the Conference on Security and Cooperation in Europe (CSCE). The signatories undertook to observe important standards of international conduct and to pursue practical steps to reduce the barriers dividing Europe between East and West. Of special importance to the West, the Final Act affirmed

basic human rights and fundamental freedoms.

The Final Act is an eloquent statement of hopes and goals to which the United States fully subscribed, because its principles were rooted in our own philosophy and traditions. The United States remains firmly committed to the full implementation of the Final Act in all its provisions and to the indivisibility of its human, security, and economic dimensions.

Unfortunately the Soviet Union and its East European allies have repeatedly failed to carry out many of their Helsinki pledges. There has been limited progress since the signing of the Final Act. But the reality of Europe's division remains, and the most important promises of a decade ago have not been kept. That was our assessment on the 10th anniversary last year. It remains our assessment today. Eastern Governments continue to impede the free flow of people, information, and ideas. They continue to repress those who seek to exercise freedoms of religion, thought, conscience, and belief. They continue to disregard Final Act provisions as they choose.

As we commemorate this 11th anniversary, we should recall the hopes for greater peace and freedom in Europe expressed a decade ago. The Final Act recognized the interrelationship between these goals, that the interests of individual human beings are a fundamental part of progress toward peace in Europe, that a more stable peace among nations depends on greater freedom for the people of Europe. The ambitious goals of the Helsinki process can be achieved only through balanced progress on all fronts.

The next followup meeting of the Conference on Security and Cooperation in Europe will open in Vienna this November. An important task of that meeting will be to take stock of the promises made and the promises kept, and to weigh the balance among the various dimensions of the Helsinki process. Governments must be made to account at Vienna for their commitments. The meeting must also address the challenge of achieving balanced progress if the Final Act is to have meaning in the daily lives of all citizens whose governments have undertaken its obligations.

The United States takes its commitments under the Final Act seriously and will continue to strive for the full realization of its goals for all the peoples of Europe. We call upon others to do likewise. We will work to ensure that the upcoming meeting in Vienna will mark a step toward making the promises of Helsinki's first decade a reality in its second.

Multifiber Arrangement

Statement by the Principal Deputy Press Secretary to the President. August 1, 1986

The President today announced that U.S. trade officials have successfully renegotiated a stronger and more comprehensive multifiber arrangement (MFA) that will help the textile and apparel industries compete more fairly in the international marketplace.

When the President vetoed the Textile and Apparel Trade Enforcement Act of 1985 last December, he directed the Office of the U.S. Trade Representative to aggressively renegotiate the MFA "on terms no less favorable than present." The new 5year MFA concluded this morning in Geneva significantly improves on the MFA that expired on July 31. It expands coverage to previously uncontrolled fibers such as ramie, linen, and silk blends, so that textile products made of fabrics engineered to circumvent our bilateral agreements can be restrained. It also provides a mechanism to prevent destructive import surges and improves provisions to prevent fraud. We also made clear in these negotiations that we would continue to pursue measures in our bilateral agreements that will open markets to our textile exports.

The new MFA, coupled with tougher bilateral agreements with major trading partners such as Taiwan and Hong Kong, will allow us to moderate growth in textile and apparel imports without incurring reprisals against U.S. exports abroad. This is an orderly and positive program that stands in sharp contrast with the sledgehammer approach of the Textile and Apparel Trade Enforcement Act.

That legislation would cost consumers an extra $44 billion for clothing over the next 5 years-$70,000 for each job supposedly protected by the bill. And by requiring the unilateral and illegal abrogation of our international agreements, the bill would guarantee retaliation against U.S. exportersincluding the agricultural, aerospace, and high-technology, electronics sectors-threatening the jobs of the 5 million Americans who produce goods for export. It would pit industry against industry, worker against worker, and region against region. If this legislation becomes law, our trading partners would likely refuse to adhere to the multifiber arrangement and other international agreements.

By renegotiating the MFA, we have provided the maximum possible protection for American textile workers without sacrificing jobs in our healthy export industries or overburdening American consumers.

Department of Defense

Nomination of Richard P. Godwin To Be
Under Secretary for Acquisition.
August 1, 1986

The President today announced his intention to nominate Richard P. Godwin to be Under Secretary of Defense for Acquisition. This is a new position.

Since 1980 Mr. Godwin has been president, Bechtel Civil and Minerals, Inc., in San Francisco, CA. Mr. Godwin has been with Bechtel since 1961, when he started as an executive engineer, and later he held the following positions: manager, scientific development department, 1962-1965; executive assistant to the chairman, Bechtel Group of Companies, 1965-1967; manager, research and scientific development, corporate planning, executive services, and computer departments, 1967-1971; vice president, Bechtel, Inc., and manager of division operations in the hydro and community facilities division, 1971-1973; deputy division manager and division manager, 1974-1976; director, Bechtel Group of Companies, 1976-1978; senior vice president, 1978

1979; and executive vice president and member of the executive committee, 19791980.

Mr. Godwin graduated from Yale University (B.E., 1945). He is married, has four children, and resides in San Francisco, CA. Mr. Godwin was born March 21, 1922, in Clifton, NJ.

Federal Energy Regulatory Commission

Nomination of Martha O. Hesse To Be a Member, and Designation as Chairman. August 1, 1986

The President today announced his intention to nominate Martha O. Hesse to be a

member of the Federal Energy Regulatory

Commission for the remainder of the term expiring October 20, 1987. She would succeed Raymond J. O'Connor, and upon confirmation, the President will designate her Chairman.

Since 1982 Ms. Hesse has been Assistant Secretary for Management and Administration, U.S. Department of Energy. Previously, she was Associate Deputy Secretary, Department of Commerce, 1981-1982; and director and chief operating officer, SEI Information Technology in Chicago, IL, 19691981.

Ms. Hesse graduated from the University of Iowa (B.A., 1964) and the University of Chicago (M.B.A., 1979). She is single, resides in Washington, DC, and she was born August 14, 1942, in Hattiesburg, MS.

Father Lawrence Martin Jenco

Remarks and an Informal Exchange With
Reporters Prior to a Meeting.
August 1, 1986

The President. Well, ladies and gentlemen, I think you all know who we have here with us today. And certainly his being here is an answer to a great many prayers by all of us, and we're delighted to have Father Jenco with us. And now, Father Jenco.

Father Jenco. I'd like to make a public statement: I have already expressed my joy and gratitude over being home-home with

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I appeal to those who held me captive, to those still holding Tom, Terry, and David, and this situation. The best way they can do this would be to accept the invitation of Mr. Terry Waite to continue the dialog aimed at resolving the situation. He is a churchman, authority in both the Catholic and Anglican a man who knows the thinking of those in

Churches. It must be resolved soon. Our common beliefs dictate this. Our humanity demands it. I pray for those being held captive, and I also pray for my captors. I thank you.

Reporter. Father Jenco, is there anything at all that you think the President could do to be helpful?

Father Jenco. We will talk about that

now.

Q. Do you have any more or less hope for the release of your brothers, given the fact that you were released?

Father Jenco. For 19 months I lived with faith, hope, and love. I shared for many, many months together with these men faith, hope, and love. We never gave up hope. Thank you.

Q. Mr. President, do you have any reason for optimism?

The President. What?

Q. Do you have any reason for optimism, Mr. President?

The President. I'm always optimistic, and I still have faith in prayer. This is evidence of it.

Note: The President spoke at 2:25 p.m. in the Rose Garden at the White House. Following the remarks and the exchange with reporters, the President met privately with Father Jenco in the Oval Office and then with Father Jenco's family in the Cabinet Room.

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