2462), authorizes the President to designate the countries that will be beneficiary developing countries for purposes of the Generalized System of Preferences (GSP) pursuant to Title V of the Trade Act (19 U.S.C. 2461 et seq.). Such countries are entitled to dutyfree entry of eligible articles imported directly therefrom into the customs territory of the United States. Among the countries previously designated as a GSP beneficiary is the Netherlands Antilles, which was included in the list of non-independent countries and territories eligible for benefits of the GSP. Aruba was a part of the Netherlands Antilles at the time of its designation, but has since become a separate and successor political entity. 2. In light of the independence of Aruba from the Netherlands Antilles, and having due regard for the eligibility criteria set forth in Section 502 of the Trade Act (19 U.S.C. 2462), I hereby designate Aruba as a beneficiary developing country for purposes of the GSP. 3. Section 212 of the Caribbean Basin Economic Recovery Act (CBERA) (19 U.S.C. 2702) authorizes the President to designate the countries, territories, or successor political entities thereto that will be beneficiary countries for purposes of the CBERA (19 U.S.C. 2701 et seq.). Such countries are entitled to duty-free entry of eligible articles imported directly therefrom into the customs territory of the United States. Among the countries previously designated as a beneficiary country for purposes of the CBERA is the Netherlands Antilles. Aruba was a part of the Netherlands Antilles at the time of its designation, but has since become a separate and successor political entity. 4. In light of the independence of Aruba from the Netherlands Antilles, and having due regard for the eligibility criteria set forth in Section 212 of the CBERA (19 U.S.C. 2702), I hereby designate Aruba as a beneficiary country for purposes of the CBERA. 5. Section 604 of the Trade Act (19 U.S.C. 2483) confers authority upon the President to embody in the Tariff Schedules of the United States (TSUS) the substance of the relevant provisions of that Act, of other acts affecting import treatment, and of actions taken thereunder. Now, Therefore, I, Ronald Reagan, President of the United States of America, acting under the authority vested in me by the Constitution and the statutes of the United States, including but not limited to Title V and Section 604 of the Trade Act of 1974, and Sections 211 through 213 of the Caribbean Basin Economic Recovery Act, do proclaim that: (1) General headnote 3(e)vXA) to the TSUS, listing those countries and areas eligible for benefits of the GSP, is amended by inserting in alphabetical sequence, in the list of independent countries, "Aruba". (2) General headnote 3(e)(vii)(A) to the TSUS, listing those countries designated as beneficiary countries for purposes of the CBERA, is modified by inserting in alphabetical sequence “Aruba”. (3) The amendments made by this proclamation shall be effective with respect to articles both: (a) imported on or after January 1, 1976, and (b) entered, or withdrawn from warehouse for consumption, on after January 1, 1986. or In Witness Whereof, I have hereunto set my hand this 11th day of April in the year of our Lord nineteen hundred and eighty-six, and of the Independence of the United States of America the two hundred and tenth. Ronald Reagan [Filed with the Office of the Federal Register, 11:02 a.m., April 14, 1986] International Bank for Reconstruction and Development Nomination of Robert Brendon Keating To The President today announced his intention to nominate Robert Brendon Keating to be United States Executive Director of the International Bank for Reconstruction and Development for a term of 2 years. He would succeed James B. Burnham. Since 1983 he has been serving as United States Ambassador to the Democratic Republic of Madagascar and the Federal Islamic Republic of the Comoros. He also served as Chairman of the President's Third World Hunger Study in 1983-1984. He was United States delegate to the Law of the Sea Conference and technical director for the Law of the Sea Treaty Review in 19811982. He was a consultant in International Security Affairs in the Office of the Secretary of Defense in 1981-1983. He served as vice president of Pure Water Systems, Inc., in 1979-1981. Ambassador Keating graduated from the United States Naval Academy (B.S., 1946) and Georgetown University (M.E.A., 1961). He is married, has one child, and resides in Washington, DC. He was born May 7, 1924, in Medford, MA. Board for International Broadcasting Nomination of Lilla Burt Cummings Tower To Be a Member. April 11, 1986 The President today announced his intention to nominate Lilla Burt Cummings Tower to be a member of the Board for International Broadcasting for the remainder of the term expiring May 20, 1986, vice Frank Shakespeare, and for a term expiring May 20, 1989, reappointment. Mrs. Tower served as Director of the Institute of Museum Services in 1981-1983. Previously she was an attorney in private practice. In 1973 she was appointed by the mayor of the District of Columbia to the Board of Zoning Adjustment and reappointed in 1974. She served as an economist and assistant to the chief economist, Rand Corp., in 1950-1953; assistant director of political and legislative research, Congressional Quarterly News Features, Inc., in 1949-1950; and graduate and undergraduate assistant in economics, George Washington University, in 1948-1950. Mrs. Tower graduated from George Washington University (A.B., 1949; J.D., 1960) and Georgetown University (L.L.M., 1965). She is married, has one child, and resides in Washington, DC. She was born October 6, 1928, in Philadelphia, PA. International Issues Interview and Responses to Questions From Yomiuri Shimbun of Japan. April 10, 1986 U.S.-Japan Relations Q. First question is about the U.S.-Japan relation, and I think the U.S.-Japan relation becoming even more important today in the context of their respective roles in the maintenance of peace and prosperity. At the outset of this press interview, would you give us your thoughts about the state of unison of the two countries, as we stand today, and also its future? The President. Well, I believe that the relationship between our two countries is strong, vital, and healthy. And I think the warmth of the friendship is epitomized in the affection and respect that Prime Minister Nakasone and I have for each other. I consider him a very close, personal friend. But the other thing about our two countries, too, is that we are both nations on the Pacific rim, and I happen to believe that the world's future further development lies in the Pacific Basin. And we are, and do happen to be, the two greatest economic powers on the rim of the Pacific Basin, and therefore I think we share a great responsibility in the future of the whole Pacific Basin there. So, I think all of our people are very pleased about the relationship that we have, and I'm sure it will continue. U.S.-Japan Bilateral Meetings and the Q. May I move to second question? As we know, our Prime Minister Nakasone is visiting Washington this weekend; and he'll have very important talks with you. So, what do you think will be focused on in the bilateral and Tokyo summit meetings? The President. I think some of the things will be a discussion of the relationship of our nations here in the free world with the Soviet Union and what progress we can all make together with regard to reducing, particularly, the nuclear weapons that now hang over the world as a threat. That will certainly be one very important subject of discussion. I think also the economic situation of the summit nations will be very important. Some of them were slower in coming out of the recession that the world was in a few years ago, but now all seem to be progressing better. I think we will be discussing trade matters between all our nations, and I know definitely the Prime Minister and I will be discussing our own bilateral trade situation. We've made great progress; and it's essential, too, that the leading trading nations of the world, such as those that make up the summit economic conference, that all of us continue our recovery and our expansion, our economic recovery and making economic progress, provide more employment. And we really are all sort of bound together on that. It's going to be very difficult for any one nation to be prosperous if all aren't doing well. So, I think we'll have a full plate. International Terrorism Q. And do you have any intention to take up the issue of concerted action against terrorism? The President. Yes, I'm glad you mentioned that. Yes. Terrorism must definitely be discussed by all of us, because only by working together can we wipe out this very cowardly but very cruel and damaging practice. So, I'm sure that we'll be talking about that. We have an example last year of what can be done with cooperation between us. So far we've been improving our relationship in exchanging intelligence information about terrorist threats. And last year-it's little known-but last year we were able to abort and cut off, prevent from happening, 126 terrorist operations. So, yes, that will very definitely be a subject for discussion. Q. Thank you very much. The President. Well, thank all of you. It's a pleasure to see you. Responses by the President to Questions Q. We are very much impressed when you discussed for the first time about a concept of aerospace plane called Orient Express in your State of Union Message. Would you elaborate more on that project as to why it is so important and what specific steps are being contemplated at your government to carry on your proposal? Also, is it feasible to call on Japanese cooperation in this area, because it is common interest to Japan as well as your country? The President. In January I announced that we are going forward with research on a new Orient Express, a new generation of aircraft that will fly at many times the speed of sound. If our studies show that an aerospace plane is feasible, it would mean a major advance in air transportation and space exploration. We are still at a preliminary stage of technology assessment. But following this assessment, we could decide to go on to development within 2 or 3 years. We will certainly consider the possibility of cooperation with other nations once the initial assessment is complete. Japanese Overseas Development Assistance/International Debt Q. As one of the new Japanese roles in the world, she is expected to expand economic and strategic assistance to developing countries. To which countries and areas would you like to see Japan increase strategic assistance? Concerning debt problems, a new American initiative by Treasury Secretary called Baker's Plan has been proposed. In this regard, what role would you expect to be played by Japan? The President. First, I want to commend Japan for strengthening its overseas development assistance (ODA) programs over the past ten years, to the point where today Japan is second as a worldwide ODA donor. Japan's new commitment to double once again its annual ODA spending in the next 7 years is a worthy goal. I am pleased at the prospect that Japan will continue to in crease its overall assistance levels, improve the quality of its aid, and seek to assist those nations in most urgent need of support. Although Japanese economic assistance has been made and will remain very important to other countries in Asia, I hope Japan will continue to take a more global view in expanding its assistance programs to other vital regions. We appreciate the support we have recieved from the Japanese Government and from private Japanese banks for Treasury Secretary Baker's plan for increased private and multilateral financing for important debtor nations. Such financing would be related to the pursuit of sound economic policies in the borrowing countries. As we move forward in concert with the World Bank and the IMF,1 Japan's support will be critical to the success of this program for sustained growth. International Trade and Monetary Q. Under the new circumstances of declining U.S. dollar and oil price, what initiatives are you thinking of for world economic relations? What importance would you place on an international conference for monetary reform and removal of unfair trade practices, or the New Round, you referred to in your State of Union message? The President. The recent strengthening of major currencies vis-a-vis the American dollar and the decline in oil prices are welcome developments. So is the remarkable decline in inflation throughout the industrial world. We must be determined in our efforts to bring about sustained, noninflationary growth on a global basis. And these efforts start at home-in every country. Internationally, we seek to strengthen the system of free and fair trade and the free movement of capital in order to increase global economic efficiency and raise the standard of living for people in all coun tries. Better economic performance and more consistent policies among the major market economies are the keys to the smooth functioning of exchange rates. As you know, in January I asked Treasury Secretarey Baker to determine whether a conference on ex 1 International Monetary Fund. change rates would be appropriate. Secretary Baker is studying this question in light of developments in international trade and finance, including discussions this month of the IMF Interim Committee and at the OECD 2 Ministerial meeting. We have high hopes for the New Round of multilateral trade negotiations under the auspices of the GATT.3 We seek to strengthen GATT and extend GATT discipline to agriculture, services, investment and, intellectual property. We all recognize free trade must also be fair trade, and we must work diligently, both bilaterally and multilaterally, to remove barriers to trade. When we identify such barriers, we try to eliminate them through negotiations with our trading partners. Where these negotiations fail, we are compelled to act to ensure that American businesses and American farmers are not injured by these practices. The open trading system requires that all participants in the world economy play on a level field, free from arbitrary and discriminatory barriers to the movement of goods, services, and capital. I look forward to discussing these crucial global economic issues with Prime Minister Nakasone and our colleagues from Germany, France, the United Kingdom, Italy, Canada, and the European Community at the summit in Tokyo. Q. For Japanese part, in addition to her opening market policy, Japan has been strongly urged at home and abroad to change substantially her economic structure from the export oriented to the domestic consumption, in such areas as fiscal monetary policy, tax system, and so forth. How would you assess Japanese effort in that regard guided by the Prime Minister's advisory group? Japanese Import Policy The President. The report prepared by Mr. Maekawa and the other members of the advisory group contains important recommendations for the future of Japan's 2 Organization for Economic Cooperation and Development. 3 General Agreement on Tariffs and Trade. economy. I look forward to hearing more about the recommendations and their implementation from Prime Minister Nakasone when I meet with him at Camp David this weekend. I understand that the Japanese Government has taken some steps to increase domestic-led growth to stimulate imports. We applaud these efforts and hope that the Maekawa commission report will lead to further progress. An increased role for imports, especially for manufactured and other value-added goods, in Japan's economy will be an important step in promoting greater harmony between Japan and its trading partners. U.S.-Japan Currency Exchange Rate and Q. We are hopeful of improvement of U.S.-Japan trade imbalance to some extent by recent readjustment of U.S. dollar and Japanese yen exchange rate. What is your assessment of 1 dollar-180 yen rate? Other than readjustment of foreign exchange rate, do you have any new idea to solve trade frictions, such as U.S.-Japan free trade agreement privately proposed by Ambassador Mike Mansfield? The President. It is not for me to say what is the proper exchange rate. This determination must be left to free market forces, although I note that the recent shift in the dollar-yen relationship should help to make U.S. exports more competitive in Japan. Current U.S. policy deals with several problem areas: economic structural factors, including the yen-dollar relationship, and trade liberalization, among others. There are no quick or easy fixes. In the area of trade liberalization, the sectoral trade negotiations under the market oriented sector specific discussions (MOSS) have been a valuable tool for resolving problems in a cooperative, trade-expanding manner. The United States and Japan have agreed to continue this effort, to follow up on what has been accomplished thus far, and to start work on new sectors as well. Prime Minister Nakasone has also been very energetic in internationalizing Japan's economy, though Japan recognizes more needs to be done. The Action Program Japan announced last July pledged that Japan's economy will be free in principle, with restrictions the exception. The upcoming multilateral trade negotiations should also play an important role here. Strategic Defense Initiative Q. Strategic Defense Initiative (SDI) is approaching a developing stage. Now that the U.K. and West Germany have decided to join the program, how do you think of importance of Japanese participation in SDI program, and what role Japan can play in it? Would you expect the issue to be raised in your talks with Prime Minister Nakasone and Tokyo summit meeting? The President. The United States welcomes the widest possible Japanese participation in the SDI research program. We believe such participation would be beneficial both to Japan and to the program itself. That decision, of course, is one for the Government of Japan to make. Conventional Defense Initiative Q. Granted the ultimate goal of eliminating strategic weapons be attained eventually, there remains a threat of tactical nuclear weapons; and some experts in Washington are suggesting that U.S. Government should undertake a so-called Conventional Defense Initiative (CDI) to develop unmanned, highly computerized, attack airplanes. Do you plan to give a serious consideration to CDI in much the same way as SDI? The President. The effort to improve Western conventional capabilities, the ΝΑΤΟ Conventional Defense Initiative (CDI), is hardly new and has my full support. We are looking for more progress toward improving NATO's conventional defense. I would note, in particular, the decision by NATO Defense Ministers in December 1984 to double infrastructure funding and their agreement to work toward increasing necessary munitions stockpiles. In May 1985 NATO Defense Ministers reaffirmed the 3-percent defense spending increase goal. We look forward to the fulfillment of this pledge and even more substantial improvements by NATO nations in response to the NATO force goals to be adopted this spring. We will work hard to advance this process, and the United States will continue to lead by example. |