Address at the World Trade Center of New Orleans

Thank you for the opportunity to visit your beautiful city, and to discuss with you U.S. policy toward Latin America.

US Policy Goals for Latin America

The most striking fact about Latin America today is that the past decade has seen dramatic change in virtually every country. The Western Hemisphere is now a community of thirty-four representative, free market democracies. With only one exception (namely Cuba), we have in common the same basic values of democratic freedom, respect for the law and human rights, and belief in the fundamental effectiveness of the market.

Even more importantly, through meetings of all the democratic leaders of the hemisphere at the Summits of the Americas in 1994 and in 1998, we have achieved consensus on an action plan to forward those values in the daily lives of our population.

What a change from the authoritarianism, violence, ideological conflict and poor economic stewardship which characterized so many countries of this region ten or fifteen years ago!

Because of the convergence of values in the hemisphere, the US policy agenda reflects the hemisphere's agenda. Our key goals include:

• Expanding economic growth and ensuring that the benefits of growth result in prosperity that is widely shared.
• Consolidating democratic institutions. This includes promoting respect for human rights, reinforcing military
• Professionalism and subordination to civilian leadership, and improving judicial systems.  A better life for all citizens. That means combating transnational crime and stemming the flow of illegal narcotics that put at risk our youth here in the US and throughout the hemisphere. It also means increasing sustainable development and encouraging sound environmental practices. Our long-term goal is to substantially reduce the incidence of poverty, not only through economic growth and job creation, but also through improved education and better health systems which allow the poor to take better advantage of the opportunities opened by growth.

Hemispheric Partnership

Let me mention here just three examples of the momentum to a true hemispheric partnership.

First is the Santiago Summit of April 1998, during which our leaders re-affirmed our shared commitment to democracy and market economics, refined the agenda of work underway since the previous Summit in Miami, and agreed on a number of new initiatives. The focus of the work was to consolidate the economic and political progress made so far, and to ensure that the benefits of growth are shared by all levels of society, including the poor. As was the case in Miami, the leaders in Santiago established follow-up mechanisms to ensure that even the most difficult issues are continually worked on.

Another major step toward partnership was the launching of the negotiating phase of the Free Trade Area of the Americas (FTAA) by the Santiago Summit. Trade free from tariffs and related barriers would create the largest market on earth, comprising over 800 million consumers, and an economy well over $10 trillion. This would provide a tremendous boost to growth and better quality of life throughout the hemisphere.

Nine negotiating groups and several consultative groups have been meeting regularly in Miami to develop specific negotiating agendas, schedules and techniques. There is a long and difficult road ahead to complete these negotiations by the year 2005, as agreed by the hemisphere's leaders, but I am heartened that we have begun, and begun well.

A third example is the meeting in Buenos Aires late last year of the Fourth Conference of the Parties (COP IV) of the UN Framework Convention on Climate Change. This is an example of the growing commitment of Latin America and the Caribbean to preserving the environment. The COP IV meeting itself provides a vivid example of the growing role of transnational issues in our daily life - on an issue so inherently local, it would seem, as the weather. The action plan adopted in Buenos Aires advanced the momentum help developing nations along the path to clean, sustainable growth.

Cuba

There is one part of the hemisphere which sounds a dissonant note in the general harmony, and that is Cuba. Our goal continues to be to achieve a peaceful democratic transition. There is, I believe, broad consensus within the United States and in the hemisphere on some key points: that the human rights situation in Cuba remains deplorable, and that the Cuban government has taken no significant steps towards political or economic change. While opinions may differ over specific points of policy, I don't think anyone would differ on the need to promote peaceful democratic change and respect for human rights in Cuba.

Reaching out to support the Cuban people has become a central focus of US policy, and we are seeking creative ways to achieve these objectives, even as we maintain the

pressure on the Cuban government to make democratic changes. We have taken some actions designed to increase people-to-people contact and give support to the Cuban people without helping Castro's regime. The US Government will continue to speak out forcefully, to urge our friends and allies to do more, and to focus international attention on human rights abuses in Cuba.

The Risks Ahead

Despite the impressive accomplishments of the hemisphere over the past decade, there is no guarantee that the region's advances cannot be reversed. Democracy and liberalized economic policies must demonstrate their ability to deal effectively both with episodic crises and deep-seated problems if we hope to avoid cynicism about these institutions.

one of the crises which visited us in 1998 - Hurricane Mitch and Georges in Central America and the Caribbean brought damages which will challenge us for years to come. Over 9,000 people were killed, another 9,000 are missing, nearly 13,000 people injured, and at least 3 million people displaced. The United States Corps of Engineers has estimated the cost of repairing infrastructure alone at $8.5 billion, which does not include lost crops, lost businesses and the interruption of production caused by the hurricane. It is tragic that the worst devastation occurred in two of the poorest countries of the hemisphere, Honduras and Nicaragua.

The United States has already provided more than $300 million in humanitarian relief. We began with search and rescue missions by the 500 American armed forces members stationed in Honduras, which saved over a thousand lives in the first few days of the disaster. Over the next few weeks, the affected governments, supported by the U.S.

Agency for International Development and a number of private organizations, coordinated delivery of millions of pounds of water, food, medicine, plastic sheeting and clothing to the hundreds of thousands that had lost everything to the hurricane. The outpouring of American support for the people of Central America after the hurricane was truly remarkable and demonstrated, I think, American ideals and values at their best.

We have now gone from the relief phase into long-term reconstruction. The main elements of our support for this phase include the following:

On February 16, the President submitted to Congress a

• $956 million supplemental request for reconstruction aid which will be used to restore clean water and sanitation systems; rebuild housing, schools and roads; restore agriculture and create jobs; and help local governments manage the long-term effects of the crisis.
• We have also proposed debt relief for Honduras and Nicaragua to permit them to better harness their own resources.
• In addition, on March 4, the Administration submitted to Congress draft legislation to provide significant new trade benefits for the region, notably duty-free entry into the United States of textile and apparel products assembled from U.S. fabric.

Of course, whatever assistance official donors provide will clearly be only a fraction of the total effort needed to restore the momentum in Central America. The private sector, within and outside Central America, will need to provide the lion's share of that effort. One example of outreach to our private sector is the recent partnership between the Overseas Private Investment Corporation with Citicorp to make available over $200 million in new financing for small and medium-sized projects in the region.

Over the long-run, these governments must continue their market-based policies that are essential to creating conditions for sustained growth. They must also continue to move toward fully democratic institutions, including improved law enforcement and judicial systems to ensure the safety of their citizens, and to respond effectively to any increased narcotrafficking caused by the hurricane's disruption.

The leaders of these countries recognize that through this horrible tragedy, they have received a huge amount of international attention. Their goal is to parlay this focus into programs that will not only rebuild what existed before the hurricane but "transform" their countries so that all inhabitants benefit from a higher standard of living. An admirable goal, and one which the United States supports wholeheartedly.

Another difficult issue which I know is on many of your minds is the financial crisis. This remains an issue of great concern. However, in many respects, Latin America has performed better than many other areas in the world in responding to the wave of financial contagion.

Let me add that, while some countries were more severely tested than others, investor anxiety about emerging markets is a process which is testing all of us - including the United States. Our falling exports to and growing imports from Asia have given new strength to protectionist fears within the US. Let me assure you, however, that this Administration will fight very hard to keep US markets open and to continue to push for freer trade within this hemisphere and globally.

Let me assure you also that the United States will continue to support those governments which demonstrate through action their commitment to continue moving toward market-based economies, sound macro-economic policy, open markets, and more transparent financial systems.

In this connection, we are pleased that Brazil continues its strong commitment to such policies, and has been implementing the package of reforms agreed with the IMF. These are strong steps that have helped reassure financial markets.

At the same time, it is crystal clear that to retain investor confidence, Brazil and all other countries touched by investor anxiety must continue to pass appropriate reforms, even when these are politically difficult. In the last analysis, the fate of each country lies in the hands of its own government and people; external assistance can only help if it supplements what is done by the country itself.

As a result of slower growth in many countries, and recession in some, as well as the hurricane damage in Central America and the Caribbean, there will, tragically, be a worsening of social conditions in some countries. The overall long-term prospect for Latin America, however, remains highly positive. A decade of market-based reforms has made Latin America more resilient than ever before. As the region continues its reforms, it will continue to grow and to attract foreign capital. As Treasury Secretary Rubin has said, this region is the world's "most forward-looking" in carrying out reform.

Addressing Systemic Problems

Looking at some of the deeper, systemic problems of the region, I feel concern but also considerable hope. one basis for my optimism is the region's acceptance of the need to strengthen the rule of law. Transparency in governmental

 functions, a system of laws which is equitable and fairly enforced, respect for fundamental human rights - these are crucial to political stability and investor confidence. The region's commitment to these principles in the agenda of the Summits of the Americas is complemented by step-by-step progress toward these goals.

There is also consensus in the region on the need to seriously address the poverty that burdens about a third of Latin America's population. Experience all over the world has repeatedly shown that education is the single most important factor in reducing poverty over the long run. Educational reform was the main theme of last year's Summit. In Santiago, our leaders recognized that Latin America at present is seriously deficient in providing quality basic education to all its people - whether poor or rich, rural or urban, girls or boys, indigenous or of European origin. That recognition was followed by a commitment to improve the educational system from the bottom up and to do it quickly.

This is a commitment which will take determined effort sustained over many years to fulfill, but the work has begun with energy and intelligence. And I am heartened to see how many in the business community have joined in the effort to provide relevant high-quality education and training programs.

Conclusion

As technology advances, national boundaries diminish in importance, and the scope for cooperative action increases. The United States and our neighbors in the hemisphere will remain friends and allies in bad times as well as good, because we have in common a fundamental interest in the stability and prosperity of the hemisphere, and because of the growing partnership forged out of democratic and free market values.