EXPANDING DEMOCRACY IN EUROPE

Just six years ago, the countries of Central Europe were still captive nations. Now 120 million people have the freedom to speak their own minds ... This new freedom is the fruit of Europes struggle and Americas support .. this Administration will not retreat.

President Clinton
White House Conference on Trade and Investment in Central and Eastern Europe
Cleveland,Ohio, January 13, 1995

A RECORD OF ACCOMPLISHMENT:

• Relations with the democracies of the region have never been stronger. As their economies and democratic institutions develop, these countries are becoming welcome trade partners and dependable friends.

• Two years ago President Clinton initiated the Partnership for Peace (PFP), a highly successful effort to engage former Warsaw Pact armies with NATO through regular cooperation, communication and joint training exercises. While the PFP is a long-term active link to NATO for some, and the path to NATO membership for others, for all, it is a powerful incentive to reform their militaries for democratic control and global responsibility.

• Our commitment to Western integration for these new democracies has helped freedom put down strong roots throughout the region. Most nations already have held several democratic elections.

• Nations that introduced broad market reforms, such as Poland and the Czech Republic, have rapidly growing economies, and thriving private sectors.

• Regional inflation and unemployment are dropping, production is rising and the shortages and rationing of the Communist era have vanished.

• The Presidents Law and Democracy Initiative opened the way for cooperation in Central and Eastern Europe against organized crime, narcotics trafficking, nuclear smuggling, terrorism and money laundering. The new FBI International Law Enforcement Academy in Budapest has already trained hundreds of law enforcement officers in the region.

• Several of these regional nations stood with us in the Gulf War and Haiti and today are providing crucial troop or basing support for American and NATO forces in Bosnia, such as Hungary. Czech and Polish combat battalions and soldiers from other nations in the region are stationed alongside NATO troops.

Facts:

• Since 1990, the Support for East European Democracy program (SEED) has provided more than $2.7 billion in assistance, supporting privatization, economic restructuring and government reform, deepening support for Central and Eastern Europes social and economic transformation.

• Launched new programs including President Clintons $30 million Democracy Network, to assist private, home-grown democracy-building institutions.

• The United States is the regions number one investor and growing trade partner, with $8 billion in direct investment. The Overseas Private Investment Corporation (OPIC) has provided more than $2 billion in investment assistance to firms doing business in the region. That investment is already paying off, generating hundreds of millions of dollars in U.S. exports thus far.

• The United States provided over $44 million in security assistance to Central and Eastern Europe in 1995 and the U.S. has helped equip and train the Baltic Peacekeeping Battalion.

• The Presidents $100 million Warsaw Initiative, which will help these regional nations cooperate militarily with one another and with NATO -- will be fully funded in 1996.

President Clinton supports the extension of Western institutions into Central and Eastern Europe to promote the values of democracy, free markets, and responsible security policies. While generally successful, overall transformation has not been uniform in every country. Although some nations of the region have already made the shift, others still struggle with the legacy of authoritarianism, and all of these economies face problems as they restructure. But dramatic progress has been achieved. Our tasks for the coming period include:

• Working with Central European nations to prepare for the deliberate and gradual first round of NATO enlargements over the next four years.

• Supporting efforts to consolidate relations between Central European states such as Hungary, Romania and Slovakia, and foster confidence on issues related to ethnic minorities in the region.

• Deepening security cooperation through bilateral agreements, the Partnership for Peace, and intensified military-to-military contacts.

• Building upon Czech accession to OECD in 1995 by working toward the accession of Hungary and Poland in l996 -- as long as they meet OECD standards.