Press Release from the Department of the Treasury, January 14, 2010Footnote 1
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated Colombian national Ramón Quintero Sanclemente as a Specially Designated Narcotics Trafficker (SDNT) pursuant to Executive Order 12978 due to the significant role he plays in international narcotics trafficking centered in Colombia. OFAC also today designated 19 additional individuals and 16 entities located in Colombia as SDNTs for their roles in Quintero Sanclemente's drug trafficking and money laundering organization. Today's action prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entities and freezes any assets the SDNTs may have under U.S. jurisdiction.
Quintero Sanclemente is a long-time cocaine trafficker and successor to the former leaders of the once powerful North Valle drug cartel. He was first designated as an SDNT in November 2005 for providing material support to the drug trafficking activities of, and acting for or on behalf of, North Vale cartel leader, Wilber Varela. Today's re-designation of Quintero Sanclemente reflects his increased role in drug trafficking activities following the death of Wilber Varela in 2008. Currently, Ramón Quintero Sanclemente is closely aligned with Cali-based drug lord Luis Enrique Calle Serna (a.k.a. “Comba”), also designated by OFAC in November 2005. Quintero Sanclemente faces federal drug trafficking and money laundering charges in the Southern District of Florida related to indictments filed in 1999 and 2008.
Today's action targets several key leaders in Quintero Sanclemente's organization, including Mario German Satizabal Rengifo (a.k.a. “Pelo de Cobre”), who was also indicted on federal drug trafficking and money laundering charges in the Southern District of Florida in 2008. Other individuals controlling key aspects of the drug trafficking and/or money laundering activities of the Quintero Sanclemente criminal organization include Duffay Gutierrez Aguirre (a.k.a. “Gordo Duffay”), Orlando Cifuentes Vargas (a.k.a. “El Chute”), Yanet Cifuentes Vargas (a.k.a. “La Pecosa”), Carmen Viviana Cifuentes Vargas, and Jorge Enrique Dominguez Velez (a.k.a. “El Onli”). Jorge Enrique Dominguez Velez owns Era de Luz Ltda. Libreria Café, a book store and restaurant located in Cali, Colombia that was also designated today.
“Ramón Quintero Sanclemente was a top-level lieutenant in the North Valle drug cartel who now heads his own significant drug trafficking organization in Colombia,” said OFAC Director Adam J. Szubin. “Today's designation targets not only Quintero Sanclemente's numerous illicit assets and a key money laundering network but also his right-hand man Mario German Satizabal Rengifo.”
Jose Alberto, Alejandro Gonzalez Sanclemente, and Fernando Gonzalez Sanclemente were also designated for acting as front persons for Quintero Sanclemente. Jose Alberto and Alejandro Gonzalez Sanclemente own and control Agroindustrias Jordanes S.A., which operates a chain of steak restaurants in Cali, Colombia, Jordanes Parrilla Argentina. Today's action also targets a key money laundering network linked to Quintero Sanclemente headed by Cali-based money launderer Walter Lopez Rodriguez, who owns or controls a network of front companies, including Univisa S.A., a Colombian money exchange business used to launder significant drug profits for Quintero Sanclemente. In May 2007, Colombia's Superintendencia Financiera fined Univisa S.A. for failing to comply with standard anti-money laundering practices under Colombian law. The company is not currently active.
Today's designations are part of the ongoing interagency effort by the Departments of the Treasury, Justice, State, and Homeland Security to implement Executive Order 12978, which applies financial sanctions against Colombia's drug cartels. Specifically, today's action is a result of the ongoing cooperation between OFAC and U.S. law enforcement, particularly the Federal Bureau of Investigation's Miami office and Drug Enforcement Administration offices in Miami and Bogota, Colombia.
Press Release from the Department of the Treasury, February 25, 2010Footnote 2
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated seven key leaders of the international drug trafficking organization La Familia Michoacana (La Familia) as Specially Designated Narcotics Traffickers (SDNTs). Today's designation targets two principal leaders of La Familia, Nazario Moreno Gonzalez (“El Chayo”) and Jose de Jesus Mendez Vargas (“El Chango”), and five of their lieutenants. OFAC also designated as an SDNT one company owned or controlled by one of La Familia's lieutenants. Today's action, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entity and freezes any assets the designees may have under U.S. jurisdiction.
“Today's action targets the senior leadership of La Familia Michoacana, giving further effect to the President's April 2009 identification of this organization for sanctions,” said OFAC Director Adam J. Szubin. “La Familia is one of Mexico's newest and most violent drug cartels. We will continue to aggressively pursue this dangerous organization and deny La Familia's leadership, businesses and operatives access to the U.S. financial system.”
La Familia, identified by President Obama as a significant foreign narcotics trafficker in April 2009, is an extremely violent drug trafficking organization operating primarily in the State of Michoacän, Mexico. It is a compartmentalized organization heavily involved in narcotics trafficking, kidnapping, extortion, and other criminal activities. La Familia is known for its extreme form of brutal violence—to include execution-style killings and beheadings. Today's action is OFAC's first derivative designation against La Familia since the President identified it as a significant foreign narcotics trafficker.
Nazario Moreno Gonzalez, La Familia's spiritual leader, was indicted for drug trafficking in a U.S. district court in Texas in 2003, and Jose de Jesus Mendez Vargas is responsible for smuggling large shipments of methamphetamine and cocaine into the United States. OFAC also today designated five individuals working immediately below or on behalf of La Familia's principal leaders in Mexico, including Dionicio Loya Plancarte (“El Tio”), considered the current second-in-command, and Servando Gomez Martinez (“La Tuta”), another top leader of the organization believed to be responsible for the July 2009 murders of 12 Mexican federal police officers. OFAC also designated Enrique Plancarte Solis (“La Chiva”), Jose Arnoldo Rueda
Medina (“La Minsa”), Nicandro Barrera Medrano, and trucking company Transportadora Purepecha S.A. de C.V, which is owned or controlled by Medrano.
Today's action is due in part to OFAC's cooperation with the Mexico Country Office of the Drug Enforcement Administration (DEA) and DEA's Special Operations Division and is part of ongoing efforts under the Kingpin Act to apply financial measures against significant foreign narcotics traffickers worldwide. Internationally, more than 500 businesses and individuals associated with 82 drug kingpins, 37 of which are based in Mexico, have been designated pursuant to the Kingpin Act since June 2000. Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.
Statement by President Obama, February 27, 2010Footnote 3
President Barack Obama delivered this statement in Washington, DC
President Obama. Good morning, everybody. Earlier today, a devastating earthquake struck the nation of Chile, affecting millions of people. This catastrophic event was followed by multiple aftershocks, and has prompted tsunami warnings across the Pacific Ocean. Earlier today, I was briefed by my national security team on the steps that we're taking to protect our own people, and to stand with our Chilean friends.
Early indications are that hundreds of lives have been lost in Chile, and the damage is severe. On behalf of the American people, Michelle and I send our deepest condolences to the Chilean people. The United States stands ready to assist in the rescue and recovery efforts, and we have resources that are positioned to deploy should the Chilean government ask for our help. Chile is a close friend and partner of the United States, and I've reached out to President Bachelet to let her know that we will be there for her should the Chilean people need assistance, and our hearts go out to the families who may have lost loved ones.
We're also preparing for a tsunami that could reach American shores later today, particularly in Hawaii, American Samoa, and Guam. A tsunami warning is in place, and people have been alerted to evacuate coastal areas. I urge citizens to listen closely to the instructions of local officials, who will have the full support of the federal government as they prepare for a potential tsunami, and recover from any damage that may be caused.
I also urge our citizens along the West Coast to be prepared as well, as there may be dangerous waves and currents through-out the day. Again, the most important thing that you can do is to carefully heed the instructions of your state and local officials.
Once again, we've been reminded of the awful devastation that can come at a moment's notice. We can't control nature, but we can and must be prepared for disaster when it strikes. In the hours ahead, we'll continue to take every step possible to prepare our shores and protect our citizens. And we will stand with the people of Chile as they recovery from this terrible tragedy.
Thank you very much, everybody.
Excerpts of Remarks by Secretary of State Clinton and Argentine President Kirchner, March 1, 2010Footnote 4
Secretary Hillary Clinton and President Cristina Fernändez de Kirchner delivered these remarks in Buenos Aires, Argentina
President Kirchner. (In progress) meeting with Hillary Clinton, the Secretary of State of the USA, where we addressed different matters of common interest to our countries. (Inaudible) very much for being in our country (inaudible) overnight here in Argentina, too. We consider that a very good gesture for our country. And we both showed great articulation as to our presence, for instance, in (inaudible), where we could reassert the commitment of both countries. (Inaudible) as to humanitarian aid (inaudible) Haiti, and we have agreed (inaudible) a more thorough strategic (inaudible).
And we also reasserted the historic commitment, the (inaudible) commitment of Argentina to fight against terrorism. As I always say, the U.S. and Argentina are the only two countries in all the (inaudible) that have suffered more than (inaudible). Therefore, both countries have a very strong commitment in this regard and we have reasserted such commitment. And we have also addressed our future participation in the meeting in Washington (inaudible).
And we've also talked about the problems of our region. At the end of the meeting, I also thanked her for making public those documents related to the dictatorship in Argentina. And we also requested the U.S. to (inaudible) the issue between Great Britain and (inaudible), so that we can sit down at the table and discuss sovereignty over (inaudible) Malvinas, taking into the interests of the inhabitants of the islands, as stated in the different resolutions adopted by (inaudible) from 1975 (inaudible).
And I (inaudible) to Madam Secretary. It's been a very pleasant, very respectful (inaudible). She was a senator in—with the state of New York. I visited her in her office. And then we met at the Democratic Convention (inaudible). And on this occasion too, it's been a very warm and friendly meeting.
Moderator. Madam Secretary.
Secretary Clinton. Thank you very much, Madam President, for your hospitality and the warm welcome. I am delighted to be back in Argentina, and I thank you for the very warm, broad, comprehensive discussion that we just completed. This is not the first time that we have met, and I especially appreciate the opportunity to discuss with you everything from our joint commitment to help both the people of Haiti and the people of Chile recover from their earthquakes, and to reaffirm our historic ties and the common values and goals that we both feel so strongly about.
I thanked the president for the excellent work that is done by the Argentine doctors and peacekeepers in Haiti. I also thanked her for the leadership that Argentina has shown in reducing and standing against the threat of terrorism, as well as the leadership that your country has demonstrated when it comes to nuclear proliferation. As the president said, both of our countries share the very tragic history of being victims of terrorism, which I think makes us very strong in acting together along with other partners to rid the world of this scourge.
We look forward to the president's participation in the nuclear security summit hosted by President Obama in Washington in April. We discussed the threat that Iran poses to the nonproliferation goal that both of our countries are committed to pursuing. And we also discussed in depth the economic crisis that has confronted the world and the role that Argentina and the United States are playing in the G-20 to strengthen the global financial system.
So, Madam President, we have a very full agenda before us. Before I conclude, I would just mention one matter that we did not discuss in our very extensive meeting: the upcoming World Cup in South Africa. Argentina doesn't need it, but we wish your team good luck, unless, of course, you play the United States.
So thank you again, Madam President. And let me convey my best wishes for Argentina's bicentennial celebration in May, and for your continued commitment to democracy and human rights, to economic and social inclusion. Argentina remains an inspiration and a model to people throughout our hemisphere.
Q. (In Spanish.)
And for the Secretary, it's about the Falklands. The—President Fernandez talked about possible friendly mediation. Would the U.S. be considered—would the U.S. (inaudible) consider some kind of mediation role between the UK and Argentina over the Falklands? Thank you.
President Kirchner. (Inaudible) what we have (inaudible) by both countries as a friendly country of both Argentina and the UK, so as to get both countries to sit down at the table and address these negotiations within the framework of the UN resolutions strictly. We do not want to move away from that in any letter whatsoever, any comma, of what has been stated by dozens of UN resolutions and resolutions by its decolonization committee. That's the only thing we've asked for, just to have them sit down at the table and negotiate. I don't think that's too much, really, in a very conflicted and controversial world, complex in terms.
Secretary Clinton. And we agree. We would like to see Argentina and the United Kingdom sit down and resolve the issues between them across the table in a peaceful, productive way.
Interpreter. The journalist was just asking how the U.S. intends to negotiate to get the United Kingdom to sit at the table and address the Malvinas issue. And he was then asking about this setting up of the fund. So, what's the reserves of the country?
Secretary Clinton. As to the first point, we want very much to encourage both countries to sit down. Now, we cannot make either one do so, but we think it is the right way to proceed. So we will be saying this publicly, as I have been, and we will continue to encourage exactly the kind of discussion across the table that needs to take place.
I'm sorry, I don't know what fund we're referring to.
Q. He was talking about the fund that is set up or was going to be set up with a reserve (inaudible). What do you think about Argentina using its reserves to set up a fund to settle foreign debt?
Secretary Clinton. Well, I think that Argentina has made a tremendous amount of progress in paying down its debt. And the president and I were talking about the progress, which is very dramatic, just in the last several years. And I confessed to her that so far as I know, based on the figures, Argentina's debt-to-GDP ratio is a lower percentage now than the United States debt-to-GDP ratio. So however Argentina is doing it, it's working.
Q. I have a question for President de Kirchner. Madam President, just days before this trip, you appeared on CNN and said that in Latin America there had been some sense of disappointment about the first year of the Obama Administration. I'm wondering if in your discussions with Secretary Clinton, if you touched on this disappointment at all, if perhaps Secretary Clinton was able to change your mind about it, and if you had any suggestions about how to avoid similar disappointments in the coming years. Thank you.
President Kirchner. I hardly talk about my CNN interview with the Secretary of State. I don't usually talk about my interviews with the media (inaudible). It would be sort of dangerous for me to tell her what I think and for her to tell me what she says to the media. But we did talk about what triggered that question at the CNN, which was the Honduras issue, where, as you all know, both countries hold different stances. Far from turning (inaudible) into two people that cannot reach agreement, turns us into very serious (inaudible) where we can discuss our points of agreement and things on which we do not agree. This is not only—or not only goes to the relationship (inaudible), but also between (inaudible) civilized, democratic (inaudible). So we can have common points of view on very serious problems and disagree on how we approach other problems (inaudible) serious, responsible, and mature manner. These are the three (inaudible) to live in a civilized world, and both countries aspire to attain that.
Secretary Clinton. Could I just add to the president's comments? We had a very frank exchange of views about our different perceptions of Honduras. And as the president said, I appreciated the opportunity to explain why we believe that the free and fair elections which have elected the new president in Honduras means it's time to turn the page. The difficult period Honduras went through, we hope is now over.
But in any event, the way we were able to discuss this important issue illustrates the importance of our two countries remaining in close touch and constant consultation. Where we agree is so much greater than where we disagree. Thank you again, Madam President.
President Kirchner. Thank you, Madam Secretary (inaudible) and good evening to all of you. Thank you.
Excerpts of Remarks by Secretary of State Clinton and Uruguayan President-Elect Mujica, March 1, 2010Footnote 5
Secretary Hillary Clinton and President-Elect José Mujica delivered these remarks in Washington, DC
President-Elect Mujica. Good morning, everybody. On behalf of my home and my country, I want to very especially thank (inaudible), Madam Secretary of State Clinton has had in coming here. Sometime, a short time ago, (inaudible) Secretary of State with whom we have been making (inaudible) like to undertake with the United States in the region. We already have some commercial agreements, but we want to move forward. We want your cooperation in science, especially in research. We are—we (inaudible) research at the universities and we'd like to work together. We offered also our (inaudible) to contribute to whatever can be done to mitigate the unavoidable contradictions that history has imposed, especially in Latin America.
We are—we have to admit that we have prejudices that we sometimes (inaudible) with stereotypes. We were very surprised to see that a black would have become the president of the United States. That is something that we had never thought that it would be possible, and that was out of (inaudible) prejudice on our side. That is a lesson and a very (inaudible) lesson that we learned and that keeps us promoting the changes that have been good (inaudible) in America.
So we wish you the very best in that respect and we want you to know that in the future, we are going to be willing to contribute in the trade of peace. (Inaudible) efforts will be enough to make peace. That is something that we must really to cooperate with. So once again, thank you for coming.
Secretary Clinton. Thank you very much, President-elect. And I am honored to be here on behalf of President Obama and the United States of America. We join you in celebrating the strength of Uruguayan democracy and the progress that your country has made and we know will continue to make in the future.
While today is a day of celebration, it is also a time when our thoughts and prayers are with the people of Chile. I will be in Santiago tomorrow to meet with President Bachelet and President-elect Piñera to work with the government and people of Chile in solidarity in recovery from this earthquake.
But now I wish to not only congratulate the president-elect and the new government, but to applaud the way in which the government is unifying and bringing together even opposition parties to work on behalf of the people of Uruguay. Indeed, Uruguayans are rightly proud of their leaders and their democracy and this peaceful and orderly transition of power brought about by an election. Indeed, your country, President-elect Mujica, is a model for many others not only in our hemisphere but throughout the world.
I thank Uruguay for the peacekeepers that you send in large numbers compared to your population. I commend you for the leadership role you are playing as the chair of the Friends of Haiti group. And as you and I discussed, sir, we will be working with you in partnership on behalf of education, science and technology, business, trade, and investment.
So again, sir, it is a deep privilege for me to be back in Uruguay 12 years after my first visit, and to see some familiar faces, but mostly to congratulate you, your new government, and the resolve and democratic values of the people of your country. And of course, Mr. Presidentelect, it is a personal pleasure to see a first lady who is also a senator.
Q. Argentina is greatly concerned about the beginning of oil drilling, or oil exploration efforts off the coast of the Falkland Islands. I was hoping you could clarify the U.S. position on this. Is—do you believe that this is an issue that the U.S.—perhaps you (inaudible)—that Argentina and the UK should sit down and discuss in terms of the future sovereignty of the islands?
Secretary Clinton. As you know, we'll be going to Buenos Aires later today. I look forward to meeting with President de Kirchner and discussing a full range of issues. It is our position that this is a matter to be resolved between the United Kingdom and Argentina. If we can be of any help in facilitating such an effort, we stand ready to do so.
Thank you all.
Remarks by Secretary of State Clinton and Chilean President Michelle Bachelet, March 2, 2010Footnote 6
Secretary Hillary Clinton and President Michelle Bachelet delivered these remarks in Santiago, Chile
President Bachelet. Good morning, everyone. I would like to, first and foremost, thank the international solidarity of the many neighboring and friend countries, and very particularly I'd like to thank the solidarity of the United States, of President Obama, and of Secretary Clinton. She called me (inaudible) very close moment, not only called me but she has come in person to express that solidarity.
At the meeting with the Secretary of State, we have discussed several specific subjects. We talked about the priorities identified by my government, and that we have conveyed to all of our embassies, governments, and international agencies.
Our objective is that cooperation will exactly meet and respond to our needs, our most urgent needs. And as I have pointed out already, these are satellite phones and we have already received yesterday and there is—there are others about to come. Also, temporary (inaudible) there have been announced and a field hospital with (inaudible) capability. Also, donations in money are very useful, very important, because we need to buy food and medication.
We have also requested power generators, desalination water treatment plants to purify water, saline water. And as to (inaudible), we need autonomous dialysis systems because dialysis, as you know, calls for pure water, and in those impacted areas there is no water.
There are other elements indeed that we have discussed with the Secretary, but mainly what we need is semi-temporary or temporary semi-permanent hospital facilities, as many, many have been destroyed. And we need to have them and they are—they will be arriving soon.
The government knows that people need water, food, and don't think that—we do have them in our country, but how can we supply them if we don't have bridges or roads? And we need to have authorities communicated with the people to know exactly what their needs are and get to them immediately. And that is why we have—I know that it's important for the hospitals for them to care for the wounded and for all the victims. For that we have sought the support of the international community.
We are already, of course, distributing all these elements. We do have here in the back, planes with contingents and with food. But that—we need to do it very fast, get to the remotest corners of the country and get there soon.
President Bachelet. Thank you very much, Madam Secretary of State.
President Bachelet. Finally, I'd like to thank very particularly Secretary Clinton, President Obama, for the great support and friendship that they have given us and that the Chilean people will be eternally grateful. Thank you.
Secretary Clinton. President Bachelet, I first come with the great sympathy and support from President Obama and the people of the United States. This devastating earthquake has wrought so much damage across your country. The ferocity was 800 times greater than the earthquake that hit Haiti, and your leadership and the extraordinary efforts of your government and the people of Chile are responding with resilience and strength. And the United States is ready to respond to the request that the government of Chile has made so that we can provide not only solidarity, but specific supplies that are needed to help you recover from the earthquake.
I was planning to be in Chile today anyway for a long-scheduled trip and I was so looking forward to meeting with President Bachelet who is a leader whom I admire greatly and consider a friend. And when I spoke with the president, I said, “I will not come if it will interfere in any way.” And we changed the itinerary so that I could come and I brought with me 25 of these satellite phones. We have identified 62 as the highest priority for the government's request. I had 25 on my plane loaded on and I'm going to give this one to you, Madam President.
And let me just add after consulting with the president and her ministers, we are sending eight water purification units. They are on their way. We have identified a mobile field hospital unit with surgical capabilities that is ready to go. We are working to fill the need for autonomous dialysis machines. We are ready to purchase and send electricity generators, medical supplies and are working to identify and send portable bridges so that some of the places that are remote that lost their bridges will be able to be reconnected to the country. People are working. That's a good sound.
And finally, Madam President, after discussing the needs that Chile has, we will look to see if we can provide additional equipments from portable kitchens to helicopters to assist you in this massive rescue recovery effort that you are undertaking. And additionally, we will let the people of America, who are very anxious to help Chileans, know that they can contribute to the Chilean Red Cross; that they can contribute to the Caritas Chile and the ONEMI programs. We will get that information and give our press the specifics.
Q. What scale of things do you need? What dollar amount? Could it be in the billions of dollars? And what specifically can the U.S. do? Can it use—can it send some of the military over (inaudi ble) using the diplomats in Europe to get aid from them?
President Bachelet. Well, we are going to receive aid and support from many different countries and organizations but I would say we cannot give an exact and accurate figure right now on how much it will cost. I mean, there has been some estimation made. They talk about 30 thousand million dollars. But really, I mean, with some places, there's still poor communications. So we are more focused right now in doing all the emergency, the short-term, I would say, initiatives that people need to assure food, water, electricity, and of course, public order.
But in the meantime, we will start doing the estimation. We have rough estimations, like we have two million people who have been damaged by the earthquake in different levels of damage. We have an estimation that at least 500 houses—500,000 houses have damage. But we have to—we are now, in the meantime, sending experts: engineers, architects, and so on, to evaluate in the field the kind of damage and if those kinds of public works can be repaired or have to be completely rebuilt.
So until now, we don't have the exact—I could not answer to you the exact—how much it will cost to rebuild, to reconstruct all the damage. But I can only say it will be a lot, because Chile has the capacity, we have the engineers, we have the people, we have the experience, we have people trained and all that, but I think it will take long and it will mean a whole lot of money. So we have been talking also with the Secretary of State of another kinds of initiatives in the financial—I mean, Chile today (inaudible) creditor, so we think we could be able to have also with the good credit from whatever, World Bank or—and we will discuss those issues with the future government so we can advance in that, too.
I do not have the exact figure. As you know, we have updates every two and three hours, and the Secretary of State also offered human resources, that is, experts, engineers, and others. And—but I will give the floor to her so she can (inaudible).
Secretary Clinton. I think it's understandable that what the president has said is there needs to be a very good assessment, and it's very difficult to do that assessment while you're still trying to help people get food where they need it, provide medical care, and even reach some of the more remote areas. And we stand ready to help in any way that the Government of Chile—and I will say this to the President-elect Mr. Piñera when I meet with him—any way that the Government of Chile asks us to. We are so grateful for what Chile did in Haiti. Your rescue teams were among the very best in the entire world. And we want to help Chile, who has done so much to help others. And I can only imagine the extent of the damage—2 million people, at least, who are displaced.
So we stand ready to offer what we've asked for now and to stay, as your partner and your friend, for the long term. We'll be there to be of help when others leave because we are committed to this partnership and friendship with Chile.
Thank you.
Excerpts of Remarks by Secretary of State Clinton and Chilean President-Elect Piñera, March 2, 2010Footnote 7
Secretary Hillary Clinton and President-Elect Sebastiän Piñera delivered these remarks in Santiago, Chile
Secretary Clinton. Well, thank you very much. I just had the privilege and opportunity of a long conversation with President-elect Piñera about the immediate crisis of the earthquake and about a number of important issues that we will be working on together upon his becoming president next week.
Chile and the United States have a very close bilateral relationship. We have explored a number of the important matters that are on our agendas together, but we also have regional and international responsibilities. Chile is a member of the G-20. President-elect Piñera will be coming to Washington for President Obama's nuclear security summit. There are a number of critical issues that we must work on together.
I reiterated our strong support as Chile recovers from the earthquake. And President-elect Piñera mentioned specific needs that Chile will have for reconstruction, and we've offered assistance in that phase as well.
Well, the president-elect informed me that Chile is not a member of the G-20, but the G-20 will be working to help Chile as long—as well as other international financial institutions. And certainly with the president-elect's background in business, he will be a very important voice in all of the multilateral discussions about the economy going forward.
President-elect, on behalf of President Obama and the people of the United States, we stand with you. We look forward to working with you, and congratulations upon your inauguration next week.
President-Elect Piñera. I want to very much thank Secretary of State Hillary Clinton for her visit and also for the willingness that she has indicated to cooperate with Chile so that we can not only deal with the current emergency but also work towards the plan for reconstruction that Chile needs to carry out with a sense of a unity and solidarity.
The meeting with Secretary Clinton was a long one. It was a deep meeting, it was a fertile meeting, and I think that we have covered not only many bilateral issues as well as the issues Chile is facing now during the emergency and its phase of reconstruction, but also many multilateral issues of interest to us both.
We share with the United States a number of values—freedom, democracy, respect for human rights, a sense of cooperation—and above all, we share the same ideas with regards to challenges of the 21st century.
And so we posed to her and we represented to her our willingness to continue to cooperate, but even more closely than before, on strengthening democracy, protecting human rights. We also asked Secretary Clinton for cooperation from the United States with regard to technology, because if the United States can provide us with very good information on renewable energy, environmentally friendly energy, technology necessary to provide housing—temporary housing, to provide prefabricated housing quickly, this is going to help, particularly in the cases of 500,000 people who have been left without shelter as a result of the earthquake; also in terms of renovation and also issues of entrepreneurship, because Chile is now at a time in its history where it needs to make a leap forward. Our hope for Chile is that it will be the first country of Latin America to beat underdevelopment, to beat poverty. And we hope to do so while we strengthen democracy and work towards peace.
And finally, I asked the Secretary of State to please extend our invitation to President Obama so that he will visit Chile in the near future. And I also assured her of my attendance at the nuclear security summit in Washington, D.C. in April. I also hope that I will have the opportunity to have many more meetings with Secretary Clinton so that we can further the ties that join our two countries, so that we can work towards the achievement that our people require.
And I want to thank you, Secretary, so much for being here today. I hope that our fertile bilateral relationship leads to many good things for our two nations. Thank you.
Q. Hi, Mr. President-elect. I have a question for you, whether you believe that you're satisfied with the response of the government to the earthquake. Do you believe, for example, that they should have deployed the military within the 24-hour period? That could have, perhaps, avoided some of the looting that we're seeing in the most affected areas.
And for the Secretary: We know that you like to get out in person and see these situations for yourself. Do you feel a little disappointed that you weren't able to in this case? And you also went to Haiti after that quake. Can you just to explain to our viewers and readers at home the differences you see and the reaction to the situation? Thank you.
President-Elect Piñera. When you go through a catastrophe as massive as the one that Chile has suffered, let's remember that this was not just a large earthquake. It's one of the greatest, most powerful earthquakes that have ever been recorded. Over 75 percent of Chile's population was affected by it. There are basic priorities that need to be dealt with immediately. Those are to maintain public order and safety, to provide the basics needs to the people, such as water, power.
If the armed forces can help in this initiative, they should be used. They can provide technology and logistics, the staff necessary to get many of these jobs done. And therefore, I applaud the Government of Chile for having established a state of catastrophe that made it possible for them to make use of the armed forces in this situation.
My team is currently studying what it is we are going to do when we take office so that possibly we will be extending this state of catastrophe to continue dealing with the situation to provide water as quickly as possible, provide water—sorry, power as quickly as possible, and do this in a way that this emergency phase will come to a close quickly and we can begin with the work of reconstruction.
Secretary Clinton. I have been visiting sites of disasters for more than 30 years, as a first lady in Arkansas, as a first lady of the United States, as a senator from New York, and now as Secretary of State. And it is very clear to me that Chile is much better prepared, much quicker to respond, more able to do so. The leadership that President Bachelet and President-elect Piñera are providing to make sure that they work together in order to keep the recovery and relief efforts going seamlessly is exactly what one would expect. There is no doubt in my mind as we stand here at an airport that thankfully is functioning and relief flights are coming in, that Chile is prepared, is dealing with this massive disaster and will be on the road to an even better recovery in the future.
Q. President-elect Piñera, buenos tardes. We'd like to know how you plan to pay for the reconstruction efforts, which are going to be considerable, what you estimate they're going to cost. And also, how does this affect your economic plan of 6 percent growth and 200,000 jobs created in your first year in office?
And for Madam Secretary, we just wanted to ask you whether you think that president-elect's attitude toward Venezuela and Cuba will be helpful or a hindrance to the relations between the U.S. and those countries, and Chile and those countries. Thank you.
President-Elect Piñera. We are finishing our diagnosis right now, so we're not quite sure of all the figures and absolutely all the details. What I can tell you this is the most important thing we need to deal with right now. So far, the count is that there are over 730 people who have died, more or less. That number may continue to grow, unfortunately, because a number of people are still missing. We know that there are people who are caught under the rubble. And so we will continue to work on this. This is probably the worst and the most—the saddest thing that we're dealing with right now.
We know this effort is going to entail an enormous investment. Figures right now are in the area of $30 billion. We're not sure of that, but that's more or less in the area of 16 percent of this country's GNP. Therefore, an amendment will have to be made to our plan, because we are going to have to factor in one very important element, and that is the phase of reconstruction.
How are we going to carry this out? Well, luckily, Chile's financial situation is extremely solid. We have fruitful resources—financial resources and human resources that will allow us to do much. We will also be given a helping hand by the international community, which has already shown its solidarity. You've seen it at this very airport. President Lula came to visit us, the Secretary of State is here with us today, and the president of Peru is going to be visiting us shortly. This is a demonstration of the efforts at reconstruction that have already begun and that we are already being helped with.
Secretary Clinton. As to the second question, Chile and the United States share common values: a great belief in democracy, a respect for private property and free markets, a commitment to free expression and independent media, and so much else. And we will stand strongly on behalf of those values in our hemisphere and around the world.
Excerpts of Remarks by Secretary of State Clinton, March 3, 2010Footnote 8
Secretary Hillary Clinton delivered these remarks in São Paulo, Brazil at a townterview with Brazil's Globo Network at Zumbi dos Palmares University
Ms. Beltrao. Okay. Madam Secretary, first of all, thank you so much for being here. I know all of us, but especially the students are delighted to welcome you this evening here. And my question is: In South American in general, but especially in Brazil, there is a certain feeling of dissatisfaction regarding this loneness with which the Obama Administration has been showing changes in American policy for Latin America. We expected a little bit more after Bush Administration. Can we assume that your visit is part of a long-awaited change for us?
Secretary Clinton. Well, first let me say I am so honored to be here on behalf of the United States and President Obama. We are still very excited by his election. And we believe that he has already changed many things about the way the world sees the United States.
Change is never easy. You know, it's not easy in a life. You wake up one day and you say, “I'm going to change. I'm going to get an education. I'm going to lose weight. I'm going to start exercising.” But then it takes time to actually realize the change. And I think that because of the excitement that President Obama generated all over the world, and particularly in Latin America, people might have forgotten that change is hard. If it were easy, anybody could do it. But he is committed to changing the relationship between the United States and Latin America, and so am I.
And we are working on many common matters. Today in Brasília, we signed memoranda between the United States and Brazil on how to improve gender equality, so that girls and women are given the same opportunities as boys and men. We talked about how to work together on climate change. These are all significant historical problems that take time. But I think that most people are understanding of that.
We all get impatient. We wish it would happen yesterday. But I think that as I have been here in Brazil and I was before in Uruguay and Argentina and Chile, the terrible earthquake there, people believe in President Obama and his vision for the relationship that we're building together.
Mr. Waack. (Inaudible.) There is a question from the internet which relates very much with what was asked right now about the visa requirements for Brazilian citizens who wish to enter the U.S. soil. We Brazilians are hardworking people in the United States. We need to have an immigration reform in your country. The question is: Does the United States see us, Brazilians, as a threat?
Secretary Clinton. No—not at all. I live on a street in Washington just about six houses away from the Brazilian ambassador's residence, and what used to be the visa office for the Brazilian Embassy. So every day I would drive by dozens and dozens of Brazilians in America going in to get their visas renewed or to get them verified. We want more exchanges between Brazil and the United States. We want more Brazilians coming to study and visit and work and we wanted more Americans to come to Brazil. Now, there are two big reasons why Americans will come to Brazil in the next few years: the World Cup and the Olympics. So we want to make it easier.
And one of our problems which I learned about yesterday was that we only have a few places. We only have—we have the Embassy in Brasília and then we only have three consulates in São Paulo and Rio and Recife, and that makes it very hard in a country as big as Brazil for people to get visas. So the ambassador and I are working on ways to make it easier, because we really do want to increase the exchanges between our two countries. I believe that Brazil and the United States are the two countries more alike than any two countries in the world.
Q. Good evening. My name is Tamezra. I'm an international relation student, and I have two questions. One of them is really quick and I will let it to the end. But first, I'd like to know your opinion regarding the Venezuela and United States relation, considering that there is a big difference between the political and economic context in this relationship.
Secretary Clinton. [T]he United States would very much like to have a positive relationship with Venezuela. I'm sure some of you remember when President Obama went to the Summit of the Americas, he shook hands with Hugo Chävez. He exchanged words with him. He was reaching out to President Chävez. But there are many, many things which concern us about what is happening in Venezuela today.
When I was in Brasília and here today in this university setting, I see the free press that Brazil has. I saw it in very active participation in Brasília where there were so many cameras and so many different reporters there. President Chävez is trying to stifle the press in Venezuela. If you say anything negative about him, he tries to shut you down. That is not the way a democracy operates. He is taking over companies and taking their assets and, unfortunately now, we see the results of those economic policies. There are electricity shortages in Venezuela, a country with oil. It makes no sense.
So we wish for a better future for the people of Venezuela. We wish that their government would govern more in the interests of all of the people. We also wish that there would be less rhetoric and threats coming from Venezuela. But that is not our choice; that is their choice. And I can only repeat here what President Obama and I have said on many occasions: We want to have a positive relationship, but it's difficult under the current circumstances.
Excerpts of Remarks by Secretary of State Clinton and Brazilian Foreign Minister Amorim, March 3, 2010Footnote 9
Secretary Hillary Clinton and Foreign Minister Celso Luiz Nunes Amorim delivered these remarks in Brasilia, Brazil
Foreign Minister Amorim. First of all, I'd like to once again convey my words of welcome, my earnest words of welcome, to the U.S. State—or Secretary of State Hillary Clinton, which she has by now been able to successfully test her approval rating in Brazil, given the vast crowd of photographers and media professionals everywhere she's been, including this ministry so far. But it is indeed a great pleasure to have you here as Secretary. Obviously, the U.S. Secretary of State is always a high-profile figure. But I think it is also fair to say that Hillary Clinton is, in her own right, a largely admired person, one who has elicited a lot of attention and respect from many people, including, of course, those of us in Brazil.
We have thus far sustained very important talks. We have also entered into three agreements, one focusing on cooperation regarding discrimination or different forms of discrimination and violence, particularly against women and young girls.
We have also signed an agreement on fostering a strategic dialogue on climate matters, an area that both President Lula and President Obama have devoted a lot of efforts and time while in the recent Copenhagen conference.
We have also signed a third agreement on trilateral cooperation. I was going to say something else, but I was going to the actual case. But of course, trilateral cooperation will encompass Haiti, Africa, and other related situations, or say, countries in Central America.
By the way, we also talked about Central America in great detail and quite extensively. We also, of course, referred to some of the existing agreements between us, both trade agreements and other agreements that may evolve and mature at a bilateral level, and also a very important agreement that we have in place which can be further deepened that regards efforts to promote racial equality. That is certainly an area where we all can draw lessons, mutual lessons, from our nations' experiences. Brazil has always been proud of being a racial equality but has perhaps neglected and turned a blind eye to some of the key (inaudible) have otherwise taken. The U.S. has perhaps suffered a little bit more and has therefore moved to put measures in place before Brazil. So the door is also open and always open for us to exchange views on racial equality, issues which I know are very dear to the Secretary of State herself.
We also had a broad-ranging discussion on bilateral and global—multilateral and global issues, to include the Middle East, including Iran in that chapter. We also touched on issues pertaining to climate. We also, of course, focused on the relevant strategies to be pursued. We, of course, talked about regional issues, mainly Haiti, which—Haiti and Chile, of course, more recently, but of course, we did refer to Haiti because Haiti is the country in greatest need at this point in time, a country that has involved active involvements on the part of both of our nations.
But of course, we also referred to matters of a more global scope, matters that are, say, more global in nature. I even told the Secretary of State that I would not risk my credibility with her by insisting on the importance of successfully completing the Doha round of negotiations, but I did at least, in passing, refer to the Doha round.
So, roughly speaking, in very broad strokes, that's what we covered. We had very candid discussions, very truth-based discussions, if you will, mutually so, and I feel very rewarded with the discussions and talks. Of course, the Secretary of State will now visit the president in the next few minutes, President Lula da Silva, so we need to, of course, abide by the time that has been allotted to our Q&A and interview. Thank you very much.
Secretary Clinton. Thank you very much, Foreign Minister. It is—thank you. Is that on? Good. It is a pleasure, once again, to be here in Brasilia and to have the opportunity to meet with you and to sign these important agreements. As the foreign minister said, we covered a lot of ground today. We, of course, reviewed the relief effort in Chile and the importance of the countries of the Americas coming together in times of crisis. President Lula went to Chile. I went yesterday. We will work together to help Chile recover.
We also very much appreciate Brazil's leadership efforts in Haiti. Brazilian troops continue to play the lead in MINUSTAH, providing security and stability. Brazilian doctors continue to save lives. And Brazil is one of the keys to the international community in going forward with the kind of commitment to Haiti that will last and produce tangible results for the Haitian people.
I also appreciate the very strong relationship that Brazil and the United States have had over the years, and the fact that we are even broadening and strengthening that today. Our governments do not agree on every issue. I don't know of any two governments who agree on every issue. But we share core values—a passionate commitment to democracy and freedom. We share a sense of social responsibility, a belief that we are both better when others are given the chance to develop themselves.
And both the United States and Brazil are committed to the core goal of nonproliferation. And the foreign minister and I discussed our mutual commitment to ensuring that Iran does not acquire a nuclear weapon. And the United States looks forward to continuing that conversation with Brazil in the weeks ahead.
The foreign minister and I also discussed the situation in Honduras and the progress being made there to restore constitutional democracy. The United States is committed to supporting Honduras on its path to reintegration within the inter-American community. And we want to work with Brazil and others to strengthen the OAS so that it can more effectively advance our shared democratic values, respond when democratic order is subverted or other challenges arise, and help to prevent political crises from erupting in the first place.
Now, given the range of challenges before us, the United States and Brazil are launching a global partnership dialogue between our foreign ministries to deepen that cooperation. The agreements we signed today are part of that expanded engagement. The MOU on climate change will strengthen our cooperation in key areas, including building on the Copenhagen accord, which our two nations helped to craft last December; reducing emissions from deforestation and forest degradation; redoubling our commitment to our bilateral partnership in renewable energy, energy efficiency, and other climate and energy issues. And we very much admire all that Brazil has achieved in this area and look to work cooperatively together on behalf of other countries as well.
The memorandum on trilateral development will enhance our efforts to widen the circle of prosperity, increase social and economic inclusion, improve healthcare, and give people the tools they need to lift themselves out of poverty in those countries in greatest need here in our own hemisphere.
But we also are paying attention to Africa. It is a concern that both Brazil and the United States share, and we will work together. Brazil is a natural partner of ours in addressing food security, having implemented a highly successful and comprehensive program that has significantly reduced malnutrition in this country. It should be our goal that every child born in the Americas, or anywhere in the world, for that matter, has the opportunity to live up to his or her full God-given potential.
Now, this goal would be impossible, however, if half the population is left behind. So our memorandum of understanding on women and girls will spur greater cooperation on eliminating violence against women, combating the trafficking of women and children, increasing the participation of women in decision making, improving equality and equal pay in the workplace, and creating new opportunities for women everywhere. This is not only the right thing to do, but Brazil and the United States agree it is the smart thing to do. Investing in the potential of women and girls is one of the surest ways to achieve economic progress, political stability, and greater prosperity.
Both of our countries have struggled at times to live up to our own ideals of equality, tolerance, and inclusion. But I think both the American citizens of the United States and the Brazilian citizens of the Americas can be proud of what we have accomplished. Our commitments to pluralism and democracy make us more competitive on the world stage. Brazil and the United States look much more like the rest of the world than many other countries do. That is a great, great strength.
Later today, I will be visiting an Afro Brazilian university in São Paulo, the very first one, I am told, and meeting with some of Brazil's brightest young people. The partnerships we create together will make sure that Brazil and the United States continue on a path toward greater equality, achieving the goals that we have set for ourselves.
So again, let me thank the foreign minister for his hospitality and his efforts to promote cooperation between our nations, and I look forward to continuing to work with him.
Moderator. The first question, Eduardo Davis, Agencia EFE.
Q. Madam Secretary, a question for you. Good afternoon. Madam Secretary, you said that you talked about Honduras with the minister. In this case, at the congress this morning, you said that it was important that this country be readmitted at the OAS. And what does Minister Amorim thinks is missing before Brazil normalizes relations with Honduras and support the reintegration of Honduras in—to the OAS? What's the position of Brazil?
And Secretary Clinton, this past Monday in Spain, a judge opened a case where he says there are evidence that the Venezuelan Government cooperated in some cases with FARC and with ETA to attack Colombian personalities in Spain. President Chävez, of course, rejected all those accusations, said they're lies, and he says that the U.S. hand was behind all those accusations. How do you react and how do you (inaudible) these accusations, and could you give more information about this and do you have any additional comments about this allegation that the hand of the United States was behind all those accusations against Venezuela?
Foreign Minister Amorim. I don't know for whom the question is. But anyway, I think it's for you.
Secretary Clinton. Both of them? Do you want me to answer?
Foreign Minister Amorim. So maybe I could say something before the Secretary has the floor, because that will give her time to think about your—quite a few questions.
Anyway, as regards to Honduras, our stances are well known. We exchanged views on that issue today earlier and I had the occasion of telling Madam Secretary that, of course, Brazil wishes to witness a future of normality throughout the region, and likewise we wish a future that will prove beneficial to all countries of the region as a whole.
However, countries that have undergone, say, the trauma of living under a military dictatorship following a coup d'état—for example, my own generation, Brazil was deprived of voting rights. For 21 years on end we were not able to vote for the presidency. So you can't take these things that widely. You have to bring that into perspective. So we have followed with great attention the gestures of, if you will, or the actions taken by the incumbent president of Honduras. He has made moves to the effect of fostering greater national reconciliation efforts, to include, of course, members of what you might describe as the opposition in Honduras, who are more, say, supportive of Zelaya. You might call them “left-wing supporters,” between quotations marks, under his administration, as is the case today.
We also, of course, appreciate the efforts he has tried to undertake as regards amnesty. And even his initiative to visit Brazil's first initiative, something that was very much called into question by the Brazilian media, but he did visit the Brazilian Embassy and followed, of course, with the key people all the way out to the airport. We, of course, very much appreciate the fact that the chief of staff himself was directly involved on a firsthand basis in the kidnapping or abduction of President Zelaya. So all of these, of course, are positive developments and we, of course, have kept an eye open and have sustained contacts in the region.
But it's the kind of thing that cannot be easily absorbed. I mean, the type of a military coup d'état happened and it struck a legitimately elected president who was very much in the middle of an otherwise successful term in office. So we need to, of course, work on the basis of two things, two variables: facts on the one hand, and time on the other hand. It can't be just time, because, of course, some events may speed up the lapse of time, and that is why I do not wish to indicate any deadline, because very often you may find yourself without any relevant events, therefore time itself is not enough.
And that's what we've talked about so far. We, of course, are very appreciative of the positive efforts made in Honduras and also the positive efforts made by the U.S. I understand the White House will soon receive President Funes from El Salvador. He is very directly related to Brazil and I understand that Madam Secretary will be visiting Guatemala in the next few days. So we're quite interested in monitoring events as they evolve. Of course, there's a very emblematic event, which would be, of course, creating the conditions and fostering the wherewithal for Zelaya, if he so wishes to go back to his country, it's not the only event—it's not the only condition, but it would be symbolically very important in that sense. It would prove very instrumental.
Secretary Clinton. With respect to your question about Venezuela, I am not familiar with any of the allegations being made in Spain. I am familiar with the constant allegations being made by the Venezuelan Government with respect to our own government, and I can only reiterate what we have said many times: We are not involved in any activities intended to harm any Venezuelan. We are deeply concerned about the behavior of the Venezuelan Government, which we think is unproductive with respect to its relations with certain neighbors, which we believe is limiting, slowly but surely, the freedoms within Venezuela, therefore adversely impacting the Venezuelan people. And we would hope that there could be a new start on the part of the Venezuelan leadership to restore full democracy, to restore freedom of the press, to restore private property and return to a free market economy. We wish Venezuela were looking more to its south and looking at Brazil and looking at Chile and other models of a successful country. And we think that would be in the best interests of primarily the Venezuelans themselves, but certainly all of their neighbors.
Excerpts of Remarks by Secretary of State Clinton, March 4, 2010Footnote 10
Secretary Hillary Clinton delivered these remarks in San Jose, Costa Rica at the Pathways to Prosperity Ministerial
Secretary Clinton. Since we were together last year in El Salvador, our region has been tested by a number of crises, including the political upheaval in Honduras and the devastating earthquake in Haiti and Chile.
These emergencies highlight the strength of our ties as neighbors, partners, and friends, and they amplify the importance of the work we are doing through Pathways. We are here to help create conditions that enable people to obtain the economic and social opportunities critical to national and regional stability and progress. Whether our countries are seeking to defuse threats to democracy, protect against the effects of natural disasters, or build long-term prosperity, it is vital that we spread the benefits of economic growth and integration to more people in more places.
In our region, prosperity has widened in recent decades. We've worked to promote growth and create jobs through sound fiscal policy, bilateral trade agreements, multilateral pacts like NAFTA and CAFTADR, and institutions like the Inter-American Development Bank. But for too many people in too many places, including in my own country, opportunity is limited and fleeting.
So through Pathways, we are working to close the opportunity gap that exists for the farmers, craft people, and small business owners who are excluded from financial services and who lack access to global markets. We seek to engage women and historically marginalized populations such as indigenous peoples and Afro descendents to give them the chance to contribute to and share in the broader economic progress. And as the number of young people across the hemisphere rises, we are working together to make sure that the number of schools, access to higher education, and jobs rise as well.
What I like about Pathways to Prosperity is that it provides a critical forum where nations committed to democracy and open markets can share the best practices for promoting social and financial inclusion. We can and must learn from each other. The Americas, as we heard from the minister from Costa Rica, are one of the world's most dynamic and diverse regions, with a strong economic base that is evident in the multitude of creative solutions already at work in our countries. And I've had a chance to see these solutions in practice.
In El Salvador, a public-private partnership has provided credit to small and medium size businesses, sparking entrepreneurship, and raising family incomes. In Brazil, where I was yesterday, I met with a group of businesses that represented partnership between Brazilian and U.S. Governments, and over 100 U.S. companies called Mais Unidos, which promotes corporate social responsibility, job training, English language training, especially for at-risk Brazilian young people, so that they too have the tools to compete.
And like you, I have followed the progress that Uruguay and Panama have made towards spreading the benefits of the digital age through initiatives that distribute laptops to children. I was just in Uruguay, meeting with the out-going president and now-president Mujica, and their “one laptop per child” program has given a great boost to learning and access to the wider world. Legislation passed in Honduras makes credit now available to farmers and small businesses through secured transactions. Every single one of these programs can be a model for the rest of us, and that is what I hope comes from our meeting today.
And I want to recognize our host, Costa Rica, a global leader in environmental sustainability. Costa Rica co-hosted a conference in January with the Organization of American States on how to encourage public participation in environmental decision making. Yesterday, the EARTH Institute here in Costa Rica led a discussion on the business challenges and opportunities facing women in the Americas, and the Rainforest Alliance, Wal-Mart, and other organizations discussed their efforts to bring micro-enterprises into global supply chains. That is a critical element of sustainable and inclusive development.
Now, none of these programs or policies will close the opportunity gap on its own. But together, they move us toward the goal of giving all people of the Americas the chance to fulfill their God-given potential, to earn a living, receive an education, participate in the global economy, and if they choose, to start or expand a business.
I am so impressed by the people in our hemisphere. I've traveled throughout this hemisphere for 17 years now, and I meet people with smart ideas, a great work ethic, and a strong entrepreneurial spirit everywhere. What I have concluded is that talent is universal, but opportunity is not. They just need a chance to show what they can do, to compete in a business environment that is fair and secure. And together, we can help provide for that.
To that end, the United States will be focusing on several Pathway initiatives to support entrepreneurs across the hemisphere. First, we've had success in our country with the creation of small business development centers where people can go to get information and advice about starting a business. Some Pathway countries have adopted this model, and we're looking to share it with others by organizing exchange visits between countries.
Second, we are supporting women entrepreneurs across the hemisphere. We know that women still today are often overlooked or excluded, especially when they go for credit. I've had women say to me, “A lot of dreams die in the parking lots of banks.”
So even though these women are innovative, energetic, hardworking, and committed, we're not doing enough to support their businesses and efforts. Last October, the United States hosted a conference for women entrepreneurs from the Americas. And we've launched a mentoring network to connect experienced women business leaders with women who are just starting out. In the coming months, we'll work with you to deepen and expand that network.
Third, we want to help our partners in Pathways modernize customs procedures, something that was also mentioned by the Costa Ricans. Efficient and effective customs practices are critical to attracting foreign investment and succeeding in global markets. Now, several countries in Pathways are also members of APEC. The members of APEC have agreed to reduce our trade logistics delays and costs by 5 percent. And I challenge the other members of Pathways to work with us to do the same. The United States will sponsor workshops for public and private sector officials to share best practices for improving customs procedures. At APEC, we looked at research which showed that these small changes in customs procedures that have a direct and significant impact on improving business opportunities in every country.
Fourth, trade requires effective communication. This year, we have offered 100 teachers from Pathways countries training in English language instruction, and over 400,000 students across the region are learning English at the 140 bi-national centers we support. This is work we are committed to continuing, and I'd like to ask our partners in Pathways to make this a mutual exchange. Millions of U.S. citizens speak Spanish as a first or second language, or are learning how to speak it. With your help, we can have even more U.S. citizens learning Spanish, and that will increase our trade and business ties.
Fifth, we are working to help small and medium-sized enterprises decrease the amount of water, energy, and raw materials they need to protect natural resources, shrink carbon emissions, and save costs.
Sixth and finally, the United States is committed to working with our Pathways partners to modernize laws that govern lending so that small and medium size businesses can use assets other than real estate as collateral for loans. I visited the display that Honduras has, and they showed me the kind of equipment that can now serve as collateral in Honduras because Honduras has changed their laws: sewing machines, tool boxes, farm equipment.
Small businesses are the backbone of our economy and the source of employment for many of our citizens. We must give them the chance to borrow larger amounts at lower interest rates with longer repayment periods if we're going to make it easier for these enterprises to thrive. And I commend Honduras for the model programs that they are implementing.
Let me say a word about the importance of job creation in Haiti. One of the great stories about this horrible tragedy in Haiti is that before the earthquake, working with the Government of Haiti, many of the countries around the table were committed to long-term development projects. Shortly before the earthquake, my husband, who works with the secretary general of the United Nations, brought over 500 business leaders from across our hemisphere to Haiti to sign contracts, to open factories, expand businesses, to develop tourism.
Last spring, I visited a garment factory in Haiti that was a powerful engine for local economic growth. At that time, apparel exports made up approximately 90 percent of all exports from Haiti and supported 28,000 jobs. We expected that to grow many times over. Since the earthquake, many of Haiti's factories are coming back online. Many others, however, are still closed, and their workers out of work. Getting Haiti's industry moving again will help the immediate recovery effort and stimulate future growth.
The United States has a trade preference program called Haiti HOPE, H-O-P-E, which extends our most favorable tariffs and terms on Haitian exports of textiles and apparel. Our Congress is considering bills that may help Haitian producers even more. Other countries have also taken such steps. Canada, for example, has an excellent program that allows Haitian products to enter tariff-free.
I was reminded again that wherever we live in the Americas, whatever our heritage, whatever language we speak, we all want the same thing: the chance to live safe and healthy lives; to see our families productive and moving toward a better future; to participate fully in our communities; and to do all that we can to extend those opportunities to others. I think we are building on a strong foundation, and I am very pleased to participate once again in this ministerial. And I look forward to working with all of you in the days, months, and years ahead. Thank you very much.
Excerpts of Remarks by Secretary of State Clinton, Costa Rican Foreign Minister Stagno, and Dominican Republic Deputy Foreign Minister Quiñones, March 4, 2010Footnote 11
Secretary Hillary Clinton, Foreign Minister Bruno Stagno Ugarte, and Deputy Foreign Minister Clara Quiñones de Longo delivered these remarks in San Jose, Costa Rica
Introductory Remarks Omitted
Foreign Minister Stagno. Thank you for joining us. As you know, we have just wrapped up this third ministerial meeting of Pathways to Prosperity. I would like to briefly address this initiative. It was created about 18 months ago. We held a first meeting at the head of state level in September of 2008, which was the formal launching of the initiative. And in the last 18 months, we have held three ministerial meetings.
The initiative today covers 14 countries of this hemisphere and there are three observer nations—Belize, Brazil, and Trinidad and Tobago. The countries that are part of this initiative today represent about 65 percent of the population of the hemisphere and 73 percent of its territory. But even more importantly, we represent more than 80 percent of the Western Hemisphere's GDP and a significant amount of world GDP, which is 29 percent.
But we have a very specific feature here which is that we have and north-and-south axis that goes from Canada to Chile, which means that this initiative is 14,600 kilometers long in area, which presents opportunities and challenges. One of the challenges, specifically one which today was a subject at the ministerial meeting, which was also part of the conversation that was held among the technical experts, has to do with taking concrete measures to reduce costs and the logistical delays by virtue of these great distances that do separate us but at the same time unite us.
Moreover, we are adopting a ministerial declaration which will be handed out to all of you that covers all of the different work within this initiative, all of our intentions, all of our aims that we want to carry out as we move forward with Pathways to Prosperity, especially in light of the next ministerial which will take place in the Dominican Republic next year.
So I'm going to wrap up with that. I want to thank all of you for your presence and, above all, I want to thank you for all of the convergence that was achieved here between the participating countries—among the participating countries which recognize the challenges and opportunities that free trade stands for, the opportunities for the development of our people.
Secretary Clinton. Thank you very much for hosting this conference and I appreciate the foreign minister's management of the meeting and it's a great honor to be here with President Arias. Costa Rica is a champion for the values and goals that we all share, from its global leadership on environmental sustainability to its efforts to promote regional unity, development, and stability. And the success of President Arias in mediating seemingly intractable conflicts is a testament to his moral leadership and to Costa Rica's credibility. We saw this once again with his work during the crisis in Honduras.
So it is a pleasure to be back here in Costa Rica for this very important ministerial. And it is also very exciting to have our Dominican friends with us, and I'm looking forward to the meeting in the Dominican Republic next year. I want to thank President Fernandez and the Dominican people for the generosity and solidarity that you have shown to the people of Haiti. It has been extraordinarily important.
These recent hemisphere challenges—the coup in Honduras, the earthquake in Haiti, the terrible earthquake now in Chile—have tested our capacity and our will to respond collectively. And I believe we are meeting that challenge together. We have to extend this spirit of cooperation, however, beyond times of crisis to help us meet the common challenges we face every day. President Arias summarized those in his closing remarks. We are on the pathway to prosperity; we want to arrive. We want to be able to see the benefits of the hard work of the people in the Americas.
And that's what this program is all about. It is a forum for nations committed to democracy and open markets to share best practices and smart ideas for promoting social and financial inclusion and widening the circle of inclusive prosperity. I think we have a lot to learn from each other. The Americas are one of the world's most dynamic and diverse regions. And we can do more to move toward greater regional integration.
Talent is present everywhere; you can visit any town or school from Alaska to Patagonia, and you'll see it. But unfortunately, opportunity is far from universal. Too many people in too many places never have the chance to realize their dreams of starting a business, pursuing an education, or lifting themselves and their families out of poverty. So the United States will be focusing on several Pathways initiatives to support entrepreneurs and create new opportunities across the Americas.
But I want to echo one of the important comments by President Arias. There have to be changes in government policies in order to promote these solutions, whether it is creating the opportunity for collateral for secured transactions in Honduras or raising the tax rates on the wealthy in other countries to fund public services like schools, we're not just talking about micro-interventions. We're talking about assisting individuals and businesses, but promoting broader change in order to realize the objectives we share.
So we will promote the establishment of small business development centers to help new enterprises get off the ground and start creating jobs. We will increase our support and mentoring for women entrepreneurs who are often overlooked or excluded. We will work with our partners to modernize laws governing lending to help small and medium size businesses, and to develop more efficient and effective customs clearance processes which are crucial to attracting foreign investment and facilitating commerce. And we will encourage our Pathways partners to consider tariff relief for goods they import from Haiti, because Haitians need a functioning economy, not just international aid, to build a sustainable future.
How will we tell whether we're being successful? Only when we see the changes in people's lives across our hemisphere. Conferences, initiatives, partnerships of all kinds are only useful if they produce results and if we embrace a spirit of shared responsibility. So today, in my remarks, I urged all Pathways partners to establish concrete plans of action, measure the progress of our programs, meet our obligations, and share the results. And hopefully, when we meet again in the Dominican Republic, we will have progress to celebrate, and even more good ideas to share.
So again, let me thank our host and applaud the hard work and commitment of all of the countries represented here today.
Deputy Foreign Minister Quiñones.
Good day, everyone. President Arias, my utmost respect and my congratulations for you in putting together this conference. I think we have made progress on the initiatives—the result of this initiative. I've had the honor of sharing the session with Madam Hillary Clinton, Secretary of State, who has been very enthusiastic in her work with this initiative. We're very glad to have her here for the push that she provides.
The Dominican Republic is honored to be the host of the next ministerial meeting of this Pathways to Prosperity in the Americas initiative next year. President Fernandez as well as the entire Dominican people will take on this responsibility with great enthusiasm and you should all be very sure that we are going to take an active role in all of the different working groups so that the Dominican Republic can do a proper assessment, as the Secretary of State has said, of the progress that has been achieved, and the most essential part of this initiative also, which is that free trade and the benefits of globalization should have benefits for the poorest, for the people who are most at risk.
Q. Good afternoon, thank you very much. Unfortunately, given the growth of trade, the drug trafficking cartels have also grown. Madam Clinton, it will be important to know if with your visit here to President Arias, will there be more cooperation, will there be greater agreements on combating drug trafficking specifically?
Secretary Clinton. With respect to the scourge of drug trafficking, we're well aware that the Central American countries are bearing a greater burden in combating these criminal cartels today than they were in the past. As you know, we have worked very closely with Colombia, with Mexico, and with the Central American countries. We believe strongly that governments have to be strengthened. They have to be given the tools and resources necessary to combat these criminal elements, to build strong, non-corrupt police forces. And we will continue to do what we can in partnership with the governments throughout the region.
We also have stated very clearly that we understand the United States bears part of the responsibility for the challenges that governments are confronting. The demand in the American market is centered in the United States and we are trying to do more to lower that demand. So we are trying to do our part both in our own country and in partnership with countries like Costa Rica and others. But we must restore law and order. Citizen security is one of our highest priorities, and we will work together to achieve that.
Q. Good afternoon, Madam Hillary. I would like to go into a little more detail about drug trafficking. Is there a specific proposal from the U.S. Government as far as the repeated requests from Central America to increase resources under the Merida plan? In fact, President Arias has emphatically, on several occasions, has insisted that the countries here in the region need more resources and that the Merida plan has centered mainly on Mexico. So that's related to (inaudible) question.
Another question is, toward the end of your Latin American tour, how do you feel about the balance after a visit to Brazil, where you didn't get President President Lula's support for the Iran sanctions? And yesterday, the foreign minister was very critical about your visit to the region. He said that you were dividing the countries of the—of Central America. So what is your take on the relationship between the U.S. and Central America in light of those events?
Secretary Clinton. Well, first, with respect to Merida, we are increasing the aid that will be coming to Central America because we recognize that you need more resources. And there are many different aspects of what we want to do in partnership with the countries of Central America. Maritime security, obviously, is one. Increasing the capacity of police, judiciary, resources. Working to weed out corruption—I was impressed with the recent announcements coming out of Guatemala with arrests of high-ranking officials for corruption. So there's a lot to be done. And we are increasing our efforts, including our financial efforts.
With respect to the region, I don't know what you're referring to. We had excellent discussions in Brazil with both the foreign minister and the president. We share the same goal. The goal is to prevent Iran from acquiring nuclear weapons. There is no difference in the goals between the United States and Brazil. There is a perceived difference in the best way to achieve that goal. Brazil believes that through continuing outreach and negotiations, they might be able to persuade Iran to come to the negotiating table. The United States has been attempting that. President Obama personally has reached out to the Iranians for more than a year. And unfortunately, we have seen no evidence that this approach is a fruitful one. There-fore, we are working with a number of countries in the United Nations to present new sanctions to the Security Council. And we are working to achieve broad-based support for that, and we expect to be able to do so.
And finally, on Central America, again, I don't know what you're referring to, but the United States believes strongly in democracy and we are supporting the return of constitutional democracy to Honduras. The election which was held was by all observers found to be free, fair, and legitimate. President Lobo has moved quickly to implement many of the recommendations that first came from President Arias's work on the San Jose accords and then were incorporated into the Tegucigalpa Accord. He has a unity government. He has a truth commission that will be stood up. He expedited the safe departure of former President Zelaya. And we think that Honduras has taken important and necessary steps that deserve the recognition and the normalization of relations.
I have just sent a letter to the Congress of the United States notifying them that we will be restoring aid to Honduras. Other countries in the region say that they want to wait a while. I don't know what they're waiting for, but that's their right, to wait. We believe that President Lobo and his administration have taken the steps necessary to restore democracy. And we share the condemnation of the coup that occurred, but we think it's time to move forward and ensure that such disruptions of democracy do not and cannot happen in the future.
Excerpts of Remarks by Secretary of State Clinton and Guatemalan President Colom, March 5, 2010Footnote 12
Secretary Hillary Clinton and President Álvaro Colom delivered these remarks in Guatemala City, Guatemala
President Colom. (In Spanish.)
Secretary Clinton. Thank you very much, Mr. President. I am delighted to be in Guatemala for the third time and very much appreciate your hospitality and the invitation which you extended to the leaders from around the region who have also come here today.
President Colom and I continued the discussion we began two weeks ago in Washington. We talked about our shared interests in advancing security, social inclusion, and broad-based economic progress. The United States supports fiscal reform based on a broad consensus to increase transparency in public spending and to strengthen enforcement of tax laws. We want to work with partners like Guatemala to pursue these reforms for the benefit of all citizens.
The president and I, over the last two weeks, have discussed the need for robust implementation and enforcement of labor laws here in Guatemala to protect the rights of workers and to promote truly sustainable and effective economic growth. We've also spoken about our mutual commitment to the region as a whole. In my trip, I have emphasized that we share so much and we must work together for the good of our hemisphere.
The two tragedies in Haiti and Chile demonstrated that we all must share responsibility in dealing with serious challenges. I also appreciate the president's leadership in responding to the political crisis in Honduras. It has been a difficult journey, but there is now a democratically elected president who has made great progress in implementing the Tegucigalpa-San Jose Accord and fostering national reconciliation.
We support the work that President Lobo is doing to promote national unity and strengthen democracy. And I was pleased to announce yesterday the United States is restoring assistance, excuse me, to the people of Honduras. As the president said, security is the major challenge. That's why to the Central American Regional Security Initiative, known as CARSI, and similar partnerships in Mexico and the Caribbean, we will combat organized crime, transnational (inaudible) and trafficking, and together, keep the people of Guatemala safer.
So Mr. President, thank you very much for everything you are doing and for the strong partnership we have.
Moderator. (In Spanish.)
Q. Can you hear me? Okay, thank you. First, Madam Secretary, we'd like to ask you about whether you're planning to increase drug—anti-drug funding for Central America, particularly now that Central America appears—that Mexican drug gangs appear to be using Central America as a base, and the fact that in the Merida Initiative there's very little money for Central American drug efforts.
And to, President Colom, I wanted to ask you about a U.S. State Department report that says anti-drug efforts in Guatemala have been hampered by police corruption and, in fact, this week your police chief and anti-drug czar have both been arrested and a former president is wanted for extradition in the US under money-laundering charges. So what exactly are you going to do to improve the situation? Thank you.
Secretary Clinton. Well, I will begin. The United States is very committed to citizen safety and security in Central America. We have a Central American Regional Security Initiative, known as CARSI that supplements and works with the Merida Initiative and similar efforts were undertaking in the Caribbean.
One of the reasons why I appreciate President Colom inviting the presidents of other Central American countries to come today is so that we can have a very in-depth talk about what they want in terms of help and how best we can support their efforts. We are committed to doing everything we can in the fight against corruption and impunity, in providing the equipment and the support that law enforcement and the military require, and helping to build civil society to stand against the scourge of drug trafficking.
But I want to be sure that what the United States has been doing is what the leaders in Central America believe is the best approach. So we're going to forge an even closer partnership in the months and years ahead because we're well aware that Central America is between the countries of Mexico and Colombia, which are waging their own very intense efforts against the criminal cartels with the effect that the violence and the drug trafficking, and unfortunately, even drug use has increased in the Central American countries. So the United States wants to support the efforts that these countries are undertaking.
President Colom. (In Spanish.)
Moderator. (In Spanish.)
Q. (In Spanish.)
Secretary Clinton. Well first, let me state very clearly that the United States under the Obama Administration recognizes and accepts its share of responsibility for the problems posed by drug trafficking in this region. You are absolutely right that the demand in the large market in the United States drives the drug trade. And we are attempting through many different approaches, better education and outreach about the effects of drug addiction, the dangers posed to one's physical/mental health, family and friendly relations. Law enforcement is attempting to do more both to take charge of the situation to go after the major drug traffickers, but also to provide more support for drug addicts so that they can get treatment and not face the criminal justice system if they pursue their treatment. We are trying many different approaches, but we know that we are part of the problem. And that's an admission that we have been willing to make this past year, and it's one of the reasons why we feel so strongly about trying to help countries like Guatemala fight this terrible criminal scourge.
With respect to tax reform, we strongly support the tax reform efforts that are being discussed in Guatemala today for two reasons. Number one, Guatemala deserves better investment in public institutions like education and health and housing. And you will never get enough international aid to take care of the needs of the people, and if you look through this hemisphere and you compare to some of the neighbors in the hemisphere, there is a direct relationship between higher tax efforts aimed at the wealthy and better public services aimed at the poor. And we are working to support these tax reform efforts to include transparency and enforcement of tax laws because we think it is essential for the future prosperity and progress of the Guatemalan people.
And finally, President Obama is committed to immigration reforms and is working to try to create a political consensus within our Congress to be able to make some of the changes that we think are merited and would recognize the contributions that immigrants from Guatemala and other countries south of our border have made to our own country. So we have the commitment of the President but with so much, he is working to try to make sure he can get some of these changes done.
Remarks by President Obama and Salvadoran President Funes, March 8, 2010Footnote 13
President Barack Obama and President Mauricio Funes delivered these remarks in Washington, DC
President Obama. Hello, everybody. I want to welcome President Funes and the First Lady of El Salvador to the United States. Bienvenido. We are very grateful and honored by his visit. I've been following the President since his election nine months ago and have been very favorably impressed by the steps that he's taking to try to break down political divisions within the country and move it forward with a spirit of progress and focusing on prosperity at every level of Salvadorian society.
Obviously the friendship between our two countries in part is the result of the 2 million Salvadorians who are here in the United States working, sending remittances back to El Salvador. Those ties provide an outstanding foundation for continuing cooperation in our two countries.
That cooperation has to be based on mutual interest and mutual respect. We've discussed ways that we can continue to improve our trading relationship. Over half of El Salvador's exports go to the United States and over one-third of its imports come from the United States, so we already have strong economic ties there. But I very much applaud the President's vision that growth in El Salvador has to be balanced and reach all aspects of Salvadorian society; that it has to be socially inclusive. And we want to assist in any way we can in making sure that there's adequate credit and infrastructure and other tools that can bring about the long-term prosperity within El Salvador.
And there are some wonderful projects that we can do multilaterally. For example, I know the United States, Brazil and El Salvador jointly are interested in pursuing additional measures that can expand biofuels and energy development that could be good for all three countries.
We also discussed security issues in the region. I think that there has been progress within Central America, but we still have concerns, obviously, about drug trafficking, about gangs. The security challenges obviously are connected to the economic challenges within the region and we want to be supportive not only in addressing the symptoms that we see in terms of crime, but also the root causes, and I know that's something that the President cares deeply about as well.
And finally, I want to congratulate President Funes in the leadership that he's already shown both regionally and internationally. His pragmatic and wise approach to the situation in Honduras I think helped to contribute to a solution in that country that promises long-term stability and peace. The generosity of the Salvadorian people towards Haiti in the aftermath of the terrible earthquake there I think is another example of his vision for a region that supports each other.
And so my main goal today is communicating how interested the United States is in continuing to be an equal partner with El Salvador and other countries in the region—a relationship based on mutual interest and mutual respect. And I wish him all the best as he continues to pursue his goals for a more prosperous and secure El Salvador.
President Funes. And to the press, I am extremely surprised about this excellent summary. After 20 years of being a journalist, I thought that I could summarize our interview of more than an hour in a better way, but President Obama has surprised me in how he has summarized the meeting.
I would like to talk about two or three things. I have spoken to President Obama about this, and I want to commend him because he shares the same democratic values, and his new vision of how he is dealing with the hemisphere and particularly in Central America.
Traditionally Central America has been seen as a migratory problem for the United States. But Central America, and in particular El Salvador, needs to generate the opportunities of work in order to be able to keep people back in El Salvador. And as they have a better job generation, and people have better health and education, people will be able to remain in countries and have a better life.
We have spoken with President Obama about how to make a strategic alliance and face common problems that we have in the nation, such as drug traffic and organized crime. And the alliance that we wish to make is in order to combat poverty and to get people out of marginal situations and out of the exclusion. This has to be a regional effort and we have to—and they have social policies that we need to build together.
The U.S. needs to be a strategic—or we hope it will be a strategic partner for our country. And in this way, the people will have better social well-being and we will be able to combat drug traffic, organized crime, because they will not find—as we have new policies, they will not find fertile grounds.
I'm not here to ask President Obama to do for us what we haven't been able to do for such a long time. We have a big challenge on our hands, and one of our challenges is to have better tax collection in order to have more resources for the use of our government. This has been going on for many decades, but basically what we're looking for is funding for the poor and small and medium enterprises in order to be able to create a better economic situation in El Salvador.
We have to re-strengthen the productive network, and we have to have a different vision. But we definitely cannot blame the United States for the situation that we are in. And instead, we are looking for the United States to become a strategic partner, as President Obama so well said; not a bigger partner or a lesser partner but an equal partner and an efficient partner.
And as President Obama's administration, we hope that there will be a good alliance and it will be a better world for us and for all—and a better administration.
President Obama. All right, thank you, everybody.
White House Statement, March 14, 2010Footnote 14
The President is deeply saddened and out-raged by the news of the brutal murders of three people associated with the United States Consulate General in Ciudad Juärez, Mexico, including a U.S. citizen employee, her U.S. citizen husband, and the husband of a Mexican citizen employee. He extends his condolences to the families and condemns these attacks on consular and diplomatic personnel serving at our foreign missions. In concert with Mexican authorities, we will work tirelessly to bring their killers to justice.
The President shares in the outrage of the Mexican people at the murders of thousands in Ciudad Juärez and elsewhere in Mexico. We will continue to work with Mexican President Felipe Calderón and his government to break the power of the drug trafficking organizations that operate in Mexico and far too often target and kill the innocent. This is a responsibility we must shoulder together, particularly in border communities where strong bonds of history, culture, and common interest bind the Mexican and the American people closely together.
Address by the Assistant Secretary of the Treasury Lago, March 22, 2010Footnote 15
Assistant Secretary Marisa Lago delivered this address in Cancun, Mexico to the Plenary Session of the Inter-American Development Bank Annual Meeting
Assistant Secretary Lago. Buenas tardes. En nombre del Presidente Obama y el Secretario Geithner, quisiera agradecer al Presidente Calderón y su Administración, y al pueblo de Cancun por su hospitalidad en este sitiotan bello. Nos encontramos en un momento clave e historico como región, como banco, y como gente de las Americas.
From Crisis to Recovery
When we met last year, we were in the midst of the worst financial crisis of the post-World War II period. The impact of this crisis was felt around the world, and this region was no exception. In aggregate, the region's economies contracted 2.3% in 2009. President Obama and Secretary Geithner responded swiftly with a series of measures designed to restore economic growth and financial stability in the United States. They also worked with the G20 and international institutions—including the Inter-American Development Bank (IDB)—to do the same for the global financial system.
We now come together a year later with renewed optimism for the prospects of Latin America and the Caribbean. The region is forecast to grow by 4% or more this year. This rapid recovery demonstrates the remarkable resilience of the region and the robust policies put in place by many of the people here today. Yet we cannot forget that along with this success there have also been tragic setbacks, with both Haiti and Chile experiencing catastrophic earthquakes.
Vigorous international response As the crisis unfolded last year, countries were challenged to find both domestic and global solutions. In addition to the many measures that we took to stabilize our own financial system and reinvigorate the global economy, the United States provided staunch and robust support to the IFIs so that they could address the needs of emerging and developing countries.
The United States strongly supported efforts to mobilize additional resources for the IMF and to revamp its lending facilities. At the G-20 Leaders Summit in London last April, President Obama worked with other world leaders on an agreement to expand participation and increase the size of the IMF's New Arrangements to Borrow (NAB) by up to $500 billion; the United States led with a commitment of up to $100 billion. Together with other Leaders, we also endorsed an overhaul of the IMF's lending framework to provide lending products that better meet individual country needs. In particular, Mexico's and Colombia's decisions to tap the IMF's new Flexible Credit Line last April were a turning point for confidence in the region.
The role of the multilateral development banks has been equally vital. Last year, we and others called on this institution to ramp up its short-term response to the crisis. I praise and thank the Bank for answering the call: it responded to the paralysis in international capital markets by stepping up rapidly and robustly with much-needed resources—recognizing immediately the need to support trade finance, and re-casting its emergency facility to assist countries facing liquidity constraints. These are just two examples. In a notable display of solidarity and leadership in the region, Canada also provided $4 billion in callable capital. These measures allowed IDB lending to increase by 42% from $11 billion in 2008 to nearly $16 billion in 2009, thereby extending invaluable support to our region during a time of exceptional need.
Rebound in Capital Flows
Without diminishing the important role of the multilateral development banks in providing liquidity, we must also highlight the region's strengths upon entering the crisis.
Emerging markets experienced massive withdrawals of capital during the height of the global turmoil. Capital flows to Latin America and the Caribbean fell more than 40% in 2008, driven by an outflow of equity investment and a sudden stop in external commercial bank flows. And analysts expected continued outflows in 2009. However, the recovery of private capital flows was significantly more robust than initially predicted, and net private capital flows actually increased 4% last year, mainly due to a large inflow of portfolio equity investment. The rapid return of capital is a testament to the strength of fiscal, monetary and exchange rate policies, and sound debt management in much of our region. It shows that—in contrast with previous crises—Latin America and the Caribbean entered this one with greatly strengthened policy frameworks that were recognized and roundly endorsed by the markets.
As a result, the outlook for 2010 is favorable: the IIF recently projected that net private capital flows will increase by 30% this year and the cost of external borrowing for Latin American corporates has fallen by 600 basis points since the peak of 914 basis points in October 2008.
Challenges Ahead
Although we are optimistic about prospects for our region this year, it is crucial that we act to strengthen the recovery and spread its gains to more of our citizens. Despite the significant progress that has been made, difficult challenges cloud the longer-term outlook. It is in these areas that the Bank must focus its efforts going forward. I will briefly touch on several of these challenges.
First, the region continues to be plagued by severe poverty and inequality despite nearly a decade of solid economic growth. Growth is a necessary—but insufficient—condition to reduce poverty and provide opportunities for people to improve their lives. We believe the IDB is an institution that can—and must—do more to help its member countries grow and ensure that more people share the benefits of this growth.
Second, as I mentioned earlier, good economic policies in much of Latin America and the Caribbean permitted countries to grow and reduced vulnerability to external shocks. Yet some of the poorest countries have been left out of this progress, as evidenced by lagging growth in income per capita. At the bottom is Haiti, with per capita income of $520 in 2007 compared with an average of $5,801 for the region. The IDB must play a critical role in efforts to close the gap between those who benefit from growth and those who do not.
Third, many small businesses continue to lack access to credit to survive and thrive. Small businesses are the engines of growth and job creation in any economy; thus, it is in the best interest for both recovery and development that financing is available to small and medium sized companies to start or expand operations. We look to the IDB to intensify efforts to expand financial access to a broader range of businesses.
Fourth, we applaud the initiative taken by the Bank in tackling the challenges associated with climate change. The introduction of the Sustainable Energy and Climate Change Initiative was an important step forward in helping countries to harness the potential of renewable energy, increase energy efficiency, and devise strategies for investment in green technologies.
Fifth, the Bank can play a major role in helping us boost our competitiveness as a region. Transport and logistics costs are roughly 16% to 26% of GDP in Latin America, compared to an average of 9% in OECD countries. These excessive costs weigh heavily on the region's exports. As the region's primary development institution, and given its expertise in infrastructure, the IDB is best placed to help us solve physical and institutional integration challenges.
Finally, Latin America and the Caribbean lag in education performance and productivity. We recognize the IDB's comparative advantage vis-à-vis other multilateral development banks in pre-pri-mary education, school to work programs, and teacher training. We ask the Bank to refine its strategy to help this region strengthen its human capital and productivity.
IDB General Capital Increase (GCI)
In the context of GCI negotiations this past year, the IDB has adopted some key reforms and committed to other reforms, all of which are consistent with the reform agenda that Secretary Geithner articulated last year in Medellin. These reforms respond to the regional challenges that I have just outlined. Let me briefly summarize them.
First, the IDB has strengthened its financial management through the adoption of new a new investment framework and new capital adequacy model. Importantly, Governors have just agreed to the adoption of a new income allocation model that will enable the IDB to maintain strong, sustainable financial support for its poorest members.
Second, the IDB has established clear priorities for use of its new capital that will substantially expand its private sector operations, and that will create new sector strategies to promote renewable energy, climate change, regional integration and education.
Next, the IDB has committed to improvements in the quality of its loan portfolio through use of new tools designed to strengthen the focus on development effectiveness. Quality matters as much as quantity of lending.
Finally, the IDB is taking steps to enhance its transparency and accountability, such as adopting a new, stronger and more independent inspection mechanism. In addition, Governors have affirmed their support for environmental safeguards and a disclosure policy that meets highest standards.
As a symbol of the strength of shareholder commitment to these reforms, and the confidence that we have in their sound implementation, we and the other IDB Governors have committed ourselves to reviewing implementation progress during the period in which we will provide the Bank's new capital. This should be interpreted by all as a sign of the IDB Governors' powerful commitment to development effectiveness.
Haiti Debt Relief and Long-Term Reconstruction
In addition to these reform priorities, we are proud that the Bank has acted aggressively to support the recovery and reconstruction of Haiti. This is not meant to overlook the tragic loss of life and devastation suffered by the people of Chile following the earthquake that struck that country. We stand ready to help in any way that the government of Chile asks. However, we are all very aware of the economic toll that the earthquake inflicted on Haiti, already the poorest country in the region. The people of Haiti need extraordinary levels of financial and technical assistance to help them build a post-earthquake Haiti that is stronger, more resilient and more prosperous than pre-earthquake Haiti, and focuses on institution building, job creation and recovery of the productive sector to foster economic growth. Preliminary figures from the post-disaster needs assessment led by the World Bank, IDB, United Nations and European Commission place these needs at roughly $11 billion.
Just weeks after the devastating earthquake, Secretary Geithner voiced support for international debt relief for Haiti. We are pleased that the IDB has adopted an innovative proposal that would relieve Haiti of its debt burden and provide an immediate source of upfront capital for Haiti. These aims will be achieved without reducing resources available for other low-income countries. In addition, the Bank has guaranteed long-term support for Haiti's reconstruction and development, by agreeing that the Bank will provide at least $200 million annually in transfers of Ordinary Capital income to a grant facility for Haiti through 2020.
Conclusion
We thank the Governors for embracing the robust reform agenda, which aligns with the principles articulated by Secretary Geithner a year ago. We commend the commitment of everyone here to ensuring that the Bank is well-capitalized and able to respond vigorously to the evolving needs of our region. And we especially thank the Board of Governors' leadership team of Colombia and Canada. I want to personally thank the outgoing Chairman of the Board of Governors, Minister Zuluaga, for his enormously skillful and tireless efforts to bring us together. We agree in principle on a GCI of 70% of the Bank's existing capital, or $70 billion dollars. This amount is the largest capital increase in the history of the Bank. It will support lending of roughly $12 billion a year—double the pre-crisis volume—and solidify the Bank's central role in the continuing development of our region.
We are pleased to work with the IDB to advance these important goals. Thank you very much.
Excerpts of Remarks by Secretary of State Clinton and Mexican Foreign Secretary Espinosa, March 23, 2010Footnote 16
Secretary Hillary Clinton and Foreign Secretary Patricia Espinosa delivered these remarks in Mexico City, Mexico
Introductory Remarks Omitted
Secretary Clinton. We have had the opportunity to delve into many areas of common concern that lie at the heart of the Merida Initiative and our shared responsibility to combat and defeat organized transnational crime. We're looking forward to continuing this conversation in the weeks and months ahead. We will be seeing President Calderón later today because the United States strongly supports his courageous campaign against violent criminal organizations on behalf of the Mexican people. And we honor the service and sacrifice of Mexico's men and women in uniform in the military and in the police forces.
The relationship between our two nations is so comprehensive and complex and deep and broad. It is not bound by borders or bureaucratic divisions. And what we are focused on today is a part of that relationship, but a truly significant part. We are working in our two governments together to solve the problem posed by the criminal cartels that stalk the streets of your cities and ours, that kill and injure innocent people, and spread a reign of terror and intimidation, and use the trafficking of drugs to addict people, the trafficking of persons to degrade them, and who are truly an insult and a rebuke to the common values that our two nations share.
We are expanding the Merida Initiative beyond what it was traditionally considered to be, because it is not just about security. Yes, that is paramount, but it is also about institution building. It is about reaching out to and including communities and civil society, and working together to spur social and economic development.
We have watched with great grief the terrible tragedies and murders that have taken place here in Mexico, and then our hearts were broken by the murders in Juarez, which took the lives of three people connected to our Consulate. They were but the latest horrible reminder of how much we have to do together and how crucial these meetings are to align the work of our two countries to combat the threat of this transnational criminal syndicate of networks. And we thank all of you for your sympathy. The men and women of our mission here in Mexico have been so heartened by the support and the prayers that the people of Mexico have conveyed to them. We are working with the Government of Mexico to do everything possible to bring those killers and all killers to justice. And Madam Secretary, I want to thank you personally for your support and sympathy in the wake of that tragedy. Your visit to Juarez meant so much to our people in the Consulate there.
The grim truth is that these murders are part of a much larger cycle of violence and crime that has impacted communities on both sides of the border, taking an especially grievous toll on families here in Mexico. The narcotics cartels are waging war on civil society. This violence shreds communities, it holds back economic development, and it undermines progress. So yes, we accept our share of the responsibility. As I said when I first came here a year ago, I think standing right here on this stage, the United States is your partner and your supporter. We know that the demand for drugs drives much of this illicit trade, that guns purchased in the United States—as we saw some of the examples outside—are used to facilitate violence here in Mexico. And the United States must and is doing its part to help you and us meet those challenges.
Our partnership is so important because, as part of our continuing consultations, we are learning from each other. We are exploring different approaches. We are working to determine what is the best way forward. We've discussed new tools that we can use. But at the end of the day, it is not about discussions or meetings; it is about results. And that's what our two presidents are focused on. They want real results that translate into greater security and improved opportunity for our citizens.
So today, we agreed on a specific path forward. We are designing concrete and specific work plans, complete with tasks, timetables, and measurements in four strategic areas: disrupting the capacity of the criminal organizations, reforming and strengthening security and justice institutions, creating a 21st century border that advances citizen safety and commerce, and building stronger, more resilient communities that can resist the influence of the cartels.
We also agreed to launch key initiatives, including pilot programs to combat border violence in Tijuana-San Diego, and Juarez-El Paso. We have enhanced the exchange of financial intelligence and law enforcement coordination to detect and prevent financial crimes and the financing of these cartels. And we have a bilateral work program to combat the flow of illegal weapons. Today, Secretary Napolitano signed two agreements on behalf of the United States Government to strengthen border and aviation security and to expand our cooperation against the drug cartels.
All of these of these efforts build on our ongoing assistance through the Merida Initiative. We are contributing hundreds of millions of dollars to train and equip Mexican law enforcement and strengthening Mexico's judicial system and democratic institutions. President Obama has asked Congress for $5.6 billion to reduce the demand for drugs in our own country. And we are working not only government-to-government but civil society-to-civil society and people-to-people.
The meeting we held today is the product of hard work on both sides. And it's a process launched by President Obama and President Calderon in August 2009. Secretary Espinosa and I met in New York in September 2009 to set forth this new strategic framework. Our teams have met three times since then to develop the programs we reviewed today. This new framework will continue to guide us as we move forward, and it will ensure that our efforts are balanced and effective.
Mexico and the United States are connected by the busiest border in the world. We're very proud of that. And we're very proud of the many connections we have back and forth across that border. We're establishing a new vision for how we manage that common border to make sure our security and our commercial interests go hand-in-hand. Our families and communities are linked by bonds of commerce and culture, by history and values, by family. And so our common aspirations that we share for a peaceful and prosperous future begin with securing the safety and security of our citizens. So again, let me thank you, Madam Secretary, for your leadership and your hospitality today.
Statement by President Obama, March 24, 2010Footnote 17
President Barack Obama delivered this statement in Washington, DC
President Obama. Recent events in Cuba, including the tragic death of Orlando Zapata Tamayo, the repression visited upon Las Damas de Blanco, and the intensified harassment of those who dare to give voice to the desires of their fellow Cubans, are deeply disturbing.
These events underscore that instead of embracing an opportunity to enter a new era, Cuban authorities continue to respond to the aspirations of the Cuban people with a clenched fist.
Today, I join my voice with brave individuals across Cuba and a growing chorus around the world in calling for an end to the repression, for the immediate, unconditional release of all political prisoners in Cuba, and for respect for the basic rights of the Cuban people.
During the course of the past year, I have taken steps to reach out to the Cuban people and to signal my desire to seek a new era in relations between the governments of the United States and Cuba. I remain committed to supporting the simple desire of the Cuban people to freely determine their future and to enjoy the rights and freedoms that define the Americas, and that should be universal to all human beings.
Press Release from the Department of Homeland Security, March 26, 2010Footnote 18
Department of Homeland Security (DHS) Secretary Janet Napolitano today highlighted the United States' significant progress in securing the U.S.-Mexico border one year after the Obama administration announced the Southwest Border Initiative—a series of unprecedented steps to crack down on Mexican drug cartels by deploying additional personnel and technology, increasing information sharing, working closely with the Mexican government, and improving federal coordination with state, local and tribal law enforcement authorities.
“Last March, this administration took decisive action to combat transnational crime and drug-related violence along the Southwest border to help ensure the security of both the United States and Mexico,” said Secretary Napolitano. “Over the past year, our unprecedented cooperation with the Mexican government and sustained security efforts along the border have resulted in major progress in combating the ruthless cartels that threaten the safety of both our nations.”
Since last March, DHS has doubled the number of personnel assigned to Border Enforcement Security Task Forces; tripled the number of ICE intelligence analysts working along the U.S.-Mexico border; quadrupled deployments of Border Liaison Officers; and begun screening 100 percent of southbound rail shipments for illegal weapons, drugs and cash—for the first time ever.
DHS also deployed additional canine teams trained to detect drugs and weapons and non-intrusive inspection technology that help identify anomalies in passenger vehicles at the Southwest border. Today, the Border Patrol is better staffed than at any time in its 85-year history, having nearly doubled the number of agents from approximately 10,000 in 2004 to more than 20,000 in 2009.
Over the past year since the Southwest
Border Initiative was launched:
*U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) combined have seized $85 million in illicit cash along the Southwest border—a 22 percent increase over the same period during the previous year.
*CBP and ICE together have seized 1,404 firearms and 1.62 million kilograms of drugs along the Southwest border—increases of 22 and 14 percent respectively over the same period during the previous year.
*CBP seized $29.5 million in illicit southbound cash along the Southwest border—a 39 percent increase over the same period during the previous year.
Additionally, the San Diego DHS Maritime Unified Command, comprised of U.S. Coast Guard, CBP, ICE and other law enforcement partners, saw a more than six-fold increase in maritime drug interdictions in the Pacific waters extending from the Southwest border—seizing 57,437 lbs. of drugs in fiscal year 2009 compared to 8,884 lbs. seized in fiscal year 2008. Already in fiscal year 2010, the Coast Guard has seized 11,500 lbs. of drugs across the San Diego sector.
DHS continues to work closely with the Mexican government to build new collaborative efforts on a variety of issues including cross-border communications, narcotics smuggling enforcement, port security, aviation security, information sharing, law enforcement training, and trade.
This includes unprecedented engagement based on a Declaration of Principles of Cooperation signed last month between Secretary Napolitano and Mexican Secretary of Public Safety (SSP) Genaro García Luna, which allows for the expansion of coordinated intelligence sharing and joint strategic, intelligence-driven plans—already being implemented in the border region of Sonora and Arizona—to other border areas at high risk for transnational criminal activity moving forward.
Secretary Napolitano has visited Mexico five times in the past year, meeting with Mexican President Felipe Calderón on multiple occasions—most recently this week as part of U.S. delegation for the Mérida U.S.-Mexico High Level Consultative Group—to discuss ways both nations can work together to secure the border. Earlier this week, Secretary
Napolitano and Mexican Interior Secretary Fernando Francisco Gómez-Mont signed two agreements to bolster aviation and border security by expanding efforts to crack down on violent drug cartels and combat terrorism.
Press Release from the Department of State, March 29, 2010Footnote 19
Joint Statement of the Merida Initiative High-Level Consultative Group on Bilateral Cooperation Against Transnational Organized Crime
Following is the joint statement issued by Secretary of State Clinton and Secretary of Foreign Affairs Espinosa who together with other senior government officials of the United States and Mexico met March 23, 2010 in Mexico City as the Merida
Initiative High-Level Consultative Group:
1. As friends, neighbors and strategic partners, the Governments of Mexico and the United States of America are committed to a future of development, security and well-being for our people. In this spirit, we renew our long-term efforts to create the conditions that allow us to achieve the great potential between our nations in all areas and to confront common challenges.
2. In 2007, the Governments of Mexico and the United States decided on the implementation of an ambitious multiyear initiative to broaden and deepen bilateral cooperation against transnational drug trafficking organizations and organized crime. The Merida Initiative includes actions that each country would implement in its territory, with its own resources, to confront organized crime. It also includes enhanced bilateral cooperation, in areas such as information exchange and technical assistance and equipment transfers, technology and training to strengthen the capacities of the Mexican security and law enforcement agencies.
3. The Merida Initiative represents a paradigmatic change in our bilateral cooperation against transnational organized crime. It is based on the principles of shared responsibility, mutual trust, respect for each country's jurisdiction, and the complementarity of national efforts and regional cooperation.
4. Meeting in August 2009, Presidents Felipe Calderón and Barack Obama noted the progress achieved within this framework. They reiterated the importance of its full implementation, and the need to continue and to expand and institutionalize our cooperation against the regional threat presented by organized crime.
5. We act with a shared vision of our common threats and with the conviction that the appropriate way to confront transnational organized crime and related security concerns, in particular drug trafficking and related criminal activities such as the traffic of weapons and bulk cash, is through cooperation, consultation and the timely exchange of information.
6. We now open a new phase in our cooperation in which the common goal for both countries will be to prevent and combat this scourge in an even more efficient and coordinated manner.
7. In this context, we have consolidated a strategic vision for the coming years to ensure continuity of bilateral actions already in place and advance new opportunities and areas of cooperation, with full respect for the legal framework and sovereignty of each country. Our vision is comprehensive and balanced, encompassing actions in four strategic areas:
A. Disruption of the capacity of criminal organizations that act in both countries, through the systematic weakening of their operational, logistical and financial structures and capabilities.
B. Mutual support for the continuous improvement of the framework for security and justice and the strengthening of public institutions of both countries that are responsible for combating organized crime, including the promotion of the full observance of human rights and active civil society participation.
C. Development of a secure and competitive border for the 21st century, based on a bilateral and comprehensive approach, that increases our global competitiveness through efficient and secure flows of legitimate commerce and travel while ensuring citizen safety and disrupting the illicit trade of drugs, weapons, bulk cash and other goods.
D. Building strong and resilient communities which includes supporting efforts to address the root causes of crime and violence, promote the culture of legality, reduce illicit drug use, promote a broader perception of the links between drug use and crime and violence, and stem the flow of potential recruits for the cartels by promoting constructive, legal alternatives for young people.
8. Our work in each of the four strategic areas must draw on the full capabilities of both governments and, through strong and effective coordination, leverage the skills and resources available at all levels of government and in civil society. Mexico and the United States recognize the key roles of our respective executive, legislative and judicial powers in the efforts to effectively combat transnational organized crime. We reaffirm our commitment to strengthen dialogue and coordination among branches of government, within our respective jurisdictions. We underscore the importance of continuing consultation and engagement with civil society organizations.
9. We intend to formulate comprehensive plans, based on the four strategic areas that have been identified, to combat the violence that exists in areas of our common border, seeking to guarantee the security of our citizens. We intend to implement pilot programs in a coordinated manner in the Tijuana – San Diego and Ciudad Juärez – El Paso regions. Through the strengthening of their information exchange mechanisms, agencies from both countries will undertake operations in their respective territories to apprehend criminals, and will promote the social and economic development of the communities that have most suffered the effects of violence.
10. Recognizing that Mexico and the United States have unparalleled opportunities as neighbors to advance joint and national interests in a global environment, we have committed to develop and implement, in line with our four strategic priorities, a plan for a comprehensive vision of how to manage our common border to increase the security and economic competitiveness of both our countries. Our plan will be based on the principles of coordinated management and permanent consultations, co-responsibility for crossborder criminal activity, shared interest in reducing the costs of doing business, and partnership with communities, including the private sector and other stakeholders, along the border that are most intimately affected by federal policies.
11. Drug use is a serious public health problem, and we are therefore committed to improve and strengthen efforts in the areas of prevention, rehabilitation and demand reduction. The fight against production and drug trafficking will not be effective until the issue of demand is addressed through a comprehensive approach incorporating health and education policies.
12. Equally, Mexico and the United States intend to prioritize our bilateral and national efforts to investigate, arrest, and punish individuals linked to money laundering, by improving the exchange of financial intelligence, law enforcement coordination and the use of all technical means available to detect and prevent financial crimes.
13. Our governments intend to establish a bilateral work program to combat illegal weapons and illicit financial flows, crimes that contribute to spread violence and corruption. This scheme will have concrete objectives and progress indicators that will be periodically reviewed. It will seek to identify new areas of cooperation and actions that each State can take within its jurisdiction.
14. Furthermore, aware that the causes and effects of drug trafficking do not respect boundaries, the United States is further intensifying its efforts to combat criminal organizations that introduce and distribute illicit drugs in its territory.
15. For its part, the Government of Mexico will continue to confront resolutely organized crime and to advance the legal reforms needed to modernize its judicial and police structures, combat impunity and strengthen the rule of law. In order to guarantee the security and tranquility its citizens are entitled to, it intends to continue to commit the necessary resources to meet its responsibilities in this area.
16. In the context of strengthening bilateral cooperation and reinforcing mutual trust, both governments are committed to redoubling their respective efforts to combat corruption.
17. Convinced that no State can by itself and with its own resources successfully face these criminal organizations, both governments are committed to deepening regional cooperation and coordination in North America and, likewise, with the countries of Central America and the Caribbean.
18. Our two countries reaffirm our commitment to strengthen the effective mechanisms we have created to confront these challenges. Our efforts are genuinely bilateral and reflect the level of trust and understanding attained through our political dialogue and intensive technical exchanges. Likewise, we will continue to evaluate jointly our measures against transnational organized crime.
19. With these actions, Mexico and the United States reiterate their friendship, mutual trust and a firm commitment with the security and welfare of their populations, so that our children and future generations live free from violence caused by organized crime, and free from the destructive effects of drug use.
Excerpts of Remarks by Secretary of State Clinton, March 29, 2010Footnote 20
Secretary Hillary Clinton was interviewed in Ottawa, Canada by Tom Clark of CTV's Power Play
Q. I want to switch that now to the Arctic. We've got a couple of issues between our two countries.
Let me point out one, the Northwest Passage. We claim that it is our sovereign territory, that this is Canadian waters. The United States has never recognized that. But could you foresee a time when the United States might recognize Canadian sovereignty over the Northwest Passage, say, in exchange for joint management of that water right?
Secretary Clinton. I think that's what we're beginning to discuss seriously. I know this has been a longstanding issue between our two countries, but it's only now that we have the attention being paid to the Arctic that it deserves. We had an excellent meeting today with the five Arctic coastal countries called by Foreign Minister Cannon. There is so much we can do together, and that's what we're looking for. We have to do search-and-rescue.
We have to include Russia, Norway, Greenland, and Denmark. We have to do more joint exploration, and Canada and the United States are doing that. We're trying to map the ocean floor, figure out what's there. Neither of us could do it alone. Together, we're getting very valuable information.
We have to do research into the fisheries. As the water warms because of climate change in the Arctic, what's going to happen to the fishing stock? And how do countries like the United States and Canada, which share a coastal region with the Arctic Ocean, get prepared for that? What about gas and oil and minerals?
I mean, there are so many issues that 10 years ago were kind of theoretical. Today, they're real. We are seeing the retreat of the ice, unfortunately. We are seeing our indigenous populations under greater and greater pressure. So I am working with Foreign Minister Cannon to see how we can make progress on some of these matters that, up until now, have been kind of academic, but now we need to take them seriously and try to make progress together.
Q. And I get a sense that it's moving up the chain of concerns, of American concerns.
Secretary Clinton. It is, Tom.
Q. Because a few years ago, it was fairly low. But when you take a look at it, there are now 66 combat-ready vessels in the Arctic, either on station or soon to be put in, representing only six countries. Are we seeing a new arms race in the Arctic?
Secretary Clinton. No, that's what we're trying to avoid. Our membership in the Arctic Council, which is the body that is charged with trying to manage the development of the Arctic—we're cooperating with the countries that are in this region that really have the longest shorelines, like Canada, Russia, the United States. So what we're trying to do is get ahead of these issues. We don't want them to become problems, but we're going to have to take responsibility.
The Norwegian foreign minister made this point at our meeting today. He said it's going to fall to us. I mean, if there is an oil spill or there is an accident out there on a platform of some kind, who's going to come? It's going to be Canadians, Americans, Russians, Norwegians. We're the ones who are going to be there first because we're closest. So how do we coordinate that? How do we protect these precious ocean waters from overfishing by countries that are thousands of miles from the Arctic? I mean, if we don't start coordinating, yes, there is the potential for some challenges. But I think if we get ahead of it and we lay out how we're going to do this, I believe we can be in good shape going forward.
Q. And if we can figure it out in the Arctic, can we expand that and talk about the continent? You know that for many years there was a discussion of perhaps customs union between Canada and the United States as a way of thinning the border, because all that's happened is that the border, as you know, has gotten thicker and thicker. Can you foresee the day when you might— your country may look at the idea of a customs union as a way of perimeter security for North America, as opposed to fortress America?
Secretary Clinton. Well, we're not looking at that right now. There are those who are writing about it and suggesting it. But I think your larger point is very important. This is the longest, most peaceful border in the world. We are each other's biggest trading partner. We have an enormous investment in the economic well-being of the other on the side of the border. And my goal as Secretary of State is to begin to clear away any obstacle or misunderstanding.
Now, in an economic downturn such as the world has gone through over the past two years, people get a little bit nervous and become somewhat anxious about their own futures. But we've worked through some of the difficult issues already this past year. And I just want to keep teeing them up. Now, we're not going to make agreements on everything right away, but we are such close allies, we are such good friends, your country has more American citizens living in it than in any other country other than our own. So there's just so much that connects us, and I want to broaden and deepen our relationship to make sure that we always remain as strong and partnered as we can be in looking toward the future.