The general waiver authority conferred by section 402(c) of the Act has been of major importance in permitting and reenforcing the expansion of relations between the United States and certain countries of Eastern Europe and the People's Republic of China. In the past year this authority has permitted the negotiation and entry into force of the United States-China Agreement on Trade Relations [see, post]. This is a major step in the evolution of United States-Chinese relations. Moreover, the waiver authority has permitted us to conclude and maintain in force bilateral trade agreements with Romania and Hungary. These have been cornerstones in the strengthening of our political and economic relations with those countries, including our important and productive exchanges on human rights and emigration matters. Continuation of this authority may provide a basis for future steps to expand and improve our bilateral relations with other countries now subject to subsections 402(a) and (b) of the Act, should circumstances permit. I believe that all of these considerations fully justify this recommendation for extension of the general waiver authority.

I also believe that continuing the current waivers applicable to Romania, Hungary and the People's Republic of China will substantially promote the objectives of section 402.

Romania.-Emigration from Romania to the United States has grown substantially since the waiver has been in effect and is now nearly four times as large as it was in 1974. This progress_continued in 1979 and throughout the first four months of 1980. During this period, we have maintained an active dialogue with the Romanian Government concerning emigration matters, including our interest in sustained performance with respect to emigration to the United States and Israel. This interest was expressed, most recently, during high-level bilateral consultations in Washington in April within the framework of the Final Act of the Conference on Security and Cooperation in Europe and in the context of meetings of the United States-Romanian Joint Economic Commission. During these meetings there was also a detailed examination of overall emigration trends for Romania and the question of binational marriages. We believe that discussions such as these, which take place within the context of the waiver under section 402 of the Act, will ensure continued favorable resolution of emigration and humanitarian problems.

Hungary.-At the time of the initial waiver in 1978, the Hungarian Government indicated that it would continue to deal with emigration matters in a responsive and humanitarian manner. Since then, Hungarian actions have been consistent with this policy. Most Hungarians who apply to emigrate receive permission to do so without undue difficulty. The number of problem cases outstanding at any one time remains small, usually considerably fewer than a dozen at any time among persons seeking to come to the United States. We have found that we can discuss problem cases productively with the Hungarian Government, and that most eventually are resolved favorably.

People's Republic of China.-During the past year, China has demonstrated its commitment to open emigration by simplifying its exit procedures and permitting over 1,500 students to study in

the United States. The numerical limits imposed on entry to the U.S. by our immigration law are now a more significant impediment to immigration from China than are the Chinese Government's exit controls. China's commitment to open emigration is exemplified by the consular agreement concluded with the United States in January 1979, in which China agreed to facilitate the reunion of families and to process all applications as quickly as possible [see, post]. The Chinese Government is aware of the benefits of most-favored-nation status and of our interest in open emigration, and extension of the waiver will encourage the Chinese to maintain their current travel and emigration policy.

In light of all of these considerations, I have determined that continuation of the waivers applicable to Romania, Hungary and the People's Republic of China will substantially promote the objectives of section 402 of the Act.

H.R. Doc. No. 96-318, 96th Cong., 2d sess. (1980), reprinted, Trade Waiver Authority Extension: Hearing before the Subcomm. on Trade of the House Comm. on Ways and Means, 96th Cong., 2d sess. (1980), pp. 7-8. For Pres. Determination No. 80-19, dated May 28, 1980, see 3 CFR, 1980 Comp. (1981), p. 326.

For the Agreement on Trade Relations, concluded between the United States and the People's Republic of China at Beijing on July 7, 1979, see TIAS 9630; 31 UST 4651; entered into force, Feb. 1, 1980. And see the 1979 Digest, pp. 1365-1374.

In the Agreement between the Government of the United States of America and the Government of the People's Republic of China on the Mutual Establishment of Consular Relations and the Opening of Consulates General, with Annex on Practical Arrangements, done at Washington, Jan. 31, 1979, on the occasion of the official visit of Chinese Vice Premier Deng Xiaoping to the United States, the two Governments agreed, among other things, to foster family reunion. In the Annex they agreed, "pending entry into force of a Consular Agreement to be negotiated”, to a number of "interim practical arrangements", including provisions on facilitation of the reunion of families, facilitation of travel of dual nationals, travel documents, consular protection in general, as well as consular notification and access in case of arrest, and payments of financial benefits from the respective Governments to individuals residing in the other Government's territory. TIAS 9177; 30 UST 17; entered into force, Jan. 31, 1979.

On Sept. 17, 1980, the United States of America and the People's Republic of China concluded a Consular Convention, with exchange of notes, at Washington on the occasion of the visit of Vice Premier Bo Yibo, which was modified by an exchange of notes at Beijing, Jan. 17, 1981 (TIAS 10209; entered into force, Feb. 19, 1982). See, further, this Digest, Chapter 4, §2, ante.

§3

International Economic Assistance and
Development

Central America and the Caribbean

Special Central American Assistance Act of 1979

On May 31, 1980, President Carter signed into law the Special Central American Assistance Act of 1979, Public Law 96-257, 94 Stat. 422, which amended the Foreign Assistance Act of 1961 to provide $80 million in Central American economic support.

In signing the Act, the President noted the "substantial emergency assistance" provided by the United States to the Nicaraguan Government and people immediately after the (1979) revolution. He described the legislation as reaffirming the United States' commitment to assist in democratic development in Nicaragua and its determination to meet the Cuban challenge throughout Central America, as well as demonstrating the United States' desire to cooperate with governments sharing its interest in pluralism and democracy.

Weekly Comp. of Pres. Docs., Vol. 16, No. 23, p. 1017; American Foreign Policy: Basic Documents, 1977-1980 (1983), p. 1338.

See, further, the 1979 Digest, pp. 1376-1382.

As enacted, the legislation contained a number of conditions on provision of assistance to Nicaragua that reflected concerns about the policies of the new Nicaraguan Government relating to human rights, external subversion, labor, the private sector, and cooperation with Cuba and the Soviet Union. The law required, inter alia, termination of assistance if the President determined that foreign combat military forces posing a national security threat to the United States or any Latin American ally of the United States were stationed or situated in Nicaragua, or that the Government of Nicaragua had engaged in a consistent pattern of violations of the right to organize and operate labor unions free from political oppression, or in the systematic violation of free speech and press. It also prohibited release of assistance to Nicaragua unless the President transmitted a certification that the Government of Nicaragua had not cooperated with or harbored any international terrorist organization or aided, abetted or supported acts of violence or terrorism in other countries.

In Pres. Determination No. 80-26, dated Sept. 12, 1980, President Carter certified that "on the basis of an evaluation of the available evidence", the Government of Nicaragua had not cooperated with or harbored any international terrorist organization, and was not aiding, abetting, or supporting acts of violence or terrorism in other countries. Fed. Reg., Vol. 45, p. 62779; 3 CFR, 1980 Comp. (1981), p. 335.

Following disbursement of an initial tranche, disbursement of further assistance was subsequently halted because of demonstrated Nicaraguan involvement in operations launched against the Government of El Salvador by insurgents. President Ronald Reagan formally suspended assistance on April 14,1981. See, Dept. of State Bulletin, Vol. 81, No. 2050, May 1981, p. 71; American Foreign Policy: Current Documents, 1981 (1984), p. 1298; and, see Pres. Determination No. 81-5, Apr. 14, 1981, Fed. Reg., Vol. 46, p. 24141; 3 CFR, 1981 Comp. (1982), p. 226.

Conditions identical to those enacted in the Special Central American Assistance Act were adopted in section 202 of the International Security and Development Cooperation Act of 1980, P.L. 96-533, approved Dec. 16, 1980, 94 Stat. 3131, 22 U.S.C. 2346b, 2151 note. Reflecting U.S. refusal to support the military development of the Sandinista-dominated Government of Nicaragua, that law in addition prohibited provision of funds under Title I of the Act (Military and Related Assistance and Sales Programs) for aid or assistance to Nicaragua.

-P.M.O.

Assistance to the Private Sector of El Salvador, Nicaragua, and Other Nations

The Bretton Woods Agreements Act, 22 U.S.C. 286 et seq., as amended, was further amended by Public Law 96-389, approved October 7, 1980, section 8 of which added the following new section:

"Sec. 38. It is the sense of the Congress that in providing assistance through loans or other means to any nation, in particular El Salvador and Nicaragua, the Fund and the Bank should encourage programs which assist the private sector to create an environment which will stabilize the economy of the nation; and that the United States representatives to the Fund and the Bank shall promote the use of assistance by the Fund and the Bank to encourage such programs."

P.L. 96-389; 94 Stat. 1551, 1554; 22 U.S.C. 286x (Supp. IV, 1980).

International Disaster Assistance

Italy: Assistance for Earthquake Victims

On December 12, 1980, President Carter approved legislation amending section 495B of the Foreign Assistance Act of 1961 to authorize $50,000,000 for Fiscal Year 1981 for relief, rehabilitation, and reconstruction assistance for the victims of earthquakes in southern Italy (Public Law 96-525; 94 Stat. 3043).

In introducing Public Law 96-525 on December 1, 1980, Congressman Edward P. Boland noted that the Agency for International Development possessed the means to respond to the most immediate needs of the survivors. He believed, however, that additional assistance would be required as the full dimensions of the devastation caused by the earthquakes became known.

Cong. Rec., Vol. 126, Pt. 23 (1980), p. 31201.

United States-Mexico: Disaster Assistance

On January 15, 1980, representatives of the United States and of Mexico signed an agreement between their Governments on cooperation in cases of natural disasters, that superseded an earlier Agreement on Assistance in the Case of Disasters, effected by an exchange of notes on May 3, 1968 (TIAS 6481; 19 UST 4810), as amended by an exchange of notes on March 28, 1972 (TIAS 7308; 23 UST 290).

The new Agreement provided for establishment of a United States-Mexico Consultative Committee on Natural Disasters, with membership consisting, on the United States side, of the Director of the Federal Emergency Management Agency, the Director of the Department of State's Office of Foreign Disaster Assistance, and the Federal Co-Chairman of the Southwest Border Regional Commission, and, on the Mexican side, of representatives of the Secretariats

of Government, Foreign Relations, National Defense, the Navy, Treasury and Public Credit, Communications and Transport, Human Settlements and Public Works, and Health and Welfare.

Under Article II of the Agreement, the Committee was charged with considering means of cooperation in planning for cases of natural disaster such as hurricanes, floods, fires, earthquakes, tornados, landslides, snowfalls, volcanic eruptions, or other catastrophes of that nature which both parties strictly characterize as such, in order to protect the life, property, health, and safety of the inhabitants of the affected common border areas. The Committee was also to recommend to the parties specific programs for cooperation in predisaster planning, support to national programs, and post-disaster assistance, it being understood that post-disaster assistance would be limited, unless otherwise agreed, to common border areas, as defined by the parties. The mandate of the Committee included: (a) exchange of information and personnel as mutually agreed; (b) analysis of the probable effects and potential risks of particular kinds of disaster in geographic areas with a high potential for disaster; (c) exchange of information on techniques for evacuating and relocating persons under emergency conditions; (d) study of damage assessment techniques; (e) exchange of information on techniques for ensuring an adequate supply of resources to meet emergency situations; (f) study of the role of communications in emergency planning; and (g) promotion of symposia, conferences, and training programs.

The Committee, which was required to meet at least annually, alternately in the United States and Mexico, was empowered to establish joint working groups for specific tasks and to invite other Federal, State, or local authorities and private organization representatives to working group meetings.

Under Article X, the Agreement would be applied provisionally from its date of signature and would enter into force upon notification by each Party to the other of completion of the necessary legal requirements in its country for entry into force. It would remain in force for three years and would be automatically extended for additional three-year periods unless one Party notified the other in writing of its intention to terminate it at least thirty days before the end of any three-year period.

TIAS 10013; entered into force definitively, Mar. 18, 1981.

Refugee Assistance

Assistance for Afghan Refugees in Pakistan

On January 31, 1980, President Carter announced that the United States would make an additional pledge of $5.3 million for immediate assistance to the growing number of Afghan refugees fleeing into Pakistan because of Soviet aggression in Afghanistan. The con