Joint Declaration With President Eduardo Frei of Chile

On the invitation of the President of the Republic of Chile, Eduardo Frei Ruiz-Tagle, the President of the United States of America, Mr. William Jefferson Clinton, made a State visit to Chile, April 16-17, 1998. The President of the United States was accompanied by his wife, Hillary Rodham Clinton, and by a high-level delegation composed of Secretary of State Madeleine Korbel Albright, Attorney General Janet Reno, Secretary of Commerce William Daley, Secretary of Education Richard W. Riley, United States Trade Representative Charlene Barshefsky, Director of National Drug Control Policy Barry McCaffrey, Counselor to the President and Special Envoy to the Americas Thomas "Mack" McLarty, and Assistant to the President for National Security Affairs Samuel R. Berger.

In recent years, the United States and Chile have established solid and stable relations, based on a mutual commitment to respect democracy and human rights, open markets and free trade. This joint vision was reaffirmed during the State visit of President Frei to the United States in February 1997 and was strengthened on the occasion of the State visit of President Clinton. Today, the Presidents note with satisfaction the progress achieved in their bilateral relations, and state that this will have a positive impact on the quality of life of their peoples, and to that effect agree on the following Joint Declaration:

During working meetings held at the Palacio de la Moneda, Presidents Clinton and Frei reviewed the excellent state of bilateral relations, assessed progress made since the State visit of President Frei to the United States in February, 1997 and identified areas for future collaboration. As part of the high-level Consultative Framework begun by Presidents Clinton and Frei in 1994, they reaffirmed their desire to continue strengthening the comprehensive ties between the two countries.

The Presidents reiterate the political commitment of their Governments to ensure that the second Summit of the Americas, to take place April 18-19 in Santiago, contributes to strengthening hemispheric relations and to improving the development and well-being of the peoples of the Hemisphere in concrete and positive ways. In that context, they discussed the four major areas of the agenda: Education, Preserving and Strengthening Democracy and Human Rights, Economic Integration and Free Trade, and the Eradication of Poverty and Discrimination.

In addition to underscoring the importance of the Declaration and Plan of Action which will be adopted by the thirty-four Heads of State or Government at the Summit, both Presidents agreed on the need to continue working together on the process of integration and free trade at the hemispheric level, reaffirming their commitment to the formal start of negotiations for the establishment of the Free Trade Area of the Americas (FTAA) during the Santiago Summit.

The Presidents agree on the great importance of education as the most effective tool to attain full development, and in particular to reinforce the values of democracy, to give hope to our peoples for a better life, and to prepare our citizens for the 21st century global economy. Within this context, they welcomed the signing of a Memorandum of Understanding on Education, which will put technology at the service of creating opportunities for the poorest segments of the population and other disadvantaged groups, improve quality and standards, strengthen professional development of teachers and enhance cooperation in all levels of education. They also applauded the signing of an agreement by which Chile will join the "GLOBE Program" designed to link schools and scientists around the world through the Internet, so that information and experiences can be exchanged and so that students can make environmental scientific observations for use by researchers.

The Presidents agreed upon a program of cooperation between their respective agencies for international development, including jointly funded scholarships for training in such areas as combating poverty, strengthening democracy and education, and economic integration.

The Presidents reaffirmed the commitment of their Governments to achieve a comprehensive free trade agreement that includes both countries, and to adopt specific measures aimed at promoting the competitiveness of their respective countries in the global economy. In this regard, they noted with satisfaction the significant progress made in improving agricultural trade relations through the Consultative Commission on Agriculture created by the two Presidents last year. In light of the economic development achieved in recent years in both countries and with a view to promoting cooperation bilaterally and in regional and multilateral areas, including the World Trade Organization, Free Trade Area of Americas, and the Asia Pacific Economic Council, the Presidents agreed to establish the U.S.-Chile Joint Commission on Trade and Investment. This consultative mechanism will be comprised of the relevant Ministries involved in these topics and will be chaired by the Chilean Minister of Foreign Relations and the U.S. Trade Representative, who will meet at the time of the Second WTO Ministerial Conference to sign the appropriate agreement. The Committee will hold its first meeting prior to October, 1998. On that occasion, it will examine the full range of measures affecting the various dimensions of trade, including such new areas as electronic commerce. It will also discuss ways of addressing restrictive trade practices, and the consequences of such practices, in the context of a global economy.

The Presidents reaffirmed their commitment to the WTO, including full, effective implementation of the agreements reached in the Uruguay Round. Both countries pledge to continue promoting within the WTO full multilateral liberalization of trade, complementing negotiations already scheduled for the agriculture and service sectors.

On bilateral commercial matters, the Presidents underscored the value of completing as soon as possible the efforts to sign a bilateral Open Skies agreement in order to provide their citizens better air transport services and to facilitate commerce and exchange between their countries. They also agreed that their ministries should deepen bilateral cooperation by exchanging commercial missions and information on major infrastructure projects, as well as creating databases on commercial opportunities in each country.

The Presidents reviewed topics of common interest relating to recent world economic events, and recognized the importance of applying sound macroeconomic policies, including balanced budgets and financial transparency, which have enabled both nations to continue experiencing high levels of economic growth, despite difficulties in other regions of the world. In order to strengthen bilateral financial cooperation, United States and Chilean banking oversight authorities have signed a Statement of Cooperation to Enhance Cooperation in the Supervision of Cross-border Banking Institutions.

The Presidents affirm their desire to strengthen cooperation on the environment and sustainable development. They firmly support the principles and objectives of the Kyoto Protocol, and are convinced that the market mechanisms that it establishes will be a great help to mobilize the resources of the private sector to reduce greenhouse gas emissions.

They recognize the potential of the Clean Development Mechanism to become an important resource for attracting private sector initiatives and investment in clean energy technologies, energy efficiency, forests and other activities that reduce, absorb or eliminate greenhouse gas emissions.

They agreed that all countries should be involved in global efforts to address climate change, taking into account their common, but differentiated responsibilities.

Developed countries must set the example in reducing greenhouse gas emissions as a matter of priority, while developing countries should participate meaningfully in efforts to address climate change, for example, by taking on emissions targets whenever possible.

They commit their governments to work together on these issues in preparation for the next conference of parties to the Framework Convention on Climate Change this November in Buenos Aires.

Concerned by the profound impact caused by the El Nino weather phenomenon throughout the Americas, the Presidents welcomed the signing of a Declaration of Intent to advance the launching of a Pan-American Climate Information System for Disaster Preparedness. Such a system will utilize the latest technology to help governments and private citizens better prepare themselves to be able to reduce the damages caused by climate-related phenomena.

They agreed to instruct their experts to explore the mutual benefit that could accrue to their respective nationals under a bilateral Social Security agreement that would eliminate double taxation of Social Security contributions and help improve benefit rights for people who have worked in both countries.

The Presidents also welcome the signing of a Memorandum of Understanding between our Governments' authorities for the Promotion and Development of Public Policies for the Strengthening of Government Administration.

Presidents Clinton and Frei reiterated their commitment to continue their efforts to promote international peace and security, and cooperation with respect to compliance with agreements and treaties at the international and regional levels. In that regard, they applaud the work of the Defense Consultative Commission and the Global Security Dialogue. They noted the importance their Governments attach to policies designed to achieve greater transparency, both in terms of defense expenditures and conventional arms transfers, and to foster mutual confidence and security-building measures. In that spirit, the leaders support the adoption of regional transparency measures for conventional arms purchases.

Recognizing the importance of the Organization of American States, which will celebrate its 50th anniversary this month, and in order to make its modernization a reality, the Presidents instructed their Foreign Ministers to consult with their colleagues in the Hemisphere to establish effective means through which the OAS could be revitalized, with due regard to its relations with other hemispheric institutions, and to agree on a timetable for the review and reform to be completed.

The Presidents also reviewed the situations in Iraq, the Middle East and Bosnia, where Chile and the United States are participating with peacekeeping forces under the mandate of the United Nations, and they agreed to maintain such important joint efforts on behalf of international peace.

In their capacity as Guarantors of the Rio Protocol, the Presidents reviewed recent progress achieved by the Governments of Ecuador and Peru and continue to urge both parties to settle their dispute by the May 30 target date agreed to by both parties.

The Presidents agreed to continue negotiations to reach a prompt agreement on cooperation that will provide for coordination of efforts of both countries to take more effective and timely action against illicit traffic of narcotic drugs and psychotropic substances and their related crimes, as well as to prevent the abuse of those substances. All this, with the aim of reaching full implementation of the principles and policies contained in the Hemispheric Strategy adopted in the framework of the Interamerican Commission for Drug Abuse Control.

They also look forward to the early completion of a customs mutual assistance agreement to advance cooperation against fraud.

To facilitate and further advance our close ties, the Presidents agreed to establish a Bilateral Consultative Mechanism at the Foreign Ministry level, and to advance its operations through the appropriate diplomatic channels.

WILLIAM JEFFERSON CLINTON

President of the United States of America

EDUARDO FREI RUIZ-TAGLE

President of the Republic of Chile