Statement of Administration Policy: H.R. 3402 - The Polish and Hungarian Democracy Initiative of 1989

(House)
(Fascell (D) FL and 57 others)

Poland and Hungary are experiencing truly historic and rapid change in which democratic forces for the first time since World War II are playing the leading role. The United States and the West as a whole face a unique challenge and opportunity to assist these countries in what we hope will be a peaceful and successful transformation from state-controlled economic and political systems to political pluralism, democracy, and market economies.

From the outset of his Administration, President Bush has taken the lead in supporting reform in Poland and Hungary and has worked with Congress to ensure that comprehensive legislation is enacted on an urgent basis. The President's policy has been flexible to account for changing circumstances; conditional to provide incentives for macroeconomic reform; and has provided U.S. leadership in developing a concerted Western approach since no one country can provide all that Poland and Hungary need. H.R. 3402 reflects this cooperation — incorporating the key elements of the President's program — and the wide bipartisan support for assisting these two countries on their path to democracy. The Administration has reservations about the excessive funding levels contained in this legislation, and also has various constitutional concerns that must be addressed. The Administration supports House passage of H.R. 3402 and will work with the Senate to address these problems.

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(Not to be Distributed Outside Executive Office of the President)