tion in the Federal Register.

GEORGE BUSH

[Filed with the Office of the Federal Regis

ter, 11:36 a.m., December 31, 1990]

Note: The memorandum was released by the Office of the Press Secretary on December

28.

December 27, 1990

Dear Mr. Speaker: (Dear Mr. President:)

Pursuant to the authority vested in me by section 592(d) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101513) (the "Act"), I hereby report under paragraph (1) thereof. The basis for this report is described more fully in the attachment to this letter entitled Status of U.S. Efforts on Egyptian Debt.

I am simultaneously providing copies of a memorandum, signed by me today, in which I make certain determinations under section 592(d)(2) and 592(e)(2) of the Act. These determinations form an integral part of my report under paragraph (1) of section 592(d) of the Act. The attached Memorandum of Justification Regarding Presidential

Determinations under Section 592 sets forth more fully the basis for these determinations.

Accordingly, I have authorized the Secretary of Defense and the Secretary of the Treasury to take the appropriate steps to reduce to zero amounts owed in connection with Egypt's remaining Foreign Military Sales debt. Sincerely,

GEORGE BUSH

Note: Identical letters were sent to Thomas S. Foley, Speaker of the House of Representatives, and Dan Quayle, President of the Senate. The letter was released by the Office of the Press Secretary on December 28.

Memorandum for the Secretary of State Subject: Determination under Section 402(c)(2)(A) of the Trade Act of 1974, as amended-Soviet Union

Pursuant to section 402(c)(2)(A) of the Trade Act of 1974 (19 U.S.C. 2432(c)(2)(A)), as amended, (the “Act”), I determine that a waiver by Executive order of the applica

tion of subsections (a) and (b) of section 402 of the Act with respect to the Soviet Union will substantially promote the objectives of section 402.

You are authorized and directed to publish this determination in the Federal Register.

[Filed with the Office of the Federal Register, 3:30 p.m., January 14, 1991]

Dear Mr. Speaker: (Dear Mr. President:)

Pursuant to subsection 402(c)(2)(A) of the Trade Act of 1974 (the "Act") (19 U.S.C. 2432(c)(2)(A)), I have determined that a waiver of the application of subsections (a) and (b) of section 402 with respect to the Soviet Union will substantially promote the objectives of section 402. A copy of that determination is enclosed. I have also received assurances with respect to the emigration practices of the Soviet Union required by subsection 402(c)(2)(B) of the Act. This letter constitutes the report to the Congress required by subsection 402(c)2).

Pursuant to subsection 402(c)(2), I shall issue an Executive order waiving the application of subsections (a) and (b) of section

402 of the Act with respect to the Soviet Union.

I note that this waiver will apply to Estonia, Latvia, and Lithuania. This in no way affects the long-standing U.S. policy of not recognizing the forcible incorporation of Estonia, Latvia, and Lithuania into the Soviet Union or our support for the right of the Baltic states to self-determination. Sincerely,

GEORGE BUSH

Note: Identical letters were sent to Thomas S. Foley, Speaker of the House of Representatives, and Dan Quayle, President of the Senate.

The following list includes the President's public schedule and other items of general interest announced by the Office of the Press Secretary and not included elsewhere in this book.

July 2

The President met with advisers at his home in Kennebunkport, ME, in preparation for the 16nation North Atlantic Treaty Organization summit in London, United Kingdom, July 5-6, and the 7-nation economic summit in Houston, TX, July 9-11.

The President today announced his intention to appoint the following individuals to be members of the National Commission on Superconductivity:

Barbara S. Drake, of Pennsylvania. She would succeed Stephen J. Markman. Currently Mrs. Drake serves as Assistant to the Attorney General at the Department of Justice in Washington, DC.

Travis P. Dungan, of Florida. He would succeed S. Fred Singer. Currently Mr. Dungan serves as Administrator for the Research and Special Programs Administration in Washington, DC.

John K. Hulm, of Pennsylvania. He would succeed William M. Fairbank. Currently Dr. Hulm serves as chief scientist emeritus of Westinghouse Science and Technology Center in Pittsburgh, PA.

Sidney L. Jones, of Maryland. This is a new position. Currently Dr. Jones serves as Assistant Secretary of the Treasury for Economic Policy in Washington, DC. John W. Lyons, of Maryland. He would succeed Ernest Ambler. Currently Dr. Lyons serves as Director of the National Engineering Laboratory at the National Institute of Standards and Technology in Gaithersburg, MD.

July 3

The President met with advisers at his home in Kennebunkport, ME, in preparation for the NATO summit and the Houston economic summit.

July 4

The President declared that a major disaster existed in Nebraska as a result of severe storms, tornadoes, and flooding that began June 10. He directed the Federal Emergency Management Agency to provide assistance to supplement State and local recovery efforts.

July 5

In the morning, the President arrived at Heathrow International Airport, London, for the NATO summit and went to Winfield House,

home of the U.S. Ambassador, which was the President's residence during his stay in London. Later the President met with NATO Secretary General Manfred Woerner and participated in the summit's first working session at Lancaster House.

In the afternoon, the President attended a reception at Bridgewater House for NATO heads of state and Foreign Ministers and a luncheon for NATO leaders at Spencer House hosted by Prime Minister Margaret Thatcher of the United Kingdom. Following the luncheon, the President participated in a working session with NATO summit participants at Lancaster House.

In the evening, the President attended a dinner at Buckingham Palace for NATO heads of state and Foreign Ministers. At the conclusion of the dinner, the President returned to Winfield House.

The White House announced that President Bush has invited President Gnassingbé Eyadéma of Togo to make an official working visit to the United States on July 30-August 1. President Eyadéma has accepted the invitation.

The President announced that the following individuals will comprise the President's delegation to the 10th anniversary celebration of the independence of Vanuatu and the annual heads of state meeting of the South Pacific Forum, July 29-31:

Delegation Chairman:

Fred Zeder, President, Overseas Private Investment Corporation, and Martha Zeder.

Delegates:

Former Governor Hugh Gregg, of New Hampshire, and Cay Gregg.

Nancy Thawley, director of the Republican Eagles, Republican National Finance Committee.

Former State Senator William Saltonstall, of Massachusetts.

July 6

In the morning, the President had breakfast with Prime Minister Thatcher at 10 Downing Street and participated in the final working session of the NATO summit at Lancaster House.

In the evening, the President arrived at Ellington Field in Houston, TX, for the economic summit of industrialized nations and went to the Houstonian Hotel, his residence during his stay in Houston.

But we, as you know, had a very close relationship with Eduard Shevardnadze, and Jim expressed it very well-Jim Baker did. But life goes on, and we will pursue the policies in the Gulf, confident that the Soviet Union will continue on its path. And I will continue to work with this new and very encouraging bilateral relationshipwork to enhance that in every way possible. So, what I'm saying is, I don't see any radical changes affecting our bilateral relationship.

And obviously, people are wondering about the concerns raised and expressed by Mr. Shevardnadze, but we will continue to Ideal with them in the future here as we have in the past, and hope that the changes that are taking place will be done in a very peaceful way.

Did you want to add to that?

The Prime Minister. I'll just add a word, if I may. Clearly, it's sad he's gone. He's played a remarkable part in the peacekeeping process over the past year or so. What we now need to do is to make sure that-as Mr. Gorbachev has said it will-that Soviet foreign policy continues unchanged. We'll have to wait and see how that pans out, but the early signs are encouraging. Gorbachev said that's how it would be. The Congress of Deputies voted precisely in that fashion within a matter of hours. So, we wait to see who the new Foreign Minister is.

Q. Can I ask you, both gentlemenQ. Mr. President, do you have any doubt, given the changes that now are occurring in the Soviet Union and the turmoil there, that if you need to make a decision to use force in the Gulf that they will be fully behind you?

The President. No, I think they every indication we've gotten is that there will be no change in their Gulf policy.

Do you want to comment on that one? The Prime Minister. Well, we've seen no indication of a change in the Gulf policy. There was no indication of it in the immediate comments after Mr. Shevardnadze's resignation. We hope there won't be.

Persian Gulf Crisis

Q. If I could ask you both: Saddam Hussein says he's not about to leave Kuwait. If he doesn't change his mind, is the world

doomed for war?

The President. Do you want to go first? The Prime Minister. Well, if there's going to be a conflict in Kuwait, that's really a matter for Saddam Hussein. He knows what the Security Council resolutions say. They couldn't be clearer. They've had an almost unprecedented amount of support internationally. I think one has to bear in mind what he's done is unforgivable. What he and his colleagues are doing in Kuwait at this very moment is unforgivable, as you will have seen from the Amnesty [International] report.

I hope he takes seriously the fact that the Security Council resolutions will be enforced. If he moves out, there won't be a conflict. If he doesn't, well, he knows what the consequences may be.

The President. That says it all. And that's exactly the way we feel. We are totally together on this point. And I think we're both still hoping that there will be a peaceful resolution. But I am convinced that Saddam Hussein hasn't gotten the message yet, for some odd reason, the message as to what he's up against and the message that all of us are determined to fulfill to the letter the United Nations resolutions. But let's hope he does get the message.

Q. Do you see any chance for direct talks?

Q. Mr. President, we've been getting conflicting signals this past week from General Waller [deputy commander of U.S. forces in the Persian Gulf], others in the military, in Congress, and so on as to whether the U.S. and the coalition are actually ready for war by the 15th of January. Is the U.S. ready or is the U.S. not ready?

The President. I will be discussing this matter here at Camp David on Monday, I believe it is, with Dick Cheney [Secretary of Defense] and General Powell [Chairman of the Joint Chiefs of Staff]. But put it this way: If there was some clear provocation 10 minutes from now, the allied forces are ready to respond vigorously.

Q. On a slightly different topic, there continue to be reports that American servicemen are not being allowed to wear American flag patches on their uniforms. There continues to be restrictions by the

Saudis on religious materials, entertainment. Do you go along with this position, especially during the Christmas season? And why should the Saudis be allowed to impose such narrow restrictions on those who may very likely give up their lives for mutual interests?

The President. I've discussed this with our commanding general [H. Norman Schwarzkopf], I've discussed this with the Chairman of the Joint Chiefs, and I am satisfied that our young men and women over there will be able to do what every other American family will be doing-thanking God for our many blessings at Christmas. And in terms of manifestations of their patriotism or love of country, they will be able to do what is proper.

So, I'm not worried by the sporadic reports that we get. And I think that the cultural differences are well known, but I think the Saudis and our people are working very closely to see that we are able to do what every American family does at Christmastime, and that is to worship in our own way the holidays here for other religions. And so, I've seen some reports, and then I've made inquiry, and I'm satisfied that these kids can worship their God in their own way.

Q. What about the flag patches, the American flag?

The President. I asked about that, and I forget the details of the answer, but I was satisfied that the way it was worked out is acceptable to our general officers and, thus, to the men as well. Q. Sir, have abandoned you any hope that there will be talks before January 3d with Iraq?

The Prime Minister. Insofar as talks are concerned, there's nothing to negotiate about. Insofar as whether there's a meeting between Saddam Hussein and Secretary of State Baker is concerned, Mr. Baker's offered a whole series of dates to Saddam Hussein. He's had a wide variety to chose from; he hasn't yet chosen. But insofar as negotiations, there's nothing to negotiate about.

Q. President Bush?

The President. Exactly the same answer. We're totally together on this. We've offered up dates. We've made clear that, as

the Prime Minister has just said, that these meetings were designed to explain fully to Saddam Hussein the situation that he faces now. But we'll continue to hope that he'll be reasonable. But I see no evidence of it, if that's your question.

I see from Marlin-we're looking a little frantic, so we'll take one last one over here. Soviet Reforms

Q. A question for both of you. Mr. Kryuchkov, the head of the KGB, has said that bloodshed may be necessary to restore order in the Soviet Union. What are your comments?

The President. What was it, again, I'm sorry?

Q. Kryuchkov, the head of the KGB, has said that bloodshed may be now necessary to restore order in the Soviet Union.

The President. Would you like to go first on that?

The Prime Minister. Well, we

The President. This is what they call bowling us a googley. [Laughter]

The Prime Minister. Yes. [Laughter] If it's a googley, I dare say it's a curve ball for me. [Laughter]

Well, I think we hear a lot of comments of various sorts from the Soviet Union, some of it rather garish, of that sort. We hope very much not. What, clearly, one wants to see is the reform program continuing. It's come a long way in a short period of time, but it has a long way still to go. We hope it can travel that long road, and do so without bloodshed and peaceably.

The President. Last one. Who didn't get one?

Multilateral Trade Negotiations

Q. Have you managed to get any closer on the GATT issue at all? The trade issue?

The Prime Minister. I think there's a community of interest there. We're both aware, and so are the other community heads in the European Community, the great advantage is to get an agreement on GATT. It may not be an agreement that will have every one of us dancing in the streets on every issue. But there'll have to be a community of interest for the agreement. And I think there's a political will to make sure