The following joint statement was released 16 May 1997 by the White
House Office of the Vice President following the first meeting of the U.S.-Ukrainian
Binational Commission, also known as the Gore-Kuchma Commission.
Several stylistic adjustments have been made to the text (fonts,
indentation, and internal linkages) to increase readibility on the Web.
U.S. Vice President Al Gore and Ukrainian President Leonid Kuchma met on May 16, 1997, in Washington to review the progress achieved by the United States-Ukraine Binational Commission in strengthening the strategic partnership between the United States and Ukraine. They noted the importance of sustaining a regular dialogue at the highest political level.
The Vice President and the President agreed that the Binational Commission helps both governments address a broad and expanding range of bilateral and multilateral issues of common interest, promote better understanding and enhanced cooperation and advance the bilateral relationship in the areas of foreign policy, security, sustainable economic development, and trade and investment. The Vice President and President noted that the U.S.-Ukraine partnership is based on international law, common goals, approaches and objectives, is not directed against any state or group of states, and reflects the national interests of both states. The U.S. and Ukraine undertook to improve further the organizational and institutional basis for their cooperation. They directed that work toward this goal be carried out through appropriate measures.
The Vice President and President noted that Ukraine is at a critical juncture in its development as a democratic and market-oriented state, and that the Commission should serve as an effective mechanism for practical work relating to our strategic partnership and for frank dialogue about the challenges that both countries face. They noted the connection between Ukraine's reforms and efforts to create a prosperous and law-based society, and the pace and success of Ukraine's integration with Europe.
The sides underscored the importance of deepening cooperation to ensure the security interests of the United States and Ukraine and to promote the integration of Ukraine as a central European state into European and Euro-Atlantic institutions. They affirmed that Ukraine should play a key role in ensuring peace and stability in Central and Eastern Europe and the continent as a whole.
They expressed their strong desire to finalize a document on NATO-Ukraine cooperation at the earliest possible time and expressed the hope that the President of the United States and the President of Ukraine will participate in a signing of the document in connection with President Clinton's trip to Europe for the NATO Summit in July 1997.
The Vice President confirmed the readiness of the United States to recognize and support in that document the security assurances provided to Ukraine in the Budapest Memorandum of 1994.
The two sides underscored the importance of Ukraine's robust participation in IFOR/SFOR peacekeeping operations in Bosnia, the Partnership for Peace (PFP), especially Ukraine's hosting of the full-fledged PFP exercise "Cooperative Neighbor" near L'viv in July 1997, and applauded Ukraine's enhanced cooperation with Poland, best exemplified by the recent formation of the Ukrainian-Polish battalion.
Vice President Gore and President Kuchma expressed satisfaction with the entry into force yesterday, May 15, of the Conventional Armed Forces in Europe (CFE) Flank Document. The Vice President and President expressed satisfaction with recent statements issued by their respective governments on this issue. The Treaty and its further adaptation are central to the development of a secure and stable Europe and ensure that new dividing lines are not created in Europe.
Vice President Gore and President Kuchma affirmed that the temporary presence of foreign troops on the territory of Ukraine may be based only on a duly concluded agreement with Ukraine according to its Constitution and in conformity with international law, and relevant multilateral documents, or otherwise be pursuant to decisions of the United Nations Security Council and be consistent with the United Nations Charter.
The two sides announced their intention to enhance Ukraine's security through support for reform of the Ukrainian military and promotion of a strong bilateral defense and military cooperation program, to include increased U.S./Ukrainian military-technical cooperation. Both sides commended Ukraine's principled action to achieve nuclear weapons-free status and pledged future cooperative threat reduction efforts. They welcomed the signing by Secretary of Defense Cohen and Minister of Defense Kuzmuk of a document to add $47 million of assistance for strategic dismantlement projects in Ukraine. The U.S. welcomed the announcement by President Kuchma that Ukraine had decided to start eliminating its SS-24 missiles, and Vice President Gore noted that United States funds would support that effort. Technical experts from both countries will meet in Kyiv as soon as possible to begin necessary preparations for the agreed upon projects.
The two sides noted that the scope and size of the bilateral U.S.-Ukrainian defense and military cooperation program is one of the largest in Europe and is testimony to the strength of the strategic partnership of the two countries. Among the many bilateral programs underway, the two sides highlighted not only a successful series of increasingly complex operational exercises but also export control assistance and new, mutually beneficial cooperation in civil emergency preparedness. The sides looked forward to the planned cooperation to help Ukraine establish a non-commissioned officer corps.
The United States pledged to use its influence to support full implementation of the commitments made in connection with the Trilateral Statement of January 14, 1994, including commitments for compensation to Ukraine for the value of all nuclear materials in nuclear weapons withdrawn from the territory of Ukraine.
The United States and Ukraine agreed to promote accession by Ukraine to the Missile Technology Control Regime, and tasked experts to start immediate work toward this end.
Vice President Gore and President Kuchma reaffirmed the commitment of their governments to compliance with international arms control and non-proliferation norms. President Kuchma reviewed the steps Ukraine has taken to strengthen its export control system. The sides announced that the work of the Commission clears the way for the United States and Ukraine to reach an Agreement for Peaceful Nuclear Cooperation and to elaborate other arrangements in this field.
The sides acknowledged ongoing cooperation in science and technology and noted progress made in the Science and Technology Center in Ukraine and the U.S. Civilian Research and Development Foundation. They reaffirmed the commitment of their governments to encourage their respective scientific communities to intensify collaboration in basic and applied sciences and technology development and to assist the redirection of former weapons scientists' expertise towards the civil sector of Ukraine.
In the field of space cooperation, the U.S. and Ukraine look forward to the historic launch of the first Ukrainian astronaut and scientific experiment aboard the U.S. Space Shuttle in November 1997 and to the future U.S./Ukrainian civil space cooperation in telecommunications and tele-medicine, life sciences and earth sciences. They noted that commercial space launch cooperation between U.S. and Ukrainian firms had increased since the signing of a bilateral agreement in 1996 and affirmed continued support for this mutually beneficial cooperation. Both sides noted with satisfaction the participation of both U.S. and Ukrainian commercial enterprises in the Sea Launch project.
The U.S. and Ukraine agreed on the crucial need for Ukraine to implement decisively further macro-economic reforms and economic restructuring to complete Ukraine's transition to a market economy and spur the investment needed to achieve sustainable economic growth. President Kuchma stated that Ukraine is no longer a non-market economy country. Vice President Gore noted that Ukraine is in the process of building market structures, has made significant progress in macro-economic stabilization and has liberalized most prices. They also agreed that the significant progress made over the last two years on reducing inflation had been beneficial for all businesses operating in Ukraine.
President Kuchma renewed his government's commitment to seek rapid implementation of the broad reform agenda outlined to donors in December 1996, including approval of the tax reform and budget package before the Ukrainian parliament as well as other equally important measures. In the context of that broad reform agenda, the Vice President welcomed the President's firm intention to secure the measures necessary for initiating Ukraine's IMF Extended Fund Facility as quickly as possible, as well as to move forward this year on a variety of structural and sectoral reforms, as the basis for mobilizing the $3.5 billion pledged by donors last December to help Ukraine meet its balance of payments deficit. The Vice President expressed the readiness of the U.S. to support the launching of a strong IMF program, as soon as the necessary measures are taken. The sides noted that implementation of such a reform program is key to stimulating investment and growth, combating corruption and securing large-scale multilateral and bilateral support for Ukraine. The two sides underscored the necessity of utilizing the potential of the U.S. initiative "Partnership for Freedom" for implementing the second phase of the U.S. assistance program concerning support for trade, investment and economic growth of Ukraine.
The sides reaffirmed their shared goal of increasing bilateral trade and investment, acknowledging the significant difference between current and potential levels. President Kuchma outlined a tough anti-corruption program that he launched in April 1997 and affirmed his unequivocal commitment to root out corruption at all levels of government. Vice President Gore affirmed U.S. support for this effort. Further, President Kuchma announced specific organizational and other steps taken to improve the investment climate in Ukraine and to resolve problems which have emerged during implementation of specific projects involving American firms regarding trade and investment. Concerning the resolution of outstanding business disputes involving U.S. firms, Ukraine has resolved several of these matters and has undertaken to implement the actions needed for complete resolution of all other outstanding matters as soon as possible in accordance with Ukrainian legislation. Representatives of both sides will report back to Vice President Gore and President Kuchma within one month on final resolution of those matters and will make any further recommendations for action that may be required for expeditious resolution of other cases. Vice President Gore and President Kuchma agreed to cooperate on the development of measures to establish transparent and fair procedures for government procurement and granting of business licenses in Ukraine, aiming to reduce state intervention and improve the business climate. Specifically, in accordance with the agreed-upon joint-action plan on investment climate issues, the U.S. is prepared to support Ukraine's efforts to:
Both sides agreed to deepen cooperation, with broad interagency participation on the Ukrainian side, to accelerate negotiations on completing Ukraine's accession to the World Trade Organization on commercial terms generally applied to newly acceding members, as soon as possible.
Vice President Gore and President Kuchma noted the first U.S.-Ukraine civil aviation agreement initialed on Friday, May 16, marking another milestone in a deepening bilateral relationship.
Vice President Gore and President Kuchma reviewed Ukraine's efforts to accelerate privatization and to implement structural reforms, in particular, in the areas of energy and agriculture. In each sector, they noted that Ukraine has made progress in creating basic market structures such as a program for mass privatization, agricultural commodity markets and a wholesale electricity market. However, the Vice President and President expressed concern that progress has slowed in recent months and affirmed that urgent measures should be taken in these areas to restore competition and strengthen the role of the private sector.
Vice President Gore and President Kuchma agreed to work together to enhance Ukraine's energy security by increasing efficiency, strengthening the competitive power market and its independent regulator, strengthening the financial viability of the nuclear sector to encourage investment, improving nuclear safety, increasing oil and gas production, reforming the gas transit and distribution systems, and upon completion of an Agreement on Peaceful Nuclear Cooperation, cooperating in the field of nuclear fuel fabrication. They reaffirmed their intent to cooperate with G-7 countries in implementing the Memorandum of Understanding on the Closure of Chornobyl. They urged quick action to implement the Shelter Implementation Plan to ensure that the remains of the damaged Chornobyl reactor are put into a safer and more environmentally stable condition. This can facilitate Ukraine's eventual removal of the remaining nuclear fuel and radioactive materials to a permanent disposal site. The U.S. will work with its G-7 colleagues to announce at the Denver Summit the amount of G-7 contributions to the Shelter Implementation Plan and call for a pledging conference in the fall under the honorary chairmanship of Vice President Gore and President Kuchma. The Vice President and President invite international donors, both public and private, to join the United States and Ukraine in providing resources to the Shelter Implementation Plan projects.
President Kuchma outlined plans to improve the financial position of the power sector through improved collections and tariffs and to begin privatizing the power sector to mobilize foreign investments and technology for modernization. As a critical step to reducing barriers to investment in the oil and gas industries, the Vice President and President signed a joint initiative,to reform the gas market, and agreed to engage in a dialogue between industry and the two governments to offer solutions to barriers to oil and gas investment. President Kuchma stressed his government's commitment to passage of legislation on production-sharing agreements, which is necessary to attract foreign investment aimed at developing Ukraine's oil and gas resources. The Vice President and President discussed the importance of beginning discussions among experts on the economic development of Ukraine's oil pipelines. They also discussed the construction of a new oil terminal to diversify sources of crude oil imports to Ukraine and to serve the transit system for oil from the surrounding regions to European countries on a cost-effective basis. They further stressed the key role of energy efficiency in achieving energy security, economic competitiveness and a cleaner environment.
Vice President Gore and President Kuchma affirmed that agriculture must serve as an engine of growth for Ukraine and agreed to focus bilateral assistance and trade programs on land privatization and on promoting the private sector's role in input distribution, agricultural services, production, storage, marketing, processing and financing. The government of Ukraine announced its decision to move ahead with:
Vice President Gore and President Kuchma reaffirmed their commitment to establish the Ukrainian national office of the new Regional Environmental Center for the New Independent States. This independent center is intended to improve access to environmental information, increase environmental awareness, strengthen non-governmental environmental organizations and promote public participation in environmental decisions. President Kuchma pledged his support in providing a suitable site for the Ukrainian national office and announced that he would work with Parliament to give the new center special status and privileges.
Vice President Gore and President Kuchma reaffirmed their commitment to safeguarding the cultural heritage of all national, religious, and ethnic groups of both the United States and Ukraine. They noted the positive and productive efforts of the newly formed Joint Cultural Heritage Commission to protect and preserve cultural sites important to the people of both countries. Vice President Gore noted with pleasure Ukraine's legislation prohibiting construction on or privatization of the sites of old cemeteries in Ukraine. They also reviewed recent problems with the delivery of humanitarian, technical and grant assistance and the problems of taxation of such assistance provided in the framework of U.S. government programs. The Ukrainian side stated that there is now no legislative barrier to the delivery of this assistance and stressed that these problems will be resolved in accordance with Ukrainian law.
Vice President Gore and President Kuchma underscored the importance
of reinforcing the U.S.-Ukraine strategic partnership both in the political
and economic spheres. The sides expressed satisfaction at the work accomplished
to date by the four committees and directed the Binational Commission to
intensify work on the agenda outlined during their meeting by directing
the committees to aim to meet at least twice a year. They reflected on
the progress Ukraine has made toward establishing a democratic and market-oriented
state and underscored that this was a crucial time to redouble cooperative
efforts to assure Ukraine's integration with Europe and the rest of the
international community and to bring prosperity to the Ukrainian people.
For the United States of America
For Ukraine
Washington May 16,1997
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