THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release October 17, 1996

                TEXT OF A LETTER FROM THE PRESIDENT
           TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
                  AND THE PRESIDENT OF THE SENATE

October 17, 1996

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

The Generalized System of Preferences (GSP) program offers duty-free treatment to specified products that are imported from designated developing countries. The program is authorized by title V of the Trade Act of 1974, as amended.

Pursuant to title V, I have determined that Malaysia should be graduated from the GSP program because it is sufficiently advanced in economic development and improved in trade competitiveness. I have also determined that certain products from Pakistan should be suspended from duty-free treatment under the GSP program because it is not making sufficient progress in protecting basic labor rights. In addition, I have determined that Botswana and Western Samoa should be deleted from the list of least-developed beneficiary developing countries and Angola, Ethiopia, Madagascar, Zaire, and Zambia should be added to that list. Finally, I have determined that Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands meet the definition of "high income" country as defined by the statistics of the International Bank for Reconstruction and Development and are subject to mandatory graduation.

The action regarding Malaysia and designation of least-developed beneficiary developing countries is effective January 1, 1997. The action against Pakistan is retroactive to July 1, 1996. The mandatory graduation of high income countries is effective January 1, 1998.

This notice is submitted in accordance with the requirements of title V of the Trade Act of 1974.

Sincerely,

WILLIAM J. CLINTON

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