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Office of the Press Secretary

For Immediate Release December 21, 1998


The United States and Pakistan have agreed on a legal and diplomatic solution regarding the F-16 aircraft that Pakistan purchased but which were not delivered due to the imposition of sanctions in 1990 under the Pressler Amendment.

Pakistan will withdraw and release its $463.7 million claim in connection with the F-16s in return for a payment by the United States of $324.6 million from the Judgement Fund of the U.S. Treasury, a fund used to settle legal disputes that involve the U.S. Government. Pakistan will also receive a separate payment of about $2.3 million from the Department of Defense, which is a refund derived from a prior sale of some of the equipment associated with the F-16s.

In addition, the United States will use all available means to provide Pakistan with additional goods and benefits up to the value of $140 million, including agricultural commodities. In fiscal year 1999, the United States will provide white wheat valued at about $60 million at prevailing market prices. With respect to the remaining $80 million, the specific nature of the additional goods and benefits, their quantities and delivery schedules will be decided by mutual agreement between the two sides.

President Clinton said about the agreement, "I have long sought an equitable solution to this difficult problem and I am pleased that Prime Minister Sharif and I have been able to reach agreement."