FROM THE OFFICE OF PUBLIC AFFAIRS

I want to thank all of you for coming here today. I want to welcome the Minister of Foreign Affairs of Bangladesh, Mr. Chowdhury (CHOW-DUH-REE); my old friend and colleague from my days at the State Department, Undersecretary Frank Loy; and all of you who are interested in the future of our tropical forests, the economy of Bangladesh, and good relations between Bangladesh and the United States. I am particularly pleased to see Ambassador K.M. Shehabuddin (SHE-HA-B-DEEN) and our newly confirmed Ambassador to Bangladesh, Mary Ann Peters, who will be participating in this signing.

We are here to make some history. The bilateral agreement we are signing, between the United States and Bangladesh, marks the first time a country has received debt relief under the Tropical Forest Conservation Act. This Act was passed in 1998, with strong bipartisan support in the Congress, particularly through the efforts of Senators Biden and Lugar and Representatives Portman and Hamilton. It was based on the ingenious concept of exchanging debt for conservation, thereby meeting several goals at the same time. For the U.S., the agreements made possible by this Act help us move closer toward our goal of helping developing nations strengthen their economies while achieving the world wide goal of protecting the forests and biodiversity. For Bangladesh, they help relieve a portion of its debt burden while also helping preserve its unique and important tropical forests.

Under the debt exchange agreement, Bangladesh will have its dollar-denominated debt payments reduced by over $10 million. A new debt instrument will then be established that will generate the local currency equivalent of $8.5 million to endow a forest fund that promotes the conservation, maintenance and restoration of that nation's tropical forests. Our two countries have been working out this agreement since earlier this year, when President Clinton visited Bangladesh. I am pleased we can mark its successful conclusion with this ceremony today.

This Administration is actively working to extend the benefits of the Tropical Forest Conservation Act. The President's Budget asks for $37 million in FY 200l for this purpose.

So we are breaking new ground here, and I hope this will be a precedent, not only for other governments, but for all who are concerned about this planet and its people, to work on imaginative ways to strengthen economies and preserve important habitats.

It now gives me great pleasure to introduce the Undersecretary of State, Frank Loy.