Inter-American Development Bank is expected to play a major role in promoting sound investment policy in our own hemisphere.

         To support the efforts of these institutions, we are again proposing full funding for the multilateral development banks - including all areas - plus a periodic quota increase for the IMF This funding will allow these institutions to leverage other contributions in support of our objective of promoting sound, growth-oriented economic policies in the developing world.

         As President Bush noted in his State of the Union address, the United Nations has played a historic role in the Gulf crisis, one that is close to fulfilling the vision of its founders. The Security Council's 12 resolutions, which laid the basis for ending the crisis, symbolized the unity of the international community against Iraq's aggression and established the principle of collective security as a cornerstone of the post-Cold War era. At the same time, the humanitarian organizations of the UN system have assisted the hundreds of thousands of refugees fleeing from Iraqi aggression. The United States has a vital interest in strengthening this view, revitalized United Nations as a full partner in the building of a post-Cold War world where peace, stability and prosperity prevail.

         Three, we foresee greater reliance on creative responsibility sharing as we strengthen our global partnerships with the European Community members and Japan in particular. As many in Congress have noted, our own difficult budgetary situation makes such efforts especially important for the advancement of a common agenda with partners who share our values and interests.

         No effort so well illustrates the collective response of the world community to defend world peace as our successful efforts to enlist worldwide support for Operations Desert Shield and Desert Storm, and for the frontline states whose economies have been set back by the effects of Saddam Hussein's aggression.

         In 1990, our coalition partners pledged $9700 million to meet Desert Shield costs, representing 88 per cent of the roughly $11,000 million in total incremental expenses we incurred. As soon as hostilities broke out, our allies again responded promptly and generously to shoulder their fair share of coalition military expenses under Operation Desert Storm. Over the past three weeks, we have received unprecedented pledges totaling in excess of $40,000 million from Saudi Arabia, Kuwait, the UAE, Japan, Germany, and Korea, to offset Desert Shield/ Storm expenses expected to be incurred during the first three months of 1991.

         The world community has also responded swiftly and generously to the needs of the frontline states, especially Egypt and Turkey, as they incurred substantial costs in standing up to Saddam Hussein's aggression. Through the US-chaired Gulf Crisis Financial Coordination Group, over $14,000 million has been pledged by the Gulf states, Europe, Japan and Korea to ensure that the economies of affected regional states are stabilized and that their commitment to stay the course is reinforced. The United States has played its part in this effort, supported by Congress, by cancelling Egypt's $6700 million military debt, thereby relieving a heavy burden on a critical regional ally. Other countries have followed suit and cancelled an additional $8000 million in Egyptian debt.

         Meanwhile, in Eastern Europe, the successful G-24 process chaired by the European Commission has mobilized more than $18,000 million in pledges for Poland and Hungary, to

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