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21 December 1998

TEXT: US, PAKISTAN REACH AGREEMENT ON F-16 AIRCRAFT

(Pakistan will withdraw its claim in return for payment by US) (410)
Washington -- 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, the White House press
secretary announced December 21.
Pakistan will withdraw and release its $463.7 million claim in return
for payment by the United States. The U.S. will also provide Pakistan
with additional goods and benefits up to the value of $140 million,
including agricultural commodities, the Press Secretary said.
President Clinton said he was pleased that he and Pakistan's Prime
Minister Sharif have been able to reach agreement on "this difficult
problem."
Following is the text of the White House statement:
(Begin text)
THE WHITE HOUSE
Office of the Press Secretary
December 21, 1998
STATEMENT BY THE PRESS SECRETARY
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 Judgment 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."
(End text)