American Federation of Labor and Congress of Industrial Organizations

The AFL-CIO is a strong proponent of initiatives aimed at propelling the democratic process in
Central and Eastern Europe. And we are on the record in support of U.S. participation in the European
Bank of Reconstruction and Development (EBRD), under appropriate conditions, including stipulations that
will prevent U.S. funds from going to countries which have not held free and fair national elections.

However, recent Soviet conduct in Lithuania and in the non-Russian republics of the USSR raises
serious questions about the very question of Soviet participation in the EBRD.

Under these circumstances the AFL-CIO urges you to press for exclusion of the USSR from
participation in the EBRD at the multilateral negotiations scheduled to begin April 7th.

The AFL-CIO believes that any arrangements for U.S. participation in an EBRD that includes the
USSR would, at this time, send the wrong signal to Soviet authorities of business as usual.

Under any circumstances, the AFL-CIO has a strong principled objection to the use of any U.S.
contributions to the EBRD for the USSR. Such taxpayer financial assistance to a non-democratic
government means the diversion of resources that should instead be available for the emerging democracies
of Poland, Hungary, Czechoslovakia, and the Republic of Lithuania.

At a time when serious questions are being raised by Soviet tactics of intimidation and harassment in
Lithuania and Estonia, the U.S. must send clear signals to the USSR and to our European allies. I urge you,
Mr. Secretary, to instruct U.S. representatives at EBRD related meetings to block U.S. participation in an
EBRD that does not preclude Soviet participation.

Sincerely,

[Signed]

Lane Kirkland

President