The trend in favor of democracy has continued.  During this past year, Peru inaugurated a democratically elected government.  Brazil continues its process of liberalization.  In Central America, Hondurans voted in record numbers in their first national elections in over eight years.  In the Caribbean seven elections have returned governments firmly committed to the democratic traditions of the Commonwealth.

Another major contribution to peace in the hemisphere is Latin America’s own Treaty for the Prohibition of Nuclear Weapons.  On behalf of the United States, I signed Protocol I of this Treaty in May of 1977 and sent it to the Senate for ratification.  I urge that it be acted upon promptly by the Senate in order that it be brought into the widest possible effect in the Latin American region.

Regional cooperation for development is gaining from Central America to the Andes, and throughout the Caribbean.  The Caribbean Group for Cooperation in Economic Development, which we established with 29 other nations in 1977, has helped channel $750 million in external support for growth in the Caribbean.  The recent meeting of the Chiefs of State of the Eastern Caribbean set a new precedent for cooperation in that region.  Mexico and Venezuela jointly and Trinidad and Tobago separately have established oil facilities that will provide substantial assistance to their oil importing neighbors.  The peace treaty between El Salvador and Honduras will hopefully stimulate Central America to move forward again toward economic integration.  Formation of Caribbean/ Central American Action, a private sector organization, has given a major impetus to improving people-to-people bonds and strengthening the role of private enterprise in the development of democratic societies.

The Panama treaties have been in force for over a year.  A new partnership has been created with Panama; it is a model for large and small nations.  A longstanding issue that divided us from our neighbors has been resolved.  The security of the canal has been enhanced.  The canal is operating as well as ever, with traffic through it reaching record levels this year.  Canal employees, American and Panamanian alike, have remained on the job and have found their living and working conditions virtually unchanged.

In 1980, relations with Mexico continued to improve due in large measure to the effectiveness of the Coordinator for Mexican Affairs and the expanded use of the U.S.-Mexico Consultative Mechanism.  By holding periodic meetings of its various working groups, we have been able to prevent mutual concerns from becoming political issues.  The Secretary of State visited Mexico City in November, and, along with the Mexican Secretary of Foreign Relations, reviewed the performance of the Consultative Mechanism.  The office of the Coordinator has ensured the implementation of my directive to all agencies to accord high priority to Mexican concerns.  Trade with Mexico rose by almost 60 percent to nearly $30 billion, making that country our third largest trading partner.