[House Document 106-263]
[From the U.S. Government Publishing Office]



106th Congress, 2d Session - - - - - - - - - - - House Document 106-263


 
        THE REPORT ON THE EXPANDED THREAT REDUCTION INITIATIVE

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A REPORT ENTITLED, ``EXPANDED THREAT REDUCTION INITIATIVE,'' AS 
  REQUIRED BY SECTION 1309 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR 
  FISCAL YEAR 2000 (PUBLIC LAW 106-65)




    June 28, 2000.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
79-011                     WASHINGTON : 2000

To the Congress of the United States:
    Enclosed is a report to the Congress on the Expanded Threat 
Reduction Initiative, as required by section 1309 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65).

                                                William J. Clinton.
    The White House, June 27, 2000.
           Report on the Expanded Threat Reduction Initiative

                              introduction

    The National Defense Authorization Act for Fiscal Year 
2000, (P.L. 106-65), Section 1309, requires that:

          Not later than March 31, 2000, the President shall 
        submit to Congress a report on the Expanded Threat 
        Reduction Initiative. Such report shall include a 
        description of the plans for ensuring effective 
        coordination between executive agencies in carrying out 
        the Expanded Threat Reduction Initiative to minimize 
        duplication of efforts.

    The following responds to this requirement. Specifically, 
the report outlines the status of the Expanded Threat Reduction 
Initiative (ETRI) and the process and plans for carrying out 
programs under his Initiative to ensure effective coordination 
among executive agencies and to minimize possible areas of 
duplication.

                               background

    The Expanded Threat Reduction Initiative was proposed in 
January 1999 to intensify cooperation with Russia, Ukraine, and 
other New Independent States (NIS) and prevent threats of 
proliferation of weapons of mass destruction. After almost a 
decade of close cooperation with the NIS, the August 1998 
economic crisis in Russia and continuing regional economic 
turmoil jeopardized efforts to implement key arms control 
agreements, reduce weapons to desired levels, and reduce 
proliferation threats. Proliferation risks increased as 
deterioration threats. Proliferation risks increased as 
deteriorating economies exacerbated problems for weapons 
scientists, increased temptations for illicit trafficking, and 
created new obstacles to military downsizing. The ETRI has 
provided a solid framework over the past year for accelerating, 
expanding and coordinating bilateral and international threat 
reduction assistance efforts in Russia and the other NIS. While 
we have made progress under ETRI, the risk of weapons 
proliferation remains one of the most critical security 
challenges we face today.
    Thus, threat reduction is among out top assistance 
priorities. Out of the $1 billion requested for Fiscal Year 
(FY) 2000, there is an estimated $888 million available for 
security programs under ETRI in four priority areas:
          1. Nuclear Security Programs;
          2. Non-Nuclear Weapons of Mass Destruction Programs;
          3. Science and Technology Nonproliferation Programs; 
        and
          4. Military Relocation, Stabilization and Other 
        Security Cooperation.
    Congress provided nearly full funding for the Departments 
of Energy ($239 million of $265 million requested) and Defense 
($467 million of $485 million) although critical Defense 
Department chemical weapons (CW) destruction assistance was 
prohibited. Congressional funding for State Department NIS 
assistance was reduced overall, forcing difficult tradeoffs 
between economic and technical assistance programs and the ETRI 
nonproliferation and security programs. Consequently, the State 
Department has allocated a total of $182 million in FY 2000 
funding under the Foreign Operations Appropriations Act for 
ETRI-related programs (vice a $250 million request). This 
amount includes a total of $175 million from the NIS Account 
and an estimated $7 million from the Nonproliferation, Anti-
terrorism, Demining, and Related Programs (NADR) account. The 
specific allocation of funds for individual threat reduction 
programs is based on preliminary program planning and is 
subject to change in subsequent congressional notifications. It 
has been difficult and time consuming to make the necessary 
tradeoffs among worthy programs in light of the reduction in 
State's funding request and the need to work closely with 
Congress on allocation decisions. As a result, nine months into 
FY 2000, State's ETRI related program funds remain obligated 
and delivery of assistance has been delayed.
    In FY 2001, we are seeking further increases for programs 
under ETRI with a total request of $974 million for: Defense 
($469 million), Energy ($364 million) and State ($141 million). 
Programs proposed under ETRI for FY 2001 include a significant 
increase--$100 million--for Department of Energy 
nonproliferation programs in Russia to address the serious 
proliferation threat of nuclear materials. Defense Department 
and State Department programs continue to address 
nonproliferation priorities, but with increases over FY 2000 
levels.
    The Administration proposes to seek nearly $4.9 billion 
over the five years from FY 2000-FY 2004--a significant 
increase over the planned assistance levels before the economic 
crisis--to address the high priority risks of weapons of mass 
destruction proliferation.

           CURRENT ESTIMATE, EXPANDED THREAT REDUCTION INITIATIVE, FY 2001-2004, U.S. AGENCY PROGRAMS
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                             Request    Total    Request   Request   Request   Request   Request
         Financial summary project            FY00      FY00      FY01      FY02      FY03      FY04     FY00-04
                                              total    enacted    total     total     total     total     total
----------------------------------------------------------------------------------------------------------------
           DEPARTMENT OF DEFENSE

SOAE/Russia...............................     157.3     182.3     152.8      65.5      62.7      67.0     530.3
SNAE/Ukraine..............................      33.0      35.0      29.1      11.5       0.0       0.0      75.6
Warhead dismantl pkg/process..............       9.3       9.3       9.3      53.2      53.6      86.0     211.4
Weapons storage security..................      40.0      84.0      89.7      56.0      75.0     102.7     407.4
Weapons transport security................      15.2      15.2      14.0       9.5       9.5       9.5      57.7
Mayak fissile material storage............      64.5      62.1      57.4      57.4      57.4      57.4     291.7
Core conversion/elimin wpns pu............      20.0      32.2      32.1      39.7      15.2       0.0     119.2
CW destruction/CW site security...........     130.4      20.0      35.0      75.8     118.6     189.0     438.4
BW proliferation prevention...............       2.0      14.0      12.0      12.0      15.5      28.8      82.3
Defense & mil contacts....................       2.0       2.0      14.0      14.0      14.0      14.0      58.0
Other assessment/rel prog's...............       1.8       2.0      13.0      13.0      11.8      13.0      52.8
DOD/FBI/USCS COUNTERPROLIF................       4.0       3.5       4.8       4.8       4.8       4.8      22.7
Arctic mil environm'tl....................       6.0       5.9       5.8       5.8       5.8       5.8      29.1
                                           ---------------------------------------------------------------------
Cooperation (AMEC)........................  ........  ........  ........  ........  ........  ........  ........
      DOD total...........................     485.5     467.5     469.0     418.2     443.9     578.0   2,376.6
                                           =====================================================================
           DEPARTMENT OF ENERGY

Enhanced MPC&A \1\........................     145.4     144.6     149.9     149.9     149.9     149.9     744.2
Second line defense/export cont...........       2.5       2.5       3.0       3.0       3.0       3.0      14.5
Plutonium disposition.....................      25.0      30.0      40.0      45.0      45.0      45.0     205.0
Nuclear cities initiative.................      30.0       7.5      17.5      17.5      17.5      17.5      77.5
Science collaboration (DOE/IPP) \1\.......      30.0      22.5      22.5      22.5      22.5      22.5     112.5
HEU agreement transparency................      15.8      15.8      15.2      15.2      15.2      15.2      76.6
DOE augment BN-350 PU DIS/KAZ.............      16.0      16.0      16.0      16.0      16.0      16.0      80.0
DOE Russian initiative....................       0.0       0.0     100.0     100.0     100.0     100.0     400.0
                                           ---------------------------------------------------------------------
      DOE total...........................     264.7     238.9     364.1     369.1     369.1     369.1   1,710.3
                                           =====================================================================
           STATE DEPARTMENT \2\
Science collabor/BW redirect..............      28.0      18.0      19.0      19.0      19.0      19.0      94.0
Export control/border security............      61.0      47.0      45.0      45.0      45.0      45.0     227.0
(NIS account and NADR) \1\................  ........  ........  ........  ........  ........  ........  ........
Science collabor (ISTC/STCU) \1\..........      95.0      59.0      45.0      45.0      45.0      45.0     239.0
Science collabor (CRDF) \1\...............      23.5      15.0      14.0      14.0      14.0      14.0      71.0
Military reloc/ammun disposal.............      43.0      43.0      18.0      18.0      18.0      18.0     115.0
                                           ---------------------------------------------------------------------
      State total.........................     250.5     182.0     141.0     141.0     141.0     141.0     746.0
                                           =====================================================================
      Total U.S...........................   1,000.7     888.4     974.1     928.3     954.0   1,088.1   4,832.9
----------------------------------------------------------------------------------------------------------------
\1\ Funding in prior years from CTR.
\2\ State Department allocation of funds is based on preliminary program planning and is subject to change in
  subsequent congressional notifications.

                     coordination process and plans

    The level of cooperation and coordination among executive 
agencies was extraordinary during development of the ETRI. The 
same interagency coordination process has largely continued and 
is planned to continue through the FY 2000 program 
implementation process and Congressional review of the FY 2001 
President's Budget Request.
    The ETRI was developed under Presidential and Vice 
Presidential leadership. Coordination among executive agencies 
was led by NSC staff in conjunction with the Special Advisor to 
the Secretary of State, Coordinator of U.S. Assistance to the 
New Independent States of the former Soviet Union. NSC staff 
and the U.S. Assistance Coordinator worked closely with an ETRI 
Interagency Working Group (IWG) with representatives of a wide 
range of agencies involved in security and nonproliferation 
issues. Included were representatives from the Departments of 
State, Defense, Energy, Treasury, Health and Human Services, 
Agriculture, the Central Intelligence Agency, the Office of 
Management and Budget, and others as needed.
    The need for interagency coordination to prevent or 
minimize duplication of efforts varies by program. Where 
different agencies' programs are complementary and even 
supplementary, the impact of carefully coordinated U.S. 
assistance resources is maximized. Thus, every effort is made 
to ensure agencies exchange information on their programs and 
activities on a regular basis. This information exchange is 
accomplished through interagency working groups that meet 
regularly or special interagency teams for specific project 
activities.
    An interagency team from the NSC staff, State, Defense, 
Energy, and the Intelligence Community provided joint, 
coordinated briefings to congressional staff to outline the 
elements of the ETRI. Senior-level officials from the NSC staff 
or agencies involved in elements of ETRI coordinate their 
efforts in specific IWGs for projects as necessary. These 
working groups coordinate and oversee programs where there is 
potential for overlap or duplication such as: the IWG on 
Plutonium Disposition; the biweekly IWG on Export Control and 
Border Security; and the IWG on Biotechnology Engagement 
Programs. IWG's generally are chaired by NSC staff or by the 
agency primarily responsible for funding and carrying out the 
project. IWG members then meet with, or provide input as needed 
to, the NSC and the U.S. Assistance Coordinator.
    This close executive agency coordination process ensured 
consistency with presidential direction and for the development 
and overall coordination of the ETRI. Moreover, this 
coordination process continues and is planned to continue to 
ensure coherent, integrated programs and prevent overlap or 
duplication in implementation of programs and agency 
responsibilities under ETRI.

                       international coordination

    We are strongly urging other nations to increase security 
and nonproliferation assistance and to improve coordination of 
assistance efforts. The G8 committed to seek increased threat 
reduction assistance for Russia and other NIS at the G8 June 
1999 Summit in Cologne. Japan also announced that it has 
committed an additional $200 million for ETRI-related efforts.
    A June 1999 U.S.-hosted ETRI Experts Meeting in Brussels 
and a Dutch-hosted ETRI Conference in The Hague in November 
1999, helped focus over 30 participating nations on the 
increasing threats, urgent needs for assistance and existing 
program coordination and implementation issues. Common 
assistance implementation problems were discussed and areas of 
potential assistance collaboration were identified. We were 
encouraged at these meetings as several participating nations 
indicated that they are seeking new resources to advance 
nonproliferation goals.
    We were particularly encouraged by the European Union (EU) 
approval on December 17, 1999, of the ``Cooperation Program for 
Nonproliferation and Disarmament in the Russian Federation'' 
under the Common Strategy on Russia. Initial assistance 
projects include funding for a chemical weapons destruction 
facility at Gorny, Russia and plutonium disposition studies. 
Initial funding is modest (about $9 million), but the EU has 
indicated its intention to increase funding for this effort in 
future budgets. The EU has also offered to host a follow-on 
multilateral meeting on threat reduction assistance this year 
to help maintain international momentum for these efforts.
    Other nations have also made new funding commitments, or 
are seeking additional resources, including:
           Germany: considering additional Russia 
        chemical weapons (CW) destruction assistance; and added 
        Ukraine missile destruction assistance (estimated at 
        $3.7 million);
           United Kingdom: considering $5 million to 
        support CW destruction at Shchuch'ye, Russia (if U.S. 
        DOD/Cooperative Threat Reduction funding for CW 
        destruction is restored);
           Italy: approved about $8 million in new CW 
        destruction aid;
           Netherlands: providing new nuclear security 
        assistance and considering use of $10 million for CW 
        destruction aid;
           Sweden: considering aid for security at 
        former biological weapons (BW) facilities; and
           Canada: approved $70,000 for CW destruction 
        assistance and is considering additional funds.
    International support for ETRI related activities has 
increased and looks promising over the next year.

                                  
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