[Senate Hearing 112-735]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 112-735

 
           NOMINATIONS OF THE 112TH CONGRESS--SECOND SESSION

=======================================================================

                                HEARINGS



                               BEFORE THE



                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE



                      ONE HUNDRED TWELFTH CONGRESS



                             SECOND SESSION



                               ----------                              

                  FEBRUARY 7 THROUGH NOVEMBER 28, 2012

                               ----------                              



       Printed for the use of the Committee on Foreign Relations


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                                                        S. Hrg. 112-735


           NOMINATIONS OF THE 112TH CONGRESS--SECOND SESSION

=======================================================================

                                HEARINGS



                               BEFORE THE



                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE



                      ONE HUNDRED TWELFTH CONGRESS



                             SECOND SESSION



                               __________

                  FEBRUARY 7 THROUGH NOVEMBER 28, 2012

                               __________



       Printed for the use of the Committee on Foreign Relations


      Available via the World Wide Web: http://www.gpo.gov/fdsys/



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                COMMITTEE ON FOREIGN RELATIONS          
                112th CONGRESS--SECOND SESSION          

             JOHN F. KERRY, Massachusetts, Chairman        
BARBARA BOXER, California            RICHARD G. LUGAR, Indiana
ROBERT MENENDEZ, New Jersey          BOB CORKER, Tennessee
BENJAMIN L. CARDIN, Maryland         JAMES E. RISCH, Idaho
ROBERT P. CASEY, Jr., Pennsylvania   MARCO RUBIO, Florida
JIM WEBB, Virginia                   JAMES M. INHOFE, Oklahoma
JEANNE SHAHEEN, New Hampshire        JIM DeMINT, South Carolina
CHRISTOPHER A. COONS, Delaware       JOHNNY ISAKSON, Georgia
RICHARD J. DURBIN, Illinois          JOHN BARRASSO, Wyoming
TOM UDALL, New Mexico                MIKE LEE, Utah
             William C. Danvers, Staff Director            
        Kenneth A. Myers, Jr., Republican Staff Director        

                             (ii)          

  
?

                            C O N T E N T S

                              ----------                              

    [Any additional material relating to these nominees may be found
              at the end of the applicable day's hearing.]

                              ----------                              
                                                                   Page

Tuesday, February 7, 2012 (a.m.).................................     1

Hon. Larry L. Palmer, of Georgia, to be Ambassador to Barbados, 
  St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, the 
  Commonwealth of Dominica, Grenada, and St. Vincent and the 
  Grenadines.....................................................     6
Hon. Phyllis M. Powers, of Virginia, to be Ambassador to the 
  Republic of Nicaragua..........................................     9
Jonathan D. Farrar, of California, to be Ambassador to the 
  Republic of Panama.............................................    11
Julissa Reynoso, of New York, to be Ambassador to the Oriental 
  Republic of Uruguay............................................    14
                                 ------                                
Tuesday, February 7, 2012 (p.m.).................................    35

Hon. Nancy J. Powell, of Iowa, to be Ambassador to India.........    40
                                 ------                                
Tuesday, March 13, 2012..........................................    65

Hon. Frederick D. Barton, of Maine, to be an Assistant Secretary 
  of State (Conflict and Stabilization Operations) and to be 
  Coordinator for Reconstruction and Stabilization...............    67
Hon. William E. Todd, of Virginia, to be Ambassador to the 
  Kingdom of Cambodia............................................    69
Sara Margalit Aviel, of California, to be United States Alternate 
  Executive Director of the International Bank for Reconstruction 
  and Development................................................    72
                                 ------                                
Wednesday, March 14, 2012........................................   113

Hon. Pamela A. White, of Maine, to be Ambassador to the Republic 
  of Haiti.......................................................   121
Hon. Linda Thomas-Greenfield, of Louisiana, to be Director 
  General of the Foreign Service.................................   125
Gina K. Abercrombie-Winstanley, of Ohio, to be Ambassador to the 
  Republic of Malta..............................................   128
                                 ------                                
Tuesday, March 20, 2012..........................................   147

Jacob Walles, of Delaware, to be Ambassador to the Tunisian 
  Republic.......................................................   152
John Christopher Stevens, of California, to be Ambassador to 
  Libya..........................................................   155
Hon. Carlos Pascual, of the District of Columbia, to be an 
  Assistant Secretary of State (Energy Resources)................   157
                                 ------                                
Wednesday, March 21, 2012........................................   185

Hon. Tracey Ann Jacobson, of the District of Columbia, to be 
  Ambassador to the Republic of Kosovo...........................   187
Hon. Richard B. Norland, of Iowa, to be Ambassador to Georgia....   191
Hon. Kenneth Merten, of Virginia, to be Ambassador to the 
  Republic of Croatia............................................   193
Mark A. Pekala, of Maryland, to be Ambassador to the Republic of 
  Latvia.........................................................   196
Jeffrey D. Levine, of California, to be Ambassador to the 
  Republic of Estonia............................................   199
                                 ------                                
Thursday, March 22, 2012.........................................   221

Hon. Scott DeLisi, of Minnesota, to be Ambassador to the Republic 
  of Uganda......................................................   225
Makila James, of the District of Columbia, to be Ambassador to 
  the Kingdom of Swaziland.......................................   227
Michael Raynor, of Maryland, to be Ambassador to the Republic of 
  Benin..........................................................   231
                                 ------                                
Wednesday, May 16, 2012..........................................   253

Piper Anne Wind Campbell, of the District of Columbia, to be 
  Ambassador to Mongolia.........................................   257
Hon. Peter William Bodde, of Maryland, to be Ambassador to the 
  Federal Democratic Republic of Nepal...........................   261
Dorothea-Maria Rosen, of California, to be Ambassador to the 
  Federated States of Micronesia.................................   265
                                 ------                                
Thursday, May 17, 2012...........................................   277

David J. Lane, of Florida, to serve as U.S. Representative to the 
  United Nations Agencies for Food and Agriculture, with the rank 
  of Ambassador..................................................   281
Edward M. Alford, of Virginia, to be Ambassador to the Republic 
  of The Gambia..................................................   285
Mark L. Asquino, of the District of Columbia, to be Ambassador to 
  the Republic of Equatorial Guinea..............................   287
Douglas M. Griffiths, of Texas, to be Ambassador to the Republic 
  of Mozambique..................................................   290
                                 ------                                
Wednesday, June 6, 2012..........................................   309

Hon. Michele Jeanne Sison, of Maryland, to be Ambassador to the 
  Democratic Socialist Republic of Sri Lanka and to serve 
  concurrently as Ambassador to the Republic of Maldives.........   313
Brett H. McGurk, of Connecticut, to be Ambassador to the Republic 
  of Iraq........................................................   315
Susan Marsh Elliott, of Florida, to be Ambassador to the Republic 
  of Tajikistan..................................................   324
                                 ------                                
Wednesday, June 13, 2012.........................................   365

Hon. Richard L. Morningstar, of Massachusetts, to be Ambassador 
  to the Republic of Azerbaijan..................................   370
Jay Nicholas Anania, of Maryland, to be Ambassador to the 
  Republic of Suriname...........................................   373
Timothy M. Broas, of Maryland, to be Ambassador to the Kingdom of 
  the Netherlands................................................   376
                                 ------                                
Wednesday, June 27, 2012.........................................   405

Hon. Derek J. Mitchell, of Connecticut, to be Ambassador to the 
  Union of Burma.................................................   410
                                 ------                                
Thursday, July 12, 2012..........................................   437

Hon. Gene Allan Cretz, of New York, to be Ambassador to the 
  Republic of Ghana..............................................   440
Deborah Ruth Malac, of Virginia, to be Ambassador to the Republic 
  of Liberia.....................................................   443
David Bruce Wharton, of Virginia, to be Ambassador to the 
  Republic of Zimbabwe...........................................   446
Alexander Mark Laskaris, of Maryland, to be Ambassador to the 
  Republic of Guinea.............................................   449
                                 ------                                
Wednesday, July 18, 2012.........................................   461

Greta Christine Holtz, of Maryland, to be Ambassador to the 
  Sultanate of Oman..............................................   464
Thomas Hart Armbruster, of New York, to be Ambassador to the 
  Republic of the Marshall Islands...............................   467
Hon. Michael David Kirby, of Virginia, to be Ambassador to the 
  Republic of Serbia.............................................   470
John M. Koenig, of Washington, to be Ambassador to the Republic 
  of Cyprus......................................................   473
Hon. Marcie B. Ries, of the District of Columbia, to be 
  Ambassador to the Republic of Bulgaria.........................   476
                                 ------                                
Tuesday, July 31, 2012...........................................   497

Hon. James B. Cunningham, of New York, to be Ambassador to the 
  Islamic Republic of Afghanistan................................   501
Hon. Richard G. Olson, of New Mexico, to be Ambassador to the 
  Islamic Republic of Pakistan...................................   507
                                 ------                                
Wednesday, September 12, 2012....................................   549

Joseph E. Macmanus, of New York, to be Representative of the 
  United States of America to the Vienna Office of the United 
  Nations and to be Representative of the United States of 
  America to the International Atomic Energy, with the rank of 
  Ambassador.....................................................   552
Sharon English Woods Villarosa, of Texas, to be Ambassador to the 
  Republic of Mauritius and the Republic of Seychelles...........   557
Walter North, of Washington, to be Ambassador to Papua New 
  Guinea, the Solomon Islands, and the Republic of Vanuatu.......   559
                                 ------                                
Thursday, September 13, 2012.....................................   583

Hon. Stephen D. Mull, of Virginia, to be Ambassador to the 
  Republic of Poland.............................................   586
Dawn M. Liberi, of Florida, to be Ambassador to the Republic of 
  Burundi........................................................   588
                                 ------                                
Wednesday, September 19, 2012....................................   603

Hon. Robert Stephen Beecroft, of California, to be Ambassador to 
  the Republic of Iraq...........................................   607
                                 ------                                
Wednesday, November 28, 2012.....................................   635

Hon. Robert F. Godec, of Virginia, to be Ambassador to the 
  Republic of Kenya..............................................   638
Deborah Ann McCarthy, of Florida, to be Ambassador to the 
  Republic of Lithuania..........................................   641


   NOMINATIONS OF LARRY PALMER, PHYLLIS POWERS, JONATHAN FARRAR, AND 
                            JULISSA REYNOSO

                              ----------                              


                    TUESDAY, FEBRUARY 7, 2012 (a.m.)

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Larry L. Palmer, of Georgia, to be Ambassador to Barbados, 
        St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, 
        the Commonwealth of Dominica, Grenada, and Saint 
        Vincent and the Grenadines
Hon. Phyllis M. Powers, of Virginia, to be Ambassador to the 
        Republic of Nicaragua
Jonathan D. Farrar, of California, to be Ambassador to the 
        Republic of Panama
Julissa Reynoso, of New York, to be Ambassador to the Oriental 
        Republic of Uruguay
                              ----------                              

    The committee met, pursuant to notice, at 10:05 a.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Robert 
Menendez, presiding.
    Present: Senators Menendez, Lugar, and Rubio.

           OPENING STATEMENT OF HON. ROBERT MENENDEZ,
                  U.S. SENATOR FROM NEW JERSEY

    Senator Menendez. Good morning. This hearing will come to 
order.
    Today the Senate Foreign Relations Committee will consider 
four nominations: Ambassador Larry Palmer to be the Ambassador 
to Barbados, St. Kitts and Nevis, St. Lucia, Antigua, and 
Barbuda, and the Commonwealth of Dominica, Grenada, St. 
Vincent, and the Grenadines. That's a lot of territory to 
handle. [Laughter.]
    Ambassador Phyllis Powers to be the Ambassador to 
Nicaragua; Mr. Jonathan Farrar to be the Ambassador to Panama; 
and Deputy Assistant Secretary for Central America and the 
Caribbean; and Julissa Reynoso, to be the Ambassador to 
Uruguay.
    Let me welcome you on behalf of the committee, and your 
families and friends. I'll make a statement, and then I'll turn 
to Senator Rubio.
    I want to congratulate you all on your nominations. If 
confirmed, you'll serve the U.S. Government as its highest 
representative to the countries to which you have been 
nominated, and you'll be called upon to implement the policies 
of our government and to protect and advance the interests of 
the American people.
    I know many of you have already had this opportunity in 
different places, though such an honor is bestowed upon 
relatively few in our country.
    I would encourage you to respond expeditiously to any 
questions that may be submitted subsequently for the record so 
the committee can act on your nominations as soon as possible. 
The deadline of submissions for the record for members will be 
the close of business on Friday.
    All of today's nominees are being considered for 
ambassadorial positions to the Western Hemisphere. The four 
embassies you are being called upon to lead are spread 
throughout the hemisphere, from the Caribbean to Central 
America to the southern cone of Latin America. The wide range 
of bilateral issues that confronts these embassies is as broad 
and complex as America's multifaceted relationship with the 
region itself.
    In light of our geographic proximity, our shared history, 
our economic and cultural ties, and the ability to instantly 
share information through the Internet, the Western 
Hemisphere's 840 million people are inextricably linked like 
never before.
    America's relationship with our neighbors in the region can 
best be described as a partnership. When one looks at the 
incredible amount of goods and services flowing across the 
borders, the migration of our peoples, the art and music that 
we share, it's clear the United States and its neighbors have 
forged an incredibly strong and interminable relationship, and 
the bond that cements this partnership is called democracy.
    Over the last few decades, we have seen some incredible 
democratic progress in the Western Hemisphere, with most 
countries possessing a representative democracy and with more 
and more people enjoying the same rights and privileges that we 
have in the United States.
    There are, of course, notable exceptions, among them Cuba, 
Venezuela, and, in my view since last November, Nicaragua. When 
I think about the hemisphere, I think at a different time it 
would have been unimaginable for Ahmadinejad to have been 
welcomed anywhere within the Western Hemisphere. Is it a 
coincidence that one of the world's pariah leaders, Mahmoud 
Ahmadinejad, recently visited all three of these countries on 
his recent tour of tyrants, as my House colleague, Ileana Ros-
Lehtinen, has so eloquently stated?
    What does it say about the leaders of these three countries 
when they invite to their capitals a repressive leader of Iran 
who, in June 2009, was reelected through massive fraud, 
disputed ballots, and a biased electoral board? A leader who, 
when the people of his country rallied in the streets to 
protest, unleashed his security forces to crush the protesters?
    On November 6, Daniel Ortega used the Ahmadinejad election 
playbook to stay in power, and then had the gall to invite his 
mentor to his coronation in January. Where was the 
international outrage when Ortega altered the constitution, 
allowing him to run for a third straight term? Where was the 
Organization of American States, who concluded that despite 
irregularities, that Ortega had actually won the election?
    Now, right in front of our eyes, we're watching the same 
movie in Venezuela, the harassment of the opposition, the 
closing of independent media outlets, and restrictions on 
nongovernmental organizations that echo events ongoing now in 
Egypt. It's all happening again, and I don't see anyone 
speaking out except for some very brave human rights 
organizations and individuals on the ground. I will be pretty 
outraged if we have to chair another hearing in November to 
examine how Chavez stole the election in Venezuela.
    Repression is as wrong in the Western Hemisphere as it is 
in the Middle East. As Dr. King said, ``Injustice anywhere 
threatens justice everywhere.'' There is no better time for the 
leaders of our hemisphere to reinforce the democratic gains of 
the last two decades than at the Summit of the Americas in 
Cartagena this April, not just through talk but by action. The 
Organization of American States, for example, must be more 
effective and given all the necessary resources it needs to 
defend and promote human rights and democracy throughout the 
Americas, including by strengthening the Inter-American 
Commission on Human Rights.
    This is not the time for the OAS to back down or retreat 
from its mission or be bullied by Chavez. This is the time to 
double-down and reclaim its hemispheric leadership.
    I'm extremely supportive of Secretary Clinton's efforts to 
bolster the Inter-American Commission on Human Rights, and I 
hope the State Department will continue to put more emphasis on 
the region.
    Just as the United States addresses the fires in other 
parts of the world, so too must we address the issues 
smoldering in our own hemisphere. Antidemocratic forces are 
gathering strength in too many nations. In some countries like 
Nicaragua, these forces are explicit and visible at the ballot 
box, and in others it is more hidden in the repression of media 
and civil society, and the weakening of society fostered by 
drug cartels that feed on desperation and poverty and 
corruption. These forces are harder to find and more opaque, 
but they are equally corrosive and self-serving.
    It's time to wake up and start dedicating the resources and 
our attention in a hemisphere which is incredibly important to 
the national interests and security of the United States, just 
as we do in other parts of the world. I look forward to these 
nominees being part of that effort. I hope that the President's 
budget, which will be released next Monday, will reflect this 
hemisphere as a policy priority.
    With that, I'm pleased to recognize the ranking Republican 
on the committee, my friend and colleague, Senator Rubio.

             OPENING STATEMENT OF HON. MARCO RUBIO,
                   U.S. SENATOR FROM FLORIDA

    Senator Rubio. Thank you, Mr. Chairman. It's an honor to 
have with us today as well the ranking Republican on the 
Foreign Relations Committee, Senator Lugar, who is a legend in 
the foreign relations world. So it's great to have you here. 
Thank you for being a part of it.
    Thank you all for your service to our country and for your 
willingness to serve in these new posts.
    The Western Hemisphere actually is, I hope, will become of 
increasing attention and importance. I think it's been 
neglected. There are major issues going on elsewhere in the 
world that have distracted us over the last few years, but I 
think what's going on in the Western Hemisphere very much is at 
the core of what American foreign policy should be about.
    The expansion of democracies around the world have led to 
free markets, and free markets have led to prosperity, freedom, 
and security, and nowhere is that more apparent than in the 
Western Hemisphere, where all but one nation has embraced 
democracy and elections. Unfortunately, one of the trends that 
we're starting to see in this hemisphere is a little 
backsliding from that. We're certainly seeing that in 
Nicaragua. We're certainly seeing that in Venezuela and some of 
the countries allied with them, and then obviously in Cuba, 
where for over 50 years now has been a totalitarian government.
    And so at a time when there is this ongoing debate in the 
world about who is going to win, is it going to be the liberal 
democracies like the United States and some of these emerging 
ones in the Western Hemisphere, or is it going to be 
totalitarian governments like Iran and China, Russia, two of 
those three countries which are trying to increase their 
footprint in the Western Hemisphere?
    So your appointments come at a critical time when, more 
than ever before, the United States needs to be a clear and 
bold voice on behalf of liberal democracy, on behalf of self-
determination, on behalf of people having their basic human 
rights respected.
    Now, your assignments are all different, but they're more 
challenging ones in some places than in others. In Nicaragua, 
as this chairman just announced, I think we saw an absolute 
outrage last year and a fraudulent election that no 
international organization would certify, that the very 
candidacy of the man who won violated the very constitution of 
its own country.
    Later this year we'll see elections in Venezuela, in Mexico 
and the Dominican Republic. And so I think it's important for 
all of you, as you go to your new posts, that you be firm 
advocates on behalf of democracy, on behalf of freedom, on 
behalf of the right of the people of these countries to self-
determination. The challenges are different in different 
places, but if there's a growing tendency in the region in some 
places, it's a desire to undermine all of these institutions, 
whether it's the press, the courts, or the elections 
themselves, and it's important that the United States clearly 
know where we stand.
    I once had a visitor--I think he was from Nicaragua; in 
fact, he was--say to me that sometimes the United States is 
more interested in stability than it is in democracy; that, in 
essence, too often in the past in our foreign policy, 
particularly in Latin America and in the Western Hemisphere, we 
have looked the other way because we would rather that country 
be stable and not have a migration problem or some other issue 
than actually speak up on behalf of democracy.
    But that can't be the case, because democracy functions 
from time to time. They may elect people that don't agree with 
us on everything. They may say some things that we don't like. 
But in the big picture, in the global picture, in the long 
term, it's better for our country, for our region, and for the 
world for people to have a voice in selecting their own 
leaders. History has proven that time and again. And as 
representatives of the single greatest republic in all of human 
history, you're going to be uniquely positioned to be a strong 
voice on behalf of these principles that have not just made our 
Nation great but have made the world safer and more prosperous.
    So I welcome your willingness to serve in these new posts. 
I look forward to hearing your testimony today, and in 
particular your ideas about how, in your specific assignments, 
you intend to be a voice on behalf of freedom and democracy and 
self-determination. Thank you.
    Senator Menendez. Thank you, Senator.
    Senator Lugar, do you have opening comments?
    We thank you for being here with us today.
    With that, let me introduce the panel. So let me start off 
taking a few moments to speak about each of you and your 
history, and then we'll ask you to make a statement of about 5 
minutes. Your full statements will be included in the record, 
and certainly introduce your family or friends, since we 
understand that family is a critical part of your mission in 
terms of support and help, and we understand it is, in essence, 
an extended service of themselves as well, and we appreciate 
that.
    But, Ms. Reynoso, you have to limit how many people you can 
introduce. [Laughter.]
    Because as I was entering, I met several of your 
supporters, so it might take most of the hearing time. 
[Laughter.]
    So with that, Larry Palmer is the nominee to be the 
Ambassador to Barbados, St. Kitts and Nevis, St. Lucia, 
Antigua, and Barbuda, the Commonwealth of Dominica, Grenada, 
St. Vincent and the Grenadines. He has recently served as the 
Ambassador to Honduras from 2002-2005. Prior to being 
Ambassador to Honduras, Mr. Palmer served as the deputy chief 
of mission and Charge d'Affaires in Quito, Ecuador, and 
counselor for Administration in the Dominican Republic.
    Phyllis Powers was sworn in as Ambassador of the United 
States to the Republic of Panama on September 10, 2010. She 
previously served as the Director of the Office of Provincial 
Affairs at the U.S. Embassy in Baghdad, the deputy chief of 
mission of the U.S. Embassy in Lima, Peru, and Director of the 
Narcotics Affairs Section responsible for Plan Colombia.
    Jonathan Farrar was the chief of mission of the U.S. 
Interests Section in Havana, Cuba. He has served as the 
Principal Deputy Assistant Secretary of the State Department's 
Bureau of Democracy, Human Rights and Labor, and was DRL's 
Acting Assistant Secretary. Mr. Farrar also served as Deputy 
Assistant Secretary in the State Department's International 
Narcotics and Law Enforcement Bureau, with responsibility for 
INL's programs in the Western Hemisphere, Africa, Asia, and 
Europe.
    Julissa Reynoso is currently the Deputy Assistant Secretary 
for Central America and the Caribbean in the Bureau of Western 
Hemisphere Affairs. Prior to joining the Foreign Service, Ms. 
Reynoso practiced international arbitration and antitrust law 
at Simpson Thatcher and Bartlett in New York, clerked for 
Federal Judge Laura Taylor Swain of the U.S. District Court for 
the Southern District of New York.
    So welcome to all of you again. And with that, I know one 
of my colleagues wants to add some words of introduction, and 
hopefully by that time we will have that opportunity.
    So we'll start with you, Ambassador Palmer. Welcome back to 
the committee, and we look forward to your testimony.

       STATEMENT OF HON. LARRY L. PALMER, OF GEORGIA, TO
        BE AMBASSADOR TO BARBADOS, ST. KITTS AND NEVIS,
 ST. LUCIA, ANTIGUA AND BARBUDA, THE COMMONWEALTH OF DOMINICA, 
          GRENADA, AND ST. VINCENT AND THE GRENADINES

    Ambassador Palmer. Thank you very much, Mr. Chairman.
    Mr. Chairman and members of the committee, thank you for 
the honor and privilege of appearing before you as a nominee 
for the United States Ambassador to the Caribbean nations of 
Antigua and Barbuda, Barbados, Dominica, Grenada, St. Kitts and 
Nevis, St. Lucia, and St. Vincent and the Grenadines. I am 
grateful to President Obama and Secretary Clinton for their 
confidence and trust in nominating me for this position.
    My wife, Lucille, of 39 years, who has accompanied me to 
every other Senate appearance, could not be here today. She 
chose to be with my newly born grandson in Tennessee.
    Mr. Chairman, if confirmed by the Senate, I look forward to 
representing our country and working with you to advance the 
interests of the United States in the Caribbean. Barbados and 
the Eastern Caribbean nations represent nearly half of all 
countries in the Caribbean, an important region on the United 
States southern border. Traditional allies and friends, with 
shared culture and dedication to democracy and the rule of law, 
these nations play an important role both bilaterally and in 
multilateral organizations like the Organization of American 
States and the United Nations. I am honored to have been 
nominated to represent the United States in this important 
region.
    If confirmed, I will make the continuing safety of American 
residents and visitors in the Caribbean my top priority. The 
continuing success of the Caribbean Basin Security Initiative 
is vitally important to providing for the safety and security 
of the United States by ensuring that Barbados and the Eastern 
Caribbean can combat transnational organized crime and avoid 
the violence and instability seen elsewhere in the hemisphere.
    As a result of ongoing CBSI programming and engagement, the 
United States and countries of the Caribbean are working more 
closely than ever before on security and justice system-related 
projects. The inclusion of anticrime and antigang youth 
development and empowerment programs is an important component 
of CBSI and reflects the role the youth plays in these 
societies and in the development of their nations.
    We are also working closely with Barbados and the Eastern 
Caribbean to combat trafficking in persons.
    The global economic downturn has hit the region 
particularly hard, exacerbating already significant economic 
hardship. Some Eastern Caribbean countries are struggling with 
very high debt levels, and a number have undertaken 
International Monetary Fund standby programs and are reaching 
out to the Paris Club for debt restructuring. This difficult 
economic situation has prevented the Eastern Caribbean nations 
from reaching their full development potential. And if 
confirmed, I will build on prior work and lead American efforts 
to promote economic prosperity, trade, and entrepreneurship in 
the region.
    As 2011 marked the 50th anniversary of the Peace Corps, I 
would like to note our longstanding Peace Corps presence in the 
Eastern Caribbean which plays a major role in providing U.S. 
assistance to the region. St. Lucia was among the first 
countries
to receive volunteers in 1961, and currently 115 volunteers 
work 
the region in four main areas: youth development, institutional 

and NGO development, small business development, and special 
education.
    Thank you again for giving me the honor of appearing before 
you today, and I would be happy to answer any questions that 
you may have.
    [The prepared statement of Ambassador Palmer follows:]

               Prepared Statement of Hon. Larry L. Palmer

    Mr. Chairman and members of the committee, thank you for the honor 
and privilege of appearing before you as nominee for the United States 
Ambassador to the Caribbean nations of Antigua and Barbuda, Barbados, 
Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and 
the Grenadines. I am grateful to President Obama and Secretary Clinton 
for their confidence and trust in nominating me for this position. If 
confirmed by the Senate, I look forward to representing our country and 
working with you to advance the interests of the United States in the 
Caribbean.
    Barbados and the Eastern Caribbean nations represent nearly half of 
all countries in the Caribbean, an important region on the United 
States southern border. Traditional allies and friends, with shared 
culture and dedication to democracy and rule of law, these nations play 
an important role both bilaterally and in multilateral organizations 
like the Organization of American States and the United Nations. I am 
honored to have been nominated to represent the United States in this 
important region.
    Mr. Chairman, if confirmed, I will make the continuing safety of 
American residents and visitors in the Caribbean my top priority. The 
continuing success of the Caribbean Basin Security Initiative (CBSI) is 
vitally important to providing for the safety and security of the 
United States by ensuring that Barbados and the Eastern Caribbean can 
combat transnational organized crime and avoid the violence and 
instability seen elsewhere in the hemisphere. As a result of ongoing 
CBSI programming and engagement, the United States and the countries of 
the Caribbean are working more closely than ever on security and 
justice system-related projects. The inclusion of anticrime and 
antigang youth development and empowerment programs is an important 
component of CBSI and reflects the role youth play in these societies 
and in their development as nations. We are also working closely with 
Barbados and the Eastern Caribbean nations to combat trafficking in 
persons.
    The global economic downturn has hit the region particularly hard, 
exacerbating already significant economic hardship. Some Eastern 
Caribbean countries are struggling with very high debt levels and a 
number have undertaken International Monetary Fund (IMF) standby 
programs and are reaching out to the Paris Club for debt restructuring. 
This difficult economic situation has prevented the Eastern Caribbean 
nations from reaching their full development potential. If confirmed, I 
will build on prior work and lead American efforts to promote economic 
prosperity, trade, and entrepreneurship in the region.
    The high cost of energy in the region also affects Caribbean 
economies. The United States seeks to promote alternative energy in 
Barbados and the Eastern Caribbean. Our goal under the President's 
Energy and Climate Partnership of the Americas (ECPA) is to assist 
countries to diversify energy supplies with more renewable energy, and 
to increase engagement on climate change adaptation. Under an ECPA 
grant, six Eastern Caribbean country proposals were selected by the OAS 
to receive clean energy technical assistance. These projects range from 
solar energy pilot projects in national parks to the development of 
geothermal resources. Secretary Clinton in June announced an ECPA 
climate change adaptation initiative focused on Caribbean-specific 
climate modeling and adaptation planning in partnership with the 
University of the West Indies and one or more universities in the 
United States. If confirmed, I will work to further these projects and 
continue to promote cheaper and more sustainable energy throughout the 
region.
    Another critical challenge in the region is HIV/AIDS. HIV/AIDS 
infection rates in Barbados and the Eastern Caribbean, while lower than 
those in some neighboring countries, are nevertheless high in 
vulnerable populations, especially among youth and women. HIV/AIDS-
related illnesses are a major cause of death for persons between the 
ages of 15 and 44. If confirmed, I will strongly support U.S. programs 
of prevention and services in the region through the President's 
Emergency Action Fund for AIDS Relief (PEPFAR) which is integral to 
these efforts.
    While women in Barbados and the Eastern Caribbean have made some 
gains since the United Nations Fourth World Conference on Women in 
1995, significant barriers to full and equal citizenship still remain. 
Women in these countries play a strong role in politics, education, and 
social issues. Access to education is high and the majority of 
university students are women. However, after their education is 
complete, many women are either unable to find jobs or only find work 
in lower status and lower paying positions. While women are represented 
among government ministers, they constitute only a tenth of 
parliamentarians in Barbados and most of the Eastern Caribbean. 
Domestic violence and violence against women remain grave concerns in 
the region. Despite these obstacles, women leaders in Barbados and the 
Eastern Caribbean are extraordinary, and are diligently working to 
overcome the challenges they face. If confirmed, I will work to 
increase awareness and action to improve the opportunities available to 
women and girls. Along with this, the integration of women's issues 
throughout our policies and programs is absolutely necessary, 
particularly in such programs as CBSI, ECPA, and economic participation 
and entrepreneurship support.
    As 2011 marked the 50th anniversary of the Peace Corps, I would 
also like to note our longstanding Peace Corps presence in the Eastern 
Caribbean which plays a major role in providing U.S. assistance to the 
region. St. Lucia was among the first countries to receive volunteers 
in 1961. Currently 115 volunteers work in the region in four main 
areas: Youth Development, Institutional/NGO Development, Small Business 
Development, and Special Education.
    Thank you again for giving me the honor of appearing before you 
today. I would be happy to answer any questions you may have.

    Senator Menendez. Ambassador, you even had extra time. So 
you're on your way to confirmation, I can see that. [Laughter.]
    Before we turn to Ms. Powers, I see our colleague, Senator 
Gillibrand, is here and I know she wants to add words of 
introduction and welcome.
    So, Senator Gillibrand.

             STATEMENT OF HON. KIRSTEN GILLIBRAND,
                   U.S. SENATOR FROM NEW YORK

    Senator Gillibrand. Thank you, Mr. Chairman. I am very 
honored to have the distinct pleasure of introducing Julissa 
Reynoso, an extraordinary Latina from my home State of New 
York, to the Senate Foreign Relations Committee as my 
colleagues consider her nomination by President Obama to serve 
as Ambassador to the Oriental Republic of Uruguay.
    Ms. Reynoso has the qualities and experience to be an 
outstanding ambassador. She served as the Deputy Assistant 
Secretary for Central America and the Caribbean in the Bureau 
of Western Hemisphere Affairs at the Department of State since 
November 16, 2009. Ms. Reynoso is an attorney by trade, and 
prior to joining the State Department she practiced 
international law, focusing on international arbitration, 
antitrust, and also served as the deputy director of the Office 
of Accountability to the New York City Department of Education.
    Her education is stellar, as she holds a B.A. in Government 
from Harvard, a Master's in Philosophy from Cambridge in the 
U.K., and a J.D. from Columbia; and her desire to make a life 
of public service was evident right after law school when she 
clerked for the Honorable Federal Judge Laura Taylor Swain.
    Ms. Reynoso has also been a prolific writer, with her work 
published widely in both Spanish and English on a range of 
issues including regulatory reform, community organizing, 
housing reform, immigration policy, and Latin American politics 
for both popular press and academic journals.
    As the first Dominican ever nominated and one of the 
youngest people to be nominated, Julissa Reynoso is poised to 
become a trailblazer for many, many more young women to follow. 
In an era where women serve in the highest levels of government 
as Secretary of State, Supreme Court Justices, and many other 
offices of great distinction, we have yet another opportunity 
to show young women and girls across our country and beyond 
that anything is possible if you put your mind to it.
    I urge my colleagues to send her nomination to the full 
Senate for consideration. I'm confident that if confirmed, her 
intellect and drive, she will represent our country with great 
honor and distinction.
    Thank you, Chairman. Thank you.
    Senator Menendez. Thank you, Senator Gillibrand, very much.
    Ambassador Powers.

    STATEMENT OF HON. PHYLLIS M. POWERS, OF VIRGINIA, TO BE 
            AMBASSADOR TO THE REPUBLIC OF NICARAGUA

    Ambassador Powers. Thank you, Senator. Mr. Chairman and 
distinguished members of the committee, it is an honor to 
appear before you today as the President's nominee to serve as 
the U.S. Ambassador to Nicaragua. I am grateful for the trust 
and confidence the President and Secretary Clinton have shown 
in sending my name to the Senate for your consideration.
    I would like to recognize my family, including my sister 
and brother-in-law, Pam and Don Curley, who are here today, 
friends and colleagues who have supported me throughout my 
career.
    The skills and experience acquired in my career in the 
Foreign Service have prepared me to serve in this distinguished 
position. If confirmed, I will embark on my sixth tour in the 
region. The 7 years I spent in the U.S. Embassy in Colombia, as 
well as my time as the deputy chief of mission in Lima, Peru, 
and as the Director of the Office of Provincial Affairs in 
Iraq, taught me the importance of developing a partnership with 
host governments and civil society to achieve our goals.
    I feel strongly that a culture of lawfulness is key to any 
strong democratic society. As the current U.S. Ambassador to 
Panama, I have seen firsthand that building and sustaining 
democratic institutions is the responsibility of all citizens. 
Our most successful programs have clearly been those with 
community involvement, such as our programs in the area of 
prevention with youth at risk to ensure the future leaders of 
Panama have the opportunities they deserve.
    The active participation of parents, community leaders, 
private sector, and law enforcement provides Panama's young 
people with viable alternatives to gang membership and 
encouraging their progress as productive members of the 
community. I am proud of the role our programs have played in 
this effort.
    While we're on the subject of community involvement and 
civil society, the State Department has been clear in stating 
its concerns that the recent Nicaraguan elections were not 
transparent and were marred by significant irregularities. 
There is a serious concern about the erosion of democracy in 
Nicaragua. From the marshes of the Euphrates in Iraq to the 
interior jungles of Peru and Colombia, I have witnessed that 
citizens want to participate in the electoral process and, when 
given the chance, will exercise their right. If confirmed, I 
will speak clearly and with conviction about the importance of 
protecting fundamental freedoms and democratic institutions, 
and stress the importance of an empowered civil society, 
independent media, informed citizenry, and effective local 
government and political party participation.
    Our relationship with Nicaragua is broad and complex. 
Bilateral trade between the United States and Nicaragua has 
grown by two-thirds in the 5 years since the Central America-
Dominican Republic Free Trade Agreement went into effect; and, 
in fact, more than 125 U.S. companies are currently doing 
business in Nicaragua. If confirmed, I will be a staunch 
advocate for U.S. businesses in Nicaragua. I was pleased to 
note that a small U.S. company with operations in Nicaragua, 
Sahlman Seafoods, Inc., recently won the Secretary of State's 
Award for Corporate Excellence for global corporate social 
responsibility. We should promote and encourage cooperation 
between the people of the United States and Nicaragua in 
support of both our mutual interests.
    Protecting U.S. citizens is the first responsibility of any 
ambassador and, if confirmed, I will ensure that the U.S. 
Embassy in Managua continues to provide a high level of service 
and attention to our citizens. More than 14,000 American 
citizens live and work in Nicaragua. Our diplomatic 
representation includes representatives from eight U.S. 
agencies, including a Peace Corps contingent of approximately 
220 Volunteers.
    Mr. Chairman, members of the committee, thank you again for 
the opportunity to appear before this committee today. If 
confirmed by the Senate, I look forward to working with you and 
your colleagues to advance our Nation's interests in Nicaragua. 
I would be happy to answer any questions you may have. Thank 
you.
    [The prepared statement of Ambassador Powers follows:]

              Prepared Statement of Hon. Phyllis M. Powers

    Mr. Chairman and distinguished members of the committee, it is an 
honor to appear before you today as the President's nominee to serve as 
the U.S. Ambassador to Nicaragua. I am grateful for the trust and 
confidence the President and Secretary Clinton have shown in nominating 
me for this critical post.
    I would like to recognize my family, friends, and colleagues who 
have supported me throughout my career. I firmly believe that no one 
gets here alone and am confident I would not be here if they were not 
beside me.
    The skills and experience acquired in my career in the Foreign 
Service have prepared me to serve in this distinguished position. If 
confirmed, I will embark on my sixth tour in the region. The 7 years I 
spent in the U.S. Embassy in Colombia, as well as my time as the deputy 
chief of mission in Lima, Peru, and as the Director of the Office of 
Provincial Affairs in Iraq taught me the importance of developing a 
partnership with host governments and civil society to achieve our 
goals.
    I feel strongly that a culture of lawfulness is key to any strong 
democratic society. As the current U.S. Ambassador to Panama, I have 
seen firsthand that building and sustaining democratic institutions is 
the responsibility of all citizens. Our most successful programs have 
clearly been those with community involvement such as our programs in 
the area of prevention with youth at risk to ensure the future leaders 
of Panama have the opportunities they deserve. Our programs in 
Chorrillo, a neighborhood in Panama City with many social and economic 
needs are an example of what can be accomplished through partnerships 
with the community. The active participation of parents, community 
leaders, private sector, and law enforcement provides Panama's young 
people with viable alternatives to gang membership and encouraging 
their progress as productive members of the community. I am proud of 
the role our programs have played in this effort.
    While we're on the subject of community involvement and civil 
society, the State Department has been clear in stating its concerns 
that the recent Nicaraguan elections were not transparent and were 
marred by significant irregularities. There is a serious concern about 
the erosion of democracy in Nicaragua. From the marshes of the 
Euphrates in Iraq to the interior jungles of Peru and Colombia I have 
witnessed that citizens want to participate in the electoral process 
and when given the chance, will exercise that right. If confirmed, I 
will speak clearly and with conviction about the importance of 
protecting fundamental freedoms and democratic institutions, and stress 
the importance of an empowered civil society, independent media, 
informed citizenry, and effective local government and political party 
participation.
    Our relationship with Nicaragua is broad and complex. Bilateral 
trade between the United States and Nicaragua has grown by two-thirds 
in the 5 years since the Central America-Dominican Republic Free Trade 
Agreement went into effect and in fact more than 125 U.S. businesses 
are currently doing business in Nicaragua. If confirmed, I will be a 
staunch advocate for U.S. businesses in Nicaragua. I was pleased to 
note that a small U.S. company with operations in Nicaragua, Sahlman 
Seafoods, Incorporated, recently won the Secretary of State's Award for 
Corporate Excellence for global corporate social responsibility for its 
dedication to community development and environmental sustainability. 
We should promote and encourage cooperation between the people of the 
United States and Nicaragua in support of both our mutual interests.
    Protecting U.S. citizens is the first responsibility of any 
ambassador, and, if confirmed, I will ensure the U.S. Embassy in 
Managua continues to provide a high level of service and attention to 
our citizens. More than 14,000 American citizens live and work in 
Nicaragua. Our diplomatic representation in Nicaragua includes 
representatives from eight U.S. agencies, including a Peace Corps 
contingent of approximately 220 Volunteers who work at sites throughout 
the country.
    Mr. Chairman, members of the committee, thank you again for the 
opportunity to appear before this committee today. If confirmed by the 
Senate, I look forward to working with you and your colleagues to 
advance our Nation's interests in Nicaragua. I would be happy to answer 
any questions you may have.

    Senator Menendez. Thank you, Ambassador. We have a trend 
going. You had extra time as well. Not that I want to put 
pressure on the rest of the nominees.
    Mr. Farrar.

     STATEMENT OF JONATHAN D. FARRAR, OF CALIFORNIA, TO BE 
              AMBASSADOR TO THE REPUBLIC OF PANAMA

    Mr. Farrar. Thank you, Mr. Chairman. Distinguished members 
of the Senate Foreign Relations Committee, it's an honor to 
appear today before you as the President's nominee as 
Ambassador to Panama. I am deeply grateful to the President and 
to the Secretary of State for their continued trust and 
confidence.
    I'd like to introduce the members of my family who are here 
today. First of all, my wife, Terry, who has been with me 
throughout our 31 years in the Foreign Service and has worked 
tirelessly overseas to help those in need in the countries in 
which we have served.
    Also with us today is our daughter, Melissa, and our 
youngest son, Nathaniel. Our oldest son, Jonathan, and our 
daughter-in-law, Leigh, are not with us today as last month 
they welcomed their first child and our first grandchild.
    The Foreign Service has taken our family throughout the 
Western Hemisphere, to North, South, and Central America, and 
to the Caribbean. I've had the good fortune during the past 
three decades to work on the full panoply of challenges in the 
hemisphere, including democracy, human rights, law enforcement, 
trade investment, and protection of the environment.
    All of these issues are relevant to our relationship with 
Panama. Panama's location and role in global trade makes its 
success vital to our prosperity and national security. While 
Panama's economic growth rate is the highest in the hemisphere, 
Panama continues to face the challenge of making this growth 
more inclusive so that all of its citizens can enjoy the 
opportunity to build a better life for themselves and their 
families.
    The recently approved Trade Promotion Agreement holds the 
promise to greatly expand our economic partnership, to the 
mutual benefit of both our peoples. U.S. exports to Panama have 
grown rapidly, and the United States is by far the leading 
exporter of goods to Panama. Yet, we are facing increasing 
competition for market share.
    If confirmed, I would take what I have learned from three 
assignments as an economic and commercial officer overseas and 
harness the resources of our entire Embassy to promote U.S. 
exports and create American jobs.
    Panama is making major investments in the Canal and other 
infrastructure amid annual economic growth averaging 8 percent 
since 2006. A key element of my mission, if confirmed, would be 
to work with American businesses to ensure they are able to 
compete and win on a level playing field. Our implementation of 
the Trade Promotion Agreement and our bilateral Tax Information 
Exchange Agreement afford new opportunities to increase the 
transparency of operations of governmental and financial 
entities, and thus strengthen democratic institutions in 
Panama.
    The ties between the United States and Panama are strong. 
Nowhere is this more evident than in our cooperation to combat 
illegal drug trafficking and other criminal activity. In 2011 
alone, Panama seized more than 30 tons of cocaine, much of 
which otherwise would have made its way to our shores. The 
government and the people of Panama rightfully are concerned 
about the security threat posed by drug trafficking 
organizations and criminal gangs.
    If confirmed, I will bring my experience with 
counternarcotics and law enforcement programs across Latin 
America to direct a missionwide effort to deepen our bilateral 
security cooperation and ensure that it remains closely 
integrated into our overall efforts in the region.
    Above all, if confirmed, my highest priority as ambassador 
would be the protection of the nearly 45,000 Americans who 
reside in or visit Panama at any given time, and the more than 
100 American companies that do business there. My commitment to 
helping our fellow Americans abroad began 31 years ago in the 
consular section in Mexico City and continues today.
    Mr. Chairman, thank you again for the honor of appearing 
before the committee today. If confirmed, I pledge to work with 
you and your colleagues to advance the vital interests of the 
United States in Panama, and I'd be pleased to answer any 
questions you may have. Thank you.
    [The prepared statement of Mr. Farrar follows:]

                Prepared Statement of Jonathan D. Farrar

    Mister Chairman, distinguished members of the Senate Foreign 
Relations Committee, it is an honor to appear today before you as the 
President's nominee to be Ambassador to Panama. I am deeply grateful to 
the President and to the Secretary of State for their continued trust 
and confidence.
    I would like to introduce the members of my family who are here 
today. First of all, my wife Terry, who has been with me throughout our 
31 years in the Foreign Service and who has worked tirelessly to help 
those in need in the countries in which we have served. Also with us 
today is our youngest son, Nathaniel.
    The Foreign Service has taken our family throughout the Western 
Hemisphere to North, South, and Central America, and the Caribbean. I 
have had the good fortune during the past three decades to work on the 
full panoply of challenges in the hemisphere, including democracy, 
human rights, law enforcement, trade, investment, and protection of the 
environment.
    All of these issues are relevant to our relationship with Panama. 
Panama's location and role in global trade make its success vital to 
our prosperity and national security. While Panama's economic growth 
rate is the highest in the hemisphere, Panama continues to face the 
challenge of making this growth more inclusive, so that all of its 
citizens can enjoy the opportunity to build a better life for 
themselves and their families.
    The recently approved bilateral Trade Promotion Agreement holds the 
promise to greatly expand our economic partnership to the mutual 
benefit of both our peoples. United States exports to Panama have grown 
rapidly and the United States is by far the leading exporter of goods 
to Panama, yet we are facing increasing competition for Panama's import 
market share. If confirmed, I would take what I have learned from three 
assignments as an economic and commercial officer overseas and harness 
the resources of our entire Embassy to promote U.S. exports and create 
American jobs. Panama is making major investments in the Canal and 
other infrastructure amid annual economic growth averaging 8 percent 
since 2006. A key element of my mission, if confirmed, would be to work 
with American businesses to ensure they are able to compete and win on 
a level playing field. Our implementation of the Trade Promotion 
Agreement and our bilateral Tax Information Exchange Agreement afford 
new opportunities to increase the transparency of operations of 
governmental and financial entities and thus strengthen democratic 
institutions in Panama.
    The ties between the United States and Panama are strong. Nowhere 
is this more evident than in our cooperation to combat illegal drug 
trafficking and other criminal activity. In 2011 alone Panamanian 
authorities seized more than 30 tons of cocaine, much of which 
otherwise would have made its way to our shores. The Government and 
people of Panama rightfully are concerned about the security threat 
posed by criminal gangs and drug trafficking organizations. If 
confirmed, I would bring my experience with counternarcotics and law 
enforcement programs across Latin America to direct a missionwide 
effort to deepen our bilateral security cooperation and ensure it 
remains closely integrated into our overall efforts in the region.
    Above all, if confirmed my highest priority as Ambassador would be 
the protection of the nearly 45,000 Americans who reside in or are 
visiting Panama at any given time, and of the more than 100 American 
companies that do business there. My commitment to helping our fellow 
Americans abroad began 31 years ago in the consular section in Mexico 
City, and continues today.
    Mr. Chairman, thank you again for the honor of appearing before the 
committee today. If confirmed, I pledge to work with you and your 
colleagues to advance the vital interests of the United States in 
Panama.
    I would be pleased to answer any questions you may have.

    Senator Menendez. Thank you.
    Ms. Reynoso.

STATEMENT OF JULISSA REYNOSO, OF NEW YORK, TO BE AMBASSADOR TO 
                THE ORIENTAL REPUBLIC OF URUGUAY

    Ms. Reynoso. Thank you, Mr. Chairman. Mr. Chairman and 
members of the committee, I appreciate very much the 
opportunity to appear before this committee today as President 
Obama's nominee to be U.S. Ambassador to Uruguay. I am very 
grateful and humbled by the confidence that President Obama and 
Secretary Clinton have shown in me by this nomination. This 
nomination is a great honor for me and I look forward to 
another opportunity to serve my country, if confirmed.
    With the chairman's permission, I wish to recognize the 
many family and friends I have here today, and mentors and 
colleagues. I'm not going to name all of them, but they're all 
here, pretty much on my right-hand side, that have supported me 
over the years, many of them here today, my mother in 
particular, and many of them came from New York City, my home. 
It is only with their steady support that I am here seeking the 
U.S. Senate's confirmation, and I wish to sincerely thank them 
for their guidance and support throughout the years.
    The relationship between the United States and Uruguay is 
extremely strong. We share important values, including a 
commitment to democracy, rule of law, sound economic policies, 
strong labor rights, environmental protection, investment in 
people, the desire to see the peaceful resolution of disputes 
between nations, and a commitment to the multilateral system. 
If confirmed, I look forward to continuing the productive 
dialogue between our two countries and will work diligently to 
advance these goals.
    Uruguay is a constructive partner which plays an important 
role in promoting regional stability and democracy. The country 
is also a partner in conflict resolution, contributing to 
peacekeeping missions throughout the globe. Uruguay remains one 
of the top troop and police contributors per capita to United 
Nations peacekeeping overall. We welcome their contributions to 
improving security in Haiti, as well as in other difficult 
locations throughout the world.
    If confirmed, I look forward to working with President 
Mujica, Foreign Minister Almagro, the Uruguayan Government, 
civil society and the private sector as we advance bilateral 
relations and strengthen the political, commercial, and 
cultural ties between our two countries. If confirmed, I would 
give the highest priority to ensuring the well-being and safety 
of U.S. citizens who live and travel in Uruguay.
    I would seek opportunities for enhanced trade between the 
United States and Uruguay and promote United States exports to 
Uruguay. I would advocate for further cooperation under our 
Science and Technology Agreement, as well as our Trade and 
Investment Framework Agreement.
    United States exports to Uruguay have steadily increased 
over the last years to $973 million in 2010, up 30 percent from 
2009, and we enjoyed a $738 million goods trade surplus with 
Uruguay. There are approximately 100 U.S. companies currently 
operating in Uruguay at this time. If confirmed, I will work 
vigorously to promote U.S. businesses and believe we can 
continue to find new opportunities for increased trade between 
the two countries, and I would encourage programs that improve 
inclusive economic growth as well as promote public-private 
partnerships.
    To build greater understanding and mutual understanding 
through direct contact between Uruguayans and Americans, I will 
work to establish more partnerships between colleges and 
universities in Uruguay and the United States.
    Members of the committee, my work in the Department of 
State has offered me significant insights into the vital 
partnerships that exist between the branches of government and, 
if confirmed, I will work diligently to further develop these 
partnerships.
    If I am confirmed as Ambassador, I look forward to working 
with you, each of you, your distinguished colleagues and your 
staff to advance our priorities with the Oriental Republic of 
Uruguay.
    Thank you again for the great opportunity to appear before 
you today, and I welcome any questions you may have. Thank you.
    [The prepared statement of Ms. Reynoso follows:]

                 Prepared Statement of Julissa Reynoso

    Mr. Chairman and members of the committee, I appreciate very much 
the opportunity to appear before this committee today as President 
Obama's nominee to be U.S. Ambassador to Uruguay. I am very grateful 
and humbled by the confidence that President Obama and Secretary 
Clinton have shown in me by this nomination. This nomination is a great 
honor for me and I look forward to another opportunity to serve my 
country, if confirmed.
    With the chairman's permission, I wish to recognize my family, 
friends, mentors and colleagues that have supported me over the years--
many of them are here today, many from New York City. It is only with 
their steady support that I am here, seeking the U.S. Senate's 
confirmation and I wish to sincerely thank them for their generous 
guidance and support.
    The relationship between the United States and Uruguay is strong. 
We share important values, including a commitment to democracy, rule of 
law, sound economic policies, strong labor rights, environmental 
protection, investment in people, the desire to see the peaceful 
resolution of disputes between nations, and a commitment to the 
multilateral system. If confirmed, I look forward to continuing the 
productive dialogue between our two countries and will work diligently 
to advance these goals.
    Uruguay is a constructive partner which plays an important role in 
promoting regional stability and democracy. The country is also a 
partner in conflict resolution, contributing to peacekeeping missions 
worldwide. Uruguay remains one of the top troop and police contributors 
per capita to U.N. peacekeeping overall. We welcome their contributions 
to improving security in Haiti as well as in other difficult locations 
throughout the world.
    If confirmed, I look forward to working with President Mujica, 
Foreign Minister Almagro, the Uruguayan Government, civil society, and 
the private sector as we advance bilateral relations and strengthen the 
political, commercial, and cultural ties between our two countries.
    If confirmed, I would give the highest priority to ensuring the 
well-being and safety of U.S. citizens who live and travel in Uruguay. 
I would seek opportunities for enhanced trade between the United States 
and Uruguay, and promote U.S. exports to Uruguay. I would advocate for 
further cooperation under our Science and Technology Agreement as well 
as our Trade and Investment Framework Agreement. U.S. exports to 
Uruguay have steadily increased over the years to $973 million in 2010, 
up 30 percent from 2009, and we enjoyed a $738 million goods trade 
surplus with Uruguay. There are approximately 100 U.S. companies 
operating in Uruguay at this time. If confirmed, I will work vigorously 
to promote U.S. businesses and believe we can continue to find new 
opportunities for increased trade between the two countries and I will 
encourage programs that improve inclusive economic growth as well as 
promote public-private partnerships.
    To build greater mutual understanding through direct contact 
between Uruguayans and Americans, I will work to establish more 
partnerships between colleges and universities in Uruguay and the 
United States.
    My work in the Department of State has offered me significant 
insights into the vital partnerships that exist between the branches of 
government and, if confirmed, I will work diligently to further develop 
these partnerships. If I am confirmed as Ambassador, I look forward to 
working with you, your distinguished colleagues, and your staff to 
advance our priorities with the Oriental Republic of Uruguay.
    Thank you again for the opportunity to appear today. I welcome any 
questions you may have.

    Senator Menendez. Thank you very much.
    This is a record. All of you had extra time.
    My congratulations and those of the committee to Ambassador 
Palmer and Mr. Farrar on being granddads, either again or for 
the first time.
    We'll do 7-minute rounds. I have a lot of questions here, 
so we'll see how far we can get.
    Let me start with Ambassador Powers. I'd like to know what 
you make of the fiasco of election day in Nicaragua. The Carter 
Center had to send a study mission to watch the elections 
because the Nicaraguan Government's regulations didn't adhere 
to the Declaration of Principles for the International 
Observation of Elections. The EU and OAS observers were not 
permitted to enter into some polling places until after the 
voting had started, and so could not observe the ballot boxes 
that were brought in. Domestic experience observer groups were 
denied credentials to enter polling places even though they had 
followed all of the regulations.
    I appreciate Secretary Clinton's statement in January 
noting that the elections were not conducted in a transparent 
and impartial manner and that the entire electoral process was 
marred by significant irregularities. I have two of the 
examples of actual certified results in a couple of districts 
in Nicaragua, and it's pretty amazing. The fraud is so 
transparent.
    On these official ``actua scrutinia,'' which is basically 
the election result sheet certified by the election members, it 
says the total number of ballots received, 400. That's the 
maximum number of votes that could be cast there. And yet when 
you look at the certification of results, in one of these 
election districts the total number of votes was in excess of 
900 when there were only 400 ballots.
    In another one, there is a certification of three election 
districts in which again the total number of ballots received 
by the election board was 400. And yet when you add up the 
number of votes received by individual parties, they add up to 
2,000, when 400 were the number of ballots received.
    So it's pretty obvious that the type of fraud that has been 
alleged is pretty clear when you take the election results and 
you see that 400 ballots were given, and yet there is in one 
district 900 ballots, 900 votes cast when there are only 400 
ballots, and 2,000 votes cast when there are only 400 ballots. 
Something is fundamentally wrong.
    So the question, Ambassador, is now what? What do we do 
now? And as the nominee to go to Nicaragua, how will you work 
with a government that obviously did not win through a 
transparent and open process?
    Ambassador Powers. Thank you, Senator, for that question. 
Now what? Now we utilize the report that the OAS just completed 
and published at the end of January and the recommendations 
they made to work with our partners in the Americas and 
elsewhere to assess fully any initiative and all initiatives 
that we can utilize to help reinforce democratic institutions 
and ensure that recommendations made by the OAS are enacted by 
the Nicaraguan Government to ensure that future elections do 
not suffer from similar irregularities and a lack of 
transparency so that the Nicaraguan people can have their 
rights restored to vote in a free and transparent process and 
have leaders that they have selected that will be accountable 
to them.
    How do we work with the government? We work with the 
government at all levels, but we also work with civil society 
and the Nicaraguan people to ensure that they understand that 
the United States stands with them as they seek to move forward 
to rebuild democratic institutions and to protect their rights 
as citizens of Nicaragua. This will mean being out there, doing 
outreach, making sure that they understand and have someone out 
there, me if I'm confirmed, and the mission, to ensure that 
they understand that they've got people supporting them and 
will be working with them to ensure democracy and human rights 
are protected.
    Senator Menendez. Well, I appreciate that. I know you 
started off by using the OAS report. I have a problem with the 
OAS report. First of all, the OAS Secretary General called 
Ortega to congratulate him on the successful peaceful elections 
on the evening of 
November 6, which is pretty amazing to me. Then the very 
essence of the legality of the election, Ortega running for a 
third term, is not even spoken about. And I don't get the sense 
that the OAS report even considers whether the election itself 
was valid.
    So I worry about that, and I look at the German 
Government's announcement that it was cutting aid to Nicaragua 
due to the EU's concerns about irregularities in that 
Presidential election. Is the United States reevaluating the 
aid it provides to Nicaragua in light of a sham election that 
took place? Should it?
    Ambassador Powers. Thank you, Senator. Yes. The United 
States is in a very vigorous process of reviewing financial 
assistance to Nicaragua, most of which goes to nongovernmental 
organizations, not to the government. We are also aggressively 
scrutinizing all loan projects with the international financial 
institutions to make sure that any loans that are being 
considered meet the highest standards of the institutions, and 
that they will have a direct impact on development for the 
people of Nicaragua.
    Senator Menendez. I appreciate you mentioning the 
international institutions because I want to direct your 
attention to the IDB, the Inter-American Development Bank, 
lending to the Nicaraguan Government, much of it in the form of 
what we call quick disbursing loans.
    For example, on October the 28, less than 2 weeks before 
the election, the IDB granted Ortega a $45 million quick 
disbursing loan, ``to improve social protection and health 
spending management.'' Two weeks before the election, $45 
million. I cannot believe that the United States, sitting on 
the IDB board, permitted such a loan to occur 2 weeks before 
the election, that we would provide an enormous infusion of 
money to the entity running in an undemocratic election and 
fuel the possibility to help them out 2 weeks before the 
election. It's amazing to me.
    So given the fact that we just plussed up the IDB's capital 
account and are looking to do the same again this year, I hope 
that part of your charge, should you be confirmed, would be to 
provide input to the State Department about flows of money 
coming from, in large part, U.S. taxpayers to an entity that 
certainly many of us on this committee believe is undemocratic.
    Senator Rubio.
    Senator Rubio. I would defer to Senator Lugar if he has any 
questions first.
    Senator Menendez. Senator Lugar.
    Senator Lugar. Thank you very much, Mr. Chairman.
    Ms. Reynoso, the trade that we have enjoyed with Uruguay, 
as you pointed out, has been very substantial. Long ago I 
suggested, along with many others, a free trade agreement 
between the United States and Uruguay. This administration has 
not shown interest in negotiating a free trade agreement. With 
that in mind, perhaps implementing a limited trade preference 
arrangement as a standby mechanism is in order until interest 
magnifies.
    Given that you have analyzed this in your various roles, 
could you tell us why we have not pursued a free trade 
agreement to begin with, and if there is any value in having a 
preference agreement? What suggestions do you have as to how we 
are going to accelerate trade with Uruguay? While you have 
already pointed out that such trade is substantial, in my 
opinion it could be significantly increased given the nature of 
Uruguay's economy and the instincts of the people there.
    Ms. Reynoso. Thank you, Senator, for the question. As you 
noted, our trade with Uruguay is substantial. It's complex. 
It's elaborate. It ranges from agriculture to energy to 
infrastructure. We do have a Trade Investment Framework 
Agreement in place with Uruguay that we use in a very robust 
and, I believe, an effective way. We meet regularly with our 
Uruguayan counterparts, and we have many matters in terms of 
commercial interests on the table to pursue to allow for even 
greater opportunity to come from that agreement.
    As you also noted, there was talk in the past of a free 
trade agreement with Uruguay. My understanding is that that is 
no longer on the table, and I think both parties chose not to 
pursue it for domestic reasons.
    Should I be confirmed, Senator, I do look forward to 
working within the context and the framework of the current 
TIFA, of the current Trade and Investment Framework Agreement, 
to expand its impact in terms of the opportunities for U.S. 
businesses and U.S. trade, but also consult at the highest 
level within the Uruguayan Government, and obviously consult 
with the highest levels in this government, to assess whether 
there is any interest in pursuing, in a firm and serious way, a 
trade agreement with Uruguay.
    Senator Lugar. Are there protectionist sentiments in 
Uruguay? You mentioned that the free trade agreement has not 
progressed because of reticence on both sides. Sometimes that's 
occurred on our side. But is that the case in Uruguay?
    Ms. Reynoso. Well, Senator, my understanding is that there 
were reservations in Uruguay. I can't tell you the particulars 
of who, how, but I do understand that there were some domestic 
concerns as to why a trade agreement, at the time that it was 
being considered, was not opportune.
    Senator Lugar. I appreciate your mention in your testimony 
of the potential for more college student exchanges between the 
countries. How many Uruguayan students come to the United 
States now? Do you have any idea?
    Ms. Reynoso. I would imagine, and I can get back to you 
with real numbers, Senator, but I would imagine in the 
thousands, tens of thousands, I would imagine.
    [The requested information follows:]

    Approximately 18,000 Uruguayans were approved for travel to the 
United States last year. Tens of thousands more already possess visas. 
Of those travelers, approximately 400 Uruguayan students and scholars 
pursued academic endeavors in the United States last year. The 
Department of State is committed to promoting education, professional, 
and cultural exchange. Embassy Montevideo expects student numbers to 
increase in coming years. As I mentioned in my testimony, if confirmed, 
I look forward to working to expand these numbers, and to be supportive 
of President Obama's 100,000 Strong initiative.

    Senator Lugar. I see. So already there is quite a bit of--
--
    Ms. Reynoso. There is quite a bit of back and forth in 
terms of exchange. Yes, Senator.
    Senator Lugar. Mr. Farrar, recently an article was written 
by Andres Oppenheimer in the Miami Herald, January 18, and I 
cite his name because he suggested, in fact, that Panama has 
been a Latin American star, with a 6.8-percent economic growth 
rate and the other statistics that you mentioned. However, at 
the same time, he states that the education system of Panama, 
which might support this competitive aspect, is very deficient, 
and there appears to be very little movement on the part of the 
government to improve that.
    Likewise, he notes that Panamanian growth is largely 
fostered by the Canal and projects and enterprises that are 
associated with that. Economic growth there may not be as 
strong as it could be given, perhaps, the lack of education or 
preparation.
    What is your judgment about that situation, and in what 
ways could the United States be helpful during your 
ambassadorship there?
    Mr. Farrar. Thank you very much, Senator, for the question. 
The Panamanian economy, as you mentioned, has shown incredible 
growth over the past 5 or 6 years. Much of it has been fueled 
by investment not only in the Canal but in other major 
infrastructure projects.
    Panama is seeking to create what it calls a ``City of 
Knowledge'' in Panama City to attract educational institutions 
to try and improve the educational system. They recognize some 
of the deficiencies there, and their deficiencies have been 
noted not only by Mr. Oppenheimer but also by the World 
Economic Forum and others as truly holding back even further 
economic progress.
    If confirmed, Senator, I would love to explore the 
opportunities for more engagement in the educational exchange 
between the United States and Panama. I would note that the 
Smithsonian Tropical Research Institute has been in Panama for 
more than 60 years and it's a leading institution for 
scientific investigation in the world. And I had the 
opportunity to visit the institution here in Washington last 
week and heard some amazing things regarding their operations 
there and their plans moving forward.
    Thank you.
    Senator Lugar. Well, I thank you for that testimony. 
Obviously, the rate of growth is astounding and important. The 
need for our country to work with the Panamanians to sustain 
this and improve it is obviously of value. But I thank you for 
your testimony.
    Thank you, Mr. Chairman.
    Senator Menendez. Thank you, Senator Lugar.
    Senator Rubio.
    Senator Rubio. Thank you very much. First, let me just 
begin with Ms. Reynoso. I think this applies to all the folks 
here, but 
just reviewing your resume, it's pretty impressive. What are 
you 
doing in government is my biggest question. Congratulations to 
you. I know your family is here, and they should be very proud 
of your accomplishments, and I look forward to supporting your 
nomination.
    I do have a question about organized crime in Uruguay. I'm 
reading an article here from the Christian Science Monitor 
dated the 26th of January, and it talks about how traditionally 
Uruguay has been one of the safest countries in Latin America, 
but there's this increasing battle going on between different 
drug trafficking organizations, and the fear that some of this 
violence is spreading in that country.
    What are your thoughts about it in the short term? What can 
we be doing? What kind of assistance can we be providing? 
What's the general mindset in regards to how serious a problem 
it is and what we can be doing to head it off before it rises 
to the level of some of the other countries in the region?
    Ms. Reynoso. Thank you, Senator. As you noted, there is a 
sense of that there is an increase in insecurity in Uruguay. 
The population itself has taken notice, and the Government of 
Uruguay has also taken notice. We have a very robust and 
productive working relationship with the Uruguayan Government 
with respect to security. Our law enforcement agencies are very 
much working closely with them, and obviously at this point 
we're looking at possibilities of working even more closely 
because, as you noted, the risk and the insecurity, and we 
understand that there is an increase in certain types of 
organized crime.
    Our Office of International Narcotics and Law Enforcement 
under Ambassador Brownfield has been working with counterparts 
in Uruguay to provide support in terms of assessing risks, 
especially around issues of illicit trafficking and organized 
crime. So there is already a dialogue with the Uruguayans in 
this regard. We have very good cooperation with them in terms 
of law enforcement.
    But I think, as an initial matter, we're trying to assess, 
working with them, what the problem is, so we can get a better 
idea of how we can work with them to tackle it.
    Thank you.
    Senator Rubio. Thank you. And as we move forward in your 
assignment there, my opinion is it ought to be one of our 
priorities, because one of the things that could really slow up 
the miracle that's happening there and that kind of economic 
growth is if they have to divert resources to fighting off--
we've seen the horrible impact that that's had on these other 
countries.
    Ambassador Palmer, welcome. Thank you again for your 
service to our country. First of all, I'm very pleased that you 
mentioned PEPFAR, which is a phenomenal program that our 
country pursues around the world, and certainly in the 
Caribbean as well. I'm pleased to see as well that you 
mentioned in your opening statement the challenges that women 
face, particularly when it comes to domestic violence and the 
lack of opportunities, and I'm glad that that's something 
you'll focus on.
    The one thing I didn't hear you mention and I am concerned 
about is some of these nations' association with a Bolivarian 
Alliance for the Peoples of Our America, or what's known as 
ALBA, which quite frankly is, in my opinion an anti-American 
platform. More importantly, this is an alliance to which, 
according to a recent press report ``Dominica, St. Vincent, the 
Grenadines, Antigua and Barbuda are members, and St. Lucia has 
applied for formal inclusion.'' These are some of the things 
the group said when they met this past weekend.
    No. 1, they came out in support of the Syrian Government in 
the midst of a bloodbath that government is carrying out in 
that country. No. 2, they blasted England's so-called 
imperialist intentions against Argentina over the Falkland 
Islands.
    Given our Nation's close relations with these countries, 
what the United States means for them, what our relationship 
with them means, why are these countries participating in this 
anti-American bloc? Why are they involved in this, and isn't 
there some point where we take a stand and say, you know, 
you've got to make choices about who you want to be aligned 
with and who you want to be associated with? Why would any 
nations want to be associated with such ridiculous things as 
statements of support for the Syrian Government, which just 
happened this weekend, on the 5th of February, in the midst of 
what we're watching happening over there, which is a bloodbath?
    Ambassador Palmer. Thank you very much, Mr. Senator. As you 
mentioned, of the countries in the region, Barbados plus six, 
three of them, Antigua and Barbuda, Dominica and St. Vincent 
and the Grenadines are members of ALBA. There's much 
speculation as to why, but many of those countries are 
signatories to the Petro Caribe agreement in which they receive 
oil and produce at reduced rates and with long-term periods to 
repay it at reduced interest.
    However, upon close examination, all of those countries are 
stable democracies. They share our values of free markets. They 
believe in free press. They believe in free speech. They have 
respect for human rights and respect for the rule of law. They 
stand by us in votes with our multilateral organizations, and 
we engage very, very comprehensively in those countries.
    For example, in the region, we have the Caribbean Basin 
Security Initiative in which we help them fight illegal drug 
trafficking and promote social justice. We engage with their 
police. We help them fight corruption. We help them protect 
their borders and their maritime waters.
    I think all of this engagement by far out-shines any other 
type of influence that they may get from ALBA governments and 
ALBA philosophy.
    Senator Rubio. So, without putting words in your mouth, 
basically in exchange for cheap oil, they're willing to stand 
by and support things like the Syrian Government's shelling and 
killing of civilians, as it occurred last weekend and normal 
countries around the world said it is an outrage. But in 
exchange for cheap oil, these countries are willing to sit 
around and listen to people like Hugo Chavez and Daniel Ortega 
say some of the most ridiculous things that one could imagine.
    I think it's concerning, obviously, but I think you've 
outlined some of the other realities. But it was important to 
get to that because I still don't understand why they would 
want to be a part of a block of nations like this, but I think 
you shed some light on it.
    Ambassador Palmer. I think that brings up the importance of 
our people-to-people programs, because we do have people-to-
people programs that work with the NGOs, who proliferate our 
philosophies in terms of basic freedoms and democracy. And if 
confirmed, I will work diligently to support these programs and 
advance their causes.
    Senator Menendez. We thank you.
    I have some more questions, so we'll see if there are other 
members as well.
    Let me go back to you, Ambassador Powers. One final 
question, but I think it's an important one. In July of this 
year, under section 527 of the Foreign Relations Authorization 
Act, Secretary Clinton will have to decide whether to grant 
Nicaragua a waiver for failure to compensate U.S. citizens for 
properties that were confiscated by the Sandinistas during the 
1980s. And while there has been some progress made, there are 
many cases where this compensation has not been granted.
    If the Secretary fails to grant the waiver, is it your 
understanding that the United States would be obliged to vote 
against the loans and grants to Nicaragua at the IDB World Bank 
and IMF?
    Ambassador Powers. Senator, yes. It's my understanding that 
there are consequences if the waiver is not granted based on 
the Article 527 resolution. I can tell you that we are working 
very hard on these property rights issues. There's a full-time 
team at the Embassy, and if confirmed, it will be one of my 
priorities under my responsibility to protect U.S. citizens and 
their rights to ensure that all tools are used to move this 
forward, resolve these cases in accordance with the statute, 
just as I have worked to help resolve issues revolving around 
land investment in Panama.
    Senator Menendez. I appreciate that. Assuming your 
confirmation takes place speedily and you get to Nicaragua, can 
I ask you to commit to the committee that this will be one of 
the first things that you'll look at, since a July decision 
will be pending and I'd like to have a sense of how much 
progress has been made and whether the Secretary should, in 
fact, not grant the waiver?
    Ambassador Powers. Clearly, Senator, yes. Given that these 
are rights for U.S. citizens, it will be one of the first 
things on my list to address at the highest levels of the 
Nicaraguan Government to ensure we can get some progress on 
this issue.
    Senator Menendez. Thank you very much.
    Ambassador Powers. If confirmed.
    Senator Menendez. I have a sense it's going to happen, so 
that's why I'm working prospectively.
    Mr. Farrar, do you share the concerns of some civil society 
groups that judicial independence in Panama has deteriorated 
under the Martinelli government? In particular, President 
Martinelli has introduced a bill in the Congress that would 
create a fifth court. If approved, the new court would have 
three new justices, all appointed by him, and would deal with 
constitutional issues, one of them being the constitutionality 
of presidential term limits.
    What's your view of that?
    Mr. Farrar. Thank you very much, Senator. First of all, let 
me just say that the United States strongly supports the 
principles of judicial independence and separation of powers, 
and those principles are enshrined in article 3 of the Inter-
American Democratic Charter.
    Our human rights report on Panama also points up to this 
issue of judicial independence in Panama. And as you mentioned, 
it's an item under vigorous public debate in Panama right now.
    Part of this debate includes a package of recommendations 
for constitutional reforms, some of which may, depending upon 
how the debate goes, result in strengthening judicial 
independence. I think looking forward, this is something that 
the Embassy has been following very closely. It's of critical 
importance to us. If confirmed, I would certainly continue to 
follow that and would be prepared to speak out as needed to 
defend the principles that I mentioned at the beginning of my 
response.
    Thank you.
    Senator Menendez. Thank you.
    Ms. Reynoso, President Mujica is a little over a year-and-
a-half into his term. How well do you think his administration 
has worked with the United States compared to his predecessor, 
President Vasquez?
    Ms. Reynoso. Thank you, Senator. We have a very good 
working relationship with the Uruguayan Government. We had a 
very good relationship with President Vasquez. President Mujica 
shares a similar vision of Uruguay and a similar vision of our 
relationship with Uruguay. The principles of democracy, of 
conflict resolution, of economic stability and social inclusion 
continue under this administration, as they did under President 
Vasquez.
    So I believe, if confirmed, the engagement with the 
Uruguayan authorities and President Mujica himself will be as 
productive and as effective as we had under President Vasquez.
    Senator Menendez. And finally, Ambassador Palmer, part of 
our subcommittee's jurisdiction in the Western Hemisphere is 
also global narcotics, and we have seen the use of the 
Caribbean as a transshipment point for illegal drugs from Latin 
America to the United States. And while it has diminished over 
the past decade as we've seen that route go to Mexico and 
Central America, we have seen a resurgence of trafficking 
through the Caribbean region.
    How will you deal and engage with the countries that you're 
going to be our Ambassador to on this issue?
    Ambassador Palmer. Thank you very much, Mr. Chairman. As 
you mentioned, there has been an apparent resurgence in that, 
and to combat this, the Department has established a 
partnership with the countries in the Eastern Caribbean called 
the Caribbean Basin Security Initiative. It is an initiative 
that grew out of the 2009 Summit of the Americas.
    As a part of this initiative, we work with each--it's a 
regional plan, and we have individual plans with all of these 
countries. For example--and, of course, the goal is to stem 
illegal trafficking, promote social justice, and to increase 
citizens' safety. As a part of this, for example, this year six 
countries in the Eastern Caribbean will receive interdiction 
boats to protect their maritime borders. In addition to that, 
we work with their police. We train their police. We equip the 
police with the things that they need to make arrests. We also 
work with the judges and the prosecutors. We work with 
financial intelligence units so not only can the police arrest 
them, but they can be prosecuted, to look not only at drugs but 
also money laundering.
    But as part of this, we want to invest in the future. And 
so we take a look at the youth, and as a part of the Caribbean 
Basin Security Initiative we have set up youth rehabilitation 
academies. We just had 216 Caribbean youth graduate from the 
first part of these.
    We engage the resources of our Department of Health, DHS. 
They come in and they expand their activities in their ports, 
the airports. We have set up a net, a security net in which 
each country shares intelligence about drug trafficking with 
and between. And as well, we work with the regional security 
section that sets up an air wing that does aerial surveillance. 
All of these things relieve some of the burden on our own 
assets, for the Coast Guard, for example, in the region, and 
we've seen progress toward reducing some of this drug traffic.
    Senator Menendez. Thank you very much.
    Let me take the prerogative of the Chair for a moment just 
to recognize that our distinguished colleague from the House, 
Congressman Serrano, has come to be supportive of Ms. Reynoso. 
We appreciate his presence. We appreciate his support, for the 
record, of Ms. Reynoso to be the Ambassador to Uruguay, and we 
thank you for joining us.
    Do any of my other colleagues have any further questions?
    Senator Lugar.
    Senator Lugar. Well, thank you, Mr. Chairman.
    I would like to raise a broader question about which any of 
you might have a comment. About 30 years ago, a little bit less 
than that, this committee was seized with the excitement of 
events taking place in countries located mostly in Central 
America. El Salvador, Guatemala, Nicaragua, and Honduras were 
all nations that some of us went to in order to serve as 
election observers or help set up ballot paper and all the 
rudiments for elections. It was an exciting period in which our 
government obviously was heavily involved, deeply interested in 
the evolution of democracy in the Caribbean and then in South 
America, and often it was pointed out during this period of 
time that every country in our hemisphere became a democracy 
with the exception of Cuba.
    But that was then. The excitement has subsided. We've been 
involved, unfortunately, in military action in the Middle East, 
and deeply involved with the states of the former Soviet Union.
    I'm just wondering, as each one of you is deeply involved 
in the developments in the region, has there been a feeling of 
being let down among those countries with which we previously 
had this intense interest? In a related matter, how should we 
enhance our own communication with the people of the region? 
Should it be through our broadcasting or social media programs? 
Is tourism stronger in the midst of all of this, quite apart 
from political developments or things we discuss in this 
committee?
    Ms. Powers, do you have a thought about any of this?
    Ambassador Powers. Thank you, Senator. Yes, I do. Speaking 
about what I've learned about Nicaragua, Nicaraguan people have 
a very positive view of the United States, much because of the 
types of assistance that we have provided over the years under 
three pillars: one, fighting malnutrition and poverty; two, 
working to increase and improve good governance in the country; 
and three, working with the Nicaraguan Government on security 
and counternarcotics issues. Recent polls have shown that the 
Nicaraguan people are very pleased and have a very positive 
view of the United States in spite of a difficult bilateral 
relationship.
    In my experience in other countries, what the United States 
puts forward in assistance and support resonates well with the 
people, even if it doesn't always resonate well with the 
governments.
    Thank you.
    Senator Lugar. Ambassador Palmer, do you have a reflection?
    Ambassador Palmer. Thank you, Mr. Senator. I agree with 
Ambassador Powers very much. It is our actions with the people 
that have been very, very effective.
    Senator Rubio, you mentioned my comments in terms of 
PEPFAR. For example, HIV/AIDS in the Eastern Caribbean, the 
prevalence is very high, second only to sub-Saharan Africa. But 
we have six of our agencies engaging in the PEPFAR program 
there, USAID, DOD, CDC, our Peace Corps. We are engaging in 
that. Peace Corps, for example, with 115 Volunteers, are 
involved in youth education and programs to prepare youth, to 
provide opportunities for jobs. We help them, as I mentioned 
before, with citizen safety.
    All of these programs ring very well with the citizens, and 
as a result the citizens of the Eastern Caribbean have a very 
positive view of the United States.
    In addition, we engage the diaspora. We have a number of 
citizens here in the United States, and they all help to push 
these things forward.
    So as Ambassador Powers mentioned, our programs ring well 
with the people and with most governments.
    Senator Lugar. Mr. Farrar, do you have a thought?
    Mr. Farrar. Yes. Thank you, Senator. I would say that 
there's an excitement in United States-Panama relations today. 
The excitement you mentioned 30 years ago continues. There's 
excitement over implementing the trade promotion agreement, to 
bring free trade between our two countries. There's an 
excitement over the expansion of the Panama Canal, an expansion 
which is also sparking investment in the United States, in U.S. 
ports that are getting ready to handle the ships that will 
transit the Canal beginning in late 2014.
    I read a recent poll which showed that there is tremendous 
good will in Panama toward the United States. There's 
tremendous interest in Panama toward greater cooperation with 
the United States in the area of counternarcotics and security 
cooperation; and interestingly, a lack of knowledge about what 
we're doing already. So I think we can do more to get the word 
out. But there is a tremendous excitement still.
    Thank you.
    Senator Lugar. Ms. Reynoso.
    Ms. Reynoso. Thank you, Senator. Uruguay is a model of 
democracy in the region. It did, as did many other countries in 
South America, undergo a transformation in the 1980s.
    With respect to Central America in particular, I can say 
that democracy is a work in progress. We have seen some 
victories. We have seen some things go well. We have also seen 
some things 
that have not gone well at all, as we stated with the 
Nicaraguan elections.
    The good news is that I have seen, based on my experience 
over the last 2 years, that the Nicaraguan people and the 
Central American people generally understand the basic 
principles of democracy and want it, and are looking for ways 
to make it part of their daily routine, and are angered. They 
have voiced anger to us. They voice their anger through their 
votes. They voice their anger through civic engagement.
    We have to create and help them create methods of 
accountability that allow their institutions to surpass any 
type of dramatic institutional deterioration, as has happened 
in Nicaragua. That is hopefully something that the United 
States and our partners in the region, a country like Uruguay, 
can help the Central Americans and the countries in the 
Caribbean and other countries that require support to be able 
to move forward in that direction.
    Senator Lugar. I thank each one of you for your comments. 
Thank you for your previous service. I look forward to 
supporting each of your nominations and wish you every success.
    Senator Menendez. Thank you, Senator Lugar.
    Senator Rubio.
    Senator Rubio. Thank you, and I'll be brief. Thank you all 
again for being here today.
    Just two quick observations I wanted to make for the record 
on both Nicaragua and Panama. My sense of talking to people 
both in Nicaragua that have visited us and people living here 
in the United States of Nicaraguan descent is that while 
generally the population is grateful for some of the money that 
Venezuela has poured into that country, they're concerned about 
it too. Obviously, there's real concern that it's not 
sustainable, and rightfully so. And the second is some of the 
price they've had to pay in exchange for this support. 
Obviously, we've seen how the elections have been undermined 
and all the institutions that are critical to a democracy have 
come under attack.
    But then there's some of the associations that Mr. Ortega 
has made around the world. Just as he took the oath of office a 
few weeks ago, he was flanked on stage by both Mr. Chavez and 
Ahmadinejad, and he pilloried the U.S. occupation, as he termed 
it, of Iraq and Afghanistan. He lamented the death of former 
Libyan leader Moammar Qadhafi, and he paid respects to former 
Iraqi leader Saddam Hussein.
    This is embarrassing to the Nicaraguan people, who are 
rightfully concerned, but they're also embarrassed by the image 
of their country. By the way, I saw polling that President 
Obama is more popular than Mr. Ortega is in Nicaragua. So I 
think that goes to some of the comments that were made earlier 
about the views of the United States.
    But Iran is more than just an irritant, and this 
relationship with Iran is more than just an irritant. This is a 
country that uses asymmetrical attacks, things like terrorism, 
as a foreign policy tool. We saw that very recently with the 
allegations, the uncovering of a plot to assassinate the Saudi 
Ambassador to the United States.
    I just hope that the administration, and it would be 
through you, is going to make it very clear to Mr. Ortega that 
if he wants to say these sorts of things that embarrass him 
with his own people, that's one thing, but there are some 
bright redlines that he should not be crossing, or that any 
nation in the Western Hemisphere should not be crossing, when 
it comes to the relationship with Iran. There are things that, 
for the security of this Nation, we will not tolerate in terms 
of an Iranian presence in this hemisphere, and I think it's 
important that that message be made very clear. I hope in your 
role that you'll encourage the State Department and the 
administration to move in that direction.
    As far as Panama is concerned, Mr. Farrar, as you know in 
your previous nomination, I've had some disagreements about the 
approach that you took in your previous role in the Interests 
Section in Cuba. That being said, you're now going to Panama, a 
country that for most of us is seen as a place with a stable 
democracy and real economic promise. But there are some 
troubling signs emerging from Panama.
    As was outlined earlier by Senator Lugar, in a recent 
article by Mr. Oppenheimer, who is a well-informed observer of 
the Western Hemisphere, he talked about a growing concern over 
Mr. Martinelli's strong-arm ruling style. Mr. Oppenheimer says 
that President Martinelly already controls the National 
Assembly and the Supreme Court. His critics say that he could 
move to control the electoral tribunal, the independent agency 
that oversees the Panama Canal, and he may even seek to reelect 
himself despite a constitutional ban on reelection.
    It's hard for people to give up power. Sometimes when these 
guys or gals get there, they don't want to let go of it. I 
think we take that for granted in this country. Sometimes after 
8 years, our Presidents aren't ready to leave, but they have 
to. In some of these countries, they figure out a way to get 
around it. I hope that in your new role, if, in fact, he takes 
this country in that direction--and we hope they don't--you 
will be a strong voice on the side of democratic and 
independent institutions. I don't care how good the economy is; 
I don't care how great our relationships are on other issues. 
We cannot stand by and watch one more nation join the ranks of 
countries where their leadership are deliberately undermining 
the institutions of democracy and while we do nothing about it.
    So I hope in this role, when you get there, that you will 
pledge to be a strong voice to condemn any move in this 
direction.
    Thank you.
    Senator Menendez. Thank you, Senator.
    I think you all have a sense of where we're at on these 
issues. I appreciate your testimony and answers here today. I 
look forward to supporting all four of you in your nomination 
when it comes before the full committee.
    I will rectify a previous statement I made. Instead of 
keeping the record open until Friday, we will keep the record 
open for QFRs for 24 hours. This will give us the best chance 
of having all of your nominations before the next business 
meeting, which will take place on, of all days, Valentine's 
Day. [Laughter.]
    So with that, and with no other business to come before the 
committee, this hearing is adjourned.
    [Whereupon, at 11:20 a.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


        Responses of Julissa Reynoso to Questions Submitted by 
                        Senator Richard G. Lugar

    Question #1. Please explain what relevant experience you have had 
to prepare you to represent the United States of America as Ambassador 
to Uruguay. What interaction have you had with Uruguay in an official 
U.S. Government capacity?

    Answer. Both my professional career and my education have prepared 
me to represent the United States as Ambassador. As the Deputy 
Assistant Secretary of State for Central America and the Caribbean in 
the Bureau of Western Hemisphere Affairs since November 2009, I have 
worked diligently to advance U.S. priorities within the region and, if 
confirmed, I welcome the opportunity to utilize this experience as 
Ambassador to Uruguay.
    Additionally, my education, which includes a substantial 
international component, has also prepared me for this opportunity. I 
have a B.A. in Government from Harvard University, a Masters in 
Philosophy from the University of Cambridge in the United Kingdom, and 
a J.D. from Columbia University School of Law. Prior to working at the 
State Department, I practiced law at the international law firm of 
Simpson Thacher & Bartlett LLP in New York, focusing on international 
arbitration and antitrust law and was a fellow at New York University 
School of Law and Columbia Law School.
    In my official capacity as Deputy Assistant Secretary, I have 
worked with the Government of Uruguay on vital issues in the context of 
the Haiti Group of Friends, as Uruguay is currently the Chair, as well 
as with MINUSTAH. Uruguay is a leading partner in U.N. peacekeeping 
and, if confirmed, I look forward to continuing the important dialogue 
and cooperation with the Government of Uruguay.

    Question #2. Despite Uruguay's small size and geographic location, 
U.S. initiatives to expand diplomatic and commercial ties with Uruguay, 
could afford an opportunity for the United States to constructively and 
strategically, extend its influence in the Southern Cone, a subregion 
historically given less attention by U.S. foreign policymakers compared 
to other areas of Latin America. Please explain your views regarding 
the importance of countries of the Southern Cone for United States 
foreign policy objectives in South America. Please explain Uruguay's 
importance for United States foreign policy objectives in the Southern 
Cone.

    Answer. The countries of the Southern Cone are critically important 
for U.S. foreign policy objectives in the hemisphere precisely because 
these countries include some of Latin America's oldest, strongest, and 
most successful democracies. The United States principal strategic 
goals in the region are supporting citizen security, strong 
institutions, and democratic governance. Healthy and successful 
Southern Cone democracies that respect rights, enforce rule of law, and 
sustain growing economies that welcome foreign investment serve as an 
important example for the entire region. Uruguay, in particular, is a 
model, high-functioning democracy in the Southern Cone, and, as such, 
is an important partner in advancing shared policy objectives. I am 
committed to continuing, and expanding, as appropriate, the range of 
programs whereby the United States supports citizen security, strong 
institutions, and democratic governance in Uruguay.

    Question #3. The Vazquez administration sought to reduce its 
reliance on Argentina and Brazil by strengthening ties with the United 
States. Since taking office, the Mujica administration has shifted the 
emphasis of Uruguay's foreign policy, prioritizing improved relations 
with Uruguay's neighbors and further diversification of global trade. 
Please explain how you would encourage President Mujica to redirect 
Uruguay's foreign policy back to making the strengthening of ties with 
the United States a priority. If confirmed, what specific proposals 
(commercial and political) would you offer to persuade President Mujica 
that closer ties with the United States are in Uruguay's national 
interest?

    Answer. While it is true that President Mujica has placed more 
emphasis than his predecessor on what he has called Uruguay's 
``integration in its region,'' it is also worth noting that President 
Mujica's efforts to diversify Uruguay's trade relations are opening new 
avenues for commercial and investment ties to the United States. Among 
my top priorities as Ambassador, if confirmed, will be reviewing 
outstanding issues in agricultural trade between the United States and 
Uruguay with a view to enabling freer--and more mutually advantageous--
trade between our two countries. Again if confirmed, it is my intention 
to personally engage with and support U.S. firms interested in doing 
business in Uruguay. In addition, President Mujica's focus on education 
reform in Uruguay and his expressed desire for more scientific and 
technical exchange with the United States will be an ever more 
important source of ties between Uruguayan and American institutions 
and individuals, as we strive to achieve President Obama's 100,000 
Strong in the Americas goal. Our cooperation programs with Uruguay's 
Armed Forces--building their multilateral peacekeeping, emergency 
response and border patrol capabilities--will also build closer ties 
with the United States, and can advance shared objectives.

    Question #4. Uruguayan Government officials concede that Uruguay 
has a problematic historical, and most recently, commercial 
relationship with Argentina, particularly in the wake of disagreements 
such as the dispute over the construction in Uruguay of a cellulose 
pulp mill near the Uruguayan border with Argentina. Have Uruguay's 
problems with Argentina weakened Uruguay's relations with MERCOSUR? If 
confirmed, please explain how you will work with U.S investors to 
develop lucrative commercial initiatives that could also help make up 
for Uruguay's commercial losses as a result of its difficulties with 
Argentina?

    Answer. In spite of numerous commercial and bilateral challenges in 
the Uruguay-Argentina relationship, the Government of Uruguay remains 
solidly committed to MERCOSUR. It appears that the Uruguayan Government 
has determined to seek to resolve commercial differences by appealing 
to MERCOSUR solidarity, and by taking advantage of the strong 
relationship between President Mujica and his fellow MERCOSUR 
Presidents.
    Our Embassy in Montevideo is working closely with the U.S. business 
community to advocate for greater opportunities in the logistics, 
information technology, agriculture, energy, security, and 
infrastructure/construction sectors, among others. We have seen 
enthusiastic responses to our commercial initiatives, and we are 
confident that U.S. investment and exports will continue to increase in 
Uruguay as the local economy expands. The Embassy is also pursuing 
opportunities for U.S. firms through innovative public-private 
partnerships in Uruguay, a new mechanism that has opened public works 
and infrastructure projects to private sector participation.

    Question #5. Would you characterize Uruguay's political 
relationship with Brazil as closer than Uruguay's relationship with the 
United States? Would you characterize Uruguay's commercial relationship 
with Brazil as being closer than Uruguay's commercial relationship with 
the United States?

    Answer. Uruguay's foreign policy and political relations with 
Brazil are strong. President Mujica personally invests time and effort 
in his relationship with President Rousseff, and he also maintains a 
productive and close friendship with former President Lula. Geography, 
joint membership in MERCOSUR and UNASUR, and economic relations in the 
context of the dynamic success of the Brazilian economy, are all 
important factors in the strong relationship between Uruguay and 
Brazil.
    Brazil is Uruguay's largest export market (approximately $1.6 
billion in 2011), and Brazilian exports account for the largest share 
of total imports from any country (just over $1.9 billion). The United 
States was Uruguay's fourth-largest supplier of goods in 2011, with 
$734 million, while Uruguay exported roughly $245 million to the United 
States last year. United States-Uruguayan economic ties remain robust, 
and if confirmed, I will work diligently with American companies to 
find expanded markets for American products and services.

    Question #6. Would you characterize Uruguay's commercial 
relationship with China as being closer than Uruguay's commercial 
relationship with the United States?

    Answer. China has become an increasingly important trading and 
investment partner for Uruguay, as it has for many countries in the 
Americas, including the United States. Chinese foreign direct 
investment in Uruguay is centered on auto manufacturing and port 
development, while Chinese exports are found across a range of sectors 
in Uruguay. China is an important purchaser of Uruguayan soy and beef, 
as well as other commodities that transit through free trade zones.
    In 2011, China was the third-largest exporter to Uruguay (roughly 
$1.4 billion), while Uruguayan exporters supplied $664 million in goods 
to China--the second-largest export destination after Brazil. The 
United States stood as the fourth-largest exporter to Uruguay in 2011 
with $734 million, compared with $245 million in Uruguayan goods 
exported to the United States. United States-Uruguayan economic ties 
remain strong, and if confirmed, I will work with American companies to 
find expanded opportunities for enhanced trade and commerce.

    Question #7. Trade ties between the United States and Uruguay have 
grown since 2002, when the countries created a Joint Commission on 
Trade and Investment. The joint commission has provided the means for 
ongoing United States-Uruguay trade discussions, which led to the 
signing of a bilateral investment treaty in October 2004 and a Trade 
and Investment Framework Agreement (TIFA) in January 2007. The TIFA is 
a formal commitment to pursue closer trade and economic ties. Although 
then-President Bush and Vazquez initially sought to negotiate a free 
trade agreement with Uruguay, in your confirmation hearing on February 
7, 2012, before the Senate Foreign Relations Committee, you mentioned 
that both the United States Government and the Government of Uruguay 
chose not to pursue a free trade agreement due to ``reticence'' from 
both sides in the fall of 2009.
    Please provide a detailed explanation regarding why the United 
States Government (USG) chose not to pursue a Free Trade Agreement 
(FTA) agreement with Uruguay in 2009. What is the likelihood of 
beginning talks regarding negotiating an FTA with Uruguay during the 
Obama administration? Is it a priority of the Obama administration to 
pursue an FTA with Uruguay?

    Answer. The United States and Uruguay have utilized the TIFA as the 
principal mechanism to advance bilateral commercial and investment 
issues. This agreement, which includes advanced supplementary protocols 
on trade and the environment as well as trade facilitation, provides 
for yearly meetings of a bilateral trade and investment council. If 
confirmed, I look forward to working within the framework of the TIFA 
to facilitate expanded commercial opportunities and advance trade 
between the two countries.
    The MERCOSUR charter does not permit MERCOSUR members, which 
includes Uruguay, to negotiate individually an FTA with another 
country. We have no indication that MERCOSUR, as a bloc, is prepared at 
this time to take on the commitments that would be required to enter 
into an FTA with the United States.

    Question #8. Uruguay is now losing markets and jobs to countries 
that have free trade agreements with the United States. In Uruguay 
there is particularly concern about the situation of the Uruguayan 
textiles and apparel industry, which has shrunk over the last decade, 
with a slight recovery since 2003. Heavily based on wool production, 
this sector employs about 21,000 workers, though its unemployment rate 
remains high. Uruguayan textile and apparel producers face high tariffs 
in the U.S. market (17.5 percent for wool-based apparel and 25 percent 
for wool fabrics), as well as strong competition from FTA signatories 
with the United States (mainly Chile, Mexico, and Peru). Uruguay also 
faces difficulties in exporting fabric to these countries since the 
FTAs require that apparel be produced with U.S.-sourced or local 
fabrics. The combination of MERCOSUR restrictions, high entry tariffs, 
and rules of origin specifications has caused Uruguay to lose its 
market share in the United States. U.S. trade preferences for textiles 
and apparel would help Uruguayan exporters regain market access in the 
United States and have a dramatic positive economic impact on Uruguay. 
These industries are key sources of employment in Uruguay that have 
been hurt by both U.S. tariffs and the economic downturn.
    By granting Uruguayan goods expanded access to the U.S. market, the 
USG would solidify its image as a reliable and strategically important 
partner, thereby strengthening the bilateral relationship with Uruguay. 
U.S. trade preferences would be viewed as a vote of support for the 
Government of Uruguay (GOU). The Obama administration seems 
disinterested in the negotiation of an FTA with Uruguay, but unilateral 
tariff preferences might be an appropriate intermediate step toward 
deepening our relations with Uruguay--unilateral trade preferences can 
lead to the negotiation of a reciprocal FTA.

   Please explain your views regarding granting unilateral 
        tariff preferences for Uruguayan textiles and apparel, to 
        expand commercial ties between the United States and Uruguay, 
        as an intermediate step toward an FTA.

    Answer. The U.S. Government remains committed to deepening 
commercial ties between the United States and Uruguay. As Ambassador, 
one of my top priorities will be the health and strength of the 
bilateral relationship, and the promotion of U.S. interests in Uruguay. 
The granting of trade preferences to any nation, either unilaterally or 
through a Free Trade Agreement (FTA), is a matter for the President and 
the Congress to decide and, if confirmed, I would work to advance our 
foreign policy initiatives.
    We currently have a Trade and Investment Framework Agreement (TIFA) 
with Uruguay, which is typically a precursor to an FTA. However, the 
MERCOSUR charter does not permit MERCOSUR members, which includes 
Uruguay, to negotiate individually an FTA with another country. We have 
no indication that MERCOSUR, as a bloc, is prepared at this time to 
take on the commitments that would be required to enter into an FTA 
with the United States.
                                 ______
                                 

      Responses of Julissa Reynoso to Followup Questions Submitted
                      by Senator Richard G. Lugar

    Question. Please provide a detailed explanation regarding why the 
United States Government (USG) chose not to pursue a Free Trade 
Agreement (FTA) agreement with Uruguay in 2009.

    Answer. It is my understanding that former President Bush discussed 
the idea of negotiating an FTA with Uruguay's President Vazquez in the 
spring of 2006. Later in September 2006, the Uruguayan Government 
expressed interest in negotiating an FTA under Trade Promotion 
Authority (TPA). However, with the expiration of TPA on June 30, 2007, 
and MERCOSUR's limitations, the two governments did not move forward 
with negotiations. The nature of the MERCOSUR charter presented 
complications for Uruguay to pursue an FTA with the United States, 
because the charter does not permit MERCOSUR members, which includes 
Uruguay, to negotiate individually an FTA with another country.
    Instead, the two sides worked very hard to negotiate a rigorous 
Trade and Investment Framework Agreement (TIFA), which was signed on 
January 25, 2007, and reaffirms the commitment of our two governments 
to expand trade and economic opportunities between both countries. I 
understand that the Government of Uruguay has not expressed interest in 
pursuing an FTA. I do believe, however, that there are opportunities to 
expand on current agreements and partnerships to enhance both our 
political and economic relationship with Uruguay, and if confirmed, I 
will look to actively utilize these existing agreements and instruments 
to further advance commerce and trade between our two countries. 
Additionally, if confirmed, I will work closely with you, your staff, 
and the Foreign Relations Committee, to advance trade and economic ties 
between the United States and Uruguay.

    Question. Please explain with specifics, how if confirmed, you will 
work through the framework of the TIFA to further expand commercial 
opportunities and advance trade between our two countries. What sectors 
will be your priority to facilitate expanded commercial opportunities 
and trade between our two countries? Are textiles and apparel areas 
where commercial opportunities can be expanded under TIFA?

    Answer. The TIFA has two main protocol agreements, one focusing on 
overall trade facilitation and the second on the environment. We 
utilize the TIFA as an umbrella agreement in which we can facilitate 
the active dialogue between our countries and aggressively consider 
new, expanded avenues for trade. Indeed, in the context of TIFA 
discussions, we incorporate many aspects of our commercial, trade, and 
economic agenda including the Energy Climate Partnership of the 
Americas (ECPA), the USDA's Foreign Agricultural Service (FAS) program 
and related instruments. If confirmed, I look to broaden and deepen our 
bilateral relations and will evaluate the possibility for textiles and 
apparel opportunities. Another area I look forward to expanding, if 
confirmed, is Uruguay's participation within ECPA. Uruguay is a partner 
country in an ongoing FAS-led program to promote agricultural 
production and use of renewable biomass for energy, an ECPA initiative. 
This ongoing 2-year FAS program promoted agricultural production and 
use of renewable biomass for energy, and included an initial planning 
workshop and subsequent scientific exchange of fellows, a study tour, 
and in-country demonstration projects.
    Another opportunity is through our existing partnership within the 
energy industry and our MOU on Alternative Energy and Energy Efficiency 
which was signed in September 2008. Through the MOU, our Embassy in 
Montevideo has pursued a series of biofuels and alternative energy-
related initiatives with the Government of Uruguay. For example, 
visiting experts have given seminars on topics such as cellulosic 
biofuels, the EPA's Methane to Markets program, land use management, 
the use of carbon credits to fund biofuels projects, and biofuels' 
compatibility with current engine design. Our Embassy also provides 
technical assistance to identify equipment suppliers as well as 
information on standards for ethanol.
    I believe there are opportunities to expand on these agreements and 
partnerships to enhance both our political and economic relationship, 
and if confirmed, I will look to actively utilize these existing 
networks and instruments to further advance commerce and trade between 
our two countries.

    Question. In answering question #3 of the first round of questions 
you stated, ``Among my top priorities as Ambassador, if confirmed, will 
be reviewing outstanding issues in agricultural trade between the 
United States and Uruguay with a view to enabling freer--and more 
mutually advantageous--trade between our two countries.'' What 
outstanding issues in agricultural trade are you referring to? Through 
what mechanism will you be ``enabling freer--and more mutually 
advantageous--trade between our two countries'' in the area of 
agricultural trade?

    Answer. Uruguay and the United States continue to look for 
opportunities to expand our trade in agricultural products as both 
countries have significant and mature domestic industries with a wide 
range of exportable products and services. Agricultural machinery and 
fertilizers are key U.S. exports to Uruguay currently and, if 
confirmed, I will work with American companies operating in Uruguay to 
seek new markets to expand trade and create opportunities for these 
American products. I also would look for opportunities for American 
companies not already operating in Uruguay to enter the Uruguayan 
market and utilize Uruguay's position within Mercosur as an additional 
avenue to gain market access to Mercosur countries.
    Examples of expanding agricultural trade and the removal of trade 
impediments between our countries include the pending market access for 
Uruguayan ovine meat and citrus fruit to the United States and American 
beef in Uruguay. The process of gaining market access, while detailed 
and possibly lengthy, offers avenues for additional and complementary 
markets for American products and services. If confirmed, I will 
aggressively seek these opportunities.

    Question. In answering question #3 of the first round of questions 
you stated, ``In addition, President Mujica's focus on education reform 
in Uruguay and his expressed desire for more scientific and technical 
exchange with the United States will be an ever more important source 
of ties between Uruguayan and American institutions and individuals, as 
we strive to achieve President Obama's 100,000 Strong in the Americas 
goal.''
    If confirmed, how do you intend to do this in concrete terms? Would 
you consider encouraging and assisting Uruguay to pursue a strategic 
bilateral agreement with a specific U.S. state, such as the Chilean 
Government's strategic bilateral agreement with the state of 
Massachusetts (which focusses on collaborative research in the areas of 
education and biotechnology)? Please provide your views on pursuing 
strategic bilateral agreements. If you approve of this approach, please 
provide your specific ideas, if confirmed, for developing strategic 
bilateral agreements with Uruguay.

    Answer. The United States and Uruguay have a long history of 
collaborating on science and technology-related projects. On April 29, 
2008, the United States and Uruguay signed a bilateral Science 
&Technology agreement that provides a framework to advance science and 
technology cooperation. Priority areas include health and medical 
research, alternative energies, and Antarctic research. Other areas of 
cooperation include agriculture; meteorology; hydrology; fisheries; 
atmospheric sciences; disaster response and management; science policy 
networking; capacity-building and research and professional exchanges; 
and fostering innovation through public-private partnerships. This 
foundation of collaborative research represents a wealth of 
opportunities for expanded cooperation between scientific institutions 
in Uruguay and the United States.
    If confirmed, I will work to create new linkages between American 
and Uruguayan universities and research centers in the key fields of 
science, technology, engineering, and mathematics--the so-called STEM 
fields--as well as in other academic disciplines. These linkages would 
facilitate expanded educational exchanges. Beyond these linkages 
between institutions, I also would encourage the development of 
strategic bilateral agreements between our two countries at either the 
state or local levels and would work to facilitate these avenues of 
cooperation. If confirmed, I will encourage all sections of our Embassy 
to develop close relationships with key academic institutions in 
Uruguay with whom visiting U.S. delegations can engage to build 
productive partnerships. I am a firm believer in educational exchanges 
and would dedicate time and energy to furthering these opportunities.
    I wish to highlight that I would look first to the State of 
Minnesota as a possible partner for Uruguayan institutions, given the 
existing connections with numerous academic and research institutions 
and the high interest in sustainable urban development in Minneapolis. 
Additionally, the University of Minnesota with its strong agricultural 
base would be a natural fit for cooperation with Uruguay's leading 
universities. The State of Connecticut might be another possibility as 
it has an existing and active U.S. Department of Defense State 
Partnership Program that, if confirmed, I would look to leverage for 
expanded opportunities.

    Question. In answering question #8 of the first round of questions 
you stated ``The MERCOSUR charter does not permit MERCOSUR members, 
which includes Uruguay, to negotiate individually an FTA with another 
country. We have no indication that MERCOSUR, as a bloc, is prepared at 
this time to take on the commitments that would be required to enter 
into an FTA with the United States.''
    On July 15, 2005, the new FTA between Mexico and Uruguay entered 
into force, as the result of an intense process of negotiations boosted 
by the Presidents of both nations with the aim to reinforce the 54 
Complementary Economic Agreement signed by MERCOSUR and Mexico.
    Since Uruguay is a member country of the Common Southern Market, it 
operates as a gateway for Mexico to enter into the MERCOSUR. Mexico 
aims to participate in the block as an associated country in the free-
trade area. The prospect of a similar kind of agreement for the United 
States is very attractive not only because of the advantages of a trade 
agreement with Uruguay, but also because it would operate as a gateway 
for the United States to enter into the MERCOSUR and trade with Brazil, 
Argentina and Paraguay, as well.
    Please explain your views regarding the process that took Uruguay 
and Mexico to sign an FTA, normally outlawed by MERCOSUR. Please 
explain why the United States can, or cannot pursue a similar process.

    Answer. Interlocutors inform us that the trade agreement, which is 
an Economic Complementation Agreement signed by Mexico and Uruguay in 
November 2003, is an exception to Mercosur's prohibition on bilateral 
agreements between a member and a third party. It is built on an 
existing 1999 economic agreement between Mexico and Uruguay, as well as 
the 2002 Mexico-Mercosur complementary economic agreement. The 2002 
agreement endorsed the idea of pursuing closer trade with Mexico and 
helped to justify the exception afforded to Uruguay and was 
``grandfathered'' into the agreement.
    At this time, we have no indication that MERCOSUR, as a bloc, is 
prepared to take on the commitments that would be required to enter 
into an FTA with the United States. That said, if confirmed, I will 
look to utilize all existing agreements, like the TIFA and all other 
related instruments, to expand trade and commercial opportunities for 
American products and services.

    Question. Please provide specific information regarding your role 
as U.S Deputy Assistant Secretary of State for Western Hemisphere 
Affairs for Central America, Caribbean, and Cuba, in efforts to gain 
the humanitarian release of Alan Gross from Cuba. Alan Gross has been 
held since his arrest in December 2009, accused of bringing satellite 
and other communication equipment into the country illegally. He has 
acknowledged he was working on a USAID-funded democracy program, but 
says he meant no harm to the government and was only trying to help the 
island's small Jewish community.

    Answer. Alan Gross has been unjustly imprisoned for more than 2 
years. He is a dedicated international development worker who has 
devoted his life to helping people in more than 50 countries and he was 
in Cuba to help the Cuban people connect with the rest of the world. We 
deplore the fact that the Cuban Government specifically excluded Mr. 
Gross from the 2,900 prisoners it decided to release at the end of 
December.
    For more than 2 years, in close coordination with Mr. Gross's 
family and lawyer, we have used, and will continue to use, every 
opportunity to seek his release from this unjust imprisonment. We have 
also used every channel to press the Cuban Government for Mr. Gross's 
immediate release so he can return to his family, where he belongs. The 
Department has urged more than 40 countries around the world to press 
the Cuban Government on this issue. At the United Nations, we have 
raised Mr. Gross's case to the General Assembly. We have met prominent 
figures traveling to Cuba and encouraged them to advocate for Mr. 
Gross's release, which they have done. And, we have done the same with 
religious leaders from many different faiths. Additionally, we have 
also made numerous public statements pressing for Mr. Gross's release.
    As Deputy Assistant Secretary of State, I have worked especially 
closely with Mr. Gross's family and lawyer, and have been involved in 
all of the efforts mentioned above. In addition, I have also directly 
pressed for Mr. Gross's release in meetings with Cuban Government 
officials, including raising Alan Gross countless times with the Chief 
of the Cuban Interests Section in Washington. In these meetings, I have 
made clear that the Cuban Government should immediately release Mr. 
Gross.


                     NOMINATION OF NANCY J. POWELL

                              ----------                              


                    TUESDAY, FEBRUARY 7, 2012 (p.m.)

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Nancy J. Powell, of Iowa, to be Ambassador to India
                              ----------                              

    The committee met, pursuant to notice, at 2:33 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. John F. Kerry 
(chairman of the committee) presiding.
    Present: Senators Kerry, Menendez, Webb, Udall, and Lugar.

            OPENING STATEMENT OF HON. JOHN F. KERRY,
                U.S. SENATOR FROM MASSACHUSETTS

    The Chairman. The hearing will come to order.
    It is my great, great pleasure, together with Senator 
Lugar, to welcome Nancy J. Powell, who has been nominated to be 
Ambassador to India.
    And before we start talking about India, I want to say a 
few words, if I can, at the top of this hearing about Egypt. 
Egypt is much on the minds of all of my colleagues right now, 
and the recent events in Egypt are particularly alarming.
    The attacks against civil society in Egypt, including 
American organizations like NDI, IRI, the International Center 
for Journalists, and Freedom House, are particularly 
disturbing. Yesterday's prosecutions are, frankly, a slap in 
the face to Americans who have supported Egypt for decades and 
to Egyptian individuals and NGOs who have put their futures on 
the line for a more democratic Egypt.
    Right now, it appears some people are engaging in a very 
dangerous game that risks damaging both Egypt's democratic 
prospects and the United States-Egyptian bilateral 
relationship. I have traveled to Egypt three times now since 
the events of last year--the revolution. And it is of 
particular concern to see things moving in this direction.
    The challenge in front of Egypt is predominantly an 
economic challenge. Egypt has burned through much of its 
reserves--Treasury reserves. From some $40 billion, $42 
billion, they have gone down to less than $20 billion, burning 
perhaps $1 billion to $1.5 billion a month.
    In order for Egypt to make it, to provide for its citizens, 
Egypt is going to have to turn its economy around. And to turn 
its economy around, it is going to have to reattract the 
investors, the businesspeople who helped to create an economy 
that was growing at 7 percent a year before the events of 
Tahrir Square.
    Now that economy is moribund. A tourist trade which equaled 
about 8 percent or more of the gross domestic product is at a 
standstill. When I was in Egypt, the hotel occupancies were at 
about 3 percent, 5 percent, maybe 11 percent on one of the 
trips.
    Clearly, without the ability to revitalize tourism, it is 
going to be difficult to revitalize the economy. And without a 
revitalized economy, it is going to be difficult to sustain any 
kind of political leadership.
    And unless people get a message of stability and a message 
that is warm and welcoming to business and to capital, it is 
going to be very hard to turn that economy around and provide 
the stability necessary. This is a revolving circle, and it 
needs to be a virtuous circle.
    Egypt faces an array of critical challenges: a pending 
fiscal crisis, a worsening security environment, a difficult 
political transition. So I believe it is important that the 
Egyptian Government recognize that it just can't continue to 
undermine civil society and persecute the very talent that is 
seeking to bring Egypt security and prosperity.
    America stands as a ready and willing partner to support 
Egypt's democratic transition and economic stabilization, but 
it requires an atmosphere in which Egypt's civil society and 
its American friends are protected. So I hope that this current 
crisis or challenge, standoff, what everyone wants to term it, 
can be resolved in a thoughtful and intelligent way, or it may 
become very difficult to be able to do the kinds of things 
necessary.
    And Egypt, obviously, is important. It is a quarter of the 
Arab world. It is important to the stability of the region, and 
it is important to a peace process ultimately with respect to 
Israel and the Palestinians.
    And with all the other turmoil in Syria and other parts of 
the world, the challenge of Iran, the last thing one needs is 
an Egypt that isn't moving strongly and directly and 
forthrightly on the path to democratic transition and to a 
strengthening of its economy.
    Now turning to India, we are really pleased to have this 
opportunity to discuss what is, without doubt, one of the most 
significant partnerships in U.S. foreign policy. There are few 
relationships that will be as vital in the 21st century as our 
growing ties with India and its people.
    On all of the most critical global challenges that we face, 
India really has a central role to play, and that means that 
Washington is going to be looking to New Delhi not only for 
cooperation, but increasingly for innovation, for regional 
leadership.
    India's growing significance has been clear to many of us 
for some time now. In the 1990s, I traveled to India, took one 
of the first business trade missions right after the economic 
reforms were first put in place, and I have been there many 
times since.
    And President Obama, immediately upon entering office, 
invited Prime Minister Singh to be his guest at the very first 
state dinner. Secretary Clinton has visited India twice. And 
both countries inaugurated the U.S.-India Strategic Dialogue 2 
years ago.
    Republicans and Democrats alike understand the need to 
capitalize on the democratic values and strategic interests 
that our two countries share. And that is why it is important 
that we work together every day, as I believe we are right now, 
to further cultivate the relationship.
    Given the significance of that relationship, we are 
particularly pleased that President Obama has nominated Nancy 
Powell to represent us in New Delhi. Nancy is a former 
Ambassador to both Nepal and Pakistan, and she has served tours 
of duty in both India and Bangladesh, making her one of the 
foremost South Asia experts in the Foreign Service. She is one 
of our best, and it is only appropriate that she be tasked with 
one of the State Department's most important postings.
    I think Ambassador Powell would agree with me that United 
States and India interests and values are converging today, as 
perhaps never before. And consequently, America is an 
interested stakeholder in India's increasing ascent to greater 
economic and greater global power and participation.
    India's economy is projected to be the world's third-
largest in the near future, and total trade between our 
countries reached $73 billion in 2010 and could exceed $100 
billion this year.
    On defense, our security cooperation has grown so 
dramatically that India now conducts more military exercises 
with the United States than any other country.
    Education is fast becoming one of the strongest links 
between our nations, and I look forward to building on the 
progress that we made at the higher education summit last fall. 
Whether it is helping India to build a network of community 
colleges that could revolutionize access to education or 
whether it is creating educational opportunities via the 
Internet, we can give millions of people a greater set of 
choices and opportunities for the future.
    As our economies and education systems grow more 
intertwined--and I am convinced they will--our peoples will 
have greater opportunity to work together on technological 
breakthroughs. Already, India is playing a leading role in 
clean energy innovation. A report released last week found that 
India saw a 52-percent growth in clean energy investment in 
2011, a rate higher than any other significant global economy.
    With leadership from companies like Suzlon and Reliance 
Solar, India has the world's fourth-largest installed wind 
capacity and incredible solar energy potential. That is why I 
strongly support the 2009 U.S.-India Memorandum of 
Understanding on Energy and Climate Change signed by President 
Obama and Prime Minister Singh, which is being implemented 
through initiatives like the Partnership to Advance Clean 
Energy.
    It is clear that India's strategic role is also growing. We 
all agree that the dynamism of the Asia-Pacific region requires 
India's sustained presence and engagement, whether to combat 
nuclear proliferation, to promote economic stability in 
Afghanistan, or to encourage human rights in Burma and Sri 
Lanka.
    India enjoys strong cultural, historical, people-to-people, 
and economic links to East Asia, and I frequently hear that its 
eastward neighbors see real merit in India's contributions to 
regional peace and prosperity. In the coming years, I hope our 
two countries can deepen our cooperation throughout Asia not 
based on any common threats, but on the bedrock of shared 
interests and values.
    One area that is showing signs of promise, especially on 
economic cooperation, is the India-Pakistan relationship. I am 
encouraged that Pakistan granted India most-favored-nation 
status and that the two nations are continuing their dialogue 
on a host of issues. And I hope both countries can seize this 
moment to break with the perilous and somewhat stereotyped 
politics of the past.
    There is no doubt that even as India moves forward and even 
as we celebrate the pluses that I just enumerated, it is clear 
that India will also have to continue addressing its own 
complex domestic challenges, including the challenge of 
building its own infrastructure, of dealing with booming energy 
demand, of dealing with some restrictive trade and investment 
practices, and also the problem, which is not just India's, but 
a global problem of human trafficking.
    Moreover, there are some 500 to 600 million people living 
in poverty. But clearly, India is moving rapidly, through its 
own economic development, to address that, and I am confident 
that that will continue to change.
    So we can be real partners in this effort, and we can do so 
in ways that empower all classes of Indian society. And 
Indians, I hope, will feel that a partnership with the United 
States delivers real, tangible benefits to their everyday 
lives.
    So, Ambassador Powell, we thank you and your family for 
your service, and we look forward to the Senate moving your 
confirmation as quickly as possible.
    Senator Lugar.
    May I just say that we have a Finance Committee markup this 
afternoon on the transportation bill. So I am going to have to 
turn the gavel over to Senator Udall shortly in order to be at 
that, and I appreciate Ambassador Powell's understanding of 
that.
    Senator Lugar.

          OPENING STATEMENT OF HON. RICHARD G. LUGAR,
                   U.S. SENATOR FROM INDIANA

    Senator Lugar. Well, thank you very much, Mr. Chairman.
    Let me just take the liberty of joining you in the concern 
you expressed about events in Egypt. I was startled, I should 
say shocked, by the arrest and detainment of those Americans 
involved in attempting to work with citizens of Egypt to 
promote democracy.
    I think each one of us over the years who have been 
involved in delegations going to other countries to monitor 
elections or to assist citizens with the National Democratic 
Institute, the International Republican Institute, and various 
other groups, know how much we cared about those countries and 
the follow-through that we have exemplified.
    It is especially important, as the chairman has pointed 
out, that given the status of the Egyptian economy and those in 
the countryside, far away from Tahrir Square, who lack adequate 
food supplies, that the United States is generous and eager to 
be helpful. But we are facing certainly comments from our 
colleagues who are wondering how we can consider providing $1.5 
billion in assistance to Egypt given both this new development 
and, more broadly, the deficit situation we have in our own 
country. I am hopeful that the Egyptians will reconsider their 
position and that this matter will be resolved promptly.
    In any event, I join the chairman in welcoming Ambassador 
Powell back to the Foreign Relations Committee. This hearing 
presents us with an opportunity not only to evaluate the 
distinguished nominee, but also to examine the current state of 
our evolving ties with India.
    I start from the premise that enhancing our relationship 
with India is a strategic and economic imperative. India is 
poised to be an anchor of stability in Asia and a center of 
economic growth far into the future.
    It has a well-educated middle class larger than the size of 
the entire U.S. population. It is already the world's second-
fastest-growing major economy, and bilateral trade with the 
United States has more than tripled during the past 10 years.
    The United States and India are working to build a 
strategic partnership that will benefit both sides, and we have 
ongoing cooperation with India on many fronts. This includes 
efforts to ensure security in South Asia. India and the United 
States have strong incentives to cooperate on counterterrorism 
in the region and beyond. We also share concerns about the 
stability of Afghanistan and Pakistan and the growing military 
capabilities of China.
    Energy cooperation between the United States and India also 
should be at the top of our bilateral agenda. India's energy 
needs are expected to double by 2025. The United States has an 
interest in expanding energy cooperation with India to develop 
new technologies, cushion supply disruptions, address 
environmental problems, and diversify global energy supplies.
    The United States own energy problems will be exacerbated 
if we do not forge energy partnerships with India and other 
nations experiencing rapid economic growth. In 2008 the United 
States concluded the civil nuclear cooperation agreement with 
India. The legislation lifted a three-decade American 
moratorium on nuclear trade with India and opened the door for 
trade in a wide range of other high-technology items, such as 
supercomputers and fiber optics.
    This agreement remains important to the broad strategic 
advancement of the United States-Indian relationship. But in 
the narrower context of nuclear trade with India, it has yet to 
bear significant fruit. In large measure, this stems from the 
Indian Parliament's adoption of the Civil Liability for Nuclear 
Damage bill. This legislation effectively rules out Indian 
accession to the Convention on Supplementary Compensation for 
Nuclear Damage, the CSC, and could frustrate the United States 
nuclear industry's efforts to play a role in India's expanding 
nuclear power sector.
    The bill's plain terms are fundamentally inconsistent with 
the liability regime that the international community is 
seeking to achieve in the CSC. To date, this administration has 
made very little progress on the CSC with India, and I am 
hopeful that you will address the Obama administration's 
strategy for advancing United States-Indian nuclear 
cooperation.
    What high-level exchanges have occurred between our 
governments regarding the status of liability protections for 
United States nuclear exporters to India? More broadly, what is 
the current state of our energy dialogue with New Delhi?
    I would also appreciate the Ambassador's views on ongoing 
security cooperation efforts in South Asia. In light of the 
Obama administration's intent to reduce U.S. forces in 
Afghanistan and our complex relationship with Pakistan, what 
opportunities exist for United States-Indian initiatives 
designed to combat terrorism?
    I look forward to hearing Ambassador Powell's thoughts 
about how to address these and other important issues in the 
United States-India relationship. I thank the chair.
    The Chairman. Thanks very much, Senator Lugar. Appreciate 
it.
    Ambassador Powell, we welcome your testimony. And I don't 
know if you want to introduce any family members or anybody who 
may be here with you, but we welcome that also.

          STATEMENT OF HON. NANCY J. POWELL, OF IOWA,
                   TO BE AMBASSADOR TO INDIA

    Ambassador Powell. Mr. Chairman, Senator Lugar, I am 
honored to appear today as President Obama's nominee to be the 
Ambassador of the United States to the Republic of India, and I 
am grateful for the President and Secretary Clinton's trust and 
confidence.
    I would like to thank the committee for giving me the 
opportunity to appear again before you. If confirmed, I look 
forward to working closely with you to advance our strategic 
partnership with India.
    I would like to say a special thank you to my State 
Department family members who are here today with me and for 
their support and advice during my preparations for the 
hearing.
    I have had the pleasure of serving in India previously from 
1992 through 1995 as the Consul General in Kolkata and Minister 
Counselor for Political Affairs in New Delhi. I thoroughly 
enjoyed my time in India, where I had the opportunity to 
observe the beginnings of India's dramatic economic 
transformation and to participate in the early efforts to 
expand our bilateral relations.
    Today, I see an India that has catapulted itself onto the 
global stage. India is becoming an economic powerhouse, having 
averaged 7 percent annual economic growth over the last decade, 
lifting tens of millions of its citizens out of poverty.
    India will also be a leading security partner of the United 
States in the 21st century. The number and kinds of 
interactions between our two countries at all levels is 
staggering in its breadth and depth. At its heart are the 
people-to-people links--students, businesses, and tourists, 
along with the 3-million-strong Indian-American community.
    At the government-to-government level, our relations are 
firmly grounded in a set of shared democratic values and an 
increasingly shared strategic vision of both the opportunities 
that can promote those values, as well as the threats that can 
undermine them.
    If confirmed, I will be working with an interagency team at 
the Embassy in New Delhi and our four consulates to advance a 
growing agenda that includes issues that are most vital to our 
national security and prosperity. Among our top priorities will 
be the following.
    Bolstering trade and investment. We have made unprecedented 
progress in expanding our economic relations with India. Our 
bilateral goods and services trade will top over $100 billion 
in 2012. This represents an astounding quadrupling of trade 
since 2000, moving India up from our 25th-largest trading 
partner to our 12th.
    I look forward to working with the interagency team and 
with our Indian counterparts to reduce barriers, including 
through the negotiation of a bilateral investment treaty, and 
to expand the areas where we do business. I am eager to support 
efforts to ensure full implementation of the civil nuclear 
cooperation agreement, including ensuring a level playing field 
for American companies in the commercial applications of 
nuclear energy.
    The U.S. mission in India actively seeks opportunities to 
keep and create jobs in America. In response to the President's 
National Export Initiative, the U.S. mission promotes the 
export of U.S. products, services, and technologies supporting 
tens of thousands of jobs in the United States. India, with its 
population of 1.2 billion and its large consumer economy, 
represents a huge fast-growing market for U.S. manufactured 
goods.
    Our exports are growing at nearly 17 percent a year. At 
this rate, exports from the United States to India are expected 
to nearly double in 5 years.
    Another priority is our defense cooperation, which 
currently is at an all-time high. U.S. defense sales to India 
reached nearly $8 billion last year, and India holds more 
military exercises with the United States than with any other 
country.
    As stated in the National Security Strategy, we see India 
as a net security provider in the Indo-Pacific region. As India 
continues to modernize its armed forces, there are additional 
opportunities for us to expand our cooperation across all the 
services and at all levels. I appreciate the Congress' support 
for expanding defense ties and note the report delivered to 
Congress in November on potential defense cooperation with 
India.
    We will also work to enhance our cooperation in 
international and multilateral fora. Reflecting its growing 
importance, India is an increasingly active member of key 
international bodies, including its current tenure on the 
United Nations Security Council, its inclusion in the G20, the 
East Asia summit, the South Asian Association for Regional 
Cooperation, and the World Trade Organization.
    In December, we held the first-ever trilateral 
consultations with Japan, India, and the United States. 
Encouraging India's leadership in cooperation across the Asia-
Pacific will be a top priority.
    If confirmed, I look forward to expanding our consultations 
and collaboration, narrowing our differences on key 
multilateral issues, and working with the Government of India 
to advance international peace and security through common 
understandings and approaches to strengthening these bodies and 
the international community's ability to address the threats 
that face our world.
    Another priority will be encouraging India's role in 
supporting peace and stability in the Indian Ocean region. 
India and the United States share a common interest in 
supporting continued efforts to establish a peaceful, 
prosperous, and democratic Indian Ocean region.
    Taking a cue from history, the new silk road vision 
foresees a network of economic, transit, trade, and people-to-
people connections across South and Central Asia. India 
supports this vision and is a significant donor in Afghanistan 
and has taken steps to facilitate better trade with Pakistan.
    I look forward to increasing cooperation on 
counterterrorism and global threats. Terrorist groups like 
Lashkar-e-Taiba pose a critical threat not only to our partners 
like India, but also to United States strategic objectives in 
the region.
    If confirmed, I will work to expand the current level of 
consultation and coordination on key counterterrorism 
exchanges, as well as to advance our efforts to expand 
cooperation in the areas of nonproliferation and nuclear 
security. As national intelligence officer for South Asia, 
these were issues that I dealt with firsthand.
    If confirmed, I will also continue United States engagement 
with Indians to advance human rights and freedoms that are 
constitutionally protected in both our countries and to work to 
encourage democratic institutions in countries like 
Afghanistan.
    If confirmed, I look forward to participating in and 
advancing the U.S.-India Strategic Dialogue, as well as the 
substantive exchanges on more than 20 distinct policy areas, 
including education, agriculture, energy, and development. I 
hope we can use this framework to address issues of mutual 
concern and to enhance collaboration to achieve concrete 
results that create additional opportunities for our two 
peoples and that eliminate threats to our two democracies.
    I take seriously my role as chief of mission in the 
management of our Government resources--the people, 
infrastructure, and programs that are committed to this 
relationship--and will work to ensure that they are protected 
and used creatively to enhance U.S. interests.
    If confirmed, I will devote my energies and experience to 
enlarging and expanding our relations with India. I believe we 
can continue to convert our vision for a future of peace and 
prosperity based on our mutual democratic values into a reality 
through expanded exchange, dialogue, and engagement at all 
levels of society and government.
    Thank you very much.
    [The prepared statement of Ambassador Powell follows:]

               Prepared Statement of Hon. Nancy J. Powell

    Mr. Chairman, members of the committee, I am honored to appear 
today as President Obama's nominee to be the Ambassador of the United 
States to the Republic of India and am grateful for the President's and 
Secretary Clinton's trust and confidence in me. I would like to thank 
the committee for giving me the opportunity to appear before this 
esteemed body today. If confirmed, I look forward to working closely 
with you to advance our strategic partnership with India.
    I have had the pleasure of serving in India previously from 1992 
through 1995 as Consul General in Kolkata and Minister-Counselor for 
Political Affairs in New Delhi. I thoroughly enjoyed my tour in India 
where I had the opportunity to observe the beginnings of India's 
dramatic economic transformation and to participate in the early 
efforts to expand our bilateral relations. Today I see an India that 
has revolutionized itself onto the global stage. India is becoming an 
economic powerhouse, having averaged 7 percent annual economic growth 
over the last decade, lifting tens of millions of its citizens out of 
poverty. India will also be a leading security partner of the United 
States in the 21st century. The number and kinds of interactions 
between our two countries at all levels is staggering in its breadth 
and depth. At its heart are the people-to-people links--students, 
businesses, and tourists along with the 3 million strong Indian-
American community. At the government-to-government level, our 
relations are firmly grounded in a set of shared democratic values and 
an increasingly shared strategic vision of both the opportunities that 
can promote them as well as the threats that can undermine them.
    If confirmed, I will be working with an interagency team at our 
Embassy in New Delhi and the four consulates to advance a growing 
agenda that includes issues that that are most vital to our national 
security and prosperity. Among our top priorities will be the 
following:

   Bolstering trade and investment: We have made unprecedented 
        progress in expanding our economic relations with India. Our 
        bilateral goods and services trade will top $100 billion in 
        2012. This represents an astounding quadrupling of trade since 
        2000, moving India up from our 25th largest trading partner to 
        our 12th. I look forward to working with a wide interagency 
        team and with our Indian counterparts to reduce barriers, 
        including through negotiation of a Bilateral Investment Treaty, 
        and to expand the areas where we do business. I am eager to 
        support the efforts to ensure full implementation of the Civil 
        Nuclear Cooperation Agreement, including ensuring a level 
        playing field for American companies in the commercial 
        applications of nuclear energy.
   The U.S. mission in India actively seeks opportunities to 
        keep and create jobs in America. In response to the President's 
        National Export Initiative, the U.S. mission promotes the 
        export of U.S. products, services, and technologies, supporting 
        tens of thousands of jobs in the United States. India, with its 
        population of 1.2 billion people and large and balanced 
        consumer economy, represents a huge, fast-growing market for 
        U.S. manufactured goods, and our exports are growing at nearly 
        over 17 percent a year. At this rate, exports from the United 
        States to India are expected to nearly double in the 5 years 
        from 2009 to 2014.
   Expanding our defense cooperation, which currently is at a 
        cumulative all-time high: U.S. defense sales to India reached 
        nearly $8 billion last year and India holds more military 
        exercises with the United States than any other country. As 
        stated in the National Security Strategy, we see India as a net 
        security provider in the Indo-Pacific region. As India 
        continues to modernize its armed forces, there are additional 
        opportunities for us to expand our cooperation across all the 
        services and at all levels. I appreciate the Congress' support 
        for expanding defense ties, and note the report delivered to 
        Congress in November on potential future defense cooperation 
        with India.
   Enhancing our cooperation in international and multilateral 
        fora: Reflecting its growing importance, India is an 
        increasingly active member of key international bodies, 
        including its current tenure on the United Nations Security 
        Council, its inclusion in the G20, the East Asia summit, the 
        South Asian Association for Regional Cooperation, and the World 
        Trade Organization. In December, we held the first ever 
        trilateral consultations with Japan, India, and the United 
        States. Encouraging India's leadership and cooperation across 
        the Asia Pacific will be a top priority. If confirmed, I look 
        forward to expanding our consultations and collaboration, 
        narrowing our differences on key multilateral issues, and 
        working with the Government of India to advance international 
        peace and security through common understandings and approaches 
        to strengthening these bodies and the international community's 
        ability to address the threats that face our world.
   Encouraging India's role in supporting peace and stability 
        in the Indian Ocean region: India and the United States share a 
        common interest in supporting continued efforts to establish a 
        peaceful, prosperous, and democratic Indian Ocean region. 
        Taking its cue from history, the New Silk Road vision foresees 
        a network of economic, transit, trade, and people-to-people 
        connections across South and Central Asia that will embed 
        Afghanistan more firmly into its neighborhood. India supports 
        this vision and is a significant donor in Afghanistan and has 
        taken steps to facilitate trade with Pakistan.
   Increasing cooperation on counterterrorism and global 
        threats: Terrorist groups like Lashkar-e-Taiba pose a critical 
        threat not only to our partners like India, but to U.S. 
        strategic objectives in the region. If confirmed, I will work 
        to expand the current level of consultation and coordination on 
        key counterterrorism exchanges, as well as advance our efforts 
        to expand cooperation in the areas of nonproliferation and 
        nuclear security. As National Intelligence Officer for South 
        Asia, these were issues I dealt with firsthand.
   If confirmed, I will continue U.S. engagement with all 
        Indians to advance human rights and freedoms that are 
        constitutionally protected in both of our countries, and work 
        with India to encourage democratic institutions in countries 
        like Afghanistan.

    If confirmed, I look forward to participating in and advancing the 
U.S.-India Strategic Dialogue, as well as the substantive exchanges on 
more than 20 distinct policy areas, including education, energy, 
agriculture, and development. I hope we can use this framework to 
address issues of mutual concern and enhance collaboration to achieve 
concrete results that create additional opportunities for our two 
peoples and that eliminate threats to our two democracies.
    I take seriously my role as chief of mission in the management of 
our government resources--the people, infrastructure, and programs that 
are committed to this relationship--and will work to ensure that they 
are protected and used creatively to enhance U.S. interests.
    If confirmed, I will devote my energies and experience to enlarging 
and expanding our relations with India. I believe we can continue to 
convert our vision for a future of peace and prosperity based on our 
mutual democratic values into reality through expanded exchange, 
dialogue, and engagement at all levels of society and government. Thank 
you.

    Senator Udall [presiding]. Thank you, Ambassador Powell.
    We really appreciate your testimony. And I came in a little 
bit late, and I think, as Chairman Kerry said, I am supposed to 
take over for him.
    Let me just say initially that in looking at your resume 
and seeing your long history of service to the State Department 
that we really appreciate that public service. I mean, some of 
the areas you have served in are very difficult areas in the 
world, and I am sure you have done it with enthusiasm and a 
great spirit of public service. So thank you for doing that.
    I just returned, Ambassador Powell, from recently visiting 
India for the first time. I was lucky to go with a group, a 
CODEL headed by Senator Warner, and we had both of the cochairs 
of the India Caucus. Senator Warner is the cochair in the 
Senate, and Joe Crowley, the Congressman from New York, is the 
cochair in the House. And they had been there a number of 
times. I think Representative Crowley had been there eight 
times.
    And so, I learned a lot from that discussion. And one of 
the things I did was meet with the Nobel Laureate, Dr. Rajendra 
Pachauri. Dr. Pachauri and I had a long discussion about 
India's energy needs and energy demands and the need to address 
climate change.
    He expressed his disappointment with the outcome in Durban, 
South Africa, and his belief that a multilateral solution is 
needed to really make progress on this issue. With regards to 
the scientific issues, he stated he believes that the findings 
on the committee that he cochairs are stronger and that heat 
waves and other abnormal climatic events are increasing in 
frequency and intensity.
    And while meeting with him and other business leaders, I 
stressed not only the need to invest in renewable energy, but 
also the opportunities presented by increased investment and 
partnership between the United States and India. With India in 
need of increased sources of energy to maintain its economic 
growth, how do you think the United States should work to 
facilitate partnerships between the United States and India to 
promote renewable energy?
    Ambassador Powell. Senator, I am pleased that you had the 
opportunity to visit India and look forward, if confirmed, to 
welcoming you back often.
    Senator Udall. Thank you.
    Ambassador Powell. On the energy side, I think those who 
look at India's progress and its potential almost universally 
will point to energy as one of the key determinants in how 
India addresses its growing energy needs not only for its 
economic development, but also for advancing the needs of its 
people for electricity and other sources of energy.
    I think we are poised to be very, very good partners on 
this. We have an energy dialogue as part of the 20 that I 
mentioned in my testimony. It is done at the highest levels and 
involves a look at traditional sources of energy, as well as 
new technologies.
    We also have a partnership that Senator Lugar mentioned in 
his testimony that is looking particularly at innovations in 
energy. I think, given the very strong scientific communities, 
the very strong entrepreneurial communities in both of our 
countries, that this is an extraordinarily important complement 
to the government efforts.
    There will certainly have to be support for some of these 
technologies, support for the research regulatory framework 
that allows them to be used. But the ingenuity and 
entrepreneurial spirit of our two countries I think provide us 
with opportunities to look at these new sources.
    The partnership provides funding. AID is also working with 
what they consider to be an innovation incubator approach to 
development in India that will allow for programs to be--
experiments and others to be looked at for plus-up by the 
private sector in India for use in other parts of the 
developing world.
    I think all of these are very important. Obviously, the 
civil nuclear energy piece is another important part of the 
dialogue of trying to make sure that as India turns to nuclear 
energy to provide some of its energy resources that it can 
benefit from the extraordinary technology that United States 
companies bring to nuclear energy, to the safety and security 
standards, and to working with those companies with the 
Government of India to find a way for us to have a level 
playing field for that endeavor.
    Senator Udall. Ambassador, thank you very much for that
 answer.
    And I think one of the areas--and thank you for your 
willingness to work on the renewable energy issues--I think one 
of the areas that could be a welcome development would be with 
the villages in India. As you know, I mean, you have served 
over there. We have double than the people who live in the 
United States, 700 million people that live in villages, many 
times without adequate drinking water, clean drinking water, no 
electricity.
    And those kinds of conditions are really ripe for deploying 
solar panels or wind or something out in those villages. Dr. 
Pachauri, by the way, has an NGO where he has started an 
entrepreneurial model. He puts a solar panel in a village, has 
one of the women who really organizes the village take charge 
of it. She then leases out the solar panel to charge solar 
lanterns, and this replaces the kerosene lanterns, which are 
very dangerous and can't be used under mosquito nets and things 
like that.
    And it seems to me that this whole area is one that there 
is a huge potential, if we work with them, if we partner with 
them, to help them get electricity into the villages without 
moving all of the village people into the cities, which I think 
could end up causing serious problems.
    And with that, I am not really asking a question there, but 
it is an honor to be here with Senator Lugar and to be up here 
chairing this. And I look forward to his questions and any 
others as we move along.
    Senator Lugar. Well, thank you very much, Mr. Chairman.
    Let me just raise a different subject for the moment 
because at least today's press reports indicate that India's 
Oil and Natural Gas Corporation, the ONGC, has come under 
pressure to finalize a service contract for natural gas 
production with Iran. Now could you please give us your 
thoughts on an Indian company's involvement in Iran's energy 
sector, particularly something of this significance?
    Ambassador Powell. So, Iran and India have a long tradition 
of trade across energy and other fields. It is one that is 
clearly a part of our sanctions regime that we are hoping to 
see it significantly reduced.
    I noted in Foreign Secretary Mathai's speech yesterday, he 
indicated that the current efforts to diversify India's sources 
of oil and petroleum and a reduction in their use of Iranian 
oil to 10 percent or less, and I think these are positive 
developments. I think our own efforts to support India in 
looking at other sources of energy will be a contributor to 
this, and we will certainly, if confirmed, I know that this is 
going to be one of the issues that I will be spending a great 
deal of time on and working with the Iranian sanctions 
legislation with our own policies and with the Indians to work 
with them.
    Senator Lugar. Well, speaking of our assistance in this 
respect, as you pointed out earlier, large numbers of Indians 
lack access to electricity, and energy poverty limits their 
economic advancement options. The scale of this challenge, 
however, demands transformational technologies, such as Senator 
Udall was pointing out, and this leads to my question.
    Could you please describe the efforts, as you see them, 
which are being made by Indian entrepreneurs to tackle energy 
poverty? Furthermore, what barriers stand in the way for 
American entrepreneurs to enter the Indian market for the so-
called transformational strategies that are going to be able to 
meet the doubling of demand?
    Ambassador Powell. The two official government-to-
government dialogues are on energy policy specifically and then 
on trade, which includes a variety of looking at various ways 
to encourage trade, to determine how barriers can be reduced, 
and to look at ways to make it possible for American companies 
to participate. We have some very good success stories.
    I was looking at the results of an Arizona company that has 
been quite successful on solar energy and to find, using our 
resources at the Embassy, our commercial services, our 
discussions with the private sector through the India Business 
Council, U.S.-India Business Council, the American Chamber of 
Commerce, and others, to find those links where we can put 
American companies in touch with opportunities for them to 
provide their expertise.
    I would also point to what USAID is doing. Although the 
amounts of money are relatively small, I think the payback 
potential is very, very high if we can encourage innovation. We 
are partnering with Indian private sector on this. We are also 
providing a mechanism for funding, called the Clean Energy 
Finance Center, that will develop opportunities to think 
creatively about how to finance new and somewhat risky 
adventures sometimes. But to make it possible for the private 
sector to participate in this, not to depend strictly on 
government funding.
    I think although our projects are relatively small in their 
scope, the Indians have a very good network of working with the 
many, many villagers and trying to work on this. So if I could 
just piggyback on Senator Udall's comments? My experience in 
Nepal with the lanterns was a fantastic one. It made an 
enormous amount of difference in the ability of children to do 
their homework, to stay in school, and to have an opportunity 
to encourage literacy.
    It also, in a similar way, empowered women and provided a 
source of income for them through the sales of these very 
small-scale entrepreneurships with the lamps. And I think it is 
a very, very good program. It has been used in other countries 
as well.
    Senator Lugar. Well, we are counting on you to reduce the 
barriers to American entrepreneurs working with Indian 
entrepreneurs to the benefit of the people.
    Ambassador Powell. Thank you.
    Senator Lugar. You mentioned earlier the dialogue between 
the United States and India on 20 different areas. Last year, 
Secretary Clinton visited India and engaged in the U.S.-India 
Strategic Dialogue which, as you pointed out, includes 
security, regional cooperation, partnership, and technology.
    Can you highlight for us the most effective parts of the 
dialogue and the ones on which you believe the administration 
hopes to make the most progress in the coming year?
    Ambassador Powell. I think my timing is quite good. Foreign 
Secretary Mathai is in the United States right now. And 
although I am not in a position to meet with him, my colleagues 
at the State Department are. And he had, I believe, extensive 
meetings this morning, setting up the agenda for the June or 
July meeting, the next meeting here in Washington of the 
strategic dialogue.
    He also spoke yesterday, and I believe I could certainly 
endorse the agenda that he put forward, of the things that are 
very, very important. Certainly, the energy dialogue is one of 
those, the trade dialogue, our cooperation in looking at our 
defense partnership, our look at making sure that we are 
looking at what we would call our homeland security dialogue. 
Our counterterrorism dialogue is a new and, I think, a very 
dynamic part of the dialogue that will continue to be a 
priority for both countries.
    Maritime security I feel certain will be part of the 
dialogue as well this summer. And as a former high school 
teacher, I would like to see the education dialogue raised to 
the Cabinet-level strategic dialogue as well.
    Senator Lugar. And presumably intelligence-sharing will be 
a part of that?
    Ambassador Powell. Absolutely, as part of the homeland 
security and counterterrorism.
    Senator Lugar. Thank you very much.
    Senator Udall. Senator Menendez.
    Senator Menendez. Thank you, Mr. Chairman.
    Ms. Powell, congratulations on your nomination.
    Ambassador Powell. Thank you.
    Senator Menendez. I have a concern. I am a strong believer 
that the relationship between the United States and India is a 
critical one, but, as I am sure you are aware, in December, I, 
along with other colleagues, sponsored legislation in the 
Congress by amendment that the Senate passed unanimously and 
the President signed into law with reference to comprehensive 
sanctions on the financial institutions of the Central Bank of 
Iran.
    And I have been encouraged by the efforts of Japan, South 
Korea, and others to look for ways to come into compliance with 
the law. They have come to it even as they face challenges, 
with the attitude of how do I meet the spirit of these 
sanctions and try to ensure that we are not subject to any 
sanctions and that we are working not only with the United 
States, but the international community to ensure that Iran 
does not achieve nuclear power.
    However, the Indian Government, which is one of Iran's 
largest crude customers, seems to be rebuking the sanctions and 
looking for workarounds, including considering payments in gold 
and transactions that detour around the Central Bank of Iran, 
which at the end of the day still is helping the Iranian 
Government have the resources to fuel its nuclear ambitions.
    For our sanctions to be effective, it is really crucial 
that all nations, particularly democratic nations like India, 
work together to confront Iran and insist that it terminate its 
efforts to achieve nuclear weapons capability.
    What is your view of the Indian Government's rationale 
behind supporting the Iranians in this regard? And if you are 
confirmed as our Ambassador, will you carry the message to New 
Delhi that this is a policy priority for the United States and 
that we will not hesitate, as appropriate, to pursue the law as 
it exists?
    Ambassador Powell. Senator, certainly, if confirmed, I 
understand and appreciate that this is going to be a very 
important topic and one of those that I will be dealing with 
very seriously and very early in my tenure.
    I think approaching it perhaps a little bit differently 
than you did, but to recognize that India shares with us a 
desire to see a nonnuclear state in Iran. They have supported 
us in the IAEA four times. We continue to have a very important 
dialogue at the most senior levels of the U.S. Government, and 
I fully intend to be a part of that dialogue.
    I believe that making sure that there is clarity on what 
the legislation and the U.S. sanctions mean, what their 
implications are for India is one step. Also looking to make 
sure that we understand what actions India is taking. Foreign 
Secretary Mathai yesterday in his republic remarks commented 
that there already appears to be a reduction in the amount of 
oil, the percentage of oil that India receives from Iran out of 
its total imports. That would be a very good sign.
    But I will certainly commit to working very hard on this 
issue.
    Senator Menendez. Well, I appreciate that. This is 
incredibly important to us. If countries like India are going 
to pay in gold or find other ways to circumvent the sanctions, 
then while I appreciate what you said about India sharing our 
goals, it could ultimately continue to facilitate the resources 
that are necessary for Iran to achieve its nuclear power.
    And so, we need more than their goodwill of sharing our 
goals. We need their actions to join us and the rest of the 
international community in that regard. And I hope that, if 
confirmed and in short order will hopefully be in India, that 
this will be one of your top priorities.
    Would you tell the committee, that this will be one of your 
top priorities when you get there?
    Ambassador Powell. It most certainly--it will be one of the 
top priorities.
    Senator Menendez. Now, last, and I won't take all of the 
time that I have left, but I do want to ask a question that I 
would like you to answer for the record. And it has to do with 
the work that has to be done for our overall recruitment. I am 
seriously concerned that despite years that I have been raising 
this, including with your advent to this office, that the issue 
of Hispanic recruitment at the State Department remains 
pathetic.
    The 2010 Census has indicated that there are over 50 
million Hispanics in the United States, 16 percent of the 
population. Yet, however, Hispanics make up only 5 percent of 
the State Department's employees, 3.9 percent of the Foreign 
Service officers, and about 6 percent of Foreign Service 
specialists.
    So, I would like two things for the record. One, can your 
office share the most recent statistics with the committee as 
well as what barriers you have encountered in any effort to 
improve your outreach, recruitment, and retention of qualified 
Hispanics?
    In all of my work in this regard, this is really one of the 
worst departments of the Federal Government as it relates to 
Hispanic participation. I appreciate what has been said about 
the State Department reflecting the look of America but when 
Hispanics make up 16 percent of the population and their rate 
of growth is not reflected at the State Department, that 
doesn't include a full look of America.
    So, as you move on to your next assignment, I would like to 
get the benefit of whatever challenges there were so that we 
can look at your successor in this role and have a strategic 
plan as to how we turn those numbers around.
    [The requested information follows:]

    The Department of State is committed to a workforce that reflects 
the diversity of America (racial/ethnic/national-origin, gender, 
geographic, educational, and occupational) with the skills, innovation, 
and commitment to advance our national interests in the 21st century.
    Hispanics make up 4.7 percent of State Department Civil Service 
employees, 3.9 percent of Foreign Service officers, and 6.6 percent of 
Foreign Service Specialists. The number of self-identified Hispanics 
who took the Foreign Service officer test during 2011 was 2,030 or 10 
percent of the total. In FY 2011, the Department hired 49 Hispanics 
into the Foreign Service, or 4 percent of all new Foreign Service 
hires, and 27 into the Civil Service, or 2 percent of all Civil Service 
hires. Our statistics are based on individuals who self-identify, and 
do not take into account individuals who are multiracial.

         DEPARTMENT OF STATE'S LARGE-SCALE RECRUITMENT EFFORTS

    Targeted outreach is the cornerstone of the Department's 
recruitment strategy. Specific recruitment portfolios include African-
Americans, Hispanics, Asian-Americans, American Indians and Alaskan 
Natives, Native Hawaiians/Pacific Islanders, women, military veterans, 
and those with disabilities. In FY 2011 our Diplomats in Residence and 
Washington-based recruiters personally engaged an estimated 50,000 
potential candidates at events across the country, supported by an 
events management system which markets our public events across our 
social recruitment networks. The system also facilitates ongoing 
engagement and communication between the Department and prospects/
candidates.
    The Department's careers Web site (www.careers.state.gov) is the 
hub for all online recruitment engagement and receives an average of 
60,000 visitors a week. Public forums that provide quick and open 
responses to questions regarding Department career opportunities have 
proven extremely successful, continuously receiving more than 20 
million views since their inception in 2010.
    Marketing studies demonstrate that minority professionals use 
social media at higher rates than nonminority professionals. Our public 
outreach is integrated with a comprehensive marketing and recruiting 
program that includes leveraging new media and networking technologies 
(Facebook, Linked-In, Twitter, YouTube), direct sourcing, e-mail 
marketing, and online and limited print advertising with career and 
niche-specific sites and publications (Hispanic Business, NSHMBA, 
LatPro, Saludos, LATINAStyle).
    In FY 2011, the Department spent $42,350 on advertising in Hispanic 
print and electronic media. In addition, 39.5 percent of the total we 
spent on print and electronic media included general diversity-specific 
sites which incorporated Hispanics. In FY 2012, we are allocating 
$95,789 to Hispanic-focused, career-specific media which is 21 percent 
of our total spending on advertising in print and electronic media. An 
additional 20 percent of the total media buy will include diversity-
specific sites which incorporate Hispanics.
    The Department's Recruitment Outreach Office developed and hosted 
Diversity Career Networking Events as a tool to target diverse 
professionals for Department of State careers, specifically 
highlighting deficit Foreign Service career tracks. In FY 2011, events 
were hosted in Los Angeles; Denver; Santa Fe, Albuquerque, and Las 
Cruces, NM; Miami; Cincinnati (to attract attendees at the National 
League of United Latin American Citizens conference), Houston, Dallas, 
New York, and Washington, DC, reaching over 1,000 candidates including 
African Americans, Asian Americans, Hispanics, Native Americans, women, 
and critical language speakers. In addition, over 900 Department 
employees have volunteered to support our strategic outreach, 
highlighting the diversity of our existing workforce and leveraging 
existing networks of internal affinity groups like the Hispanic 
Employment Council in Foreign Affairs Agencies (HECFAA).

                     COOPERATIVE EDUCATION PROGRAMS

    The Department strives to achieve diversity throughout its 
workforce through various career-entry programs, including the 
Presidential Management Fellowship. All qualified applicants referred 
to the Department by the Office of Personnel Management are given full 
consideration. The Office of Recruitment conducts regular outreach to 
institutions that serve Hispanics in order to increase the pool of 
applicants from the Hispanic community and promote awareness of entry-
level employment opportunities.
    Our outreach to college students plants the seeds of interest in 
global public service and promotes a long-term interest in our 
internships, fellowships, and careers. In FY 2009, Congress funded 
additional paid internships for recruitment purposes. In 2009, 2010, 
and 2011, our Diplomats in Residence identified outstanding, diverse 
candidates for those internships, providing them the chance to 
experience work in Washington, DC, and embassies and consulates around 
the world. In 2011, 20 percent of these 80 paid interns were Hispanic.
    Two particularly successful student programs are the Thomas R. 
Pickering Foreign Affairs Undergraduate and Graduate Fellowships and 
the Charles B. Rangel International Affairs Fellowship. These ROTC-like 
programs provide financing for graduate school and paid professional 
experience in Washington and at our embassies to highly qualified and 
mostly minority students, in exchange for their commitment to the 
Foreign Service. Diplomats in Residence help recruit candidates for 
these fellowships, which have been essential to increasing the presence 
of underrepresented groups in the Foreign Service. In FY 2011, 10 out 
of 40 (25 percent) Pickering Fellows and 4 out of 20 (20 percent) 
Rangel Fellows were Hispanic.

    Ambassador Powell. Senator, may I respond just briefly?
    Senator Menendez. Absolutely, sure.
    Ambassador Powell. We clearly will give you more details in 
the taken question, but I took very seriously your charge to me 
when I accepted the Director General position, was confirmed by 
the committee, to try to improve the outreach to the Hispanic 
and other minority communities, to make sure that they 
understood what opportunities were available to them at the 
State Department, whether it was the Foreign Service or the 
civil service and to expand the information that they had, 
their ability to ask questions, to be informed, and to 
participate with us.
    I share with you a desire to see a better than 5-percent 
ratio for the Hispanics in the Foreign Service and a 4.9 for 
the civil service. But I do have some encouraging statistics 
about the efforts of a very, very vigorous and targeted 
recruitment effort that we have undertaken over the last 2 to 3 
years.
    In the past year, we have among the people who have taken 
the Foreign Service test, we had an increase of 82 percent 
among the Hispanics. From those who passed the test, having 
taken it, 172-percent increase by Hispanics, and for the 
hiring, a 43-percent increase. Those statistics, if we can 
maintain them--and I certainly think that my successor will be 
committed to the effort that we started--represent an 
opportunity to improve on our total percentage of Hispanics.
    I would also like to share one other statistic with the 
committee because the other part of our outreach, in addition 
to our minority populations, was to our disabled veterans. And 
we have been able in the Foreign Service generalists to 
increase by 350 percent the hiring of disabled veterans. And 
among our specialists, a whopping 4,700-percent increase.
    So I would also like to comment that the number of 
minorities, including Hispanics, that are part of our Pickering 
and Rangel Fellowship Programs, and these are opportunities 
that provide graduate education opportunities as well as 
internships and other experience in the department, has 
increased dramatically.
    And I personally served as the mentor for our Hispanic 
affinity group, which has been reenergized under the leadership 
of its new president, and I took great pride in working with 
them.
    Senator Menendez. Well, I appreciate that. I look forward 
to seeing the employment figures which you gave, which sound 
promising, what sections across the spectrum they are.
    But thank you very much.
    Senator Udall. Senator Webb.
    Senator Webb. Thank you, Mr. Chairman.
    And Ambassador--congratulations. I wish you well in the new 
assignment, for which I know you are going to be confirmed. You 
have got a terrific wealth of experience in this region. I 
think you are going to be very valuable to our country when you 
go there.
    India is a long way from Iowa. I went to high school in 
Nebraska. I can remember one cold winter morning working in a 
grocery store, I was reading ``Hawaii'' by James Michener and 
becoming fascinated with the stories of Asia, and he talked 
about mangoes. I looked over on a shelf in this grocery store I 
was working in--and there was a mango. I had never seen one 
before and I bought it with all my tip money. I brought it home 
that night, and I could not figure out how to peel it.
    But I said someday I am going to go where they grow these 
mangoes, and of course, a couple of years later, Uncle Sam 
helped me out and sent me to Vietnam. But I know what it is 
like to really become so intensely interested in an area, and 
you certainly have the background when it comes to South Asia 
and India.
    That leads me to a question. Just something that I have 
been wondering for some time, and I think from your background, 
maybe you can help me understand it--help us understand it.
    We consistently speak about India as a democracy, and in 
political terms, one would think that is true. It certainly 
seems demonstrably true. We talk consistently about the 
entrepreneurship that comes out of India. Some of the most 
wealthy entrepreneurs in the world are in India. Those who have 
come to this country from India do extremely well.
    And yet, if you look at ``The World Factbook,'' the per 
capita income in India is about $800--at least the one that I 
just looked at, ``The Economist World Factbook''--which is less 
than $3 a day. What would be your observations about the nature 
of this democracy in terms of the obvious, glaring inequality 
from top to bottom in its society?
    Ambassador Powell. Senator, I think India's democracy is a 
thriving one with right now they are engaged in five states 
voting, with over 200 million residents in one of those states. 
So that part of the democracy, in terms of its forms and its 
norms, is well established.
    They are voting after a very vigorous debate over policies 
and, particularly in these five states, are looking at the 
economic reforms, whether they have answered the question that 
we would ask here in the United States. Are you better off than 
you were at the last election?
    They are very, very vigorous in that debate. They are 
looking at it very seriously.
    I take a lesson from my time as a teacher of American 
Government and American history of reminding myself that our 
Constitution starts with the words about ``forming a more 
perfect union.'' I think that India is in the process of doing 
that as well.
    It has enormous societal inequalities based on historic 
caste systems of economic differences. But surely, one of the 
engines that moves a society is the commitment to democracy, a 
ballot box that allows people to vote for their leaders and to 
vote for change, but also a rising economy.
    I contrast my earlier time in India, where they were just 
emerging from a very, very closed economic system, one which 
required enormous amounts of work to start a business or to 
close one, for that matter, with the current system. It is not 
perfect yet. It still takes a long time in India. It is still 
not a redtape free society. But all of those things are freeing 
up India.
    I think we have seen over the 20 years of economic reforms 
a tremendous number of people who have been removed from 
absolute poverty. They are into the Indian middle class now. 
They are able to afford education for their children. They are 
dedicated to that as one of the first things that they use 
their disposable income for, but also a rising consumer 
network, better housing.
    Senator Webb. So you would say--and I have got one other 
question I want to ask you, You are optimistic about the 
potential for broader sharing of the wealth in that society?
    Ambassador Powell. I am. I am very optimistic about India.
    Senator Webb. I wanted also to get your comment on the 
obvious and growing interrelationship among the United States, 
ASEAN, and India in terms of naval activities, but also 
security activities not only in the Indian Ocean and around 
into what we call the Western Pacific or the South China Sea.
    We have seen cooperative naval maneuvers between India and 
Vietnam, for instance. At the same time, we have seen over the 
past couple of years on many different levels increased Chinese 
naval activity into the Indian Ocean. What are your thoughts 
about this new mix?
    Ambassador Powell. I think India is certainly one of those 
countries that is a rising power in this part of the world. It 
has interests that match ours in many ways, particularly as we 
have looked at our defense dialogue of looking at maritime 
security, of looking at the potential for cooperation and 
humanitarian relief and disaster assistance. And also in 
looking at piracy, particularly off the coast of Somalia, of 
cooperating with the international effort there.
    The dialogue that we have through the Defense Policy Group, 
through ASEAN, through the Indian Ocean rim conferences, with 
India playing a growing role in that, I think will assist us in 
aligning a policy that works internationally to make sure that 
we can protect those sea-lanes, that we will have a peaceful 
area there.
    Senator Webb. Thank you, Mr. Chairman.
    Senator Udall. Ambassador, the ongoing friction between 
India and Pakistan is a strategic concern for the United States 
and for the region. Do you believe that there may be a more 
proactive role for the United States to play, which could help 
ease tensions between the countries?
    For instance, Sandia National Laboratories Cooperative 
Monitoring Center--Sandia is located in Albuquerque, NM--has 
programs to help create trust between countries, such as border 
monitoring. As part of its mission, Sandia's Cooperative 
Monitoring Center assists political and technical experts from 
around the world to acquire the technology-based tools they 
need to implement nonproliferation, arms control, and other 
cooperative security measures.
    It is a soft power tool that I believe could be utilized in 
such hot spots. I would note that this is not a new proposal, 
that a paper released by the Cooperative Monitoring Center in 
2001, which was written by retired Pakistani Major General 
Mahmud Ali Durrani, called for a ``cooperative border 
monitoring experiment.''
    What are your thoughts on these and other proposals to 
relieve security tensions in the region?
    Ambassador Powell. Senator, I firmly believe in encouraging 
a dialogue and the resolution of problems between India and 
Pakistan. I believe that ideas that are supported by both 
countries, if General Durrani's ideas were to be endorsed 
through the Track II or Track I negotiations that are very 
active on both levels, that there would be a role for the 
United States to play.
    I have had the opportunity to meet many of the people that 
are engaged in these dialogues and certainly think that the 
United States plays a role in encouraging ideas and looking for 
additional creative solutions, but that the primary 
responsibility rests with the two countries. Having worked with 
so many of their leaders and their diplomats, I am very 
confident that they have the ability to do that, but certainly 
don't rule out our ability to assist.
    Senator Udall. Thank you.
    During our visit to India, we visited a USAID site in 
Jaipur. This site truly highlighted the needs of rural and 
impoverished Indians. Work being done by USAID included aiding 
women with prenatal care, vaccinations and other child 
services, and training for women to help them interact with 
other groups to help discuss community needs and solutions.
    Madam Ambassador, what are your thoughts on such programs, 
and how do you think our relations would be impacted if there 
are substantial cuts to such USAID programs?
    Ambassador Powell. I am very, very supportive of these 
efforts. I think particularly supporting women's health has a 
major impact on the health of their children. I have a 
particular interest in looking at women's education 
opportunities. Particularly in rural India, as in many parts of 
the developing world, women have not had equal opportunity and 
access to education. This is an area that as India needs to 
expand its economy is one that I think is very important.
    The AID programs that are being conducted in India are ones 
that I look forward to visiting and to having a better 
understanding of. But I think particularly the one you visited 
is one that would warm my heart. I would like to have the 
opportunity to do that, if confirmed, but also to look at the 
opportunities to do things like the new stoves that are both 
ecologically and in terms of health a much improved facility. 
This is something that Secretary Clinton has taken a great deal 
of interest in.
    In terms of the impact of our aid program, our numbers and 
the amount of assistance to India has been reduced 
substantially from what I remember. But I think it is a quality 
program, and I would like to see it continued so that it can be 
this incubator for innovation and development technology and 
development programming, that we can identify things that work 
in this environment and see how they can be plussed up by the 
private sector, by the government of India, but also exported 
to other developing countries that may have similar problems.
    Senator Udall. Ambassador, we went into a village and saw--
you mentioned the cookstoves and Secretary Clinton's 
initiative. We went in and saw in a village locals cooking on 
traditional stoves. It was fueled, I think, by dung. It was 
very dirty. The smoke was all over the house. I mean, it was a 
pretty dreadful situation.
    Could you tell us a little bit more about the initiative 
Secretary Clinton has on the stoves and how that has 
progressed?
    Ambassador Powell. I am going to have to take the question 
to get you the details on it, but I know that it is one she is 
committed to. And I have had the similar experience that you 
had. Not only do you deprive the fields from the benefits of 
having the fertilizer, but you also spread enormous amounts of 
smoke that, particularly for the lungs and health of children 
and the women who are doing the cooking, is quite dramatic.
    And the new smokeless stoves both cut down on the amount of 
energy that is required, but also contribute far, far less to 
pollutants that damage their health.
    Senator Udall. Thank you.
    And if you would supplement the record a little more on 
that, I think that would be great.
    Ambassador Powell. I will be glad to do so.
    [The requested information follows:]

    Secretary Clinton announced the Global Alliance for Clean 
Cookstoves in September 2010 as an innovative public-private 
partnership led by the United Nations Foundation to save lives, improve 
livelihoods, empower women, and combat climate change by creating a 
thriving global market for clean and efficient household cooking 
solutions. Today, the Alliance comprises of over 250 partners, 
including 27 countries. In November 2011, the Alliance published a 
roadmap to achieve universal adoption of clean cookstoves and fuels. 
Under this strategy, the Alliance will work with its public and private 
partners to focus on three core thematic activities: enhancing demand 
for clean cookstoves and fuels; strengthening supply of clean 
cookstoves and fuels; and fostering an enabling environment for a 
thriving market for clean cookstoves and fuels. The U.S. Government's 
commitment to the Alliance includes diplomatic support and an 
investment of up to $105 million across 10 Federal agencies over the 
first 5 years of the Alliance, with a focus on financing, applied 
research, capacity-building, stove testing, field implementation, and 
evaluation. The Secretary held a public event in Chennai, during her 
July 2011 visit to India, to announce new Indian private sector 
partners and raise international awareness and engagement on these 
issues. Special Representative for Global Partnerships, Kris 
Balderston, would be happy to provide you a detailed briefing on the 
activities of the Global Alliance for Clean Cookstoves.

    Senator Udall. Senator Lugar.
    Senator Lugar. I have no further questions. I simply wish 
the very best to the Ambassador.
    Ambassador Powell. Thank you.
    Senator Lugar. I look forward to strongly supporting your 
nomination.
    Ambassador Powell. Thank you very much.
    Senator Udall. Ambassador, let me, on behalf of the 
committee, just thank you very much for your testimony today.
    We are going to keep the record open for questions for the 
record for 24 hours. We would ask that all members please 
submit any questions before tomorrow afternoon.
    Senator Udall. Also, I have been informed by Chairman Kerry 
that the committee is working to get Ambassador Powell's 
nomination on the agenda for the business meeting to take place 
on February 14, and I believe, Senator Lugar, the ranking 
member, is also aware of that? Yes.
    Ambassador Powell. Thank you very much.
    Senator Udall. So, thank you.
    And being no further questions and no further business, the 
hearing is adjourned.
    [Whereupon, at 3:40 p.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


      Responses of Hon. Nancy J. Powell to Questions Submitted by
                         Senator John F. Kerry

    Question. How can the United States best support India and Pakistan 
in their talks and efforts to resolve regional tensions? If confirmed, 
what types of steps will you take to facilitate improved relations 
between India and Pakistan?

    Answer. The United States has always welcomed dialogue and better 
relations between India and Pakistan. The pace, scope, and character of 
the dialogue are for Indian and Pakistani leaders to decide. If 
confirmed, I will encourage all dialogue between India and Pakistan, 
particularly including the expansion of trade and strengthening of 
people-to-people linkages between the countries. The United States 
should continue to encourage both Track I and Track II efforts to 
improve relations. We particularly welcome the upcoming meeting of 
trade ministries and the planned visit to Pakistan of a large 
commercial delegation. Normalizing trade relations will bring benefits 
to both countries.
    We applaud the dialogue between India and Pakistan on bilateral 
issues, including on expanding economic contacts. The latest rounds of 
dialogue have produced concrete steps to improve relations in ways that 
will directly benefit the Indian and Pakistani people, particularly on 
easing barriers to trade and commerce. It is our hope that this process 
of normalization in both directions, including the eventual extension 
of most-favored-nation status by Pakistan and the reduction of 
nontariff barriers by India, will lead to expanded economic opportunity 
and stability for both countries that also could serve as a much-needed 
catalyst for regional integration.

    Question. What steps can the Indians realistically take this year 
to liberalize their economy, particularly to encourage more foreign 
investment?

    Answer. In November 2011, India's Cabinet voted to allow 51 percent 
FDI in the multibrand retail sector and 100 percent investment in the 
single brand retail sector. Multibrand retail implementation has been 
postponed, but we remain hopeful it will be implemented. The FDI 
increase in single-brand retail has moved forward, though with local 
procurement and small business provisions that foreign companies will 
need to work through before they can enter the Indian market in a 
significant way. We have also continued to encourage liberalization in 
the aviation, pensions, and insurance sectors, as well as in defense-
offsets. The release of India's FY 2013 budget and 12th Five-Year Plan 
in March may provide some additional clarity into the government's 
plans for its economic reform agenda.

    Question. How can the United States work with India to encourage 
further political and economic reforms in Burma?

    Answer. India serves as a model for the values we hope will become 
universal across East Asia and is in a strong position to encourage 
Burma to deepen its democratic reform efforts. Although India and the 
United States have historically approached Burma differently, both 
countries have welcomed the significant Burmese reforms, share a strong 
desire to see these reforms continue, and support Burma's reintegration 
into the region. In support of this goal, the Indian Government hosted 
a Burmese parliamentary delegation in December 2011 to study India's 
democracy ahead of Burmese by-elections this spring. India's continued 
outreach, both to the Burmese Government, as well as to opposition 
leaders, such as Aung San Suu Kyi, reinforces this message. In fall 
2011, India offered Burma a $500 million line of credit to support 
development of transport and energy infrastructure and is exploring the 
development of new transport corridors through Burma that would link 
India with markets in Southeast Asia. We continue to urge the Indian 
Government to use its deep historical friendship and cultural ties with 
Burma to engage its civil society and encourage concrete action on 
political and economic reform and national reconciliation. In addition, 
Special Representative and Policy Coordinator for Burma, Derek 
Mitchell, has proposed to visit India in the coming months to explore 
ways to deepen our bilateral cooperation.

    Question. How can the United States work with India to encourage 
further political and economic reforms in Sri Lanka?

    Answer. The Department of State believes the Government of Sri 
Lanka needs to take concrete actions to promote national 
reconciliation, strengthen democratic institutions, and credibly 
investigate violations of international humanitarian law and 
international human rights law alleged to have occurred during Sri 
Lanka's 26-year separatist conflict. We continue to engage closely with 
India on encouraging Sri Lanka to implement a comprehensive national 
reconciliation process that includes holding those credibly alleged to 
have violated international humanitarian law and international human 
rights law accountable for their actions. Both the United States and 
India have also emphasized the need to implement the recommendations of 
Sri Lanka's own Lessons Learnt and Reconciliation Commission in a 
timely manner.

    Question. Last week Bloomberg New Energy Finance released a new 
report showing that India led in the growth of renewable energy 
investments in 2011, with a 52-percent jump to over $10 billion. This 
jump in investments was helped by India's growing wind and solar 
sectors. If confirmed, please describe what you plan to do to connect 
this growing market demand with the technologies and private sector 
investment based in the United States, where we are a leading innovator 
and developer for many of these clean energy technologies. What would 
you do to help implement the Partnership to Advance Clean Energy, one 
of our largest bilateral relationships in this area?

    Answer. In 2009 Prime Minister Singh and President Obama agreed to 
strengthen United States-India cooperation on energy and climate change 
through a number of bilateral and multilateral initiatives. One of 
these initiatives is the U.S.-India Partnership to Advance Clean Energy 
(PACE), which seeks to improve energy access and promote low-carbon 
growth through the research and deployment of clean energy 
technologies. PACE includes bilateral public-private projects that have 
advanced the goals under the CEO Forum.
    If confirmed, I would continue to promote and encourage the sale of 
U.S. technology to India to meet India's ambitious targets for the 
deployment of renewable energy, energy efficiency, and other clean 
energy solutions in support of the National Export Initiative. Over the 
next 10 years, India is expected to be one of the largest sources of 
new solar capacity and other clean energy solutions. India will look to 
the United States to supply the most advanced solar technology in the 
world.
    If confirmed, I would continue the Embassy's strong support of the 
Energy Cooperation Program, a public private partnership in PACE that 
leverages the U.S. private sector to promote commercially viable 
project development and deployment in clean energy and energy 
efficiency.
    The United States also has the opportunity to shape India's clean 
energy market through financing and investment. If confirmed, I would 
fully support the efforts of the Overseas Private Investment 
Corporation, Export-Import Bank, and U.S. Trade and Development Agency 
to promote U.S. clean energy exports and ensure U.S. companies can play 
a significant role in developing India's clean energy market.
    Largely due to clean energy contracts, India has become the largest 
loan portfolio for the Overseas Private Investment Corporation and will 
soon constitute the largest portfolio for the Export-Import Bank. If 
confirmed, I would continue to advocate for the sale of U.S. technology 
in clean and renewable energy and energy efficiency to keep India as 
the top destination for U.S. Government-supported sales. Finally, if 
confirmed, I would help bring to fruition the Joint Clean Energy 
Research and Development Center that will bring together industry and 
academic experts in the United States and India to mobilize $100 
million in funding for clean energy research to benefit both countries.

    Question. What is the status of the TAPI pipeline, particularly 
with respect to securing Western multinational involvement in pipeline 
operation and the associated gas field development in Turkmenistan? 
What is the status of plans between Pakistan and India to jointly 
develop the Daulatabad gas field in Turkmenistan? What is the 
administration's position on these plans? Pakistan has reportedly 
proposed a uniform transit fee for the import of gas under the TAPI 
pipeline project, which it would receive from India and pay to 
Afghanistan. What is the administration's position on the pipeline 
transit fee? What are its economic implications?

    Answer. Since the TAPI Intergovernmental Agreement was signed by 
the Presidents of Turkmenistan, Pakistan, and Afghanistan and the 
Minister of Petroleum and Natural Gas of India in December 2010, the 
parties have been negotiating gas sales and purchase agreements. We 
believe these agreements may be finalized in the next few months. All 
four TAPI parties welcome the participation of international oil 
companies (IOCs) in the project, although there are differing views on 
exactly what the role of the IOCs would be. There has been some 
erroneous reporting on development of the gas field that will feed 
TAPI. Although the Daulatabad field had initially been selected, the 
current plan is for the gas to come from the South Yolotan/Galkynysh 
gas field. Although we understand that both Pakistan and India would 
like to participate in development of the gas field feeding TAPI, we 
are not aware that any agreements have been reached. We believe the 
prospects for the TAPI project would be enhanced if an IOC, perhaps 
working together with Pakistani and Indian companies, were involved 
along with Turkmengaz, the Turkmen Government gas company, in 
developing the gas field that would feed the TAPI pipeline. We have 
advocated for American companies to play this role. The transit fee and 
other commercial issues are a matter for negotiation among the TAPI 
parties and the companies that ultimately compose the consortium that 
will build and operate the pipeline, so it would be premature for us to 
comment on the transit fee. If realized, the TAPI pipeline could help 
meet India's fast growing need for natural gas and also foster regional 
economic development.

    Question. What steps is the administration taking to implement the 
New Silk Road initiative, consistent with the recommendations put forth 
by the Senate Foreign Relations Committee December 2011 report on 
``Central Asia and the Transition in Afghanistan''?

    Answer. The report on ``Central Asia and the Transition in 
Afghanistan'' put forth by the Senate Foreign Relations Committee in 
December 2011 recommended that U.S. policy should ``translate the New 
Silk Road (NSR) vision into a working strategy for the broader region 
beyond Afghanistan.''
    In 2011, high-level engagement on the New Silk Road (NSR) vision 
supported this recommendation by achieving broad international 
consensus on the need to promote greater economic integration 
throughout Afghanistan, Central Asia, and South Asia. India has been 
particularly vocal in endorsing publicly this New Silk Road vision. In 
2012, we plan to take additional concrete steps to operationalize the 
NSR concept, focusing on the expansion of energy, trade, and transit 
between South and Central Asia, with Afghanistan at its heart. We will 
also capitalize on people-to-people linkages that support the NSR 
vision, such as follow-on activities related to the 2011 Women's 
Economic Symposium in Bishkek, promotion of regional commerce 
associations, and enhanced cooperation with multilateral organizations 
active in the region such as the Organization for Security and 
Cooperation in Europe and OECD.
                                 ______
                                 

      Responses of Hon. Nancy J. Powell to Questions Submitted by
                        Senator Richard G. Lugar

    Question. As a growing oil consumer, India plays an increasingly 
important role in global oil markets. However, since India is not in 
the OECD, they also are not formally party to oil crisis response 
mechanisms. In your view, should the United States advocate for full 
Indian membership in the International Energy Agency?

    Answer. Noting India's growing weight as a major energy consumer 
(No. 2 in the non-OECD world) and as part of a broader USG effort to 
integrate India into institutions of global governance and multilateral 
cooperation, we continue to encourage India's growing cooperation with 
the International Energy Agency (IEA). At present, there are several 
prerequisites for IEA membership, such as OECD membership, adherence to 
shared IEA principles and a requirement of 90 days of strategic 
petroleum stocks (for emergency response). We have been working with 
India on energy security through the U.S.-India Energy Dialogue and 
other bilateral mechanisms and support India's Enhanced Engagement 
program with the OECD, with a view toward eventual IEA membership for 
India. India should have a seat at the table with the world's major 
consumers to coordinate on a possible collective response in the event 
of a major oil supply disruption, exchange views on key energy 
dynamics, and discuss energy security issues.

    Question. The Indian economy offers tremendous opportunities for 
U.S. trade and investment in both conventional energy and clean energy 
technologies. Yet, numerous obstacles exist from pricing controls to 
local content requirements. Is the administration playing a role in 
spurring pricing reform in the oil and gas sector, which allow 
investors are reasonable return on investment? What is the 
administration doing to encourage the liberalization of the Indian 
power markets? Please describe local content requirements in renewable 
energy, and the administration's position on those rules.

    Answer. Energy and climate change cooperation is a strategic pillar 
under the U.S.-India Strategic Dialogue, and the Energy Dialogue is the 
main bilateral platform to advance our efforts to improve energy 
access, infrastructure development, regulatory frameworks, and energy 
security. During Prime Minister Singh's November 2009 visit to 
Washington, he and President Obama announced a Memorandum of 
Understanding on clean energy, now known as the U.S.-India Partnership 
to Advance Clean Energy (PACE). PACE incorporates an ambitious energy 
agenda, focused on bilateral cooperation on energy security, climate 
change, clean energy research, shale gas, and private sector 
participation in India's energy sector.
    Department of Energy Deputy Secretary Poneman traveled to India in 
July 2011 for the most recent meeting of the Energy Dialogue, which 
included senior-level representatives from Indian Government ministries 
in the energy sector, including petroleum and natural gas, and new and 
renewable energy. Both sides noted the importance of appropriate policy 
and regulatory frameworks in improving energy policies and energy 
access. We have engaged with numerous Indian Government ministries, 
including the Ministry of Commerce and Industry and the Ministry of 
Renewable Energy on local content requirements both during policy 
development and during policy implementation. U.S. companies, such as 
Azure Power Ltd. and First Solar, are active players in India's solar 
market. India has become the largest loan portfolio for the Overseas 
Private Investment Corporation and will soon become the largest 
portfolio for the Export-Import Bank, largely due to clean energy 
development financing. The Export-Import Bank has financed 75 million 
dollars' worth of solar power generating projects in India and is 
considering loans worth an additional $500 million to support India's 
growing solar infrastructure. The U.S. Department of Commerce 
facilitated expanded trade and commercial partnerships in clean 
technology products through a November 2011 trade mission.
    As India's solar industry matures, Indian regulators are revising 
their regulations for the industry. If confirmed, I would work with the 
Indian Government to ensure that India's regulations continue to allow 
access to products manufactured by U.S. companies so that India can 
enjoy the best technologies at the lowest prices.

    Question. India has the sought the support of the U.S Government in 
securing a permanent seat on the United Nations Security Council. Can 
you give us an update on efforts between the U.S. and Indian 
Governments to promote greater cooperation on U.N. and multilateral 
measures generally?

    Answer. India has partnered with the United States at the U.N. and 
other multilateral fora on several key issues, including its support in 
February 2012 for a (ultimately unsuccessful) Security Council 
resolution calling for an end to the current violence in Syria. 
Moreover, India has joined the United States four times in support of 
International Atomic Energy Agency Board of Governors votes on Iran's 
nuclear program and has been a strong proponent of a Fissile Material 
Cut-Off Treaty at the Conference for Disarmament. Given India's status 
as a current member of the U.N. Security Council, and its historic role 
as one of the leading providers of U.N. peacekeeping troops, we have 
welcomed the opportunity to increase our bilateral exchanges on these 
issues, including the Government of India's decision last March to 
resume the bilateral U.S.-India Peacekeeping Joint Working Group. India 
also participates with the United States in a wide range of East Asian 
multilateral forums, including the ASEAN Regional Forum and the East 
Asia summit, where Indian Prime Minister Singh met with President Obama 
last fall. Consistent with the administration's foreign policy 
``pivot'' to Asia, we look forward to continuing to consult with India 
closely on issues affecting the Asia-Pacific region and the globe.

    Question. The United States and India have pledged to work together 
to share knowledge and technology as part of an ``Evergreen 
Revolution'' to extend food security in India as well as to countries 
in Africa. This partnership includes plans to increase agricultural 
productivity, reduce trade barriers, and develop long-term sustainable 
economic development. Can you give us an update on these efforts and 
describe what further steps can be taken to achieve food security for 
the greatest number of people?

    Answer. As one of our strategic partnership countries, India is 
actively engaged in our food security efforts, and is itself a driver 
of global solutions in food security. Through the Partnership for an 
Evergreen Revolution, the United States and India are working together 
to leverage expertise to enhance weather and climate forecasting for 
agriculture, improve food processing and farm-to-market links, and 
partner for global food security in Africa.
    As a key regional player, India is an active partner in our efforts 
to make sustained and accountable commitments to fight against global 
hunger, address the longer term challenges of global food security, and 
build future markets. USAID is currently transforming its relationship 
in India to highlight Indian innovations which may have global 
applications. On his recent trip, USAID Administrator Raj Shah launched 
the Confederation of Indian Industries (CII)-Food and Agriculture 
Center of Excellence (FACE) event which aims to develop a partnership 
strategy for expanding rural business hubs to eastern India, and then 
to Africa. Developing the 30 hubs in eastern India and promoting the 
adoption of agrobusiness hubs for agriculture growth globally, 
including in Africa, will expand innovations in post-harvest 
technologies and establish greater food safety/security standards. If 
confirmed, I will support private sector partnerships such as the CII-
FACE initiative, which will play a catalytic role in transferring 
innovations to improve food security in India and Africa. The U.S. 
Government and the Government of India are currently exploring 
opportunities to train African participants from Kenya, Liberia, and 
Malawi at Indian universities and research and technical institutes in 
mutually agreed capacity building programs. I believe Indian private 
sector and civil society hold great promise in advancing innovations 
and leveraging resources which can improve development outcomes.

    Question. How can the United States play a constructive role in the 
India Pakistan dialogue? As Ambassador, what could you do to increase 
cooperation in the areas of security and intelligence sharing between 
the United States and India?

    Answer. The United States has always welcomed dialogue and better 
relations between India and Pakistan. The pace, scope, and character of 
the dialogue are for Indian and Pakistani leaders to decide.
    We applaud the dialogue between India and Pakistan on bilateral 
issues, including on expanding economic contacts. The latest rounds of 
dialogue have produced concrete steps to improve relations in ways that 
will directly benefit the Indian and Pakistani people, particularly on 
easing barriers to trade and commerce. It is our hope that this process 
of normalization in both directions, including the eventual extension 
of most-favored-nation status by Pakistan and the reduction of 
nontariff barriers by India, will lead to expanded economic opportunity 
and stability for both countries that also could serve as a much-needed 
catalyst for regional integration.
    With respect to security cooperation with India, homeland security 
and counterterrorism cooperation are areas where our partnership with 
India now operates at unprecedented levels. If confirmed, I will 
continue to encourage a close, productive, and cooperative relationship 
with India in these areas that includes regular and frequent exchanges 
of information. We are committed to providing India full support in 
ongoing counterterrorism investigations, through continued exchanges 
between designated agencies and by bringing the perpetrators of the 
2008 Mumbai terrorism attack to justice, which killed Americans along 
with citizens of many other countries. We remain deeply concerned about 
the potential of another terrorist attack--in India, the United States, 
and elsewhere in the world--and are working very closely with our 
Indian and Pakistani colleagues to prevent such an incident.

    Question. What steps is the administration taking to pressure the 
Pakistan Government to bring those responsible for the November 2008 
Mumbai terrorist attacks to justice? What further steps would you 
suggest be taken?

    Answer. We continue to press Pakistan to bring those responsible 
for the 2008 Mumbai attacks--which claimed the lives of six Americans 
among the scores of innocent victims--to justice. Moreover, we have 
stressed to Pakistani authorities the dangers of Lashkar-e-Taiba (LeT) 
and the importance of efforts to disrupt the group's activities. We 
also remain concerned about the potential of another terrorist attack--
in India, the United States, or elsewhere in the world--and are working 
closely with our Indian and Pakistani colleagues to prevent such an 
incident. We have a close, productive, and cooperative relationship 
with India on counterterrorism that includes regular and frequent 
exchanges of information. We are committed to providing full 
cooperation and support in ongoing counterterrorism investigations, 
through continued exchanges of information between designated agencies 
and by bringing the perpetrators of the 2008 Mumbai terror attack to 
justice. Homeland security and counterterrorism cooperation are areas 
where our partnership with India operates at unprecedented levels.

    Question. The Indian Government has traditionally been slow to open 
its doors to foreign investment. How can we advance the ability of U.S. 
companies to invest in India? There are regulations now permitting 
foreign single brand retailers to operate in India. How can we further 
discussions with India to allow a broader range of retail industries to 
fully operate in India?

    Answer. We encourage India to have an open and welcoming 
environment to foreign investment including investment from the United 
States. We are always looking for new ways to support U.S. businesses 
overseas and facilitate opportunities for investment that India needs 
to support its development goals, particularly in infrastructure. 
Though businesses interested in investing in India do face some 
challenges, we are encouraged by the Indian Government's intention to 
liberalize investment into some sectors, including retail. One 
mechanism we have to directly advance the ability for U.S. companies to 
do business or have a level playing field when they invest in India is 
continued negotiations on and completion of a bilateral investment 
treaty (BIT). A BIT would deepen our economic relationship with India 
and provide important protections to investors of each country. If 
confirmed, I will encourage India to continue making progress on 
economic liberalization, which supports jobs and growth in both our 
countries.

    Question. We have had on-and-off negotiations with India on a 
bilateral investment treaty. How would completion of such a treaty 
advance the ability of U.S. companies and enterprises to invest in 
India?

    Answer. We had very positive Bilateral Investment Treaty (BIT) 
technical discussions with our Ministry of Finance and Ministry of 
Commerce counterparts last October, and are looking forward to the next 
round of discussions being scheduled for this spring. High-standard 
BITs like that which we hope to conclude with India can encourage 
investment by improving investment climates, promoting economic 
reforms, and strengthening the rule of law. Completion of the BIT could 
provide investors in India and the United States increased market 
access; protections that guard against discriminatory, arbitrary, or 
otherwise harmful treatment of investments; and legal remedies for 
breaches of the treaty. If confirmed, I will encourage continued, 
robust engagement to work together to conclude a BIT that will support 
our efforts to promote economic growth and job creation, and to advance 
our strategic engagement with India.

    Question. In India there is a large community of exiled Tibetans, 
led by the Dalai Lama and the new democratically elected Kalon Tripa 
(whom the Tibetans refer to as their Prime Minister), which has been 
hosted by the Indian Government for many years and which receives some 
funding from the United States. Will you include this programmatic 
assistance in your oversight of U.S. programs in India, and will you 
meet with His Holiness Dalai Lama and the Kalon Tripa to discuss issues 
of mutual concern?

    Answer. We appreciate the fact that India for many years has 
provided a welcome reception for refugees from Tibet. The State 
Department, through the Bureau of Population, Refugees, and Migration 
(PRM), oversees U.S. assistance to the Tibetan refugee population in 
India and Nepal. In India, support has centered around humanitarian 
assistance for Tibetan refugees in the area of new refugee arrivals, 
health, and education. PRM also funds two Tibetan Refugee Reception 
Centers in New Delhi, and Dharamsala, as well as a transit center in 
Kathmandu, through regular contributions to the Tibet Fund ($2.3 
million in FY11). The USG is in the process of increasing support for 
Tibetan settlements in India and Nepal through a USAID-funded grant to 
support organic agriculture and livelihood development. The U.S. 
mission to India supports the Tibetan Scholarship Program through a 
congressionally mandated grant to the Tibet Fund. Mission India has 
been and will remain involved in supporting this assistance.
    Like previous Ambassadors to India, if confirmed, I plan to 
continue the tradition of engagement on Tibetan refugee issues, 
including meeting with His Holiness, the Dalai Lama, as an 
internationally recognized religious leader and Nobel Laureate, and 
recipient of the Congressional Gold Medal.

    Question. What high-level exchanges have occurred between our 
governments regarding the status of liability protections for U.S. 
nuclear exporters to India? What further steps would you suggest to 
encourage greater cooperation on this issue? And more broadly, what is 
current state of our energy dialogue with New Delhi?

    Answer. Completing our civil nuclear cooperation partnership is 
central to both our nations' long-term prosperity and India's future 
energy security. Senior executive branch officials from State, Energy, 
Commerce, and the White House have raised our concerns with their 
counterparts in the Indian Government over the past year. Prime 
Minister Singh agreed last November to host a delegation of U.S. 
officials and private companies to discuss our concerns and to find a 
way ahead ``within the four corners'' of Indian law. We heard clearly 
in this first meeting India's commitment to ensuring a level playing 
field for U.S. companies, which was reiterated during Foreign Secretary 
Mathai's early-February visit to Washington. Our companies are 
interested in continuing our discussions on liability as well as in 
making tangible progress on commercial arrangements this year. If 
confirmed, I will continue our engagement at all levels on this 
matter--political, legal, and commercial--and believe we will make 
measurable progress this year.
                                 ______
                                 

      Responses of Hon. Nancy J. Powell to Questions Submitted by
                      Senator Robert P. Casey, Jr.

    Question. Although international conventions place liability for 
nuclear accidents solely with the operators of nuclear reactors, 
current Indian law would also make suppliers potentially liable. 
American companies like Westinghouse that wish to provide peaceful 
nuclear technology to India could be held at unreasonable liability 
levels, and maintain that they can not bid on Indian nuclear contracts 
until the liability law is changed. Meanwhile, French and Russian 
companies, which might not have the same reservations with respect to 
the liability law, are aggressively pursuing this market.

   Based on the United States assessment of the Indian 
        political situation, how possible is a change in Indian 
        liability law?
   As Ambassador, what specific steps will you take to ensure 
        that U.S. companies are able to compete for this critical 
        market?

    Answer. Completing our civil nuclear cooperation partnership is 
central to both our nations' long-term prosperity and India's future 
energy security. Senior executive branch officials from State, Energy, 
Commerce, and the White House have raised our concerns with their 
counterparts in the Indian Government over the past year. Prime 
Minister Singh agreed last November to host a delegation of U.S. 
officials and private companies to discuss our civil nuclear 
cooperation and to find a way ahead ``within the four corners'' of 
Indian law. We heard clearly in the first meeting of this group India's 
commitment to ensuring a level playing field for U.S. companies. Indian 
Foreign Secretary Mathai reiterated this during his early-February 
visit to Washington, declaring at Center for Strategic and 
International Studies, that American firms will be provided a level 
playing field, and the Indian Government is prepared to address 
specific concerns within the framework of the law. We have remained 
engaged and must now take practical steps to advance our cooperation 
with Foreign Secretary Mathai. Our companies are interested in 
continuing our discussions on liability as well as in making tangible 
progress on commercial arrangements this year. If confirmed, I will 
continue our engagement at all levels on this matter--political, legal, 
and commercial.

    Question. Despite mounting international support for isolating the 
Iranian regime, India continues to not cooperate fully in sanctioning 
Iran. While it has taken steps to diminish its financial and energy 
ties with Iran, it continues to do a limited amount of business with 
the country.

   What is the United States doing to translate India's stated 
        opposition to a nuclear-armed Iran into concrete action aimed 
        at preventing the regime's acquisition of a nuclear weapon?
   As Ambassador, how will you work to increase India's 
        commitment to isolating the Iranian regime? What specific steps 
        will you encourage India to undertake in the near term to 
        demonstrate this commitment?

    Answer. India is very cognizant of the significant regional 
implications that would result from Iran acquiring a nuclear weapon, 
and Prime Minister Singh has stated on multiple occasions that an 
Iranian nuclear weapons program would be unacceptable to India. 
Moreover, India has voted four times with the United States in the 
International Atomic Energy Agency (IAEA) Board of Governors on Iran's 
nuclear program and consistently has called on Iran to fulfill its 
international obligations as a nonnuclear weapon state under the 
Nuclear Non-Proliferation Treaty and comply with EU and UNSC 
resolutions. If confirmed, I will work closely with my counterparts in 
India to ensure that our governments continue to send a strong message 
to Iran that its behavior is unacceptable and carries serious 
consequences. Already, Indian companies have, to the best of our 
knowledge, ceased activities such as selling refined petroleum products 
to Iran. However, Iranian oil continues to represent a significant--
though steadily declining--share of Indian oil imports. If confirmed, I 
want to work closely with Indian officials to identify and encourage 
alternative sources of imported oil that also will help to ensure 
India's energy security for the future.

    Question. Despite the high demand for physicians in many areas of 
the United States, Indian physicians have encountered difficulty in 
obtaining their J-1 visas to enter the United States. Hospitals in 
underserved areas of Pennsylvania have benefited greatly from their 
experience with visiting Indian physicians, but undue delays in issuing 
visas have prevented some physicians from entering the country.

   What steps is the United States taking to improve the 
        efficiency of the J-1 visa process for foreign physicians, 
        particularly those with agreements to work in Medically 
        Underserved Areas?
   As Ambassador, how will you work to ensure that Indian 
        physicians with the required licenses and certificates are able 
        to obtain visas and enter the United States in a timely manner?

    Answer. Upon completion of a J-1 medical residency program 
sponsored by Educational Commission for Foreign Medical Graduates, many 
physician applicants who wish to adjust to an H-1B status in order to 
work in a U.S. hospital must obtain a waiver of the 2-year residency 
requirement required by INA 212(e). Once an applicant completes the J-1 
waiver application adjudication process with the Waiver Review 
Division, it forwards any favorable recommendations to U.S. Citizenship 
and Immigration Services (USCIS), which has the authority to grant 
waivers. The Department is committed to completing these decisions 
within 4 to 6 weeks, so that applicants can receive a timely decision 
from USCIS.
    Currently, Consular Team India works diligently to facilitate all 
legitimate travel to the United States. We have not experienced any 
significant delays in issuing 
J-1 visas to Indian physicians with the appropriate licenses, 
certificates, and documents. We anticipate strong future growth in visa 
demand in India and will continue to focus on leveraging our resources 
and expertise to maintain our short appointment wait times, currently 
less than 10 days across the country, and efficient handling, with 97 
percent of cases processed by the next business day. Although we 
recommend that everyone apply early, any visa applicant who urgently 
needs to travel can request an expedited visa appointment.


 NOMINATIONS OF FREDERICK D. BARTON, WILLIAM E. TODD, AND SARA MARGLIT 
                                 AVIEL

                              ----------                              


                        TUESDAY, MARCH 13, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Frederick D. Barton, of Maine, to be an Assistant 
        Secretary of State (Conflict and Stabilization 
        Operations) and to be Coordinator for Reconstruction 
        and Stabilization
Hon. William E. Todd, of Virginia, to be Ambassador to the 
        Kingdom of Cambodia
Sara Margalit Aviel, of California, to be United States 
        Alternate Executive Director of the International Bank 
        for Reconstruction and Development
                              ----------                              

    The committee met, pursuant to notice, at 10:05 a.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Tom Udall 
presiding.
    Present: Senators Udall and Corker.

              OPENING STATEMENT OF HON. TOM UDALL,
                  U.S. SENATOR FROM NEW MEXICO

    Senator Udall. The Senate Foreign Relations Committee will 
now come to order.
    Let me welcome our nominees who are here this morning: the 
Honorable Frederick D. Barton, of Maine, to be Assistant 
Secretary of State for Conflict and Stabilization Operations 
and also the Coordinator for Reconstruction and Stabilization; 
the Honorable William E. Todd, of Virginia, to be Ambassador to 
the Kingdom of Cambodia; and Ms. Sara Aviel, of California, to 
be the United States Alternate Executive Director of the 
International Bank for Reconstruction and Development.
    We meet this morning to consider these three nominations, 
which are important to achieving the smart power goals of the 
United States--Ambassador Frederick Barton to be Assistant 
Secretary of Conflict and Stabilization, as I have said, and 
the Honorable William Todd and Mrs. Sara Aviel. All of these 
nominees play a crucial role in promoting the smart power of 
the United States.
    In 2009, Joseph S. Nye Jr., a Harvard professor, former 
Assistant Secretary of Defense for International Security and a 
former chair of the National Intelligence Council, wrote a 
piece in Foreign Affairs titled, ``Get Smart: Combining Hard 
and Soft Power.'' In this piece, he began with a statement by 
Secretary of State Hillary Clinton, who, at her confirmation 
hearing, stated: ``America cannot solve the most pressing 
problems on our own, and the world cannot solve them without 
America. We must use what has been called smart power, the full 
range of tools at our disposal.''
    Joseph Nye Jr. would conclude in his piece that, ``The 
United States can become a smart power by once again investing 
in global public goods, providing things that people and 
governments in all quarters of the world want but cannot attain 
on their own. Achieving economic development, securing public 
health, coping with climate change, and maintaining an open, 
stable international economic system all require leadership 
from the United States.
    ``By complementing its military and economic might with 
greater investments in its soft power, the United States can 
rebuild the framework it needs to tackle tough global 
challenges. That would be true smart power.'' And he ended 
there.
    The three nominees we are considering today will all serve, 
if confirmed, at the front lines of smart power for the United 
States. Since the earliest days of our republic, our 
Ambassadors have served at the tip of the spear of our 
diplomatic mission, using smart power when it was simply known 
as diplomacy.
    Our Ambassador to Cambodia will continue the long legacy of 
past Ambassadors to the region. The formation of the 
International Bank for Reconstruction and Development was one 
of the early tools the United States employed immediately after 
World War II to help promote stability and development across 
the globe.
    The International Bank for Reconstruction and Development 
has been responsible for fostering economic development and 
stability in developing countries, improving lives, and working 
to prevent conflict through economic development before it 
occurs. The Alternate Executive Director of the International 
Bank for Reconstruction and Development plays a key role in 
tackling the World Bank's development goals.
    And today, we will also consider the nominee to fill a new 
position, the Assistant Secretary of State for Conflict 
Stabilization Operations and Coordinator for Reconstruction and 
Stabilization. These new positions present many opportunities 
to improve coordination between agencies from within the State 
Department to respond to conflicts and prevent them from 
occurring.
    So we welcome our nominees today, and as I am going to--if 
Senator Corker wants to make any opening, or we can go directly 
to your statements. Feel free to introduce family members that 
are here and any description you have of them. I know some of 
you have some family members that have some history either with 
the Department or service overseas. And we very much appreciate 
the sacrifice we know that the entire family makes in these 
kinds of positions.
    And with that, Senator Corker, if you want to say a few 
words, welcoming, and then we will proceed to the witnesses.

                 STATEMENT OF HON. BOB CORKER,
                  U.S. SENATOR FROM TENNESSEE

    Senator Corker. Thank you, Mr. Chairman.
    The chairman knows I don't make a lot of opening 
statements. But we welcome each of you and certainly your 
families. Sometimes the families can have greater impact than 
the nominees. But we thank you all.
    I know that Ms. Aviel has been in our office several times 
since last fall. I may not stay for a lot of questioning after 
your original testimony, but we will follow up with other 
questions.
    But we thank all of you for your willingness to serve in 
this way and coming before us today, and I look forward to your 
statements.
    Senator Udall. Thank you.
    And please, your full statement will be in the record. So 
we're asking you to just address the committee for 5 minutes at 
this point. And why don't we start with Mr. Barton?

   STATEMENT OF HON. FREDERICK D. BARTON, OF MAINE, TO BE AN 
   ASSISTANT SECRETARY OF STATE, CONFLICT AND STABILIZATION 
   OPERATIONS, AND TO BE COORDINATOR FOR RECONSTRUCTION AND 
                         STABILIZATION

    Ambassador Barton. Great. Thank you very much, Senator 
Udall. Thank you, Senator Corker. It is great to be here today.
    I would also like to give a special thanks to your 
colleagues, Senator Kerry and Senator Lugar, for their path-
breaking work in this conflict and crisis space. They have been 
pushing for us to do what we are trying to do right now for a 
number of years, and happy to have this opportunity, if 
confirmed.
    I would also like to thank the SFRC staff. They have been 
working this issue for as long as I have been around, and would 
to say that since my father was on this staff many, many years 
ago, it is great to be back in this place. I think he might be 
making it here, but he is 91, and sometimes he will move at his 
own pace, I find. But he is an old friend of Bertie's and 
others. And so, it really does feel good to be back here.
    My deepest thanks to President Obama and Secretary Clinton 
for giving me this opportunity and, obviously, to Ambassador 
Rice for having called upon me to serve in New York.
    Mine is a lifelong commitment to public service, and the 
advancement of peaceful democratic change is what I have been 
trying to do for the last 18 years. Obviously, much of that 
foundation is built on the service of my parents, and it has 
been reinforced by my wife, Kit Lunney, who is here, and our 
daughter, Kacy, who is serving the public in her own way as 
well.
    So it is great to have everybody here today. I have heard 
``break a leg'' more often in the last 24 hours than I have 
probably in the rest of my life, so.
    Senators, you have my written testimony. So what I would 
like to do is just bring together three of the elements of the 
testimony.
    First, today's conflicts and crises present fresh 
challenges. Whether it is popular revolts, economic collapses, 
threats without borders, or hyperemergencies where a 
combination of factors come together, we are being challenged 
in a very different way. The United States will continue to 
play a pivotal, if not a dominant role, and we must be more 
ready.
    To be more effective, we have to especially expand in the 
area of local ownership. And CSO can help by making sure that 
the U.S. Government model is built off of an analysis that is 
driven by local voices. Second, that has to lead into an 
integrated strategy with really clear priorities, two or three 
priorities. And then the resources that the U.S. Government has 
have to be driven at those particular elements.
    We can't be all over the place. We have to answer the 
question ``What is most needed?'' rather than ``What can the 
United States do?''
    And third, I believe that CSO's success in the coming year 
is going to be determined by two key elements. Whether we will 
have a real impact in two to three places of significance to 
the United States, and will we be able to build a trusted and 
respected team?
    If confirmed, that will be my intent, and I will make sure 
that our relationship with the Congress is open and responsive 
in every way.
    Thank you again for this honor.
    [The prepared statement of Ambassador Barton follows:]

               Prepared Statement of Frederick D. Barton

    Chairman Udall, Senator Corker, and members of the committee, it is 
an honor to appear before you today. Thank you for your support in 
creating the Bureau of Conflict and Stabilization Operations (CSO), and 
to President Obama and Secretary of State Clinton for giving me this 
opportunity. Public service is a family commitment, and I am grateful 
to my wife, Kit Lunney; our daughter, Kacy; my late mother, Nancy; and 
my father, Bob, who served this committee at the end of his career, for 
their encouragement.
    The State Department's Quadrennial Diplomacy and Development Review 
(QDDR) concluded that ``we must be faster, more innovative, and more 
effective than [the] forces of instability and we must be flexible 
enough to adapt to rapid changes that occur in conflict.'' To 
strengthen our coherence and cohesion in preventing and responding to 
conflict and crisis, Secretary Clinton established CSO.
    Its mission is to prevent countries' descent into crisis and speed 
their emergence from conflict, thereby contributing to a more peaceful, 
just world. If we succeed, our investments will save the lives of both 
local civilians and Americans. Our work will also save money by 
avoiding expensive military interventions, and help produce resilient 
societies that contribute to the global economy.
    CSO will build on the valuable conflict-related work of its 
predecessor, the Office of the Coordinator for Reconstruction and 
Stabilization (S/CRS), and other parts of the U.S. Government. This 
work has ranged from helping to facilitate South Sudan's referendum on 
independence to supporting efforts to stamp out the Lord's Resistance 
Army, from working to allay ethnic violence in the Kyrgyz Republic to 
helping the Transitional National Council take charge in Libya. CSO is 
now looking at engagements on Kenya, Burma, Syria, and northern Central 
America.
    In its engagements, the Bureau first asks: ``What is most needed?'' 
And then: ``What can the U.S. do?'' Too often in conflict we begin by 
deploying costly tools regardless of whether they are right for the 
situation. Critically, solutions must be driven by local dynamics and 
actors. As Secretary Clinton has said, our job is to ``work to make 
sure a government's first obligation is to its own people.''
    CSO will improve our effectiveness by driving a rigorous four-step 
engagement process. We must start with an inclusive, joint, independent 
analysis, driven by local voices and avoiding predetermined answers. 
Second, that analysis should lead to a strategy that identifies a few 
main priorities. Third, resources--funding and personnel--should be 
directed to address these priorities, consistent with U.S. interests 
and capacity. And finally, the process must include ongoing, 
transparent measurement, evaluation, and adaptation. That includes 
applying lessons that we have learned in places like Afghanistan and 
Iraq.
    We must partner with those who will make us most effective, 
building inclusive teams from the start, making timely decisions, and 
ensuring we are all moving in the same direction. CSO works with its 
sister bureaus in the Undersecretariat for Civilian Security, 
Democracy, and Human Rights, and depends on close partnerships with 
USAID, the Department of Defense, and others. It goes without saying 
that CSO must act as an accessible and responsive partner with 
Congress.
    As I met with more than 200 stakeholders in the Department, on the 
Hill, and elsewhere, I learned that CSO faces real pressure to prove 
itself. If confirmed, I will focus on three goals for the next year: 
Bring high-impact engagements to a few strategic places where targeted 
prevention and response can be most effective; add innovation and 
agility to the approaches we use; and build a respected team and 
trusted partnerships.
    CSO is already expanding its ability to deploy while shrinking its 
overhead, simplifying its structure, consolidating offices, targeting 
efforts on key countries, and building a stronger leadership cadre in 
the Civilian Response Corps. The Corps is becoming more flexible and 
conflict-focused.
    In the last 10 years, we have learned the hard lesson that conflict 
in even the most remote state can have a serious impact on our national 
security. In over 17 years of work in more than 30 of the world's most 
unstable places, I have seen that nothing is more wasteful to human 
potential than violent conflict. If confirmed, I will bring to the job 
my personal dedication to help the United States expand the course of 
peaceful, democratic progress for people around the world and ensure 
our security here at home. Many lives--within and beyond our borders--
depend on a more timely, efficient, and organized response.
    Thank you and I look forward to your questions.

    Senator Udall. Mr. Todd, please proceed.

     STATEMENT OF HON. WILLIAM E. TODD, OF VIRGINIA, TO BE 
             AMBASSADOR TO THE KINGDOM OF CAMBODIA

    Ambassador Todd. Thank you, Mr. Chairman. Thank you, 
Senator Corker.
    Before I get started, I would like to introduce my wife, 
Ann. She has been the inspiration throughout this entire 
process. She is probably happier about this day than I am, 
getting it over.
    I would also like to introduce the heroes in my life, my 
parents, Jack and Marie Todd. My dad was a combat helicopter 
pilot. He served two tours in Vietnam, won the Silver Star. And 
my mother was a career Federal employee. And they basically 
gave me the commitment to Federal service. So, thank you.
    Senator Udall. Great to have you here.
    Ambassador Todd. I will also try to be brief, but it will 
be a little longer than my colleague.
    Mr. Chairman and members of the committee, I am deeply 
honored to come before you today as President Obama's nominee 
to be the next American Ambassador to the Kingdom of Cambodia. 
I want to thank President Obama and Secretary Clinton for their 
confidence in nominating me for this position.
    Mr. Chairman, thank you for the kind words on my 
background. For the sake of time, I will just highlight my last 
two assignments.
    As you mentioned, in 2008, I was confirmed as U.S. 
Ambassador to Brunei, where I proudly promoted democracy, human 
rights, and religious freedom and worked with Brunei to become 
a more active player in APEC, ASEAN, and as a contributor to 
regional security. I am excited by the opportunity to give back 
to the region, if confirmed.
    In 2011, I finished a 1-year tour in Afghanistan as 
Coordinator of Development and Economic Affairs. In that 
capacity, I was responsible for overseeing a $4 billion 
development program, managing over 600 Americans, and running 
the mission's regional and provincial civilian operations. It 
was the most challenging, but rewarding job I have had in my 
career, and I would happily do it again if asked.
    Mr. Chairman, I believe these past assignments, as well as 
the variety of other positions I have held in the Federal 
Government over the past 25 years, provide me with the skill 
set that will effectively advance our interests in Cambodia.
    Cambodia's modern history is one marked by tragedy, 
conflict, and survival. Today, however, we see a Cambodia that 
is refusing to let its past dictate its future and is looking 
to that future with a new sense of confidence and optimism.
    Cambodia's economy is one of the fastest-growing economies 
in Asia. That growth has created thousands of new jobs. The 
Khmer Rouge tribunal secured its first conviction in 2010, and 
the trial of case No. 2 is underway, bringing to justice the 
people who caused so much pain and suffering.
    The HIV infection rate has been reduced by two-thirds.
    Death and injuries caused by unexploded ordnances have been 
reduced by almost 75 percent, and roads that were once 
impassable have been demined and rebuilt. And Cambodia has been 
a model partner in our efforts to achieve the fullest possible 
accounting of American servicemen missing from the Indochina 
war.
    These successes have been transformative, but much work 
remains, particularly in the areas of rule of law, democratic 
institutions, human rights, combating human trafficking, and 
corruption. Mr. Chairman, if confirmed, I assure you that I 
will continue to take each of these issues head on and will 
take the lead in advancing the causes of freedom, democracy, 
rule of law, and respect for human dignity.
    Mr. Chairman, I would also like to highlight two additional 
issues that I will focus my efforts on, if confirmed. First, as 
you know, Cambodia is the ASEAN chair this year. As the United 
States pivots toward the Asia-Pacific and deepens its 
engagement, we will look to ASEAN to play a crucial role in 
maintaining and promoting regional peace and security, 
coordinating humanitarian assistance and disaster relief, and 
fulfilling the region's promise for democracy, respect for 
human rights. I see the chairmanship as an opportunity for the 
United States to partner with Cambodia, helping where we can 
and addressing together challenges when they arise.
    Second is the Lower Mekong Initiative, which is designed to 
increase cooperation within the subregion for those who live, 
work, rely on the Mekong. I believe that as ASEAN chair, 
Cambodia can help push this initiative forward by promoting 
cooperation on the environment, education, health, and 
infrastructure in order to make the region more peaceful, 
prosperous, and secure.
    In closing, Mr. Chairman and members of the committee, if 
confirmed, I will dedicate all of my energy and experience to 
advance United States foreign policy objectives in Cambodia and 
to strengthen the relationship between our two great countries. 
I look forward to working with you, this committee, and any 
interested Members of Congress to advance our shared interests 
in Cambodia.
    I would be happy to answer any of your questions. Thank 
you.
    [The prepared statement of Ambassador Todd follows:]

                 Prepared Statement of William E. Todd

    Mr. Chairman, members of the subcommittee, I am deeply honored to 
appear before you today as President Obama's nominee to be the 
Ambassador of the United States to the Kingdom of Cambodia. I want to 
thank President Obama and Secretary Clinton for the confidence they 
have shown in me by nominating me for this position. If confirmed, I 
will work closely with this committee and other interested Members of 
Congress to advance U.S. interests in Cambodia.
    Cambodia's history is marked by tragedy, conflict, and survival. 
Today, however, we see a modern Cambodia that refuses to let its past 
dictate its future. Although Cambodia is still recovering from three 
decades of strife and war, including the atrocities of the Khmer Rouge 
era, there are a number of good reasons that Cambodia is imbued with a 
new sense of confidence and optimism. Cambodia boasts one of the 
fastest growing economies in Asia over the past decade, and it is 
reforming and attempting to improve its business and foreign investment 
climate. The Khmer Rouge Tribunal, which the United States has 
supported since its inception in 2006, secured its first conviction in 
2010 and the trial of the surviving leaders of the Khmer Rouge is 
underway. These trials are important for accountability and national 
healing. Cambodia has also started to combat human trafficking, and its 
cooperation with the international community to combat terrorism is to 
be commended. Local and national elections in 2012 and 2013, 
respectively, offer an opportunity for Cambodia to renew its commitment 
to multiparty democracy. In these ways, the Cambodian people are 
seeking justice to close the darkest chapter of their recent history 
and build a new era of greater prosperity and more capable government 
and democratic institutions--and for that I believe they deserve our 
support.
    Nevertheless, despite the many significant accomplishments of the 
past 20 years, Cambodia's development remains a work in progress. 
Notwithstanding its strong record of economic growth, Cambodia is among 
the poorest countries in the world. Weak rule of law inhibits progress 
and threatens the promise of inclusive development. In addition, every 
year, hundreds of men, women, and children are killed or maimed by 
unexploded ordnance left behind as remnants of war. Food security and 
adapting to global climate change represent emerging challenges for the 
country. Most significantly, Cambodia's democratic transition is still 
unfolding. Although civil society and public media have made important 
gains in achieving political space and greater freedoms, much work 
still needs to be done to strengthen Cambodia's rule of law, democratic 
institutions, and respect for human rights.
    U.S. engagement in Cambodia has made--and can continue to make--a 
real and lasting difference. Since the United States reestablished 
relations with Cambodia in 1993, we have served as a buttress of 
support for democratic development and the protection of human rights. 
Cambodia's civil society now flourishes due to the strength and 
dedication of Cambodians willing to take action to accomplish 
extraordinary things. The United States is proud to stand by them and 
provide our support. If confirmed, I will ensure that we continue to 
take the lead in advancing the causes of freedom, democratic 
governance, the rule of law, and respect for human dignity.
    In addition to encouraging a more democratic Cambodia, our 
bilateral engagement is fostering change in other ways as well. Our 
military-to-military ties assist the Cambodian Armed Forces in their 
own efforts to professionalize, adhere to international human rights 
norms, and contribute to regional and global peace and stability. U.S. 
economic engagement helps open doors to increased U.S. investment and 
trade--something I believe will be a positive driver of change and 
development in Cambodia. Finally, the United States has been intimately 
involved in improving the health and livelihoods of Cambodians. If 
confirmed, I will work tirelessly to deepen our relationship with 
Cambodia in order to achieve greater progress on these and many other 
bilateral objectives.
    U.S. engagement with Cambodia is increasingly focused on regional 
objectives. Like the rest of Asia, Cambodia has welcomed an increased 
U.S. commitment to the region and seeks to strengthen its ties to the 
United States in order to secure its own future. Over the course of 
this year, Cambodia is serving as Chair of the Association of Southeast 
Asian Nations (ASEAN), an important collective that has a population of 
half a billion people and is already the United States fourth-largest 
trading partner. The United States has made clear that as we deepen our 
engagement with the Asia-Pacific region, we will look to ASEAN as a 
valued partner in maintaining and promoting regional peace and 
security, committing to intraregional coordination on disasters and 
humanitarian crises, fulfilling the region's promise for democracy and 
respect for human rights, and creating economic opportunities for U.S. 
business in order to increase exports and create jobs here in the 
United States. As ASEAN Chair, Cambodia can demonstrate regional 
leadership on these and other critical issues in the ASEAN Regional 
Forum and East Asia summit. In addition, the Secretary of State's Lower 
Mekong Initiative is fostering cooperation and building capacity on the 
``connective tissue'' of the subregion--especially education, public 
health, and the environment. We welcome Cambodia's partnership in this 
multicountry initiative and its efforts to make the region more 
prosperous, secure, and peaceful.
    Mr. Chairman, I believe the broad range of experience I have gained 
during my 28-year career in public service will assist me in further 
advancing our goals with the Kingdom of Cambodia. I have been in the 
Senior Executive Service for over 14 years and have had the privilege 
of managing a number of the Department's most important and complex 
programs. Recently, I finished a 1-year assignment in Afghanistan, 
where I was Coordinator of Development and Economic Affairs. I was 
responsible for overseeing a $4 billion development program, managing 
600 Americans, and running the mission's regional and provincial 
civilian operations. It was the most challenging and rewarding job I 
have had in my career and I would happily do it again if asked.
    From 2008 to 2010, I served as the U.S. Ambassador to Brunei, where 
I proudly promoted democracy, human rights, and religious freedom 
initiatives. As Ambassador, I worked closely with Brunei to help it 
play a more active role in the Asia-Pacific Economic Cooperation forum, 
in ASEAN, and as a contributor to regional security.
    Prior to serving in Brunei, I held several senior positions in the 
State Department, including Acting Inspector General. In the Bureau of 
International Narcotics and Law Enforcement, I directed global 
operations and spearheaded anticrime, counternarcotics, and 
antiterrorism programs, as well as initiatives to strengthen rule-of-
law capabilities and institutions all over the world, including 
Southeast Asia. During the mid-1990s, I helped develop and implement 
the Big and Emerging Market Strategy for the U.S. and Foreign 
Commercial Service, which expanded U.S. exports to countries like 
China, and opened U.S. Commercial Centers overseas, including three in 
Asia.
    Mr. Chairman, if confirmed, I will dedicate all of my energy and 
experience to advance U.S. foreign policy objectives in Cambodia and 
strengthen the relationship between our two countries.
    Thank you for giving me this opportunity to appear before you. I 
would be happy to answer any questions you may have.

    Senator Udall. Thank you.
    And Ms. Aviel, please.

 STATEMENT OF SARA MARGALIT AVIEL, OF CALIFORNIA, TO BE UNITED 
 STATES ALTERNATE EXECUTIVE DIRECTOR OF THE INTERNATIONAL BANK 
               FOR RECONSTRUCTION AND DEVELOPMENT

    Ms. Aviel. Chairman Udall, Ranking Member Corker, thank you 
for the opportunity to appear before you today.
    It is an honor to have been nominated by the President to 
serve as the Alternate Executive Director at the World Bank. I 
am extremely grateful to Secretary Geithner, Under Secretary 
Brainard, and U.S. Executive Director Ian Solomon for their 
support.
    I also want to thank you and your staffs for taking the 
time to meet with me. If confirmed, I look forward to advancing 
our shared commitment of making the World Bank a more effective 
and accountable organization.
    I was blessed to grow up with parents who ingrained in me a 
deep respect for other cultures and traditions. For my mother, 
who is here with me today, as a professor of international 
relations, this was her life's work. And for me, that meant 
trips that often included meetings with government and civil 
society officials and lessons about local history and politics.
    At the same time, my parents instilled in me a deep 
appreciation for my country and the tremendous opportunities, 
privileges, and responsibilities that come with being an 
American.
    For my father, it was particularly personal. As a Holocaust 
survivor, his childhood was one of horrific deprivation and 
suffering that is hard for me to even imagine. So when he told 
me that just by being born in this country was like winning the 
lottery, I believed him.
    So to now come before you with the opportunity to represent 
this great country at the World Bank, an institution formed in 
the wake of that dreadful war, is a particular honor for me.
    American leaders helped create the World Bank in the 
recognition that a multilateral institution would advance our 
smart power. In a time of high unemployment and tight fiscal 
constraints at home, the importance of the World Bank may not 
always be readily apparent.
    Yet my experience in the administration, both in my current 
role as Director of International Economic Affairs at the 
National Security Council and National Economic Council and 
previously as a senior adviser to Secretary Geithner, has 
reaffirmed the belief that support of the World Bank is a 
moral, strategic, and economic imperative for our country and 
that U.S. leadership at the institution is essential.
    The World Bank has played a central role in promoting open 
economies that become growing export markets for American 
companies. During the global financial crisis, the World Bank 
acted quickly, dramatically increasing lending to help protect 
the poorest from the worst impacts of the crisis and to restore 
liquidity for world trade flows.
    As we grapple with how best to support transitions in 
places where we have important interests at stake, like 
Afghanistan and the Middle East, we find ourselves turning 
again and again to institutions like the World Bank. Strong 
American leadership is essential. I have seen firsthand how 
often we are the driving force for action.
    Before joining the administration, my career was focused on 
international development. From war widows in Afghanistan to 
AIDS orphans in Zambia, I have worked with the world's most 
vulnerable people and experienced the successes and challenges 
of development firsthand.
    As President Obama has said, broad-based economic growth is 
the most powerful force the world has ever known for 
eradicating poverty and creating opportunity. That 
understanding led me to make leveraging the private sector a 
focus of my work. Prior to joining the Treasury Department, I 
served on the leadership team of a social investment fund that 
provided financing to small and medium enterprises in 
developing countries.
    Another theme that cuts across much of my experience is the 
need to demonstrate impact and improve effectiveness through 
rigorous evaluations of projects and sharing of best practices. 
As a lecturer at Yale University, I brought these experiences 
into the classroom as I taught my students to look beyond the 
latest development trends to the enormous complexity of 
implementation in challenging environments.
    If confirmed, I will work diligently to advance U.S. 
objectives at the World Bank by serving as a careful steward of 
U.S. taxpayer resources and promoting greater accountability, 
transparency, and effectiveness.
    I have learned invaluable lessons from being a part of 
international diplomacy and policy at the highest levels of the 
U.S. Government. And those lessons, combined with the hard-
earned experiences of working in some of the most complex 
settings, will make me an effective representative and advocate 
for U.S. interests at the World Bank.
    If confirmed, I look forward to working closely with the 
members of this committee and your staff. I have seen firsthand 
how congressional involvement can provide leverage to U.S. 
negotiators, and I will seek ways to partner together on behalf 
of the American people.
    Thank you for your consideration, and I look forward to any 
questions you might have.
    [The prepared statement of Ms. Aviel follows:]

               Prepared Statement of Sara Margalit Aviel

    Chairman Udall, Ranking Member Corker, members of the committee, 
thank you for the opportunity to appear before you today.
    It is an honor to have been nominated by the President to serve as 
the Alternate Executive Director at the World Bank. I am extremely 
grateful to Secretary Geithner, Under Secretary Brainard, and the U.S. 
Executive Director, Ian Solomon, for their support.
    I also want to thank you and your staffs for taking the time to 
meet with me. If confirmed, I look forward to advancing our shared 
commitment of making the World Bank a more effective and accountable 
organization.
    I was blessed to grow up with parents who ingrained in me a deep 
respect for other cultures and traditions. For my mother, as a 
professor of international relations, this was her life's work. And for 
me, that meant trips that often included meetings with government and 
civil societyofficials and lessons about local history and politics.
    At the same time, my parents instilled in me a deep appreciation 
for my country and the tremendous privileges, opportunities, and 
responsibilities that come with being an American. For my father it was 
particularly personal. As a Holocaust survivor, his childhood was one 
of horrific deprivation and suffering that is hard for me to even 
imagine. So when he told me that just by being born in this country was 
like winning the lottery, I believed him.
    So, to now come before you with the opportunity to represent this 
great country at the World Bank--an institution formed in the wake of 
that dreadful war--is a particular honor for me.
    American leaders helped create the World Bank in the recognition 
that a multilateral institution focused on reconstruction and 
development would advance our strategic and economic interests and 
moral values. In a time of high unemployment and tight fiscal 
constraints at home, the importance of the World Bank may not always be 
readily apparent.
    Yet my experience in the administration--both in my current role as 
a Director of International Economic Affairs at the National Security 
Council and the National Economic Council, and previously as a Senior 
Advisor to Secretary Geithner--has reaffirmed the belief that support 
of the World Bank is a moral, strategic, and economic imperative for 
our country and that U.S. leadership at the institution is essential.
    The World Bank has played a central role in promoting open 
economies that become growing export markets for American companies. 
During the global financial crisis, the World Bank acted quickly, 
dramatically increasing lending to help protect the poorest from the 
worst impacts of the crisis and to restore liquidity for world trade 
flows.
    As we grapple with how best to support transitions in places where 
we have important interests at stake like Afghanistan and the Middle 
East and North Africa, we find ourselves turning again and again to 
institutions like the World Bank.
    Strong American leadership is essential. I have seen firsthand how 
often we are the driving force for action, forging consensus in the 
midst of seemingly intractable international disputes.
    Before joining the administration, my career was focused on 
international development. From war widows in Afghanistan to AIDS 
orphans in Zambia, I have worked with the world's most vulnerable 
people and experienced the successes and challenges of development 
firsthand.
    As President Obama has said, broad-based economic growth is the 
most powerful force the world has ever known for eradicating poverty 
and creating opportunity. That understanding led me to make leveraging 
the private sector a focus of my work. Prior to working at the Treasury 
Department, I served on the leadership team of a social investment fund 
that provided financing to small and medium enterprises in developing 
countries.
    One theme that cuts across much of my experience is the need to 
demonstrate impact and improve effectiveness through rigorous 
evaluations of projects and sharing of best practices. As a lecturer at 
Yale University, I brought these experiences into the classroom as I 
taught my students to look beyond the latest development trends to the 
enormous complexity of implementation in challenging environments.
    If confirmed, I will work diligently to advance U.S. objectives at 
the World Bank by serving as a careful steward of U.S. taxpayer 
resources and promoting greater accountability, transparency, and 
effectiveness.
    I have learned invaluable lessons from being a part of 
international diplomacy and policy at the highest levels of the U.S. 
Government. Those lessons, combined with the hard-earned experiences 
working in some of the most complex settings, will make me an effective 
representative and advocate for U.S. interests at the World Bank.
    If confirmed, I look forward to working closely with the members of 
this committee and your staff. I have seen firsthand how congressional 
involvement can provide leverage to U.S. negotiators and I will seek 
ways to partner together to advance our shared goals on behalf of the 
American people.

    Senator Udall. Thank you for your testimony, all of you.
    And Ambassador Barton, as--oh, OK. Here, Ambassador Barton, 
is this your father who has just arrived here? Please, OK.
    Yes, I believe Ambassador Barton's father used to work for 
the committee and knows the gentleman here that helps us every 
day keep the committee rolling along.
    Thank you. Great to have you here today. Great to have you 
here.
    I am just about ready to start firing a question at your 
son. So you arrived right in time. [Laughter.]
    Senator Udall. Arrived right in time.
    Ambassador Barton, what role, if any, do you foresee for 
the CSO Bureau in complementing the work of the recently 
created Office of the Special Coordinator for Middle East 
Transitions, and how can USAID workers effectively assist 
countries in transition, given the enormous political, 
economic, and security challenges Arab States are currently 
facing?
    In what fields could the U.S. Conflict and Stabilization 
Operations make the most difference, and would Arab States even 
accept this kind of aid?
    Please.
    Ambassador Barton. Well, first off, in my various meetings 
that I have been going around and having, Bill Taylor was one 
of the first people that I met with. And he is one of those 
people that I feel if we can't work with him, we have no future 
in the State Department. He is just a first-rate public 
servant, and he is focused mostly on North Africa right now, 
and we are definitely working with him on--the CSO Bureau has 
already started to work with him on Libya in particular of the 
countries that he is working in.
    All of these places are so tough and so complicated that 
anybody who doesn't look for friends and partners within the 
U.S. Government is making a very big mistake. And so, I would 
hope that our Bureau, and if confirmed, under my leadership 
would fashion a pretty high degree of modesty in terms of both 
the challenges of these places and recognizing that we have to 
work closely with others.
    So we have already had extensive meetings with AID. As you 
know, I worked there. I helped to start the Office of 
Transition Initiatives, which is, I think, thought of as one of 
the really agile parts of the U.S. Government in these places.
    We need more assets and resources that are directed the way 
that OTI does it. So they are going to be a key partner as 
well.
    So then, in terms of the welcome, CSO is looking at three 
particular country cases right now in the Arab Spring world. We 
are trying to work in Libya. We are hoping CSO also has people 
working on Syria and on Yemen. And each one of those cases is 
so dramatically different.
    In Syria, we really cannot--CSO cannot work inside of the 
country. So it is all about how do you help to grow the 
opposition from within? And I know that a couple of CSO people 
have already--
last week were meeting with about 25 representatives of local 
governing councils inside of Syria, trying to figure out ways 
to strengthen that relationship. And I think that is the way to 
move in that space.
    Libya is a very different challenge because the U.S. 
Government is there. We have an Embassy. We have a mission. The 
CSO is already backing up the existing post operation there.
    But we are also being asked, CSO is also being asked to 
really address the border security issues and the militia 
issues, and those are the kinds of strategic concerns that I 
hope that the CSO will continue to be focused on.
    Yemen, again, is a very different case--much, much more 
fragile. Much, much more in transition with its new government. 
And in that case, CSO has been asked by the national security 
staff to work on the strategic planning process, which is 
really underway right now.
    So that gives you an idea of sort of the way we would go. I 
think we will--the United States help is welcome in most of 
these places, as long as it is not too heavy a hand and we 
don't take over. And there is no reason to take over because we 
don't have that ambition, and we won't be effective if we do.
    Senator Udall. Thank you.
    Ambassador Todd, there are increasing concerns that 
Cambodia's ruling party has become more authoritarian and that 
human rights and corruption issues have not been adequately 
addressed. Human Rights Watch has concluded that, and I quote 
from one of their reports, ``The government of the ruling 
Cambodian People's Party, the CPP, continues to use the 
judiciary, the penal code, and threats of arrest or legal 
action to restrict free speech, jail government critics, 
disperse peaceful protests by workers and farmers, and silence 
opposition party members.''
    What will you do to address these human rights concerns, 
and what are the best ways for the United States to work with 
the Cambodian Government to improve Cambodia's human rights 
record?
    Ambassador Todd. Thank you, Chairman.
    The overall human rights situation in Cambodia is not good. 
There are many, many, many challenges. We consider each one of 
those challenges to be a work in progress.
    As you mentioned, freedom of speech, freedom of expression 
is a problem. There are several others. We have land seizures. 
We have titling problems, where today you own something, 
tomorrow you don't. And it is subject to political whim.
    We have corruption. Transparency International ranked 
Cambodia as one of the most corrupt countries in the world.
    And then, last, we have a weak and vulnerable judiciary 
where the elite believe that they are immune from the law.
    I think the ``get well, stay well'' plan is to stay the 
course with civil society. It is to promote the political 
freedoms that has made America great. It is doing what we do 
best in human rights. It is doing what we do best by doing 
Leahy vetting.
    We also, I think, have a great opportunity with the youth 
of Cambodia. Seventy percent of Cambodia is 30 or younger, and 
believe it or not, the young--now that I am 50, 30 is young--
they love America. They think that we are the greatest thing 
since sliced bread.
    And so, if confirmed, what I would like to do is to deliver 
the hard messages to the leadership on these human rights 
issues and also promote the political freedoms that we hold 
near and dear as Americans to all of society, but particularly 
the youth.
    Thank you.
    Senator Udall. Thank you, Ambassador Todd.
    Ms. Aviel, in your previous position, you have worked hard 
on finding a path forward out of the ongoing financial crisis. 
How do you think the World Bank has responded to the financial 
crisis, and what do you think the World Bank could have done to 
improve its effectiveness?
    Ms. Aviel. The World Bank played a very important role in 
helping us respond to the financial crisis. By tripling lending 
dramatically, it was able to prevent and mitigate the impacts 
of the crisis on the poorest. It was able to restore liquidity 
for global trade flows.
    Financial flows dropped dramatically, and the World Bank 
was able to make up some of that difference, which was very 
important.
    Senator Udall. Thank you.
    Senator Corker, if you would like to proceed with 
questioning?
    Senator Corker. Thank you, Mr. Chairman.
    And thank you again, all of you, for being here and with 
your families. And Mr. Barton is used to Senate time, and so he 
came here when we would normally start. But you got us going in 
good shape, and we are glad all of you are here.
    I am going to focus my questions with Ms. Aviel and really 
on the World Bank. Mr. Todd, I know we spent some time in 
Afghanistan while you were there, and Mr. Barton, certainly I 
have known of your past. And Ms. Aviel, you come with very high 
recommendations, I might add, and I thank you for being here.
    One of the things I guess people might focus on a little 
bit is just age and experience. It is a pretty big--I know on 
the other hand, you have 32 years a professor of international 
studies. And so, probably way beyond both the chairman and mine 
as far as experiences.
    But your role as the alternate, can you describe what those 
responsibilities are to everyone here?
    Ms. Aviel. Certainly. The Alternate Executive Director 
serves as the deputy to Ian Solomon. The World Bank has an in-
house board of directors, which is sort of an unusual 
arrangement, and they meet twice a week at least, and there are 
numerous committees.
    And so, to have a second person to be able to represent the 
United States will enable us to expand the influence of U.S. 
leadership at the institution, especially since one of the most 
important ways that you can make a difference in these roles is 
not actually waiting until things come to the board, but 
helping to work through issues beforehand. And so, having two 
people appointed by the President, confirmed by the Senate, 
enables the Executive Director's office to expand its reach.
    I believe that I have had significant experience, that the 
credibility that I have had from working in development 
settings around the world will enable me to speak with 
credibility about development issues on the ground. And I have 
also been a part of policy and diplomacy within the Government 
at the highest levels, and I have seen very effective U.S. 
leadership and----
    Senator Corker. And very ineffective U.S. leadership?
    Ms. Aviel. And I believe I will take the lessons from those 
experiences and be able to represent the United States well.
    Senator Corker. Yes. Thank you.
    How would you--and I know Mr. Solomon has been there, I 
guess, for almost 2 years now. And I don't know what the normal 
length of time is for someone to serve in this role. But do you 
see a period of time where, in essence, it is almost a 
mentoring role, or you will be working closely with him? How 
will that relationship be?
    Ms. Aviel. Well, I certainly would work hand-in-hand with 
Ian Solomon and believe that we both have different expertise 
that we will bring to the table. So certainly I would work 
closely with Ian Solomon.
    Senator Corker. Some of the developing countries really 
would like a very different role or a different type of 
presidential leadership at the World Bank, and some of them are 
saying that we really ought to--because of what the World Bank 
does, we should have a group of non-American countries deciding 
who the next leader of the World Bank should be. I am just 
wondering what your views might be on that?
    Ms. Aviel. Senator, I think American leadership has served 
the institution well. I think President Zoellick has done a 
tremendous job. Secretary Geithner issued a statement a few 
weeks ago that the President will be putting a candidate 
forward to lead the World Bank soon, and I look forward to 
supporting that candidate.
    Senator Corker. OK. Did you say the President is getting 
ready to nominate somebody in the next few weeks?
    Ms. Aviel. That is correct.
    Senator Corker. Yes. Very good. Do you know who that is?
    Ms. Aviel. I don't. [Laughter.]
    Senator Corker. Are you on the short list? [Laughter.]
    Ms. Aviel. I promise you, I am not.
    Senator Corker. The World Bank provides a lot of financial 
assistance to middle-income countries that really could access 
financial assistance from other places. There has been some 
commentary about that. I am just wondering what your views 
might be on the World Bank making loans available to countries 
that might seek financing from China or other places just as 
easily?
    Ms. Aviel. Senator, that is a very important issue. I 
certainly would like the World Bank to focus on the poorest. 
But two-thirds of the poorest do live in middle-income 
countries, and the World Bank has tremendous expertise in 
helping to target and encourage broad-based economic growth 
that is very relevant for those countries.
    The World Bank brings with it important safeguards and 
procurement standards that serve as an important model for 
those countries in terms of the projects they do across the 
board. And so, countries that could access financing from the 
capital markets find it an advantage to come to the World Bank 
because of the technical expertise and the safeguards that it 
provides.
    And it is very important that the World Bank serves as this 
model of how to finance projects. You have said, as you 
mentioned, countries can get financing from China and others, 
and it is important that the World Bank serve as an alternative 
to China financing because it brings with it much higher 
standards. It enables American companies to compete for 
procurement contracts. It brings with it environmental and 
social safeguards.
    So we greatly value the role that the World Bank plays in 
ensuring those high standards across the board.
    Senator Corker. And then, just my last question, the World 
Bank--I know you answered a question from the chairman 
regarding how it has handled the financial crisis.
    But generally speaking, where would you rank the World Bank 
today as it relates to its effectiveness and leadership and 
ability overall to address the issues that it is chartered to 
address?
    Ms. Aviel. Senator, I think the World Bank has proven 
itself as a very effective organization. It is one of the 
premier development institutions, and you can see that when 
international leaders are looking to deal with pressing issues, 
such as food security, for example, they look to the World Bank 
to lead those efforts because it has such a strong track record 
of effectiveness.
    That being said, there is always room for improvement. I 
think U.S. leadership has played a very important role in 
making the World Bank a more accountable and effective 
organization, and I would look to continue those efforts.
    Senator Corker. Well, to all three of you, thank you very 
much for coming today. Thank you for bringing family members 
with you, and thank you for being willing to serve in these 
positions.
    And all are very important. I think in particular the World 
Bank is a place, an institution that can certainly play a very 
vital role, and I thank you so much for your answers and look 
forward to seeing all of you again very soon.
    Thank you very much, Mr. Chairman.
    Senator Udall. Thank you, Senator Corker. We really 
appreciate you being here today and your insightful questioning 
always. Appreciate it.
    Senator Corker. Thank you.
    Senator Udall. Thank you.
    Ambassador Barton, as the United States and its allies 
continues to transition to an Afghan-led mission, the role of 
the State Department and USAID will increase dramatically. What 
do you think needs to be done today to create a smooth and 
effective transition in light of the many problems still facing 
Afghanistan, including corruption, which I think is still among 
the worst in the world? And what is the role envisioned for the 
conflict, the CSO operations in Afghanistan in the future?
    Ambassador Barton. Thank you, Senator.
    CSO is currently focused on trying to help the Embassy, the 
military, the U.S. military, and a range of Afghan ministries 
to advance their transition planning. That is really--that is 
what the Ambassador has asked us to focus on, and that is where 
we are concentrating our effort.
    We are on a little bit of a glide path ourselves in terms 
of leaving Afghanistan. But this particular task seems to be 
one that our people are really well suited for. And since we 
have been involved with quite a lot of the planning processes 
in the last couple years, focusing on this transition planning 
is exactly what we need to do.
    The toughest part here is obviously to make sure that the 
Afghans are in as capable a position as possible as soon as 
possible. And that is really what I think we can be helpful 
with, and that is where we are going to stay focused.
    Senator Udall. Thank you.
    Ambassador Todd, while the United States is one of the 
largest donors of foreign aid to Cambodia, I understand that 
the United States is far behind in foreign direct investment 
compared to China. By some measures, China is contributing 
foreign direct investment at a rate 10 times of the United 
States.
    How does this shortfall impact our ability to influence and 
conduct diplomacy with Cambodia, and what should the United 
States Government do to make up for this shortfall?
    Ambassador Todd. Thank you, Mr. Chairman.
    There is no denying that China is making a full-court press 
in Cambodia and throughout Asia. President Obama said recently, 
talking about China in the region, that we shouldn't look at 
this in terms of a zero-sum game. He said we have strong 
bilateral relationships. He said we are a Pacific power.
    Last year, Secretary Clinton also announced that this would 
be the century for the Asia-Pacific, and we would be pivoting 
our resources, both financial resources and human resources, 
from Iraq and Afghanistan toward Asia because it is that 
important and because they know that this full-court press is 
going on.
    And so, if I am confirmed, my goal is to obviously 
implement the pivot, if you will, of those resources. And I 
plan to do it, again, by promoting the political freedoms that 
we as Americans hold near and dear, as well as continuing the 
great programs that we have in Embassy Phnom Penh.
    Thank you.
    Senator Udall. Thank you.
    The high amount of Chinese foreign direct investment is 
changing Cambodia and the region in many different ways. One of 
the ways is an increase in environmental degradation. I was 
concerned to read a report that the Botum Sakor National Park, 
a home to tigers, elephants, and many other species, is being 
slowly sold to Chinese investors, including a Chinese real 
estate company, which is working to turn 130 square miles of 
these forests into a gambling resort.
    Is there a way for the United States to work with Cambodia 
to prevent or mitigate against such environmental destruction, 
and what will be the long-term impacts of losing critical 
pristine forest land to the developers?
    Ambassador Todd. That is an excellent question, Mr. 
Chairman.
    Cambodia is one of the poorest countries in the world. 
There is a tradeoff between protecting the environment and 
promoting economic development. At the mission in Embassy Phnom 
Penh, we have many programs that promote the environment.
    We have the Lower Mekong Initiative that has an overarching 
goal of basically promoting the environment not only within 
Cambodia, but through the four other countries. We have a 
number of programs that focus on forestry management, watershed 
management. We have the President's initiative on global 
climate change.
    We have a number of programs that address these issues and 
try to build capacity with the Cambodians. We also have a 
number of programs like Forecast Mekong, which is a climate 
change type program that basically takes the data that is 
gathered in Cambodia and compares it to other main watersheds 
around the world, particularly the Mississippi River.
    And if you have 10 minutes, if you Google it, Forecast 
Mekong, you have a wonderful video about the effects of global 
climate change on the Mekong River basin. One of the things 
that it talks about, aside from deforestation and other things, 
are the dams that are being created on the Mekong.
    And for me as a neophyte in terms of hydraulics on a river, 
one of the things that I learned is that the silt and sediment 
that comes from the north part of the river basically supports 
the southern part of the river. And what it does is it feeds 
the fish. It also replenishes the land, if you will, where the 
Mekong enters the ocean.
    And that is very important because as global climate change 
occurs, the predictions are that sea levels are going to rise. 
And studies that the Cambodians have had done and the 
internationals have done have shown that if the sea level rises 
3 feet, the country will be in very, very difficult straits.
    The rice crop will be significantly reduced. The population 
will have to move. And so, Cambodia is taking this very 
seriously, and thus, the U.S. Embassy is taking it seriously.
    So, for me, if I am confirmed, there is no more important 
thing to do than this because time is of the essence.
    Thank you.
    Senator Udall. Thank you very much.
    Ms. Aviel, the World Bank supports a wide range of projects 
around the world, and they often have an environmental 
component. Many projects fall within the theme of environment 
and natural resources management. These projects fall under the 
following categories--biodiversity, climate change, 
environmental policies and institutions, land administration 
and management, other environmental and natural resources 
management, pollution management, environmental health, water 
resource management.
    How should natural resource conservation factor into the 
planning for World Bank projects?
    Ms. Aviel. Senator, thank you for that question. It is a 
very important issue.
    The world's poorest often depend on natural resources the 
most for their livelihoods, and they are often the most 
vulnerable to environmental degradation and the impacts of 
environmental destruction. So it is very critical that the 
World Bank factor in environmental considerations and issues 
regarding sustainable management of natural resources across 
the work that it does.
    And so, it does so in two different ways. One is sort of a 
defensive approach, making sure that in any project that it 
does there is a strong environmental impact assessment that 
occurs and that there are strong environmental safeguards to 
make sure that any damage the project might do is mitigated.
    And then it also does so by having an affirmative 
environmental agenda, by working in all of the areas you 
mentioned--biodiversity. The World Bank has helped to support 
the largest tropical conservation region in the world in 
Brazil. It works to help promote sustainable management of 
fisheries.
    So it works in a variety of different ways to make sure 
that the environment and development can go hand in hand, and 
it plays a very important role in doing so.
    Senator Udall. Thank you for that answer.
    One of the keys, it seems to me, is--and it falls in the 
area of what we call ``sustainability.'' And I think all of you 
realize this, that when we do our development and we work with 
other countries that we hope that the projects over the long 
term are sustainable. And my next question to you has to do 
with the standards and how we reach for that goal of 
sustainable development.
    What standards does the World Bank have in place to ensure 
that projects funded by the World Bank do not facilitate 
logging and other resource development that is in conflict with 
international agreements and standards? And if confirmed, will 
you work to ensure the World Bank does not foster unsustainable 
natural resource development practices?
    Ms. Aviel. Senator, thank you for that question.
    If confirmed, I absolutely commit that I will be an active 
advocate for sustainability across the board. The World Bank 
has very careful policies in place. It has a forestry policy. 
It has safeguards in place to make sure that it does not 
contribute to degradation of those resources.
    And I would work very hard to make sure that those 
standards are upheld and strengthened, if needed.
    Senator Udall. Thank you.
    Thank you. I guess we don't have any other Senators 
attending today and going to ask questions. So you are spared 
some additional questions here.
    We very much appreciate your testimony, your commitment to 
service, and we really look forward to seeing you serve in 
these positions and continuing to visit with us on the 
committee and with Members of Congress.
    So, with that, we are going to keep the record open for 48 
hours so that any additional questions can be submitted to you, 
and we hope you will get back with us promptly on that.
    Senator Udall. And we would hope that the committee will 
move expeditiously on these nominees.
    And having no further questions, the committee is 
adjourned.
    [Whereupon, at 10:50 a.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


        Responses of Frederick D. Barton to Questions Submitted
                        by Senator John F. Kerry

    Question. In your testimony, you stated that CSO must partner with 
those who will make us most effective. However, there have been some 
concerns that agencies such as the Department of Agriculture and the 
Department of Justice will play much smaller roles in the new Civilian 
Response Corps. What role do you envision for other agencies and what 
steps will you take to ensure that a whole of government approach 
continues to be a key element of the program?

    Answer. The Quadrennial Diplomacy and Development Review (QDDR) 
calls on the Bureau of Conflict and Stabilization Operations (CSO) to 
improve U.S. Government effectiveness in conflict areas. To be more 
innovative and agile, CSO is developing a new model for the Civilian 
Response Corps (CRC) that will focus its work on conflict-related 
issues and expand its access to interagency skills.
    Rather than support a larger standing group that can address the 
panoply of issues facing a country (a just-in-case model), the Corps 
will focus on deploying targeted experts quickly to address priority 
issues in conflict (a just-in-time model). This reduction in the size 
of the CRC-Active component will help address the need to move 
resources toward field operations in a restrictive budget environment.
    If I am confirmed, we will seek to build the CRC-Active component 
on a leadership cadre made up of those with proven effectiveness in the 
field and conflict-focused skills, such as conflict analysis, 
prevention tools, contingency planning, and expeditionary operations. 
In CSO engagements, the ability to understand conflict dynamics and 
U.S. Government responses has proven more important than 
reconstruction-related technical expertise.
    To tap more specific areas of expertise such as rule of law or food 
security, CSO plans to rely more upon its CRC-Standby capacity. The 
model will allow CSO to reach more broadly across the Federal 
Government to find the right people at the right time.
    In addition, CSO will seek to include the widest possible range of 
partners, including the interagency, from the beginning of its 
engagements. The result should be a single expeditionary team made up 
of leaders and experts, rather than the inefficient parallel structures 
that previously existed.
    This model is the product of extensive analysis and deliberation, 
including examination of:

   Use of CRC and related personnel from 2005-11, and our 
        evolving relationship with posts and bureaus seeking our 
        support;
   The QDDR;
   A Multi-Criteria Decision Analysis Force Review of the Corps 
        conducted in 2010;
   Observation of peer organizations' interagency relations; 
        and
   The work of the transition team designing CSO in summer 
        2011.

    In sum, CSO will maintain a whole-of-government approach, albeit in 
a more targeted manner.

    Question. As you also noted in your testimony, CSO was established 
in order to strengthen our coherence and cohesion in prevention and 
responding to conflict and crisis. Please expand on the role you 
envision for CSO in conflict prevention, if confirmed. As part of this 
discussion, please comment on what role CSO could play in training 
other Foreign Service officers in conflict prevention through the 
Foreign Service Institute?

    Answer. CSO advances conflict prevention through policy, strategy, 
and practical applications in conflict/preconflict areas around the 
world.
    In the policy realm, CSO works with the State Department, National 
Security Staff, and other departments and agencies to ensure that the 
U.S. Government can identify where creative approaches can head off 
violence and channel conflicts toward peaceful solutions. CSO is 
already supporting policy initiatives such as Presidential Study 
Directive 10 on prevention of genocide and mass atrocities, including 
creation of an Atrocities Prevention Board. CSO is also supporting 
efforts to make the National Action Plan for Women, Peace and Security 
vital and productive. These cross-cutting efforts offer practical ways 
to influence how U.S. agencies work to prevent conflict.
    In CSO's engagements, the critical first step is analysis. CSO uses 
a systematic, participatory approach to capturing local voices and 
understanding the deep causes of conflict and community strength. 
Through analytical tools, such as the Interagency Conflict Assessment 
Framework (ICAF) and Conflict Prevention Matrix, CSO can identify and 
build on indigenous resilience so that U.S. policies and programs can 
focus on the root causes of the conflicts, and be sustained by our 
partner nations.
    CSO is exploring innovative ways to help U.S. embassies or host-
nation partners respond to conflicts. Its staff members have a wide 
range of skills and experiences from both the government and private 
sector. CSO can provide technical advice, research capacity, mediation 
and negotiation support, lessons from past experience, and other 
assistance. For example, CSO is currently working with an embassy and 
host country to design and implement community-based mediation, focused 
on gangs. Providing mediation training to local communities, including 
gang members, ensures the sustainability of the endeavors.
    Since its creation in 2004, the Office of the Coordinator for 
Reconstruction and Stabilization (S/CRS) and now CSO has played a 
leading role in providing conflict prevention training to Department of 
State personnel. We have worked closely with our partners at the 
Foreign Service Institute (FSI) to determine the best means--whether 
through social media, classroom instruction, or blended learning--of 
training Foreign Service Officers (FSO) and other U.S. Government 
personnel on mainstreaming civilian security and preventing conflict.
    CSO's new Office of Learning and Training (OLT) will continue 
working closely with FSI to add further innovation to the approaches we 
use when preparing FSOs for response activities across the globe. If 
confirmed, one of my priorities will be to expand and institutionalize 
conflict prevention and response learning opportunities throughout the 
Department.
                                 ______
                                 

          Responses of William E. Todd to Questions Submitted
                        by Senator John F. Kerry

    Question. Cambodia will chair the Association of Southeast Asian 
Nations (ASEAN) this year. In what ways will you seek to promote common 
interests and values in venues such as the U.S.-ASEAN Leaders Meeting, 
the ASEAN Regional Forum, and the East Asia summit in 2012?

    Answer. As Chair for ASEAN and its associated multilateral bodies 
such as the East Asia summit, the ASEAN Regional Forum, and the ASEAN 
Defense Ministers Meeting Plus, Cambodia plays a critical role in 
setting the tone and agenda of these bodies over the course of the 
year. The United States supports Cambodia's chairmanship and will urge 
Cambodia to view 2012 as an opportunity to demonstrate to the world 
that it is a responsible leader at home and in the region.
    The United States is looking to ASEAN to play a key role in 
maintaining and promoting regional peace and security. I see Cambodia's 
chairmanship as an opportunity for the United States to partner with 
Cambodia, helping where we can, and addressing together regional 
challenges within the ASEAN framework. Specifically, if confirmed, I 
will work closely with the Cambodian Government to use its ASEAN year 
to secure progress on U.S. objectives, such as regional and maritime 
security, nonproliferation, humanitarian assistance and disaster 
relief, fulfilling the region's promise for democracy and respect for 
human rights, and deepening our trade with Southeast Asia to increase 
U.S. exports to the region and create jobs in the United States.

    Question. A number of well-informed observers contend that a draft 
law on associations and NGOs in Cambodia could seriously constrain 
their ability to operate. What role does civil society play in 
Cambodia, how does the United States support their role, and how would 
you encourage the Cambodian Government to protect this important 
political space?

    Answer. The United States firmly believes that a healthy, 
independent civil society is absolutely vital for the advancement of 
democracy and prosperity around the world. Civil society organizations 
play a key role in promoting respect for human rights, defending human 
dignity, and advancing human progress. Cambodia is no exception. 
Cambodian civil society organizations contribute to growing grassroots 
activism. International NGOs are also invaluable to monitoring 
developments in Cambodian society, advancing key protections, and 
providing assistance programs. The United States has worked to nurture 
these developments.
    In December 2011, following a year of intense scrutiny and pressure 
by national and international NGOs, as well as public and private 
engagement by the United States, Prime Minister Hun Sen announced that 
his government would continue consultations with civil society on the 
draft law until 2014 if necessary to achieve government-civil society 
consensus.
    The United States has strongly and consistently expressed in 
private and public venues our deep concern for the status of civil 
society in Cambodia, and we remain absolutely dedicated to advancing 
and protecting civil society and its role in Cambodia's development. 
The United States has encouraged the Cambodian Government to consult 
with civil society groups on the substance of any future draft law and 
has publicly called on the Cambodian Government to reconsider pursuing 
any legislation that would hinder the development and important work of 
civil society organizations.
    The United States is a strong supporter of civil society 
organizations in Cambodia, and engages with them in a number of ways. 
For example, USAID funding builds political party and civil society 
capabilities to improve greater transparency and engagement of citizens 
in public policy and political processes. The State Department and 
USAID partner with civil society to monitor and report human rights 
violations, protect human rights defenders, and increase the capacity 
of government institutions and the judiciary. The United States also 
works closely with NGOs who are engaged in efforts to improve the 
health, safety, and economic well-being of the Cambodian people.
    I view our civil society friends as vital partners and, if 
confirmed, will work closely with them. I will do everything I can to 
protect and support Cambodia's flourishing civil society. If confirmed, 
I will make U.S. support for civil society a pillar in every U.S. 
foreign policy objective I pursue in Cambodia, including humanitarian 
and foreign assistance, political and economic diplomatic engagement, 
and security and law enforcement cooperation.

    Question. The Lower Mekong Initiative (LMI) is a multinational 
effort spearheaded by Secretary of State Hillary Clinton to promote 
cooperation and capacity-building among the United States and Lower 
Mekong Delta countries (e.g., Cambodia, Laos, Thailand, and Vietnam) in 
the areas of education, health, environment, and infrastructure. If 
confirmed, how would you further the aims of the LMI program? From your 
perspective, is the program adequately resourced to meet its 
objectives?

    Answer. Since Secretary Clinton launched the LMI in July 2009, the 
United States has worked in cooperation with Cambodia, Laos, Thailand, 
and Vietnam to launch and expand a number of projects designed to 
address the pressing transnational environmental and developmental 
challenges affecting the communities in the lower Mekong basin. The 
United States welcomes Cambodia's partnership in this multicountry 
initiative and its efforts to make the region more prosperous, secure, 
and peaceful. If confirmed, I will strongly support and advance the 
LMI's efforts to nurture and build the ``connective tissue'' of the 
subregion by emphasizing the strength of the U.S. commitment to, and 
the importance of, the LMI in my discussions with Cambodian officials 
as well as by raising specific issues relative to the LMI as they 
develop. As likely host of the next LMI Ministerial and Friends of 
Lower Mekong donor coordination ministerial meeting, if confirmed, I 
will work closely with the Cambodian Government to ensure these 
meetings advance the Secretary's vision by identifying tangible areas 
to build the capacity of the region and combine our efforts with other 
partners.
    Overall fiscal constraints in the foreign affairs budget have 
placed limits on our ability to increase direct resources for EAP 
regional programs, including LMI. However, we are working in close 
coordination with a wide spectrum of interagency partners to leverage 
and expand existing programs to support our key objectives for this 
important initiative. If confirmed as Ambassador, it will be my job to 
effectively and efficiently implement the LMI budget in Cambodia.

    Question. Section 620M of the Foreign Assistance Act of 1961 
imposes restrictions on assistance to any unit of a foreign country's 
security forces for which there is credible evidence that the unit has 
committed gross violations of human rights. U.S. embassies are heavily 
involved in ensuring compliance with this requirement.

   If confirmed, what steps will you take to ensure that the 
        Embassy effectively implements section 620M?
   In particular, what actions will you take to ensure, in a 
        case in which there is credible evidence that a gross violation 
        of human rights has been committed, that assistance will not be 
        provided to units that committed the violation?
   What steps will you take to ensure that the Embassy has a 
        robust capacity to gather and evaluate evidence regarding 
        possible gross violations of human rights by units of security 
        forces?

    Answer. Under standard State Department vetting procedures, every 
individual and unit proposed for State-funded security assistance or 
Defense Department training is vetted, both in Phnom Penh and 
Washington, DC, for credible information of involvement in gross 
violations of human rights and in strict accordance with U.S. law and 
State Department policy. ``Leahy vetting'' is conducted under the 
International Vetting and Security Tracking (INVEST) system, the 
Department's uniform system for vetting worldwide since January 2011. 
In addition to the various internal background checks conducted at the 
U.S. Embassy, which uses information the Embassy has amassed from 
contacts and open sources, Embassy personnel also check names against a 
database maintained by a prominent human rights NGO. This database 
tracks human rights violations throughout the country and includes 
cases submitted by NGO monitors and contacts in the provinces. In 
Washington, the Department of State's Bureaus of Democracy, Human 
Rights and Labor and East Asian and Pacific Affairs vet Cambodian 
candidates by reviewing information from multiple sources to ensure 
that U.S. funding is not used to train individuals or units if there is 
credible information implicating them in gross human rights violations.
    Senior Department of Defense visitors to Cambodia discuss human 
rights issues in their meetings with senior officials of the Royal 
Cambodian Armed Forces (RCAF) and Ministry of National Defense (MoND). 
The RCAF and MoND are fully aware of our position on gross human rights 
violations as it pertains to security training, and all units and 
individuals receiving training are required to receive human rights 
awareness training prior to the start of any U.S.-funded program.
    If confirmed, I pledge to continue strict adherence to U.S. law and 
State Department procedures. Where credible information exists of gross 
human rights violations, candidates implicated in the violations will 
not receive any assistance per the law. I will ensure that adequate 
human resources are devoted to properly carrying out local vetting at 
the Embassy, and that all Embassy personnel clearly understand the law 
and procedures, and that they seek guidance from me and Washington, DC, 
if they are unclear about a unit or individual's background or unsure 
how to proceed. In keeping with Department practice, I will ensure that 
any review takes into account not only the results from the Embassy's 
internal background checks, but also credible information gathered from 
open sources and by civil society. Finally, if confirmed, I will 
regularly and proactively engage the MoND and RCAF to ensure that they 
are aware of the law's requirements and implications.

    Question. The first trial of the Extraordinary Chamber in the 
Courts of Cambodia, an international tribunal set up by the United 
Nations and the Cambodian Government to try former Khmer Rouge leaders 
of crimes against humanity and war crimes, secured its first conviction 
in 2010. A trial of three new defendants began in November 2011. Human 
rights groups have pushed for expanding the scope of prosecutions to 
include more cases, while Prime Minister Hun Sen has opposed the idea, 
arguing that bringing more persons to trial would undermine ``national 
reconciliation.'' What are your views on this subject?

    Answer. The United States has long supported bringing to justice 
senior leaders and those most responsible for the atrocities 
perpetrated under the Khmer Rouge regime. The Extraordinary Chambers in 
the Courts of Cambodia (``ECCC'' or ``Khmer Rouge Tribunal'') needs to 
fulfill its judicial mandate, not only to fulfill its promise to find 
justice for the victims, but just as importantly, as a vehicle for 
national reconciliation and a mechanism to strengthen the rule of law 
in Cambodia.
    The RGC and U.N. established the ECCC in 2006, as a national court 
with U.N. assistance in order to bring to justice ``senior leaders and 
those most responsible'' for atrocities committed under the Khmer Rouge 
regime. To date, the ECCC has completed the legal process on one case, 
Case 001, and is undergoing deliberations on a second case, Case 002. 
Two additional cases (Cases 003 and 004) are currently in the 
investigative phase.
    In Case 001, the ECCC found Kaing Guek Eav (aka Duch, commandant of 
the Tuol Sleng prison, who sent at least 14,000 people to their deaths) 
guilty in July 2010 of crimes against humanity and grave breaches of 
the Geneva Convention, and sentenced him to 35 years imprisonment. On 
February 3, 2012, the Supreme Chambers extended his sentence to life in 
prison. The United States welcomed the final outcome as a landmark 
moment in Cambodia's efforts to find justice for the atrocities of the 
Khmer Rouge era, and for Cambodian national reconciliation.
    Case 002, the trial against three surviving members of the Khmer 
Rouge's senior leadership, began in November 2011. A fourth defendant 
was found mentally incompetent to stand trial, but the ECCC has not yet 
released her from custody. Stephen Rapp, U.S. Ambassador at Large for 
Global Criminal Justice, calls Case 002 ``. . . the most important 
trial in the world,'' given the gravity of the alleged crimes and the 
level of the defendants in the Khmer Rouge regime.
    In Cases 003 and 004, where investigations are still ongoing by the 
Office of the Co-Investigating Judges (OCIJ) of five suspects, the 
United States has consistently called on the U.N., the RGC, and all 
interested stakeholders to protect the ECCC's judicial independence 
from political interference of any kind. I believe the question of 
whether a suspect falls within the jurisdiction of the ECCC is a 
judicial one, and should be made free from outside interference or 
pressure. Therefore, the OCIJ must be allowed to investigate Cases 003 
and 004 according to the facts and the law. The United States has 
called on the U.N. and the RGC to follow through on their commitments 
under the agreement that established the ECCC. If confirmed, I will 
clearly advance this message to the government and people of Cambodia, 
and will support the United Nations and the ECCC as they attempt to 
ensure that nothing is cut short, and that the ECCC's implementing 
statute is fully respected.

    Question. Following last year's national elections in Thailand, 
relations between Cambodia and Thailand appear to be on a more even 
footing, including in particular, over the disputed border region that 
houses the Preah Vihear Temple. Please provide an update on this 
situation and the current status of Cambodia-Thai relations.

    Answer. Cambodia's bilateral relationship with Thailand was 
complicated in recent years due to unresolved and longstanding border 
disputes--including over territory surrounding the Preah Vihear 
Temple--that flared up in the first half of 2011. Relations have warmed 
significantly since a Puea Thai Party coalition came to power in 
Thailand in August 2011, led by former Prime Minister Thaksin 
Shinawatra's youngest sister and current Prime Minister, Yingluck 
Shinawatra.
    The United States does not take a position on the legitimacy of 
either side's territorial claims. Since the 2011 border clashes, the 
United States has consistently called on both sides to exercise maximum 
restraint and take every necessary step to reduce tensions and return 
to peaceful negotiations. In this regard, the United States has 
supported the efforts of Indonesia as ASEAN Chair in 2011to facilitate 
a resolution to the conflict.
    While tensions have lessened, the underlying territorial dispute 
around Preah Vihear remains unresolved. There is a 1962 judgment by the 
International Court of Justice (ICJ) relevant to the dispute; in 2011, 
Cambodia asked the Court to interpret that earlier judgment, and asked 
for temporary ``provisional'' measures. In July 2011 the ICJ issued a 
provisional decision that created a demilitarized zone around Preah 
Vihear and ordered implementation of Indonesia's offer to deploy border 
observers. Both sides have pledged to implement the ICJ's decision and 
are working with Indonesia to develop terms of reference. The ICJ has 
authorized both sides to submit further filings as it considers a final 
decision on Cambodia's submission, which Cambodia did this month; 
Thailand's filings are not due until June 2012. In addition to action 
at the ICJ, the two sides are also using existing bilateral dialogue 
mechanisms, such as the Joint Boundary Commission and the General 
Border Committee to discuss outstanding boundary disputes.
    The United States strongly supports Cambodia and Thailand's efforts 
to improve their bilateral relationship in all ways.
                                 ______
                                 

        Responses of Sara Margalit Aviel to Questions Submitted
                        by Senator John F. Kerry

    Question. The World Bank Board recently approved the ``Program for 
Results'' (P4R) in an effort to streamline its development operations 
while improving the accountability of borrowers to produce concrete 
results.

   Please discuss how you believe the Bank should ensure 
        community engagement, transparency, and accountability for 
        specific investments within a P4R program.

    Answer. I believe that community engagement, transparency, and 
accountability are critical elements to the success of P4R, and all the 
work the World Bank is engaged in. If confirmed, I will work with the 
Bank to provide affected communities, the private sector, and other 
stakeholders with the ability to review and provide input on the 
individual program risk assessments, proposed capacity-building 
measures, and proposed activities. Upon the project's completion, these 
stakeholders should also be informed of the results at the activity 
level.
    Under a P4R program, the borrower government will make information 
available to the public at both the program and project/subproject 
level through methods that are appropriate to the scope and nature of 
the program.
    As part of any P4R program, the World Bank will conduct an 
assessment of the borrower country's environmental and social systems, 
including the arrangements by which program activities that affect 
local communities will be disclosed, consulted upon, and subject to a 
grievance redress process. Key considerations during the review will be 
whether stakeholders' views and concerns are solicited in an open and 
effective manner, and whether these views and concerns are considered 
in program design and implementation. If relevant, the World Bank will 
identify measures to improve effectiveness.
    Relevant stakeholders, including local communities, will be 
consulted regarding the findings of these environmental and social 
assessments, and the Bank will make both the draft and final 
assessments available to the public. In addition, a summary of the 
assessments will be disclosedin the Program Appraisal Document (PAD). 
Furthermore, Implementation Status and Results Reports (ISRs), which 
are available to the public, will provide an overview of progress in 
the implementation of the operation, including agreed actions to 
improve environmental and social systems performance.
    If confirmed, I will engage closely with the Bank to verify that 
all P4R programs which are brought to the Board for review have 
followed the above guidelines in conducting environmental and social 
assessments, in consulting all relevant stakeholders and in providing 
adequate disclosure of the assessments and transparency into the P4R 
program.

   How should the Bank ensure that information reaches the most 
        affected communities regardless of income or language?

    Answer. If confirmed, I will work with the World Bank to undertake 
considerable efforts to provide information to affected communities, 
regardless of income or language. World Bank information (documents, 
data, materials, projects, or research) is available online as well as 
in person at more than 200 locations around the world. In partnership 
with universities and other local organizations, the Bank established 
these Public Information Services so that local citizens can access 
information at the country level. If confirmed, I would encourage the 
World Bank to work with local civil society organizations to take 
advantage of this information and share it with the communities where 
they work.
    The World Bank also has a set of guidelines for translation of 
documents, publications, and Web content, which call for the 
translation of ``country- and project-specific information into the 
national language of a country, local languages within a country and/or 
language(s) understood by people affected by, or likely to be affected 
by, a project.'' I support these guidelines, and if confirmed, I would 
work to make sure they are implemented effectively.

   In a time when an increasing number of people across the 
        globe are learning to use new communication technologies to 
        share information and viewpoints, what can the Bank do to 
        promote greater community involvement in projects at all 
        stages--planning, monitoring implementation, and evaluation?

    Answer. As was made vivid in the Arab Spring, new communication 
technologies are connecting and mobilizing people across the globe. If 
confirmed, I would support the World Bank taking advantage of these 
tools to promote greater community involvement in its work. The World 
Bank is already making impressive strides in this area. President 
Zoellick launched the Open Data Initiative, enabling individuals around 
the world to access all of the World Bank's rich data. Similarly, 
``Apps for Development'' is encouraging innovators around the world to 
design new tools for development. There have also been efforts to pilot 
the use of SMS technology and social network tools for greater 
community and beneficiary feedback and to improve accountability. 
Across the board, civil society organizations play an important 
intermediary role and if confirmed, I would work to encourage the World 
Bank to continue strengthening the role of civil society in its work.

    Question. As the Bank has extensively documented, climate change 
threatens us all, but it will impact low-income countries and 
vulnerable populations the hardest. In addition to doing their part to 
reduce greenhouse gases, countries that are the largest contributors to 
climate change need to improve the integration of efforts to adapt and 
respond to the impacts of climate change.

   How will you improve the World Bank's role in integrating 
        climate change in their development assistance?

    Answer. The poor are most likely to depend on natural resources for 
their livelihoods and thus suffer the most from environmental 
degradation and weather related disasters. Accordingly, it is 
appropriate that the World Bank focus on sustainable development 
assistance, including helping affected communities respond and adapt to 
the impact of climate change. The World Bank already does considerable 
groundbreaking research on the climate change-development nexus as 
evidenced by its flagship publication, the World Development Report, 
which focused on this issue in 2010.
    If confirmed, I will urge the World Bank to continue to serve as a 
convener and leader on sustainable development. I will encourage the 
Bank to continue to support innovative new approaches and products to 
address this global issue. Finally, the World Bank should take into 
account climate vulnerability and risk management in its country 
programs in key sectors including: health, water supply and sanitation, 
energy, transport, industry, mining, construction, trade, tourism, 
agriculture, forestry, fisheries, environmental protection, and 
disaster management.

   What measures will you advance at the Bank to support 
        increasing resilience to the impacts of climate change in 
        vulnerable countries and within vulnerable populations?

    Answer. Adaptation is a critical issue for all countries but 
particularly the poorest. Building climate resilience into development 
plans, projects, and programs is good practice. If confirmed, I will 
encourage the World Bank to continue to build climate change adaptation 
considerations into Country Assistance Strategies and apply its 
adaptation screening tool to projects and programs to assess and 
address potential sensitivities to climate. I will urge the Bank to 
conduct further work on sector-specific tools and guidance to address 
adaptation in its work.

    Question. In a series of papers, the International Energy Agency 
has demonstrated that delivering universal energy access for the poor 
would require dramatically scaling up off-grid clean energy 
investments. Currently, the World Bank Group (including the 
International Finance Corporation) is underinvesting in this sector.

   Will you push for the Bank to adopt clear metrics to measure 
        energy access for both grid-tied and off-grid populations, and 
        for such metrics to be essential components in project 
        selection?

    Answer. A lack of access to energy is a significant constraint to 
economic growth and poverty reduction--the two key pillars of the World 
Bank's work. The Bank has worked on this issue for a number of years 
and, I understand, is committed to improving energy access in its 
partner countries. It currently measures and reports on a number of 
statistics related to energy (including energy access) in its data 
products such as the World Development Indicators. The Bank also 
strongly supports the development of a set of sustainable development 
goals by 2030 to complement the MDGs for energy, sanitation, water, 
oceans, biodiversity, and land. These are sound measures and if 
confirmed, I would support continued work on them.

   The upcoming Rio+20 Conference provides a platform for the 
        World Bank Group to make a commitment to delivering on energy 
        access and increasing off-grid clean energy investments. What 
        commitments would you push the Bank to make at Rio+20?

    Answer. While it is hard to say what the outcome of Rio+20 will be 
at this point, the World Bank is actively working for a positive 
outcome for the summit. The Bank is participating in the U.N. High 
Level Group on ``Sustainable Energy for All'' which is feeding into the 
Rio+20 process. In this context the Bank has expressed its support for 
the three global energy goals outlined in this U.N. action agenda:
          (1) Universal access to modern energy services;
          (2) Doubling the rate of improvement in energy efficiency; 
        and
          (3) Doubling the share of renewable energy--all by 2030.

    Answer. I understand that the Bank also supports efforts to develop 
more sustainable development goals. If confirmed, I would support these 
commitments and work with the Bank to follow through on these issues 
through its programs, projects, and research.

   Recognizing the need to balance the importance of increasing 
        energy access with access to clean and renewable resources, how 
        would you move forward an energy strategy at the institution 
        that would phase out fossil fuel financing while scaling up 
        investments in clean energy?

    Answer. Access to energy and increasing renewable energy and energy 
efficiency are all priorities for the United States and the World Bank. 
I would expect that any energy strategy at the World Bank would need to 
have a strong focus on these priority areas if it were to move forward 
with support from the executive board of the Bank. The Bank has already 
scaled up investments in clean energy and efficiency significantly. The 
World Bank Group has invested $17 billion in low carbon investments 
since 2003, of which $14.2 billion were in renewable energy and energy 
efficiency.

    Question. The administration has made the expansion of U.S. exports 
a priority in its economic strategy. Procurement opportunities overseas 
in Bank projects could potentially provide billions in revenues for 
U.S. firms.

   Please describe how you will work with the Commerce 
        Department to help U.S. firms take advantage of MDB procurement 
        opportunities and to promote improvements, if necessary, in the 
        Bank's data management systems to be able to monitor 
        procurement trends.

    Answer. If confirmed, I would make it a priority to conduct 
outreach to the private sector to highlight the various ways that 
American companies can benefit from the work of the World Bank. While 
perhaps the biggest impact comes from the work the World Bank engages 
in around the world to create open markets and sound investment 
climates, there are also a number of specific opportunities including:

  --Debt and equity financing from the International Finance 
        Corporation (IFC) to support private overseas projects, 
        including public private partnerships with a development 
        impact.
  --Procurement opportunities both to support the Bank's own needs and 
        for contracts that flow from sovereign lending or credits under 
        the Bank's oversight.
  --Guarantees for international trade transactions under the Global 
        Trade Finance Program.
  --Political risk insurance provided through the Bank's Multilateral 
        Investment Guarantee Agency (MIGA).
  --Dispute resolution mechanism for issues between American companies 
        and foreign governments through the Bank's International Center 
        for Settlement of Investment Disputes (ICSID).

    Over the last decade, American companies have received over 2,500 
contracts for projects supported by World Bank lending around the 
world, totaling more than $1.6 billion. In addition, U.S. firms win an 
additional $390 million a year on average in direct contracts with the 
World Bank. If confirmed, I would seek to continue and grow this strong 
record.
    The Departments of Commerce and Treasury have already taken steps 
to help U.S. firms pursue MDB-funded procurement opportunities and to 
increase the transparency of MDB procurement data and if confirmed, I 
will work with both agencies to continue this progress.
    Outreach to the U.S. private sector is a key part of this effort to 
engage more U.S. firms in MDB activities. For example, the U.S. 
Executive Director for the World Bank has traveled around the country 
to discuss World Bank procurement opportunities with business and trade 
organizations, including a trip earlier this month to Boston where he 
met with the New England Council and the Massachusetts Office of 
International Trade and Investment.
    In response to the Departments of Treasury and Commerce, the World 
Bank has increased its own outreach to the U.S. private sector this 
year by adding seven more business organizations to its Private Sector 
Liaison Officer (PSLO) network. These PSLOs provide local-based 
guidance and engagement for U.S. firms seeking World Bank and other MDB 
opportunities. This brings the total of PSLOs in the U.S. to 10, more 
than tripling the number since the beginning of 2011.
    U.S. Executive Director Solomon has been actively engaging with 
these PSLOs, and has already visited the new PSLOs in Alabama, Chicago, 
New York, and Utah. As one example of the fruits of this effort, the 
officer based in Chicago contributed to an 83 percent increase in World 
Bank contracts won by Midwest firms. If confirmed, I will work to 
assist in this outreach effort with the Commerce Department by taking 
advantage of both the PSLO network and the Commerce Department's 
network of Export Assistance Centers around the country.
    The Departments of Treasury and Commerce have already made progress 
to improve transparency of the World Bank's procurement information. At 
the Departments' request, the World Bank began to publish procurement 
notices for free on its own Web site, www.worldbank.org, at the 
beginning of 2011. This important step allows small and medium 
enterprises to access these contract opportunities without having to 
subscribe to a database service. In addition, if confirmed, I would 
work with the Departments of Treasury and Commerce to continue pressing 
the World Bank to improve its data on contract awards under World Bank-
financed projects, so that we can better track the benefits accruing to 
U.S. firms.
    I understand the World Bank will soon be launching a review of its 
procurement policy. If confirmed, I will consult closely with relevant 
stakeholders including Congress and organizations representing the 
private sector to identify potential areas of improvement. I will work 
closely with the U.S. Executive Director, other Executive Directors, 
the Treasury Department, and World Bank management to incorporate these 
suggestions and further strengthen the World Bank's already strong 
procurement policies.
                                 ______
                                 

        Responses of Frederick D. Barton to Questions Submitted
                      by Senator Richard G. Lugar

    Question. The CSO Bureau was established as an outcome of the QDDR 
and in response to continued requirement for a fundamentally organized 
civilian capacity in our lead foreign policy institution to respond to 
incipient conflict, conflict and post-conflict situations.

    Answer. The Bureau of Conflict and Stabilization Operations (CSO) 
was established to address the need for greater cohesion and coherence 
to conflict prevention and conflict response.

   What role is foreseen for the State Department Bureau of 
        Stabilization Operations relative to the parallel and redundant 
        efforts at USAID and DOD?

    Answer. The space in which CSO operates is not overcrowded in light 
of the dynamic challenges the United States faces in providing conflict 
prevention and conflict response in some of the toughest places of the 
world. CSO will be at the center of complex conflict-related 
situations, whether through integrated strategies, joint analysis, or 
suggesting direction of foreign assistance to priority needs. In doing 
so CSO will ensure USAID and DOD are brought into the discussions in 
the earliest stages.

   Where do those two agencies fit into the new construct at 
        State and how will they interact?

    Answer. The partnership that CSO is building with USAID and DOD is 
focused on collaboration. An example of this collaboration is 
demonstrated through the current review of the 1207 (Conflict 
Prevention) program which CSO, F, DOD, and USAID manage. We have agreed 
that the funds must be used with more of a strategic focus, moved 
faster, and evaluated in-country. We are now moving forward with these 
critical partners to capture unobligated 1207 funds to ensure these 
shared principles.

   What resources will be drawn and what additional resources 
        and authorities can be drawn upon for the purposes of 
        responding to CSO requirements?

    Answer. CSO expects to influence the focused use of several funds 
to address early onset crisis, including Complex Crisis Fund (CCF), 
Global Security Contingency Fund (GSCF), Transition Initiative (TI) and 
1207 along with other resources. In addition we are in the process of 
increasing the percentage of CSO's budget dedicated to deployment.

   What additional responsibilities will CSO have should the 
        President or Secretary deem necessary?

    Answer. As CSO proves itself through impact driven-responses we 
envision being called upon more frequently by the President, National 
Security Staff, and the Secretary of State to drive conflict 
prevention, crisis response and stabilization in priority states.

   Why does a broader interagency cooperative effort appear to 
        have been abandoned or scaled back from former recommended 
        levels as originally intended in the Office of the Coordinator 
        for Reconstruction and Stabilization?

    Answer. To be more innovative and agile, CSO is developing a new 
model for the Civilian Response Corps (CRC) that will seek to include 
the widest possible range of partners, including the interagency, from 
the beginning of its engagements. The result should be an expeditionary 
team made up of leaders and experts from all parts of the United 
States, interagency, state and local governments, and other sources of 
talent.
    We believe that this will be more effective and responsive to the 
needs of each case and more economical than the current model.

   Where and how will a lessons-learned and planning capacity 
        be incorporated?

    Answer. The Office of Learning and Training will serve as CSO's 
center of excellence in an organization that is dedicated to constant 
learning. The Bureau will also continue to develop new tools and 
approaches. Planning, as with conflict prevention, will be integrated 
throughout the organization where, in S/CRS, these were separate 
offices.

    Question. The transition of the United States mission in Iraq and 
Afghanistan from a military heavy civil-military operation is complete 
in the former and just beginning in the latter. This winding down has 
long been perceived as requiring a considerable civilian follow-on 
component, which while evidently less robust than originally expected, 
is still advisable.

   Why would the CSO Bureau reduce the size of the Conflict 
        Response Corps precisely when the necessity of complex skills 
        in the civilian sector is so important to sustaining gains made 
        in both these countries given the drawdown of DOD resources and 
        personnel that had primary responsibility for programs to be 
        maintained by the mission?

    Answer. The nature of places where CSO is operating is changing. 
Rather than the heavy footprint of Afghanistan and Iraq, we see a range 
of cases where the United States role is pivotal but not dominant. In 
turn, we are focusing on a smaller CRC-Active component which 
emphasizes leaders, and a broader approach which expands potential 
partners and has a ``pay as we use'' business model like the CRC-
Standby. This will allow us to use our funds more responsibly and 
respond with someone who can work independently, such as supporting a 
Presidential inquiry in Liberia, or who can lead a small team that 
draws on both USG and local resources. To succeed, country cases must 
accelerate local ownership and that too will be at the heart of CSO's 
emphasis.

   What if any skill sets are being reduced or eliminated?

    Answer. Over the past few years, the Interagency CRC-Active 
component was deployed 39 percent of their time for conflict prevention 
work, with the remainder of their time focusing on work not directed by 
CSO. CSO is dedicated to building a CRC-Active component based on a 
leadership cadre made up of those with proven effectiveness in the 
field and conflict-focused skills, such as conflict analysis, 
prevention tools, contingency planning, and expeditionary operations. 
We will continue to call upon subject matter experts who can help to 
bring tangible progress to the early days (0-12 months) of a crisis.

   Will the CRC and the Standby be reformulated at lower levels 
        or is this a short-term retrenchment given the growing pains of 
        the recent past?

    Answer. To tap more specific areas of expertise such as rule of law 
or food security, CSO plans to rely more upon its CRC-Standby capacity 
and other talent in the United States. The model will allow CSO to 
reach more broadly across our country to find the right people at the 
right time.

   What tools have been sustained from the S/CRS office and 
        which have been discarded?

    Answer. CSO is aggressively working to improve upon what we do 
best. We have retained the conflict-related response tools (i.e., 
analysis and integrated strategies to focus resources and programming) 
developed by S/CRS and its interagency partners, and continue to build 
on that body of knowledge through regular interaction with 
international partners, NGOs, academic institutions, etc. One of the 
signature analysis pieces, the Interagency Conflict Assessment 
Framework (ICAF), is now being rethought and redesigned--and that is 
illustrative of the approach we will take.

    Question. Administration and Department cooperation has proven 
essential to productive efforts in stabilization and reconstruction.

   Is the Obama administration fully supportive of the CSO 
        mission and mandate and how have they demonstrated such support 
        at the NSC level or in any government agencies?

    Answer. The administration, National Security Staff, and Secretary 
of State have all signaled the highest levels of support for CSO. In a 
``townhall'' speech Secretary Clinton held 2 weeks ago at the 
Department, she highlighted CSO's creation and its work as one of the 
most important QDDR elements. Secretary Clinton and Under Secretary 
Otero have encouraged geographic and functional bureaus to partner with 
us to address conflict situations in every part of the world. The NSS 
has included CSO in a wide variety of conflict-related policy and 
country-specific working groups, ranging from Presidential Study 
Directive-10 on prevention of Mass Atrocities to Syria, Libya and other 
priority countries.
    The newly arrived CSO leadership is building strong relationships 
among senior directors at the National Security Staff, USAID, DOD, 
along with numerous Assistant Secretaries at the Department of State.

   What practical resistance remains to the concept of a bureau 
        that is a priority but requires the acquiescence and 
        participation of other bureaus and agencies?

    Answer. As CSO begins to prove itself with its impact driven 
actions we envision the Bureau will be called upon more frequently to 
drive conflict prevention and response efforts around the globe. While 
some senior leaders have taken a wait-and-see approach, in general the 
response has been welcoming.
    In each use, CSO seeks a clear understanding of who is leading the 
U.S. effort as conflicts emerge. This initial clarity provides us all 
with a center of gravity: someone with cross-cutting authority for the 
sprawling network of offices and people involved, who welcomes help and 
encourages innovation. With this understanding, CSO then develops a 
strategy and drives urgent and practical actions.

   What role would you foresee/will CSO have in the case of 
        another Haiti earthquake that devastates a country of interest 
        to the United States?

    Answer. As a Department of State entity, our focus will be on 
political or other ``human'' conflicts. CSO defers to how the Secretary 
of State frames a crisis as either humanitarian or political in nature. 
It is entirely conceivable that a natural disaster could be the 
catalyst for a human/political conflict or a ``hyper complex 
emergency'' in which case we would partner closely with USAID, DOD, and 
others in developing a coordinated response that addresses both the 
humanitarian and conflict dimensions of the situation.

   What role, would you envision, will CSO have in the case of 
        a new political freedom movement in Algeria or Sudan or Cuba?

    Answer. CSO would likely play a significant role in the first 12 
months. CSO has provided analytical, contingency planning, and project 
development support to several geographic bureaus, embassies, or 
special envoys in this area. It is imperative to understand the 
underlying sources of conflict in a complex crisis--and to plan 
systematically for likely scenarios. For example, S/CRS--and currently 
CSO--has been a strong supporter of the smooth transition of South 
Sudan into an independent country. Our staff has covered literally 
every corner of the country beginning before the referendum through 
independence. Our Stabilization Teams deployed to extend the diplomatic 
reach of the USG at the state and county levels, engaging in 
``operational diplomacy,'' to include conflict assessment and 
reporting, facilitation of peacebuilding initiatives and engagements 
with key local actors to advance conflict mitigation and stabilization 
objectives. A key function was to provide early warning of growing 
conflict trends at the local, tribal, or provincial level, permitting 
the USG and the Government of South Sudan to respond before the 
outbreak of violence. As another example, we are currently providing 
support to the Bureau for Near Eastern Affairs on expanding the 
abilities of the Syrian opposition.

   What role, would you foresee, will CSO play in Afghanistan 
        now and post-2014?

    Answer. CSO is focused on transition planning with the host 
government, within the Embassy, and with the military command.

   What role, would you foresee, will CSO play in an emergent 
        mass atrocity in Sudan?

    Answer. CSO plays an active role in the interagency work on mass 
atrocity and genocide prevention, including direct support to the 
Office of the Under Secretary for Civilian Security, Democracy, and 
Human Rights (J) and the broader J family, CSO's greatest value is 
likeliest to be at the earliest possible stage--in anticipating 
possible threats or atrocities and helping to provide the tools and 
training to better address them.
    The presence of CSO Stabilization Teams in the most conflict-prone 
areas of South Sudan continues to serve as an important tripwire in 
providing early warning on emerging violence and, potentially, mass 
atrocities. Beyond simply raising the profile of subnational political 
and security threats, CSO staff in the field engage with state and 
county officials, tribal leaders, youth, UNMISS and other stakeholders 
and have used these relationships to influence behavior, including 
dampening tensions, encouraging reconciliation and helping to set 
conditions that could prevent violence.
                                 ______
                                 

          Responses of William E. Todd to Questions Submitted
                      by Senator Richard G. Lugar

    Question. Given the widespread concerns about official corruption 
in Cambodia, I and many others believe it is imperative that Cambodia 
join the Extractive Industries Transparency Initiative before oil 
revenues begin to flow from its offshore fields, which may be as soon 
as next year. Does the State Department share this view, and if so, 
what is the U.S. Government doing to encourage Cambodia's participation 
in EITI? Is the U.S. providing any other assistance to help Cambodia 
productively manage its future oil revenues?

    Answer. The U.S. Government continues to encourage Cambodia and 
others to join the Extractive Industries Transparency Initiative 
(EITI). Although Cambodia has yet to join, it has participated in 
regional EITI workshops and taken steps to make public disclosures of 
its oil revenue. In 2010, the Cambodian Government announced it had 
received a total of $26 million in signature bonuses and social funds 
from PetroVietnam and Total associated with contracts for offshore oil 
exploration. Most significantly, Cambodia has established an 
interministerial working group that will publish extractive industry 
taxes and revenue, according to the local NGO ``Cambodians for Resource 
Revenue Transparency'' (CRRT).
    EITI is emerging as a global standard for revenue transparency, an 
important component of good governance in the extractives sector. The 
United States demonstrated its commitment to this principle in 
September 2011, when President Obama announced that the United States 
would join EITI. Leading by example strengthens the U.S. position as we 
continue to encourage Cambodia and others to join the initiative. 
Industry, government, and civil society must work together to promote 
greater transparency and fight corruption.
    Through our civil society partners, the United States has supported 
workshops to assist Cambodian Government officials to better understand 
the oil and gas industry. Additionally, we have promoted international 
best practices for resource management in our interactions with 
relevant government officials.
    The United States provides technical assistance to the Cambodian 
Government, in the form of financial advisory services from the U.S. 
Department of the Treasury, to develop sound financial management 
practices. Related to the extractives sector, the team has assisted in 
the development and implementation of laws and regulations related to 
taxation of the oil and gas and mining industries. Additionally, a 
full-time U.S. advisor works with the Ministry of Economy and Finance 
to support overall budget reform and increase financial accountability 
in Cambodia.

    Question. American democracy advocate Ron Abney passed away on 
December 31, 2011, without seeing justice for the grenade attack in 
Cambodia on March 30, 1997, in which 16 Cambodians were killed, and 
scores injured--including Abney himself. Elements of the ruling 
Cambodian People's Party (CPP) were reportedly suspected of complicity 
in the attack, particularly Prime Minister Hun Sen's bodyguard unit 
Brigade 70. What actions will you take to secure justice for the 
victims of the 1997 grenade attack, and what impact does impunity for 
such crimes have on Cambodia's democratic and legal development?

    Answer. The lack of accountability for past crimes, and a culture 
of impunity among many of Cambodia's elite, is an ongoing concern for 
the United States, and one which, if confirmed, would be a top priority 
for me during my tenure as Ambassador. These actions erode confidence 
in the legal and political systems. Cambodia's democratic and legal 
development is retarded when there is no accountability for past 
crimes. If confirmed, I will make the issue of equality before the law, 
judicial independence, and accountability for past crimes a major theme 
of my engagement with the Royal Government of Cambodia, and I will do 
everything I can to assist the victims of the 1997 grenade attack find 
justice.

    Question. Please describe the process by which U.S. foreign 
assistance to Cambodia is evaluated in terms of effectiveness. Identify 
every program and project funded in Cambodia for the last 5 years by 
the U.S. Government. For each program and project funded by the U.S. 
Government during that time period, please state the type of 
evaluation(s) which occurred on an annual basis and the findings of 
each evaluation.

    Answer. U.S. foreign assistance to Cambodia is evaluated in 
accordance with performance management best practices, including where 
feasible and useful, program evaluation, to achieve the most effective 
U.S. foreign policy outcomes and greatest accountability to our primary 
stakeholders, the American people. The U.S. Department of State has 
recently launched an Evaluation Policy that requires that all large 
programs, projects, and activities be evaluated at least once in their 
lifetime or every 5 years, whichever is less. Each Bureau in the State 
Department identifies the programs, projects, or activities to 
evaluate, and is required to evaluate two to four projects/programs/
activities over a 24-month period beginning with FY 2012, depending on 
the size, scope, and complexity of the programs/projects being 
evaluated. USAID has implemented a similar policy.
    The attached annexes represent the past 5 years of summaries of 
USAID, CDC, security assistance, and weapons removal and abatement 
projects funded by the United States in Cambodia. The State Department 
would be pleased to provide a briefing for you or your staff on these 
programs and the evaluation mechanisms, if you would like further 
information.

[Editor's note.--The annexes mentioned above (Annex 1: 
``Evaluation Findings, USAID/Cambodia''; Annex 2: ``Security 
Assistance, Evaluation of Effectiveness''; Annex 3: ``Weapons 
Removal and Abatement Summary'') were too voluminous to include 
in the printed hearing. They will be retained in the permanent 
record of the committee.]

    Question. Will you meet with opposition leader Sam Rainsy, whether 
that be in Cambodia, if he returns or elsewhere?

    Answer. If confirmed, I would welcome any opportunity to meet both 
ruling party and opposition party figures in Cambodia, including Mr. 
Sam Rainsy, regardless of venue.

    Question. Former Thai Prime Minister Thaksin Shinawatra serves as a 
key advisor to Cambodia Prime Minister Hun Sen on an intermittent 
basis. How does this relationship effect bilateral relations between 
Thailand and Cambodia?

    Answer. Former Thai Prime Minister Thaksin Shinawatra served as an 
economic advisor to Cambodian Prime Minister Hun Sen from 2009 to 2010, 
and the two figures are widely believed to remain in close contact. 
Relations between Cambodia and Thailand have warmed significantly since 
a Puea Thai party coalition came to power in Thailand 2011, led by 
Thaksin's youngest sister, Prime Minister Yingluck Shinawatra.
    The United States strongly encourages Cambodia and Thailand to 
continue to improve their bilateral relationship, which would also help 
bolster regional stability.

    Question. Please quantify the success of the U.S. Government or 
U.S. funded-projects and programs in Cambodia attempting to address 
human trafficking.

    Answer. Cambodia, once a Tier 3 country, was classified as a Tier 2 
country in the State Department's June 2011 report.
    The United States has implemented an array of programs to address 
human trafficking through USAID, the Department of State's Bureau of 
Population, Refugees, and Migration, and the Department's Office to 
Monitor and Combat Trafficking in Persons.
    USAID/Cambodia programs to counter trafficking in persons (TIP) 
have reached over 7,600 Cambodians in key priority provinces through 
information campaigns and training events on safe migration and TIP-
related issues. Participants included local officials, community 
change-makers (such as Village Development Committee members), and 
students.
    In the interest of TIP prevention, USAID assistance has 
strengthened employment options and reduced vulnerability to 
trafficking of over 920 youth through support for educational 
scholarships and vocational training. USAID assistance has also reduced 
the vulnerability of nearly 300 families by mitigating pressures for 
family members to fall into situations involving unsafe migration, 
trafficking, or exploitation.
    The program has provided training to 776 government officials and 
social workers on victim protection. USAID programs have also supported 
over 1,800 trafficking victims through short- and long-term services 
provided by shelters, including residential care, educational support, 
livelihoods skills training, psychosocial support, and reintegration 
assistance.
    In the interest of prosecution, USAID supported training for over 
500 police officers on TIP, criminal investigation, evidence collection 
techniques for trafficking cases and institutionalized trainings within 
the Cambodian National Police. We have also trained over 180 judicial 
officials on the TIP law and regional and international legal 
frameworks to address TIP.
    In FY 2011, the Department of State's Bureau of Population, 
Refugees, and Migration programmed $300,000 in INCLE funds for 
antitrafficking activities in Cambodia, Laos, and Malaysia under its 
Southeast Asia regional migration program, implemented by the 
International Organization for Migration (IOM). Activities focused on 
improving the quality of assistance provided in shelters for 
trafficking victims in Malaysia and building the capacity of the Lao 
and Cambodian Governments to provide reintegration assistance to 
returning trafficking victims. In FY11 in Cambodia, IOM trained 20 
central-level Ministry of Women's Affairs (MoWA) officials, 40 
provincial-level MoWA officials, and 154 key local leaders, including 
village and commune chiefs, on methods to conduct awareness-raising 
activities on the risks of irregular migration and the rights and 
responsibilities of migrants in Thailand, a major destination for 
Cambodian labor migrants. The project also supported two awareness-
raising campaigns in Cambodia's Prey Veng and Kampong Cham provinces 
that reached a total of 1,674 people.
    The Department of State Office to Monitor and Combat Trafficking in 
Persons (J/TIP) has supported both the U.N. and nongovernmental 
organizations to address trafficking in Cambodia.
    The United Nations Inter-Agency Project on Human Trafficking 
(UNIAP) is partnering with local NGOs to provide psychosocial support 
and other services to address trauma and other mental health needs of 
victims of sex and labor trafficking. The project is also providing 
economic support through training and job placement for victims, as 
well as training for staff and raising awareness of the issue. In the 
area of prevention, UNIAP successfully integrated an antitrafficking 
message into a publication on financial literacy produced by a 
microfinance institution. Over 50,000 copies of this publication were 
distributed through the microfinance institution's branch offices. In 
the area of protection, UNIAP has provided medical services to 20 
trafficking victims, legal assistance and advice to 105 victims, 
counseling services to 75, and vocational training to more than 20 
others. Of particular note is the repatriation assistance to Cambodia 
of 65 male Cambodian labor trafficking victims from Indonesia, 18 
victims from Malaysia, and 21 victims from Thailand. In terms of 
prosecution, UNIAP has assisted with the investigation of 20 TIP cases, 
the arrest of eight perpetrators, six of whom have been criminally 
charged, and two of whom have been convicted. The traffickers were each 
sentenced 8 years in prison and ordered to pay compensation to their 
victims.
    World Hope International (WHI) provides comprehensive services for 
girl survivors of trafficking and rape through an aftercare center in 
Siem Reap modeled after a successful aftercare program in Phnom Penh. 
Services include short-term shelter, medical and mental health 
assessments, art therapy, and assistance with preparing for court 
proceedings, with the goal of recovery and reintegration. WHI has 
partnered with Cambodia's Ministry of Social Affairs, Veterans, and 
Youth Rehabilitation (MoSAVY) to assist approximately 60 girls through 
the center, and conducts periodic followup visits to ensure successful 
reintegration into their communities.
    Additionally, the J/TIP office recently funded Agir por les Femmes 
en Situation Precaire (AFESIP) to develop three service centers in 
Cambodia. These centers provide trafficking survivors with residential 
living space that meets their immediate needs, including medical 
evaluations and treatment; psychological counseling to establish and 
restore self-confidence and self-esteem; support to family members; and 
childcare and parenting skills to residents in order to allow them to 
focus on their own rehabilitation. Nearly 550 women and girls received 
care across AFESIP's three residential shelters throughout the project 
period.

    Question. What is the status of relations between the U.S. 
Department of Defense and the Royal Cambodian Armed Forces? How is the 
human rights record of the Royal Cambodian Armed Forces factored into 
decisions by the United States to engage with the Cambodian military?

    Answer. U.S. security engagement is a positive driver in deepening 
United States-Cambodia relations, and reinforces our efforts to promote 
a democratic Cambodia respectful of human rights, dedicated to the rule 
of law and transparent governance, at peace with its neighbors, and a 
contributor to regional stability.
    The United States assists and engages with the Royal Cambodian 
Armed Forces (RCAF) in an effort to develop a modern, transparent, 
accountable, and professional Cambodian partner that supports U.S. 
efforts to maintain regional and global stability, adheres to 
international human rights norms, and is integrated into the 
international community.
    The military-to-military relationship focuses on building capacity 
in peacekeeping (with recent deployments to Sudan and Lebanon as 
examples), counterterrorism, civil-military operations (including 
military medicine and engineering), humanitarian assistance and 
disaster relief response, and maritime security. The United States will 
also continue to enhance the RCAF's capabilities to meet reform, force 
restructuring, and professionalization objectives.
    Every individual and unit that participates in U.S.-funded training 
is thoroughly vetted, both in Phnom Penh and Washington, in strict 
accordance with U.S. law and State Department regulations. For example, 
in addition to the various internal background checks conducted at the 
U.S. Embassy, using information the Embassy has amassed from contacts 
and open sources, Embassy personnel also check names against a database 
maintained by a prominent human rights NGO. This database tracks human 
rights violations throughout the country and includes cases submitted 
by NGO monitors and contacts in the provinces. In Washington, the 
Department of State's Bureau of Democracy, Human Rights and Labor 
implements the Leahy amendment by reviewing information from multiple 
resources to ensure that U.S. funding is not used to training 
individuals or units implicated in human rights abuses.
    Senior Department of Defense visitors to Cambodia discuss human 
rights issues in their meetings with senior RCAF and Ministry of 
National Defense (MoND) officials. The RCAF and MoND are fully aware of 
our position on gross human rights violations as it pertains to 
security training, and all units and individuals receiving training are 
required to receive human rights awareness training prior to the start 
of the program.

    Question. Please cite specific examples during the past 3 years 
when the United States protested the illegal eviction and ``land 
grabbing'' of private citizens, which has occurred at the direction of 
Cambodian officials and in violation of Cambodian law.

    Answer. The United States has consistently expressed its concerns 
about the increasing number of land disputes in Cambodia and the 
potential they have to escalate into violent confrontations. These 
disputes underscore the importance of clearly delineated property 
rights and the need for a dispute resolution system that is independent 
and treats all Cambodians equally and according to the law.
    The United States has previously joined others in the international 
community to urge the Royal Government of Cambodia (RGC) to ensure that 
property rights are respected. For example, in 2009, the United States 
coordinated and publicized a joint statement that urged the RGC to end 
its development of Boeung Kak Lake until and unless Cambodian 
authorities and the affected citizens reached a lawful resolution. In 
2011, the World Bank suspended new lending to Cambodia until and unless 
the RGC satisfactorily resolved the Boeung Kak Lake situation. The 
United States, as a shareholder, strongly supported the World Bank's 
decision.
    In 2012, the United States publicly raised our concerns regarding 
land disputes during the eviction of land claimants from the Borei 
Keila settlement and continues to call on protestors to refrain from 
violence and for security forces to exercise maximum restraint.
    The United States, through our USAID mission in Phnom Penh, 
provides funding and training to civil society groups that work in the 
areas of land and livelihood rights, judicial reform, and legal 
awareness.

    Question. How do you recommend approaching the plethora of rule of 
law challenges and issues within Cambodia? Please assess the success or 
failure of the United States on this front in recent years in Cambodia. 
What other countries are actively concerned about the rule of law 
challenges in Cambodia?

    Answer. The United States is concerned about Cambodia's weak and 
vulnerable judiciary. Weak rule of law hinders political reform, 
encourages an environment of impunity, hinders economic and social 
development, and cripples the public's confidence in the political 
process. Land rights issues are a tangible example of a larger need for 
rule of law for many Cambodians.
    Though recent arrests may indicate greater political will in 
Cambodia to tackle corruption, the United States continues to encourage 
Cambodia to comprehensively enforce its Anti-Corruption Law. We also 
encourage Cambodia to write effective, applicable laws and have offered 
technical assistance and critical feedback to support those efforts.
    If confirmed, I will not only recognize and praise positive 
developments, but also make clear our strong position on issues related 
to the rule of law and corruption. I will persistently engage with 
Cambodian officials and political leaders to stress the vital 
importance of the rule of law and the need to create the political will 
to build and protect it. At the same time, I believe the United States 
needs to continue its robust support for civil society organizations 
that actively monitor and promote the rule of law in Cambodia.
    Various USAID programs support justice sector reform, including a 
project with the Ministry of Justice to improve collection and use of 
justice-system data. USAID supports legal education, which is critical 
for building the next generation of legal professionals who can promote 
rule of law, a key element in democratic transformation. Through a 
robust subgrant program, USAID supports civil-society organizations 
that engage in human rights advocacy and provide legal aid to indigent 
persons.
    The United States $11.8 million contribution to the Khmer Rouge 
Tribunal (pledged and delivered contributions since 2008) is assisting 
the Cambodian people in achieving a measure of justice and 
accountability for the atrocities of the Khmer Rouge era. If confirmed, 
I will continue to call on the Cambodian Government to respect and 
protect the Tribunal's independence with regards to all cases before 
the Court.
    The U.S. Government is also engaging with Cambodia's military and 
law enforcement forces to develop their professionalization and 
accountability, thus advancing their respect for the rule of law. 
Professional and competent security forces will not only be better 
equipped to address transnational threats and domestic criminal 
activities, but also be better prepared to support and sustain 
democratic institutions.
    The United States coordinates closely with other donors supporting 
rule-of-law programs and assesses that many of Cambodia's international 
partners are concerned about rule of law, given its impact on a broad 
spectrum of issues, from the inviolability of contracts for foreign 
investors to human rights for Cambodians and myriad other issues. Many 
countries are actively concerned about the rule of law in Cambodia, 
including Australia, members of the European Union, Japan, Canada, and 
South Korea.

    Question. In what ways does the United States consult and 
coordinate with other major international donors of assistance to 
Cambodia?

    Answer. The United States consults and coordinates with other major 
international donors on a regular basis, through formal and informal 
means, and through the strategy, design, implementation, monitoring, 
and evaluation cycle of assistance programs. Mechanisms include a 
monthly meeting in Phnom Penh attended by heads of development partner 
agencies, consultations at the program design and implementation level, 
consultative workshops with other development partners, and even the 
contributions of resources from other donors to USAID programs.
    Formal coordination between development partners and the Cambodian 
Government occurs at three levels. First, a consortium of 19 technical 
working groups addresses a range of development issues at the working 
level. Second, the ``Government Donor Coordination Council'' serves as 
a higher level forum for coordination and dialogue between the 
Cambodian Government and development partners, with the most recent 
such meeting occurring in April 2011. Third, the Country Development 
Cooperation Forum (CDCF) is the highest level forum for policy dialogue 
among the development partners and the Cambodian Government, is 
typically chaired by the Prime Minister, and includes the participation 
of Ambassadors and heads of development agencies. The most recent CDCF 
was held in June 2010.

    Question. Please identify U.S. ``partners'' in Cambodia, receiving 
U.S. funds, whom have direct or indirect relations with one or more key 
Cambodian official or their family.

    Answer. CDC: The implementing partners for the U.S. Centers for 
Disease Control's (CDC) Global AIDS Program and Influenza Program 
include the Ministry of Health; the National Center for HIV, AIDS, 
Dermatology and Sexually Transmitted Infections; the National 
Tuberculosis Control Program; the National Institute of Public Health; 
the Communicable Disease Control Division; and the World Health 
Organization (WHO). Each of these partners is led by a key Cambodian 
official (for the Cambodian Government agencies) or has direct 
professional ties to such officials (WHO).
    USAID/Cambodia: The Cambodia mission of the U.S. Agency for 
International Development (USAID/Cambodia) works with local and 
international NGO partners to implement programs in democracy, human 
rights, elections and political processes, health, education, 
agriculture, food security and environment. These partners necessarily 
have direct professional relationships with key Cambodian Government 
officials.
    USAID/Cambodia is aware of only one direct partner receiving U.S. 
funds that has a family relationship with a key Cambodian official. The 
Chief of Party of the Sustainable Action Against HIV/AIDS in 
Communities project, implemented by the Khmer HIV/AIDS NGO Alliance, is 
the spouse of an Under Secretary of State with the Ministry of 
Commerce.
    Ambassador's Fund for Cultural Preservation (AFCP): The United 
States is providing AFCP funds to two nongovernmental organization 
(NGO) implementing partners that have direct professional relationships 
with key Cambodian officials at the Ministry of Culture and/or the 
APSARA Authority. The NGOs are the World Monuments Fund (conservation 
work at Phnom Bakheng Temple) and Cambodian Living Arts (documentation 
of three Khmer music traditions). These grants were awarded through a 
standard competitive process that complied with all relevant U.S. laws 
and regulations.
    English Access Microscholarship Program (Access): The following NGO 
implementing partners, which receive Access funding to conduct English-
language education for disadvantaged students, are led by a key 
Cambodian official. Grants to these organizations were awarded through 
a standard competitive process that complied with all relevant U.S. 
laws and regulations.

   Cambodian Islamic Youth Association--The director is an 
        Under Secretary of State with the Ministry of Social Affairs, 
        Veterans and Youth Rehabilitation, and the deputy is an Under 
        Secretary of State with the Ministry of Rural Development.
   Islamic Local Development Organization--The founder, who is 
        still a member of the group's Board of Directors, is a 
        Secretary of State with the Ministry of Social Affairs, 
        Veterans and Youth Rehabilitation.
   Cambodian Islamic Women Development Association--The project 
        director is an Under Secretary of State with the Ministry of 
        Women's Affairs.
   Cambodian Muslim Development Foundation--The project 
        director is an Under Secretary of State with the Ministry of 
        Education, Youth, and Sports.

    Other Public Diplomacy Programs: The United States funds American 
Corners at Panasasstra University of Cambodia (PUC) in Phnom Penh and 
the University of Management and Economics in Kampong Cham and 
Battambang, all of which have professional relationships with key 
Cambodian officials, mainly with the Ministry of Education, Youth and 
Sports. Additionally, the President of PUC is a former Minister of 
Education and continues to serve as an advisor to the Cambodian 
Government. The United States also provides support for the annual 
CamTESOL conference, organized by the private company, IDP, which works 
closely with the Ministry of Education on the event.
    NADR: Though Nonproliferation, Antiterrorism, Demining, and Related 
Programs (NADR) funding, the United States provides grants to 
humanitarian demining organizations in Cambodia to remove mines and 
other explosive remnants of war (EWR). In addition to mine and EWR 
clearance activities, U.S. assistance supports technical training and 
public education programs. Implementing partners for these programs 
include DynCorp International, the Mines Advisory Group (MAG), the HALO 
Trust, and Golden West Humanitarian Foundation. These organizations 
necessarily have direct professional relationships with key Cambodian 
officials.
    IMET/FMF: International Military Education and Training (IMET) and 
Foreign Military Financing (FMF) funds are not provided directly to any 
Cambodian partner, but government elements led by key Cambodian 
officials, including the Royal Cambodian Armed Forces and the Ministry 
of National Defense, do benefit from IMET/FMF-funded programs and 
projects. All programs and activities are contracted and disbursed in 
strict accordance with applicable U.S. laws on competitive bidding.

    Question. What are ``best prospects'' for U.S. companies exporting 
to Cambodia in the next 3 to 5 years?

    Answer. While Cambodia has enjoyed considerable economic growth 
over the past decade, it is still among the poorest countries in the 
world. Most Cambodian consumers are extremely price sensitive. While 
products from China, Vietnam, or Thailand tend to dominate the market 
because of their relatively cheaper prices, there are some key areas in 
which American products and services are positioned to increase their 
market share. If confirmed, I will do everything I can to increase U.S. 
exports to Cambodia, including working with the Cambodian Government to 
improve the business and investment climate in Cambodia.

   Agribusiness and Food Processing: Roughly 80 percent of 
        Cambodia's population is engaged in the agriculture sector. As 
        a matter of policy, the Cambodian Government encourages 
        investment in agriculture, diversification of agricultural 
        products, and investment in improved irrigation and water 
        control. The agriculture sector currently relies on outdated 
        methods of farming and opportunities exist for American 
        companies to promote higher quality seeds, fertilizers, and 
        other agricultural inputs in Cambodia. Agricultural equipment, 
        irrigation systems, and food processing equipment are other 
        areas with potential for increased U.S. exports.
   Construction Equipment and Engineering Services: Cambodia is 
        rehabilitating its hard infrastructure, including its road 
        network, and has experienced a boom in residential and 
        commercial construction over the last few years. Construction 
        equipment and engineering services will be in great demand for 
        the foreseeable future. Public works and transportation are a 
        high priority for the Cambodian Government, which receives 
        support from international donors.
   Tourism Infrastructure and Resorts: Political and economic 
        stability has enabled Cambodia's tourist sector to mature 
        steadily over the past few years. Nearly 3 million foreign 
        tourists visited Cambodia in 2011. Main attractions include the 
        historical Angkor Wat temple complex in Siem Reap and the 
        relatively undeveloped beaches along Cambodia's southern coast. 
        Estimated annual earnings from the sector are more than $1.5 
        billion, or about 10 percent of total GDP. Collectively, these 
        conditions present good market opportunities for American 
        companies to develop hotels and resorts and to supply other 
        hospitality-related products or infrastructure.
   Education: Demand for private or supplementary education 
        services is high. The majority of Cambodia's population is 
        school age, and the overall quality of public education is very 
        poor. Many Cambodians, particularly in the growing middle class 
        but even for those without much disposable income, are willing 
        to spend money on education for their children to secure better 
        opportunities in life. Commercial opportunities exist for 
        American firms in vocational, specialized, preschool, 
        elementary, secondary, and post-secondary education resources. 
        English-language training is also an increasingly attractive 
        prospect.
   Used Cars and Automotive Parts: Cambodia has no public 
        transportation network, and the majority of people travel by 
        motorbike or car. Automobile ownership is rapidly increasing, 
        and the vast majority of cars are imported second-hand 
        vehicles. The United States is currently the largest supplier 
        of used vehicles in Cambodia, with the most popular models 
        being four-wheel drive vehicles and mid-sized Japanese-brand 
        sedans. Additional export opportunities exist in car 
        accessories and spare parts.

    Question. What level of U.S. funding has been dedicated to 
electoral reform in Cambodia over the last 10 years? Do you view this 
priority as being a success or failure on the part of the U.S. given 
concerns about 2013 elections being ``free and fair''?

    Answer. The total value of U.S. Government assistance supporting 
civil society and political parties in elections over the past 10 years 
is $37,589,997. This assistance has promoted programs critical to 
supporting free and fair elections in Cambodia, including political 
party training/development, voter education, youth political 
empowerment, polling, women's caucuses, candidate debates, and civil 
society observation of elections. For over 10 years, the United States 
has not provided assistance to electoral management bodies that 
administer elections or legal/policy reform issues.
    I believe that Cambodia's transition and democratic reform remains 
a work in progress and considerable challenges remain. Most observers 
assessed that Cambodia's 2008 elections took place in an overall 
peaceful atmosphere with an improved process over past elections. 
However, observers noted the elections did not fully meet international 
standards. Restrictions on the transparency of the electoral 
environment include harassment of opposition political parties and 
limited space for political debate. The United States believes that 
Cambodia's commune elections in 2012 and national elections in 2013 
provide opportunities for the Royal Government of Cambodia to 
demonstrate to its people and the world that it is dedicated to 
multiparty democracy and that it can be a durable and healthy 
democracy.
    Looking to the 2012 and 2013 elections, if confirmed, I will 
continue support for the role of civil society and political parties in 
elections. I will also deploy Embassy personnel as election observers 
throughout the country and coordinate our efforts with others in 
Cambodia and with the international community.
                                 ______
                                 

        Responses of Sara Margalit Aviel to Questions Submitted
                      by Senator Richard G. Lugar

    Question. Your biography indicates that you have never worked in 
the World Bank system. How do you think this will impact your ability 
to function as a part of the U.S. leadership? What will your priorities 
be at the World Bank? What new initiatives would you propose to promote 
U.S. priorities at the Bank?

    Answer. My experiences at the Treasury Department, National 
Security Council, National Economic Council, and in private 
international development organizations provide me with a unique 
perspective on policymaking at the highest levels of the U.S. 
Government and on development issues in the poorest communities in the 
world.
    To give just a few examples of my experience:

   I have been a part of the important community development 
        projects the World Bank supported in Afghanistan, where CARE 
        served as an implementing partner for the World Bank's landmark 
        National Solidarity Program.
   As a Senior Advisor to Secretary Geithner, I participated in 
        and helped manage Secretary Geithner's engagements in six World 
        Bank spring and fall annual meetings.
   As a Director of International Economic Affairs at the 
        National Security Council and National Economic Council, I have 
        coordinated with World Bank officials on a range of issues, 
        from cosponsorship of the South Sudan International Engagement 
        Conference to projections of Afghanistan's fiscal gap.

    These experiences have made me well-versed in the range of 
development and policy issues facing the World Bank. If confirmed, I 
will arrive at the Bank as a newcomer to the World Bank system like 
most of my predecessors. However, I can assure you that I will bring 
the relevant experience to the position, as well as the ability to 
approach the institution with a fresh perspective and a critical eye 
rather than being encumbered by the status quo.
    If confirmed, my priority, first and foremost, would be to serve as 
a strong fiduciary steward of American taxpayer resources. The United 
States is the largest shareholder of the institution, and if confirmed, 
it would be my primary responsibility to provide effective oversight.
    Second, my focus would be on execution. The World Bank has already 
agreed to a number of significant reforms as part of the recent capital 
increases and I would work to make sure that these reforms are 
implemented quickly and effectively. These include efforts to:

   Strengthen financial discipline;
   Improve governance and accountability, including promoting 
        transparency and anticorruption efforts;
   Enhance development impact and effectiveness.

    Beyond focusing on a comprehensive and careful implementation of 
these critical reforms, I would work with the Executive Director to 
promote U.S. priorities at the World Bank by:

   Encouraging a culture of innovation and learning so that 
        effective approaches can be brought to scale for greater 
        impact;
   Conducting outreach to the private sector to highlight 
        procurement and financing opportunities for American companies;
   Engaging civil society organizations and other stakeholders 
        to solicit different perspectives on the impact of the World 
        Bank and potential areas for improvement.

    Question. Your testimony at the hearing overall highlighted and 
discussed the stated mission of the World Bank and cast the institution 
in a positive light. Your testimony did not address the issue of much-
needed reform in the Bank system. I have been conducting investigations 
and holding hearings for 10 years now on serious corruption and lack of 
transparency at the Bank. After onsite visits by my staff, I put 
forward a report detailing findings and suggesting corrective measures 
going forward. Have you reviewed this report and evaluated the 
suggested reforms? What measures, in addition to those I suggest, would 
you propose to promote transparency and anticorruption? What can the 
Treasury Department do to focus more on reform?

    Answer. I have carefully reviewed your report and support its 
approach. Indeed, I believe my testimony was very much aligned with the 
general conclusions in the report--namely that ``the IFIs still serve 
U.S. policy interests and leverage American taxpayer dollars'' but that 
we must work to improve their accountability, transparency, and 
effectiveness.
    After reading the report, I actively consulted with colleagues at 
the Treasury Department and in the office of the U.S. Executive 
Director about its contents and recommendations. I was pleased to hear 
that the report significantly helped guide their negotiations regarding 
the general capital increases, replenishments, and the corresponding 
reforms. For instance, the International Bank for Reconstruction and 
Development (IBRD) and the International Finance Corporation (IFC) have 
both agreed to increased transfers of their net income to the 
International Development Association (IDA) during the IDA-16 
replenishment period--a key recommendation in your report. Furthermore, 
in the context of the IBRD's general capital increase, shareholders 
agreed to greater formalization of these transfers going forward. The 
United States also successfully pushed to increase IFC's lending in IDA 
countries, as you had recommended.
    Also consistent with the recommendation of your report, the United 
States, other key shareholders, and the management of the MDBs have all 
placed a special emphasis on harmonizing results in recent years. Much 
of the agenda has been centered on results measurement systems, such as 
that of the International Development Association (IDA). For example, 
in the latest replenishment round for IDA completed in May, 2010 
(IDA16), reforms to results monitoring and measurement at the country, 
program and project levels have helped set a model for other 
development partners. I understand that in each of the recent 
concessional window replenishments (IDA, the Asian Development Fund, 
and the African Development Fund), the United States has pressed for 
greater efforts toward harmonization of results frameworks across the 
institutions and that the MDBs are responding favorably and actively 
engaging with each other on this important objective. If confirmed, I 
look forward to engaging with World Bank management on this agenda as I 
believe it is central to promoting greater accountability.
    Your report also appropriately emphasizes the anticorruption and 
transparency agenda. The World Bank has some notable recent successes 
to point to, such as the landmark Cross Debarment Agreement that 
brought the World Bank and regional development banks together in 
linking their actions in response to incidences of corruption in 
procurement. Another notable success is the Bank's new access to 
information policy, which sets an appropriate new norm of transparency, 
with a presumption that all documents are released and a very narrow 
exception for sensitive materials.
    However, given the amount of money disbursed from the Bank, and the 
often challenging environments in which the Bank operates, guarding 
against corruption requires constant vigilance. Therefore, if 
confirmed, I look forward to working closely with the Treasury 
Department and this committee in advancing a robust agenda on 
transparency and anticorruption at the World Bank. This includes 
supporting a strong Integrity Vice-Presidency with sufficient resources 
to carry out its investigations, pressing for better data collection 
and reporting on procurement awards under Bank-financed projects, and 
greater use of independent, third-party organizations to verify the 
results of Bank projects, where appropriate (such as in the Bank's new 
Program-for-Results instrument). The World Bank and the Treasury 
Department should also continue using their leverage to promote greater 
transparency and anticorruption policies across borrowing country 
governments by working with them to strengthen their public financial 
management systems, publish their budgets, investigate and prosecute 
wrongdoing, and where applicable, incorporate the principles of the 
Extractive Industries Transparency Initiative.

    Question. One of the goals of the World Bank system should be to 
``put itself out of business.'' There should be more focus on enabling 
governments to generate their own revenue and access to capital 
markets. What sorts of guidelines would you propose for moving 
countries from being borrowers to becoming donors, particularly the 
middle-income countries?

    Answer. I agree that the World Bank Group should aim to reduce the 
need for its involvement by supporting poverty reduction around the 
world including by working with governments to generate their own 
revenue for this purpose. The World Bank system has succeeded in 
meeting this goal in many countries throughout its history. Since the 
founding of the World Bank in 1944, thirty-three countries have 
graduated from IBRD borrowing. The list of IBRD graduates highlights 
the success of the World Bank in supporting the postwar reconstruction 
of Europe (e.g., France, which graduated in 1947); fostering the rapid 
post-war development of East Asia (e.g., Japan, 1967; Taiwan 1971; 
Singapore, 1975; and South Korea, 1995); and facilitating Eastern 
Europe's transition to capitalism (e.g., Czech Republic, 2005 and 
Hungary, 2007). Since its founding in 1960, IDA has seen 35 countries 
graduate from its assistance including: Botswana, China, Costa Rica, 
Jordan, and Turkey.
    While graduation rates are roughly the same from IDA and IBRD, it 
is also the case that the guidelines for graduation from IDA--per 
capita income above an established threshold ($1,175 in FY 2012) and/or 
creditworthiness to borrow on market terms--are clearer and more 
binding. On balance, I understand the IDA graduation model works 
reasonably well. As to IBRD, I believe there are advantages to defining 
a clearer graduation policy and principles for Bank engagement in 
middle-income countries.
    While I do think it is important to encourage graduation, the 
United States does have an interest in continued IBRD engagement in 
many middle-income countries. Middle-income countries, such as Brazil 
and China, have made tremendous strides in development in recent 
decades. However, they still account for just under half of the world's 
population and are home to two-thirds of people across the globe living 
on less than $2 per day. So the World Bank still plays a valuable role 
in supporting these countries' efforts to eradicate poverty. World Bank 
lending also advances other U.S. policy interests in these countries 
including environmental sustainability, sound fiscal management, and 
orienting their economies toward greater domestic consumption, which 
generates export markets for our firms and contributes to larger global 
rebalancing efforts. The high standards for environmental and social 
safeguards and procurement policies that the World Bank requires serves 
as a model that we would like to see adopted more broadly in these 
countries. Moreover, although middle-income countries can often borrow 
on international capital markets at favorable rates, they value the 
World Bank's unique expertise in long-term development interventions.
    Further, even as many of these countries make considerable economic 
strides globally, they often remain vulnerable to economic shocks, 
which can force them to turn to the World Bank to cushion the blow on 
their most vulnerable citizens. For example, South Korea, a country 
that had formally graduated from IBRD assistance nearly 20 years ago, 
and by virtually any measure, is a success story today, nonetheless was 
forced to return to the Bank for assistance during the Asian Financial 
Crisis in the late 1990s.
    The World Bank and the United States have been successful in 
encouraging greater participation of emerging market donors, and if 
confirmed, I would continue to press this case. In the last 
replenishment of IDA, for example, several middle-income countries such 
as China, Brazil, Russia, and Mexico made pledges. To date, traditional 
donor contributions from these countries have been very modest. At the 
same time, through the IBRD and IFC net-income transfers, as well as 
measures such as ``prepayment'' of outstanding IDA loans by countries 
like China, middle-income countries played a strong, if indirect, role 
in driving the overall increase in the IDA 16 replenishment.
    That said, I think these countries should do more in exchange for 
the benefits they receive from World Bank assistance. The United States 
has long been at odds with many of the middle-income countries on the 
issue of loan pricing. If confirmed, I will continue to press for loan 
pricing that meets the broader needs of the Bank, both in terms of 
protecting the Bank's capital base but also in making important goals 
like IDA transfers possible. I also think it is worth exploring the 
recommendation in your report to consider charging for advisory 
services.
    If confirmed, I would consult actively with Congress and other 
stakeholders about the appropriate role for the World Bank in middle-
income countries.

    Question. The global financial crisis has impacted the world's 
poorest regions most severely. The response of the Bank was to seek 
greater resources from donor countries, which have also been affected 
drastically by the crisis. Could the international financial 
institutions have done anything to mitigate the effects of the crisis? 
What sorts of studies or reviews would you conduct to make sure that 
lessons learned from the crisis of the last few years are used to 
better prepare the institutions for any such future occurrences?

    Answer. The global economic crisis that began in 2008 threatened to 
erase years of progress in developing countries. In response to the 
crisis and calls from the G20, the World Bank Group (World Bank, 
International Finance Corporation, Multilateral Investment Guarantee 
Agency) increased lending to unprecedented levels. Since 2008, the 
World Bank Group has committed $196.3 billion to developing countries, 
including record commitments in education, health, nutrition, 
population, and infrastructure, providing much-needed investments in 
crisis-hit economies. These investments also helped restore liquidity 
to trade flows, which helped cushion the blow for American exporters as 
well.
    I strongly support the Bank's robust response to the crisis and I 
believe the Bank delivered consistent with its resource constraints--
both in terms of timeliness of its response and the quality of its 
interventions. I continue to believe the Bank played a critical role in 
mitigating the extent of the crisis, and that the impact would have 
been far worse in many countries without the Bank's interventions.
    That said, the Bank should and is taking a hard look at its crisis 
response efforts to determine where new approaches or instruments might 
make sense. In this context, the Bank's Independent Evaluation Group 
(IEG) recently completed an extensive review of the Bank's response to 
the crisis. The review found that the Bank's lending provided an 
important source of stimulus in many countries at a time when many 
feared the onset of a global depression. However, the review also found 
that the Bank's lending was not always adequately targeted or quickly 
disbursing, reducing its overall effectiveness. The GAO also recently 
completed its own review of the Bank (and other international financial 
institutions) lending during the crisis that drew similar conclusions.
    Recognizing the challenges to intervening effectively during a 
crisis and as an IDA 16 outcome, the Bank established an IDA crisis 
response window (CRW), which should enable IDA to respond more quickly 
to economic shocks and natural disasters. If confirmed, I would be 
eager to assess the experience with the CRW to determine if it is a 
model worth committing to on a permanent basis.

    Question. The U.S Government just approved the general capital 
increase for the banks. The GCI was conditioned upon certain reforms. 
How will you ensure that substantial efforts are devoted to achieving 
these reforms? Specifically, how can the Bank better implement 
guidelines to maximize international competitive bidding in accordance 
sound procurement practices? How can the Bank better ensure protection 
for whistleblowers? Will you press the Bank to make available internal 
and external performance and financial audits?

    Answer. Implementation of the reforms specified in the World Bank 
general capital increase legislation is a high priority for the 
administration, the Department of the Treasury, and for me personally. 
If confirmed, I will work closely with the U.S. Executive Director, 
other World Bank Executive Directors, and with Bank management to 
achieve these reforms. I will work to make sure that progress is 
carefully monitored and tracked under the operating framework that 
Treasury lays out in its reporting. If progress falls short, I will 
work diligently to press our case with the World Bank and elevate our 
concerns within the administration as necessary.
    Creating a level playing field, promulgating sound procurement 
practices, and maximizing competition is an important part of the World 
Bank's approach both for its own sake and because it helps model the 
kind of practices countries need to adopt in order to create sound 
investment climates and open, growing economies. The World Bank's 
Procurement Guidelines and standard documents have been recognized as 
international best practice by organizations representing the private 
sector. The World Bank's Procurement Guidelines support transparency, 
competition, and cost-effective results by requiring measures such as:

   Strong international advertising requirements;
   Open competition in the contracting process;
   Publicly available standard bidding documents for 
        international competitive bidding.

    In January 2011, the World Bank Board approved modifications to its 
guidelines designed to further enhance the transparency and efficiency 
of the procurement process under World Bank-financed investment 
projects. This included, for example, requirements for strengthened 
advertising of project bid opportunities and for posting of project 
procurement plans. I understand the World Bank will soon be launching a 
review of its procurement policy. If confirmed, I will consult closely 
with relevant stakeholders including Congress and organizations 
representing the private sector to identify potential areas of 
improvement. I will work closely with the U.S. Executive Director, 
other Executive Directors, the Treasury Department, and World Bank 
management to incorporate these suggestions and further strengthen the 
World Bank's already strong procurement policies.
    With respect to whistleblowers, I believe that a strong 
whistleblower protection policy is essential so that employees feel 
safe reporting any waste, fraud, or corruption they encounter. In 
partnership with Congress, the United States has been a consistent 
advocate of strong whistleblower protections at the Bank. As a result, 
the World Bank has made substantial progress in adopting and 
implementing policies in the area of a whistleblower protection that 
substantially embody the best practices applicable to international 
organizations including:

   Requirements to report suspected misconduct;
   Protections against retaliation including provisions for 
        discipline of any employee who engages in retaliation;
   Legal burdens of proof on management, so that if an employee 
        can show that he or she was subject to adverse action after 
        reporting wrongdoing at a Bank, management must show by clear 
        and convincing evidence that it would have taken the same 
        action absent the reporting of wrongdoing;
   Access to independent Administrative Tribunals;
   A presumption of reinstatement for dismissed employees;
   Provisions for remedies, such as compensatory damages, for 
        financial losses linked to retaliatory action, legal costs, and 
        interim relief for whistleblowers in the midst of a review or 
        investigation.

    If confirmed, I would be committed to maintaining these strong 
whistleblower protection policies and strengthening them if needed. I 
understand the Treasury Department is currently working with the Bank 
to see if it can provide relevant data to show how its policy is being 
implemented. If confirmed, I would use this information, along with 
information gleaned from consultations with employees, Congress, and 
other stakeholders, to determine if additional measures are necessary.
    Finally, the World Bank now makes available its internal and 
external performance and financial audits. In 2009, the Bank revised 
and improved its Access to Information Policy, which governs issues 
related to the availability of external and internal performance 
audits. Previously the Bank had only released certain documents, but 
the new policy makes transparency the norm. Documents are presumed to 
be released other than in exceptional circumstances, and there is a 
new, formal, independent appeals process where members of the public 
can seek disclosure if they believe it was wrongfully denied. The World 
Bank now makes publicly available a wide range of critical documents 
including:

   The annual assessment of the Results and Performance of the 
        World Bank Group;
   A yearly update of the Status of Projects in Execution, 
        which assesses each project's progress;
   All internal and external performance and financial audits.

    In addition, under the new disclosure policy, borrowers are 
required to disclose the audited annual financial statements of 
projects as a precondition for doing business with the Bank. The World 
Bank discloses the statements upon receiving them.
    Strong standards for transparency, protection of whistleblowers, 
and procurement processes are all an essential part of making the World 
Bank a more accountable organization. If confirmed, I will work to 
protect these strong standards and look for additional ways to make the 
World Bank more accountable.

    Question. The Board of Directors recently approved the ``Program 
for Results'' or P4R. This program has met with mixed reviews from 
civil society. How will you ensure that this program is implemented 
effectively and transparently? How will you monitor for the inclusion 
of programs with adverse environmental impacts or adverse impacts on 
indigenous people? Will P4R work in conjunction with a country's own 
system of transparency? Are there any downsides to this? How can the 
Bank make the principles of Integrity Vice Presidency an integral part 
of all operations in all units of the Bank?

    Answer. The concept of P4R--formally linking World Bank 
disbursements to the achievement of development results that are 
tangible, transparent, and verifiable--has merits, but I also 
understand and share some of the concerns raised by civil society. 
Therefore, I strongly support World Bank management's decision to roll 
out P4R slowly and with the incorporation of appropriate limits, 
evaluations, and oversight.
    Specifically, I support the limit of commitments under P4R in the 
first 2 years of the program. The limit of 5 percent of annual IDA/IBRD 
commitments--which still equates to approximately $2 billion annually--
is sufficient to allow the World Bank and its shareholders to test the 
implementation of the instrument and identify and correct any problems 
that arise. Any expansion of the program would have to be brought 
before the Board.
    Countries that participate in the P4R program must first meet 
certain social and environmental standards. Civil society groups are 
understandably concerned these standards will not be as strong as the 
World Bank's environmental and social safeguards--safeguards they have 
worked hard to advance at the World Bank and that, if confirmed, I will 
work to uphold and strengthen. However, the P4R program has the 
potential to provide an incentive for countries to lift their standards 
across their entire government as opposed to just projects where the 
World Bank is involved, and this could have a significant impact on 
advancing environmental and social issues.
    I also agree that the exclusion of Category A activities--those 
deemed likely to have a significant environmental impact--from P4R 
financing is appropriate and welcome the World Bank's unequivocal, 
public statements in this regard. The significant risks that such 
activities present are best handled through Investment Lending 
operations and under the World Bank's well-established social and 
environmental safeguard policies.
    If confirmed, I look forward to engaging closely with the World 
Bank as the initial P4R operations are brought to the Board. 
Specifically, I will work with the U.S. Executive Director and World 
Bank management to be particularly attentive to the potential for any 
adverse impacts of P4R activities on the environment, Indigenous 
Peoples and other vulnerable groups. In these circumstances, I would 
seek to make sure the World Bank mitigates potential risks adequately 
or determines not to move forward with the P4R investment.
    I believe that transparency and accountability are key to the 
success of P4R, and all the work the World Bank is engaged in. If 
confirmed, I will work with the Bank to provide affected communities, 
the private sector, and other stakeholders the ability to review and 
provide input on the individual program risk assessments, proposed 
capacity-building measures, and proposed activities. Upon the project's 
completion, these stakeholders should also be informed of the results 
at the activity level.
    The World Bank's Integrity Vice Presidency's (INT) mandate covers 
the entire World Bank Group and is an essential accountability 
mechanism of the World Bank. I strongly support the work of the INT and 
welcome its continued oversight of World Bank lending under P4R. I also 
strongly support the efforts of the United States to incorporate 
language into P4R's operational policy stating that INT would have the 
right to investigate allegations of fraud and corruption in the program 
supported by P4R, including projects financed under the program, not 
only those allegations related to Bank financing (i.e., the use of 
government funds would be included as well). If confirmed, I will work 
in coordination with the Treasury Department to see that this policy is 
carefully followed.

    Question. In these tough economic times, governments and 
institutions generally must be able to accomplish more with the same 
resources. What sort of efficiency or cost saving measures would you 
recommend to the Bank? What specifically would you suggest for 
effective budget discipline in order to ensure that the largest 
percentages possible of the Bank's resources are actually going to 
fight poverty?

    Answer. Budget discipline and efficiency at the World Bank are high 
priorities for the U.S. Government and if confirmed, they would be high 
priorities for me as well. The United States has supported a flat real 
budget for the past 7 years. I believe the Bank should pursue cost 
saving wherever possible. I understand that the United States has 
consistently pressed for more restraint on issues of compensation, 
travel budgets, and general overhead at Bank Headquarters, and if 
confirmed, I fully intend to carry forward these positions.
    In addition to pushing for specific cost measures, I am very 
supportive of the recent structural changes that will enable greater 
efficiencies in the future. In 2010, the World Bank adopted a new 
financial framework that strengthens budget discipline. Specifically, 
for the first time in 2011, the World Bank made major financial 
decisions on budget, pricing, and net income transfers at one time 
(i.e., in June, which is the end of the Bank's fiscal year), compelling 
management and shareholders to consider important budgetary tradeoffs. 
For example, if middle-income countries have an interest in an expanded 
Bank budget for their country, they should be prepared to make that 
case in the context of a discussion that also addresses the role loan 
pricing plays in supporting the budget. This is a significant 
improvement over previous practice, which was to consider these matters 
separately. In addition, the World Bank did, in fact, increase rates on 
loans with longer term maturities. As a result, loan prices now cover a 
larger share of the World Bank's administrative budget, a practice that 
will strengthen the Bank's accountability.
    In 2010, World Bank shareholders also agreed to a rules-based 
approach to net-income transfers from the hard-loan window (the 
International Bank for Reconstruction and Development, or IBRD), to the 
concessional window (the International Development Association, or 
IDA), a measure that will help make support to IDA more predictable and 
sustainable while maintaining prudent reserve levels. IFC's financial 
framework also includes a new rules-based approach to help guide the 
determination of the size of IFC's pledge to the IDA replenishment in a 
manner consistent with IFC's needs and donors' prioritization of IDA 
transfers. These agreements further strengthen IDA's financial model 
and reduce its dependence on donor contributions.
    Although not seemingly directly related to budget discipline, I 
believe the concerted focus on results will yield significant 
efficiencies over time. If confirmed, I would push to include a cost-
benefit analysis in project evaluations so that we can focus resources 
where we get the biggest social return on our investment and eliminate 
approaches that do not work. As you rightly state in your report, 
funding project evaluations is much more cost effective than continuing 
to fund ineffective projects.
    If confirmed, I expect I will find additional cost-savings measures 
once I am working within the institution. I take my responsibility to 
serve as a careful steward of taxpayer resources very seriously and 
will work hard to enforce budget discipline at the World Bank.

    Question. U.S. leadership at the Bank is required to some degree to 
share its positions and voting with the U.S. Congress. Will you commit 
to transparency with Congress in the votes taken at the international 
financial institutions? What will be your manner and timeframe for 
consulting with the U.S. Congress? Will you commit to providing the 
Senate Foreign Relations Committee with outdated legislative mandates?

    Answer. I know that the Treasury Department is committed to 
transparency with Congress and the public, and specifically posts the 
votes taken at international financial institutions on its Web site. I 
also personally commit to transparency with regards to votes, 
legislative mandates, and any other issues of concern to Congress.
    If confirmed, I look forward to working closely with Congress. I 
believe congressional oversight is critical, and as I said in my 
testimony, I have seen firsthand how congressional involvement can 
provide leverage to U.S. negotiators. I will work with the Treasury 
Department to proactively consult with Congress in a timely manner on 
significant issues facing the World Bank and I will seek ways we can 
partner together to advance our shared goals at the institutions. In 
addition, I will of course be responsive to congressional requests for 
my input.
    I take legislative mandates very seriously and if confirmed commit 
to applying them fully and faithfully. I also commit to providing input 
to the Senate Foreign Relations Committee with regards to the impact of 
the legislative mandates on U.S. leadership at the World Bank.

    Question. Debt relief is provided to countries that claim they 
cannot afford to pay back the borrowed sums without extreme hardship. 
It should not be taken advantage of by corrupt governments attempting 
to escape repayment of sums due. How will you ensure that the debt 
relief procedure is not abused? What frameworks currently exist within 
the Bank to prevent this?

    Answer. The international community came together to support debt 
relief as a way of freeing up resources to enable poor and heavily 
indebted countries to focus on poverty reduction. In order to make sure 
that it is not taken advantage of by corrupt governments trying to 
escape their obligations, the World Bank and IMF have established a 
robust process with critical safeguards under what is called the 
Heavily Indebted Poor Countries Initiative (HIPC).
    Specifically, in order for a country to receive full and 
irrevocable reduction in debt from the World Bank, a country must:
          1. Establish a track record of good performance under 
        programs supported by loans from the IMF and the World Bank;
          2. Implement satisfactorily key economic and social reforms, 
        and
          3. Adopt and implement a poverty reduction strategy paper.
    The Board provides key oversight at every stage in this process. 
Before a country receives any debt relief, the Board must agree that 
the country has established a solid track record of performance on IMF 
and World Bank programs, committed to key economic and social reforms, 
and put in place a poverty reduction strategy. Before full and 
irrevocable debt relief is provided, the Board must agree that the 
country remains on track with IMF and World Bank programs and that the 
country implemented the agreed economic and social reforms aimed at 
poverty reduction.
    If confirmed, I would work closely with the U.S. Executive 
Director, the other Executive Directors, and the World Bank management 
to provide careful oversight of this process and encourage putting in 
place a strong set of reforms for countries to meet. For example, I 
understand that the principles of the Extractive Industries 
Transparency Initiative are sometimes incorporated as part of these 
reforms and I would strongly advocate this continue for resource rich 
countries undergoing this process.
    These rigorous measures advance sound public financial management 
and the use of proceeds of debt relief for poverty reduction purposes. 
Before the HIPC Initiative, eligible countries were, on average, 
spending slightly more on debt service than on health and education 
combined. Now, they have increased markedly their expenditures on 
health, education, and other social services. On average, such spending 
is about five times the amount of debt-service payments.

    Question. Some of the inefficiencies in the international financial 
institutions could be solved if the various institutions worked more 
effectively with each other. How would you encourage the banks to 
collaborate and cross-utilize resources with each other and with the 
IMF?

    Answer. I strongly agree that better coordination between 
international financial institutions would strengthen their 
effectiveness, save costs, and lead to better outcomes for their client 
countries.
    There is already coordination on some issues--for instance, the 
World Bank has a policy that requires coordination with the IMF prior 
to the provision of budget support loans and the Bank and Fund work 
closely on public financial management reform.
    IDA 16's Crisis Response Window is a good example of an opportunity 
that Treasury used to strengthen coordination between the World Bank 
and IMF. As a result of leadership from the United States, the Bank 
agreed to clear standards for cooperation with the Fund in any use of 
the crisis window. If confirmed, I will look to uses of the CRW for 
signs of positive cooperation or evidence of problems that need to be 
addressed.
    Nonetheless, coordination could be strengthened in a number of 
ways. First, if confirmed, I would work with Treasury and the Executive 
Director to press the Bank to strengthen its coordination with other 
IFIs--and other development partners--at the country level. The Bank 
strongly endorses the principles of aid effectiveness and has worked in 
recent years to improve its dialogue with other donors. However, there 
is room for improvement, particularly in fragile and conflict-affected 
states that have little or no institutional capacity to work with 
donors to harmonize their assistance. In these cases, the Bank needs to 
be particularly careful to stick to its areas of comparative advantage, 
undertake joint diagnostic and analytical work, and seek to minimize 
administrative burdens on fragile states by pooling funding with other 
donors.
    The United States has successfully encouraged closer collaboration 
between IFIs in Arab Spring countries including Tunisia, Egypt, and 
Libya. This coordination has been useful for strengthening programs, 
including governance reform efforts across the IMF, World Bank Group, 
and African Development Bank. If confirmed, I would press for this 
coordination to continue over the long term as supporting successful 
transitions require sustained efforts.
    If confirmed, I would also work to enhance cooperation between the 
IFIs at the corporate level. Again, there has been progress in recent 
years--strong coordination between the IFC and the private sector 
lending arms of the other MDBs on trade finance facilities during the 
height of the global financial crisis--but also room for further 
improvement. For example, if confirmed, I would urge the Bank to assist 
other MDBs in fully and quickly operationalizing the April 2010 cross-
debarment agreement, which would bar firms and individuals found guilty 
of wrongdoing at one institution from working with any of the 
institutions. The cross-debarment agreement itself was a powerful 
example of the IFIs sending a unified message that there is zero 
tolerance for corruption and fraud. If confirmed, I would encourage the 
World Bank to build on this agreement and work with the other IFIs to 
further advance a common anticorruption and accountability agenda.
    As mentioned in your report, the World Bank is often expected to 
set the standard of practice across the MDBs. If confirmed, I would 
encourage the Bank to consult closely with the other MDBs during its 
upcoming reviews of procurement policy and environmental and social 
safeguards, so that the MDBs feel invested in the World Bank process 
and can incorporate the lessons from those reviews in their own review 
processes.
    If confirmed, I would continue to look for other ways to encourage 
coordination and collaboration across all of the international 
financial institutions.

    Question. It is inevitable that the Bank will have projects in 
conflict zones. For some countries, the World Bank has set forth 
various conflict guidelines. Would you advise the Bank to 
institutionalize such conflict guidelines and if so, how should they be 
categorized? What about Iraq and Afghanistan specifically?

    Answer. I agree that the Bank needs to have a strong and coherent 
strategy with regard to fragile and conflict-affected states. There are 
risks to the Bank working in these countries, but the potential reward 
of helping these countries stabilize and move away from conflict and 
violence is significant.
    Therefore, I am pleased that the Bank's engagement with fragile and 
conflicted-affected states (FCS) is a priority for the institution. The 
selection of FCS as a special theme for the IDA-16 replenishment, the 
Bank's World Development Report 2011 on Conflict, Security and 
Development, and the Bank's recent establishment of a Global Center on 
Conflict, Justice and Development in Nairobi all underscore the Bank's 
commitment in this area.
    As part of operationalizing the lessons from the WDR 2011, the Bank 
will adopt a different approach to the development of Country 
Assistance Strategies (CAS) in FCS. Consistent with the lessons that 
the Bank has learned in conflicted-affected states across the world, 
like the use of its conflict filter in Sri Lanka, CASs for these 
countries will identify the stresses that lead to conflict and 
violence, assess deficits in key national institutions, and identify 
key transitional opportunities that have the potential for breaking 
cycles of violence. This is an important way of systematically 
factoring the role of conflict into the World Bank's programming, as 
was recommended in your report. Afghanistan and Iraq are both 
appropriately included in the Bank's list of fragile countries and thus 
would be subject to this approach. Given the multifaceted nature of the 
conflicts in both countries, I would expect the analysis to be 
particularly robust.
    Having worked in a number of fragile and conflict-affected states, 
including Afghanistan, Iraq, Kosovo, and Uganda, I know how critical 
this is. Simple misunderstandings can escalate quickly, but small 
positive gestures can also start to rebuild trust. Institutionalizing 
conflict guidelines will help guide the Bank in everything from project 
design to staffing and will help the Bank become a more effective actor 
in some of the world's most difficult countries.

    Question. Some country governments are required to seek 
parliamentary approval of Bank loans and grants. There have been 
indications that this may aid in the fight against corruption and 
promote transparency. Do you think that parliamentary approval is a 
policy that the United States should promote?

    Answer. I certainly believe that the World Bank should take an 
expansive view of its stakeholders when it comes to consultation and 
engagement in its countries of operation. As a matter of 
accountability, the Bank should be engaged with parliaments, as well as 
members of civil society and the private sector in these countries. 
This is why I believe mechanisms like the inspection panel play such a 
critical role in promoting accountability, separate from the 
accountability the Bank requires from its direct counterparties, 
typically in the finance ministry.
    As you suggest, in some cases, a country's laws and practices 
define a formal role for parliament in the approval of Bank loans and 
projects. In these cases, the Bank has a strong interest in supporting 
this process by being responsive to parliamentary inquiries and 
generally helping to facilitate parliament's consideration of projects. 
If confirmed, where I see signs that Bank management is not playing a 
constructive role in these situations, I will be aggressive in holding 
them to account.
    At the same time, my understanding is that the Bank is limited in 
its ability to define the role that parliament should play. The Bank's 
Articles of Agreement require a neutral stance on issues related to the 
political systems of its countries of operation. My understanding is 
that it would be a direct challenge to this requirement for Bank 
management, or the United States as a shareholder, to take an active 
stance on a separation of powers issued within a country. As a result, 
I think the more promising route is to continue to press Bank 
management to broadly define informal engagement so that all interested 
and affected parties in a country are engaged in the Bank's important 
work. If confirmed, I am certainly committed to holding the Bank to 
account on this issue.

    Question. Do you think there is sufficient coordination between the 
banks and U.S. Government development agencies such as AID and MCC? As 
a part of the U.S. leadership team for the Bank, how would you engage 
to promote better coordination?

    Answer. I believe that coordination between the banks and U.S. 
Government development agencies is critical for a variety of reasons 
including preventing duplication of efforts, sharing lessons learned 
and best practices, and maximizing the effectiveness of donor 
resources. Coordination is important both in Washington, DC, and in 
each of the countries where these institutions work. There is a 
significant amount of coordination between the banks and U.S. 
Government development agencies on an ongoing basis, including:

   A multilateral interagency working group that meets 
        regularly to review issues of concern at the development banks;
   Country-level donor coordination mechanisms;
   A variety of working groups and meetings that are organized 
        around specific topics, such as food security and the Arab 
        Spring.

    A more specific example of how the MDBs work closely to support our 
U.S. development agencies is the U.S. Partnership for Growth (PfG) 
program. Under the PfG program, the Obama administration pledged to 
elevate its relationship with four developing economies that were 
exceptionally well posed to do their part to grow their economies, 
including El Salvador, Ghana, the Philippines, and Tanzania. In a new 
approach to U.S. engagement with these countries, bilateral agencies 
worked closely with the MDBs to identify the most important constraints 
to growth, and to develop coordinated strategies for tackling these 
constraints.
    The World Bank also works closely with U.S. bilateral aid agencies 
in many countries. Often the World Bank develops the overall project 
design and coordinates with other donors who invest in subcomponents of 
the master plan. Specific examples include:

   The proposed $354.8 million Millennium Challenge 
        Corporation's (MCC) compact for Zambia, which will be 
        considered by the MCC Board on March 22, 2012. The project will 
        help develop water supply, sanitation, and drainage systems in 
        Zambia. The MCC worked closely with the World Bank, which 
        helped the Zambian Government develop the sector policy and 
        institutional reform groundwork. Each component of the MCC 
        project was developed according to a comprehensive investment 
        master plan developed with the assistance of the World Bank.
   The MCC $434 million compact for the Philippines approved in 
        August 2010. A key component of the compact was rural community 
        development, including provision of infrastructure and 
        services, such as rural roads, schools, and water and 
        sanitation. The MCC project builds upon the participatory 
        planning, implementation, and evaluation methodology developed 
        by the World Bank and the Philippine Government.

    A good example of cooperation between the Bank and USAID is evident 
in their joint work in support of food security and agricultural 
development in sub-Saharan Africa. Over the last 3 years, USAID and the 
Bank have collaborated to support a number of African countries in 
implementing food security strategies under the Comprehensive African 
Agricultural Development Program (CAADP). Specific examples of 
collaboration between USAID and the Bank include complementary support 
for agriculture development and social safety nets programs in 
Ethiopia, agricultural infrastructure in Ghana, and agricultural 
productivity programs in Rwanda.
    In addition to these specific examples, the USED's office, in and 
of itself, serves as a coordination hub, helping to connect not only 
employees from across the U.S. Government, but also representatives 
from the private sector and civil society with World Bank officials. In 
support of this effort, the U.S. Executive Director has built a strong 
interagency team that includes representatives from the State 
Department, Commerce Department, USAID, and Treasury Department.
    Even though there is a significant amount of coordination, I would 
expect that there is always room for improvement. I believe the strong 
relationships I have throughout the interagency will enable me, if 
confirmed, to meaningfully engage to promote better coordination. 
Additionally, if confirmed, I will actively support coordination 
efforts through formal mechanisms, as well as by regularly sharing 
information, seeking input, and continuing to build strong 
relationships with interagency colleagues.

    Question. As current President Robert Zoellick indicated he is 
stepping down, debate has yet again arisen as to whether non-Americans 
should be considered for the presidency. What is your opinion on this? 
If there were a non-American in the presidency, what issues does this 
raise for the U.S.?

    Answer. I believe that the World Bank has benefited tremendously 
from American leadership over the past several decades. President 
Zoellick has been a very impactful leader of the World Bank, helping to 
advance critical reforms to make the institution more accountable, 
transparent, and effective. The administration has stated that for all 
of the international financial institutions it supports an open and 
transparent and merit-based process. The United States will put forward 
a candidate to lead the World Bank, and I look forward to supporting 
that individual's candidacy.

    Question. Currently, there is great focus on the size and scope of 
the Bank projects in countries deemed significant and far less 
evaluation focused on results. Leadership approval is given at the 
design stage, but final conclusive results are not presented similarly. 
How can we shift greater emphasis to results and therefore greater 
accountability?

    Answer. It is critical to have a concerted emphasis on impact and 
results in order to counteract the natural tendency of organizations to 
focus on dollars spent as a measure of success. In my professional 
life, I have succeeded in bringing a greater focus on development 
results through rigorous monitoring and evaluation of projects around 
the world. I look forward, if confirmed, to leveraging my experience 
and passion to advance this issue at the World Bank.
    A greater focus on results composed a major part of the reforms 
that Treasury negotiated as part of the replenishment of IDA. 
Accordingly, the World Bank has made a commitment to include results 
frameworks with measurable indicators in all projects, all country 
assistance strategies, and all new sector strategies. Moreover, the 
World Bank committed to report on development results across the 
institution using indicators that aggregate standardized data from 
projects supported by IDA in seven sectors--education, health, roads, 
water supply, micro and small and medium enterprise, urban development, 
and information and communication technology. These indicators will be 
featured in the IDA Annual Report, as well as reported more regularly 
through the Corporate Scorecard.
    If confirmed, I will work to further advance this results agenda 
wherever possible. I understand that some evaluations are presented to 
the Board and I would encourage this practice more regularly. The 
design stage of a project is not only the point at which members of the 
Board may have the greatest leverage, but it is also where the focus on 
results needs to begin. When reviewing projects, if confirmed, I would 
seek to ensure that results frameworks and monitoring and evaluation 
mechanisms are incorporated into the design of a project. I understand 
that the World Bank will soon be undertaking a process to reform its 
human resource policies. Part of this will include strengthening 
performance evaluation processes and aligning pay with performance. As 
was recommended in your report, if confirmed, I would work to advance 
reforms that would reward employees for the results they achieve not 
the amounts of money they disburse or oversee. Moreover, reforms should 
incentivize the achievement of results in challenging environments such 
as fragile and conflict-affected countries even if the scale of the 
results achieved may be less than what is possible in a large, stable 
middle-income country.
    I have a deep commitment to promoting greater accountability and, 
if confirmed, I would work to find additional opportunities to advance 
a results-driven approach at the Bank.


 NOMINATIONS OF PAMELA A. WHITE, LINDA THOMAS-GREENFIELD, AND GINA K. 
                         ABERCROMBIE-WINSTANLEY

                              ----------                              


                       WEDNESDAY, MARCH 14, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Pamela A. White, of Maine, to be Ambassador to the 
        Republic of Haiti
Hon. Linda Thomas-Greenfield, of Louisiana, to be Director 
        General of the Foreign Service
Gina K. Abercrombie-Winstanley, of Ohio, to be Ambassador to 
        the Republic of Malta
                              ----------                              

    The committee met, pursuant to notice, at 3:05 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Robert 
Menendez, presiding.
    Present: Senators Menendez, Durbin, Rubio, and Risch.

          OPENING STATEMENT OF HON. RICHARD J. DURBIN,
                   U.S. SENATOR FROM ILLINOIS

    Senator Durbin [presiding]. Good afternoon. This hearing of 
the Senate Foreign Relations Committee will come to order.
    Today the committee will consider three nominations: the 
Honorable Pamela White to be Ambassador to the Republic of 
Haiti; the Honorable Linda Thomas-Greenfield to be Director 
General of the Foreign Service; and Ms. Gina Abercrombie-
Winstanley to be Ambassador to the Republic of Malta.
    Welcome to the nominees, their friends, and family.
    I am pleased to stand in for Senator Menendez, my 
colleague, for a moment. He will be joining us very shortly. I 
will be brief with my introductory remarks, then turn to my 
friend and colleague, Senator Rubio, before we give each of you 
an opportunity for a brief opening statement. Please feel free 
at that time to introduce any family members or others that are 
with you today.
    I want to congratulate each of you for your nominations. I 
am pleased the President has nominated three individuals with 
many years of experience who, if confirmed, will serve as the 
United States representatives and will be called upon to 
implement the policies of our Government, protect and advance 
our interests, and help guide our Nation through the challenges 
we face around the world.
    Before we take your testimony, I would like to start with 
the introductions of each of our nominees.
    Senator Sherrod Brown of Ohio was planning on being here 
this afternoon to introduce Ms. Abercrombie-Winstanley but was 
not able to attend because of another committee assignment. I 
would ask unanimous consent that his very strong statement in 
support of her nomination be included in the record today.
    [The prepared statement of Senator Brown follows:]

 Prepared Statement of Hon. Sherrod Brown, U.S. Senator From Ohio, in 
 Support of the Nomination of Hon. Gina Abercrombie-Winstanley of Ohio 
      to be the United States Ambassador to the Republic of Malta

    Mr. Chairman, thank you for the opportunity to speak in support of 
the nomination of the Honorable Gina Abercrombie-Winstanley, of the 
great State of Ohio, to be the next United States Ambassador to the 
Republic of Malta.
    Located in the Mediterranean Sea, the Republic of Malta has been a 
gateway between Europe and North Africa. And it has long been a partner 
to the United States in promoting and preserving peace and security 
around the world.
    The relationship between our nations spans from the days of World 
War II, when President Franklin D. Roosevelt called Malta, the ``only 
tiny bright flame in the darkness--a beacon of hope for clearer days 
which have come.''
    Today, our relationship has developed as the challenges and 
opportunities within the international community have evolved. We share 
interests in maritime law enforcement, search and rescue operations, 
combating pollution at sea, and enhancing air-space management. And 
with turmoil in the Middle East and challenges arising from the Arab 
Spring, Malta will once again be a critical partner in preserving 
global peace and security.
    There are few Americans who are more qualified than the Honorable 
Gina Abercrombie-Winstanley, of Ohio, to represent the United States in 
this critical country at this critical time.
    Born in Cleveland, she attended Cleveland Heights High School, 
where she studied Hebrew, an education reinforced by the culture of 
Orthodox Judaism that shaped the neighborhood of Cleveland Heights 
where she was raised. During high school, she first traveled to the 
Middle East on a student exchange trip from 1978-79, coinciding with 
Egyptian President Anwar Sadat's historic visit to Jerusalem. After 
graduating, she earned a B.A. from George Washington University. She 
then became a Peace Corps volunteer in Oman and continued her public 
service as a Presidential Management Fellow at the United States 
Information Agency. After earning her M.A. in International Relations 
at the School of Advanced International Studies at Johns Hopkins in 
1985, Abercrombie-Winstanley joined the U.S. Foreign Service.
    Her Foreign Service career has taken her from Baghdad during the 
Iran-Iraq war, to Indonesia to Cairo, Tunisia to Tel Aviv. In 2002, 
during her service in Saudi Arabia, she was the first female Consul 
General and during the December 6, 2004, deadly al-Qaeda terrorist 
attack on the consulate, she was cited for acts of courage.
    Her service abroad representing our country has been exceptional, 
as has her service here at home. She has served many vital posts across 
our national security apparatus--from the National Security Council to 
the United Nations to the State Department, working on challenging 
portfolios that include Egypt, Lebanon, Syria, and Jordan. From 1991-
1993 she served as Special Assistant for Middle Eastern and African 
Affairs to Deputy and then later, Secretary of State Lawrence 
Eagleberger. And from 2008 to 2011 she served as Deputy Coordinator for 
Programs and Policy in the Secretary of State's Office of the 
Coordinator for Counterterrorism.
    Any career as a senior Foreign Service officer is difficult and 
demanding, and at the center of the challenging business of diplomacy. 
The Honorable Gina Abercrombie-Winstanley, of Ohio, has had a 
distinguished and decorated career mastering the delicate craft of that 
business. Her extensive knowledge and experience--from her high school 
days in Cleveland Heights to a diplomatic career in Washington and 
around the world--makes her uniquely qualified to be next United States 
Ambassador to the Republic Malta.

    Senator Durbin. And I understand that Senator Bill Nelson 
of Florida, our colleague, may wish to introduce Ambassador 
White. Senator Nelson, please proceed. Welcome to your lovely 
wife.

                 STATEMENT OF HON. BILL NELSON,
                   U.S. SENATOR FROM FLORIDA

    Senator Nelson. Well, thank you, Mr. Chairman, and to my 
colleague from Florida, Senator Rubio, not only I wanted to be 
here, but my better half, Grace Nelson, who is seated right 
here in the front row, wanted to be here to say a word about 
Pam White and also Linda Thomas-Greenfield, two real 
professionals.
    We have known Pam longer because we first got to know her 
when she headed up USAID in Tanzania and then went to head up 
USAID in Liberia where Linda was the Ambassador. And Linda has 
just returned to the States for this new appointment just a 
couple weeks ago. Pam in the meantime--very unusual that a 
USAID top official then goes on and becomes Ambassador. And Pam 
has been the Ambassador to The Gambia for the last couple of 
years.
    Now, why we wanted to be here is that in the good fortune 
that we have had--Grace and I--to travel over a good part of 
the world, especially the third-world countries. We have seen 
extraordinary public service particularly in third-world 
countries where a heart for service is so important. And 
indeed, that is what we first noticed in Pam. And we saw that 
and it was obviously recognized, and then she was sent to 
Liberia as the head of USAID and had stellar results in both of 
those countries that we had seen her work product. And for that 
to be recognized by the State Department and then for her to 
ascend to the position of ambassador in another third-world 
nation and now for her to be nominated to come to the Western 
Hemisphere in the poorest country in the Western Hemisphere, 
Haiti, of which Senator Rubio and I particularly have 
considerable interest because of such a connection between 
Haitian Americans, of which we have a substantial community in 
Florida, and the people of Haiti.
    Haiti continues to need a lot of help. They are still 
coming through the ravages of the earthquake, and Haiti still 
needs a lot of help as they try to modernize into a functioning 
government. And I think that this present President Martelly is 
really trying. We have got to have a strong presence there 
representing the United States as he continues to try to reform 
that country. And so I could not give you a higher 
recommendation for someone to be one of our ambassadors, 
particularly to a country that is so important to the United 
States as Haiti is in the Western Hemisphere.
    I would just say, in passing, about Ambassador Thomas-
Greenfield that her record is stellar. The fact that she has 
been there in Liberia, this little struggling country headed by 
a woman, Mrs. Sirleaf, Helen Johnson Sirleaf, and how she has 
tried to take that country that was so, so accustomed to 
corruption and start turning it and how she has been successful 
and even so in the point of just being reelected.
    So I come here as your colleague to share with you my 
personal comments, and I thank you for the opportunity, Mr. 
Chairman.
    Senator Durbin. Thank you very much, Senator Nelson. You 
are obviously invited to stay as long as you can, but I know 
your schedule may call you off to another place. But we thank 
you for your introductions and testimony today.
    I am going to say a few words about each nominee, then give 
my colleague, Senator Rubio, a chance, then turn this gavel 
over to Senator Menendez. Statements will be made, questions 
asked, and we will proceed with the hearing.
    I visited Haiti earlier this year. It was not my first 
visit. It is sadly the poorest nation in our hemisphere. The 
international community showed an amazing outpouring of 
generosity after the terrible earthquake, but there is a lot of 
work that remains to be done.
    I saw a sprawling displaced persons camp in Port-au-Prince, 
and I saw what just a small amount of money well spent might 
do. An organization, an NGO, known as GHESKIO, invited us to 
come over for a tour. We met Dr. Marie Deschamps, and as she 
walked me through, she showed me a well that had been drilled 
right on her property 600 feet down and was now providing clean 
drinking water, which they treated with chemicals to make sure 
it was even safer, clean drinking water for 120,000 people. And 
she said thank you because America built that well. And I said, 
where did it come from? And she explained and I finally 
realized it was a program that I had created in the name of 
Paul Simon, my predecessor, who wrote a book over 25 years ago 
about the shortage of water in the world. And we created the 
Paul Simon Water for the Poor Act. We funded it with an amount 
which by Federal standards is small change, about $25 million 
or $30 million. And I asked her how much did it cost to build 
your well, and she said about $28,000 to supply clean drinking 
water for 120,000 people in a country that is plagued with 
cholera. It is an indication where money well spent can make a 
difference, but it is an indication of the dramatic need in a 
poor country like Haiti.
    Amid these challenges, I have no doubt Ambassador White 
will display the commitment and versatility necessary to help 
move Haiti forward. She follows a great individual who 
represented the United States several times as Ambassador, Ken 
Merton. He is really one of the extraordinary public servants I 
have met, a hard act to follow, but I know you will do well.
    Let me say a final word about your service in Gambia. I 
have been trying for years--literally for years--to secure the 
release of a Gambian journalist, Ebrima Manneh, who was taken 
into custody in 2006 by Gambian security personnel. Shamefully 
he was held incommunicado and has not been heard of since. I 
fear he may have died in custody.
    His disappearance was symbolic of the troubling record of 
press freedom in Gambia, and despite request of human rights 
organizations and several Senators, the Gambian Government 
refused to account for him.
    And then early last year, there as a breakthrough when 
Gambian President Jammeh formally requested a U.N. 
investigation into his disappearance and death. Ambassador 
White has been a tireless partner in this effort, and I thank 
you so much for standing up for American values in this 
request.
    Linda Thomas-Greenfield served as U.S. Ambassador to 
Liberia, as has been mentioned, since 2008; before that, worked 
at the Department of State and the Secretary for the Bureau of 
African Affairs, Refugee Counselor. She holds a B.A. from 
Louisiana State University and an M.A. from the University of 
Wisconsin.
    If confirmed Director General of the Foreign Service, 
Ambassador Thomas-Greenfield will be responsible for 
recruitment, assignment, evaluation, promotion, discipline, 
career development, and retirement policies for the State 
Department's Foreign Service and Civil Service employees. It is 
a big responsibility. Foreign Service officers constantly 
embrace new challenges and hardships, including family 
separation, and it is important that the Director General is 
able to address those needs from personal experience.
    Gina Abercrombie-Winstanley has served as Deputy 
Coordinator Counterterrorism at the Department of State since 
2008. Prior to that, she served as the Director of the Office 
of Egypt, Syria, Lebanon, and Jordan at the State Department. 
She has also served as Policy Advisor at the Department of 
Defense and Director at the National Security Council. Ms. 
Abercrombie-Winstanley attained her B.A. from George Washington 
University and M.A. from Johns Hopkins.
    A seasoned diplomat, her nomination to serve as Ambassador 
to Malta is a fitting followup to her work on counterterrorism 
efforts and leadership in the Middle East. Malta's role and 
counsel during the courageous uprising in Libya was 
representative of this tiny nation's large impact on the world. 
If confirmed, Ms. Abercrombie-Winstanley will be vital in 
reaffirming the strong friendship and partnership between Malta 
and the United States.
    And before inviting your opening statements, I will turn to 
my colleague, Senator Rubio.

                 STATEMENT OF HON. MARCO RUBIO,
                   U.S. SENATOR FROM FLORIDA

    Senator Rubio. Thank you, Senator Durbin. I appreciate the 
opportunity to be here as well on three important nominations.
    The first, of course, is to Haiti which I visited for the 
first time in January of this year. I am impressed by the 
resilience of a people that have faced extraordinary struggles 
even before an earthquake, but yet have optimism about the 
promise of the future and the opportunity we have working 
together with the people of Haiti to help them build that 
future for themselves.
    There are tremendous opportunities there for the hemisphere 
if, in fact, Haiti can turn the corner and build for themselves 
a more prosperous society and a more functional government. And 
the United States can provide invaluable assistance in that 
regard. I think Senator Durbin outlined just one program that 
we would like to be involved in, and there are others that are 
out there that we are already involved in that have proven to 
be a great success. We look forward to hearing from you about 
some of your ideas in that regard.
    Ambassador Thomas-Greenfield comes very highly recommended, 
and from everything I have read in her record, you have a lot 
of people speaking very highly of you. And you have a very 
important job. In the next few months, you will have the 
responsibility of recruiting and assigning, evaluating, 
promoting, disciplining, being involved in the career 
development and retirement policies. It sounds like a lot of 
work. So we look forward to hearing about your plans as well.
    And last, but not least, Gina Abercrombie-Winstanley of 
Ohio. I have a letter here if I could have unanimous consent to 
submit on behalf of Senator Lugar in support of your 
nomination.
    Senator Menendez [presiding]. Without objection.
    Senator Rubio. Thank you, Mr. Chairman.
    I had the opportunity to visit Malta I think in September 
of last year. We had gone to Libya. They did not want us to 
stay overnight in Tripoli, so we stayed overnight in Malta, got 
to meet the leaders there and got to spend some time in the 
nation, and grew to really understand its strategic importance 
in the region as a gateway between North Africa and the Middle 
East and Europe, but also an important ally. Though they are 
not a member of NATO, they have been such an important partner 
in so many of the operations that NATO has undertaken and I 
think will play a critical role in the months to come as the 
Libyan people struggle to reach, for example, their own 
democratic aspirations. So it is an important relationship. It 
is not often talked about.
    And by the way, I was also very impressed with their 
economic development and their economic prosperity which I 
think serves as an example to the region as well.
    So, again, it is not a station that people talk about. It 
does not wind up in the newspapers a lot. That does not mean it 
is not of value and strategic importance to the United States 
and to our allies in Europe and in North Africa and in the 
region. And so we look forward to hearing your testimony as 
well about your plans in regard to that assignment.
    So thank you very much, all three of you, for your service 
to our country and for being here today.
    [The letter to Senator Lugar from retired U.S. Ambassador 
Douglas W. Kmiec in support of Gina Abercrombie-Winstanley 
follows:]

                             Pepperdine University,
                                             School of Law,
                                        Malibu, CA, March 14, 2012.
Hon. Richard Lugar,
Ranking Minority Member,
Senate Foreign Relations Committee,
Washington, DC.
    Dear Senator: I understand that the Senate Foreign Relations 
Committee will today take up the nomination of Gina Abercrombie-
Winstanley, as my successor for the post of U.S. Ambassador to the 
Republic of Malta.
    I wish to formally encourage the committee to act favorably on Ms. 
Abercrombie-Winstanley's nomination.
    While the nominee's schedule in preparation did not allow her to 
accept my offer of assistance or briefing, and thus, I cannot say that 
I know Ms. Abercrombie-Winstanley personally, she is well thought of by 
my former DCM, Richard Mills, who is an excellent judge of diplomatic 
talent, and it is patent that she has strong credentials as a career 
Foreign Service officer.
    Of course, I stand ready to be of assistance to the Ambassador-
designate or the Department of State at any time. With the nature of 
the entire region being in political transition, it is important for 
our new Embassy compound there to be alert and fully functioning.
    Senator, I would take it as a kindness if you would submit this 
letter of positive endorsement for the record. It is a matter of 
completeness and fairness since the committee should draw no adverse 
inferences with respect to this dedicated public servant by virtue of 
the unfortunate White House silence that both your inquiry, and my own, 
received inquiring as to why efforts devoted to interfaith diplomacy 
were allowed to be mischaracterized as ``outside the scope of U.S. 
interests.'' As you remember, having thoughtfully attended my swearing 
in, the President's director of the Office of Faith-based Initiatives 
highlighted the significance of interfaith efforts in this pivotal part 
of the world as part of the ``special Presidential logic'' behind my 
appointment. Given the interest expressed by the ``Arab Spring 
nations'' in fashioning new governmental structures of a nature that 
will honor democracy and religious freedom, the need for sensitive, 
interfaith efforts to promote understanding and respect across the 
Abrahamic traditions is greater today than it was 2 or so years ago at 
the beginning of my service.
    Parenthetically, I am pleased to report that in discussions even 
today my dedication to meeting this need did not end with the 
conclusion of my own service. While announcement would be premature, 
agreement will likely soon be reached establishing a joint program 
between several fine U.S. universities (including my home institution 
of Pepperdine University which for the 8th consecutive year was ranked 
as the number 1 dispute resolution program in the country by U.S. News 
and World Report) and the University of Malta. This joint venture will 
be devoted to Graduate study in an understanding of Hebraic, Christian 
and Islamic traditions as well as dispute resolution methodologies that 
can be employed both by State Department personnel and NGOs.
    At this positive moment of transition, it is also appropriate for 
me to bring to the committee's attention the fine work of the American 
and locally engaged staff in the Embassy over the last several years. 
As the IG found in the overall high evaluation given Embassy-Valletta, 
there were, as I recall, fewer areas needing improvement than there 
were inspectors. While it is invidious to single people out by name, 
some service was of such impressive dimension, I ask that special note 
be made of the work of Lenese Walls, my office administrator, DCMs Rick 
Mills, Jason Davis, and Arnie Campbell; our effective and highly 
respected Defense Attache (Commander Jane Moraski; Lt. Commanders J. 
Phillip Webb, Sean Schenk, and Greg Tozzi); NCIS detailee, Matt 
Cummings, and Consular officer Tracy Brown. The work of the Bert 
Hernandez and his staff on matters of regional security is most 
noteworthy as well and in an appropriate forum deserves commendation.
    All of these personnel assisted in maintaining our maritime safety 
and security center, and associated search and rescue training, 
undertaken in partnership with the Armed Forces of the Republic of 
Malta. These preparations, ever observant of the value deeply held by 
Malta of constitutional neutrality, became invaluable when it was 
necessary to act with dispatch to rescue American personnel from 
Embassy-Tripoli along with several hundred citizens of other nations in 
the face of the violence that erupted there in February 2011. The 
rescue which depended in part upon the diplomatic negotiation of the 
use of a private catamaran, was a success noted by Secretary Clinton 
personally when she visited Malta this past October. Our rescue 
capability was unquestionably enhanced by the generous humanitarian 
assistance supplied by Malta to all concerned, and in particular to 
those few evacuees who suffered injury in the face of the gale-force-5 
storm experienced en route away from the unpredictable shooting 
environment on shore.
    Finally, I wish to give recognition to the Embassy staff before 
your committee for the following matters of some importance as a result 
of U.S. initiative between 2009 and 2011:

   Completion of a $125.5 million new Embassy compound.
   Signing of an enhanced security agreement, training and 
        equipment with the Malta International Airport.
   Signing of enhanced security agreement with Malta Customs, 
        as well as accompanying training and equipment.
   Ratification of the Avoidance of Double Taxation Treaty.
   Organized fundraisers for the needs of refugees who landed 
        in Malta because of the violence in North Africa, including one 
        memorable event with Actor Martin Sheen who premiered the 
        movie, ``The Way'' for the humanitarian effort.
   Hosted the U.S. Secretary of the Navy and Leadership of the 
        Sixth Fleet.
   Conference on Protection of Intellectual Property.
   Drafting of the first strategic plan for north-south 
        engagement in the Mediterranean.
   Planning and instruction associated with U.S.-EU-
        Mediterranean Maritime Training Conference.
   Support for the resettlement of several hundred migrant 
        families.
   Multiple efforts to advance a fuller understanding of the 
        usefulness and advantages of SOFA.
   Day-to-day meetings and cables with diplomatic counterparts 
        and the Foreign Minister, as needed.
   Welcomed congressional delegation as well as numerous 
        foreign visitors, including His Holiness Benedict XVI.
   Renewal of the visa waiver program.
   Secured funding for alternative energy photo voltaic project 
        at NEC.
   Helped institute skills training and English language 
        courses for the migrant populations, especially those preparing 
        for U.S. resettlement.
   Arranged for White House Chief of Staff Sununu (on site) and 
        Secretary of State James Baker (via video) participation in the 
        Mediterranean school of diplomacy conference marking the 20th 
        anniversary of the end of the cold war and the Bush-Gorbachev 
        meetings related thereto in 1989.
   Made efforts to promote interfaith dialogue and diplomacy 
        surveys and conference planning.
   Promoted with conference presentation and public diplomacy: 
        gender opportunity and equality.
   Successfully arranged with the Prime Minister for a high-
        level task force to address human trafficking; negotiated a new 
        arrest protocol, with the expert assistance of Thomas Yeager, 
        the Embassy political, economic, and cultural officer, focusing 
        on identifying the slave trader, rather than prosecution of 
        coerced victims; Mr. Yeager, by the way, came to the Department 
        of State after 30 years of service in the U.S. Navy and his 
        energy, preparation, and judgment reflected both his patriotic 
        spirit and thorough nature.
   Arranged for U.S. educational/public diplomacy visits of 
        members of the Maltese judiciary as well as leaders of the 
        major political parties in Malta.
   Continued the full utilization of Fulbright scholars in the 
        life of the Embassy and public diplomacy.

    Senator, it was an honor to serve our Nation in the Republic of 
Malta. I count many Maltese citizens today as life-long friends, from 
President George Abela to 
the many who worshipped with me in morning Mass as I sought to visit 
the 365 Catholic churches on the main island as well as Gozo. I am 
pleased to report that relations between our two nations remain 
especially strong. Friendship and cooperation in virtually all matters, 
including the serious application of trade sanctions as needed to 
address the unfortunate actions in Iran, has been readily offered and 
accepted.
    I wish Ambassador-designate Abercrombie-Winstanley complete 
success, and I know the people of Malta will welcome her, as they did 
me, with ``uncommon kindness.''
            Respectfully submitted,
                                   Douglas W. Kmiec,
                                           U.S. Ambassador (ret.),
                                           Caruso Family Chair in 
                                               Constitutional Law & 
                                               Human Rights, Pepperdine 
                                               University.

           OPENING STATEMENT OF HON. ROBERT MENENDEZ,
                  U.S. SENATOR FROM NEW JERSEY

    Senator Menendez. Thank you, Senator Rubio.
    Let me start off by thanking Senator Durbin for filling in 
for me. I regret that I could not be here at the very start of 
the hearing but I had two nominees of President Obama to be 
judges for the Federal District Court to present before the 
Judiciary Committee.
    And I will truncate my opening statement. I appreciate that 
he has already introduced the nominees.
    I remain concerned about the slow progress in Haiti. I am 
concerned about the lack of job opportunities for Hispanics and 
other minorities in the State Department and about Malta's 
facilitation by the use of its flag and its ports of Iran's 
cargo shipping line, IRISL.
    You have all been nominated to positions that will allow 
you to influence these matters. So I look forward to hearing 
your assessments, goals, and objectives and to enter into a 
dialogue with you. We have your testimony.
    I would ask each of you to summarize your statement in 
about 5 minutes or so. Your full statements will be included in 
the record.
    And with that, Ambassador White, we can start with you and 
then move down the line.

 STATEMENT OF HON. PAMELA A. WHITE, OF MAINE, TO BE AMBASSADOR 
                    TO THE REPUBLIC OF HAITI

    Ambassador White. Thank you very much. It is a great 
pleasure to be here today. Thank you, Mr. Chairman. I am 
honored to appear before you today as President Obama's nominee 
to serve as the next U.S. Ambassador to the Republic of Haiti. 
I am grateful for the trust and the confidence President Obama 
and Secretary Clinton have placed in me by nominating me to 
this crucial post. If confirmed, I look forward to working with 
you on Haiti, a country with which the United States shares 
broad and deep and longstanding ties and one that many 
Americans, including me, care deeply about.
    Mr. Chairman, with your permission, I would like to submit 
my written testimony for the record and make a few remarks.
    I first want to thank Senator Bill Nelson for the honor of 
introducing me to the committee. I am grateful for his support. 
Senator Nelson has been to Haiti and he knows its issues well. 
That he supports my nomination as Ambassador to that country is 
a vote of confidence that I deeply appreciate. Thank you so 
much, Senator and Grace.
    I understand that some here were at Congressman Donald 
Payne's funeral today, and I just want to add he was a hero of 
mine and I will miss him and I grieve for him.
    I would like to thank my friends and family for attending 
this hearing. Some have my front, meaning that they are 
watching me this way from afar in Senegal and my parents in 
Maine and friends there, and some have my back. That is to say, 
they are in this room. My son Patrick, USAID, State friends, 
Director Williams of the Peace Corps, and the Spences from 
Chicago. And thank you.
    Mr. Chairman, for 35 years, maybe even a tiny bit more, it 
has been my privilege and my pride to serve the United States. 
I began in a tiny village in Cameroon as a Peace Corps 
Volunteer. As an officer at USAID, I have served in numerous 
countries in Africa. As Mission Director for USAID in Mali, in 
Tanzania, and in Liberia, and as Ambassador to The Gambia, I 
have worked hard to ensure that diplomacy and development take 
their rightful place alongside defense as the core instruments 
for promoting United States interests.
    And my USAID service took me to Haiti from 1985 to 1990. It 
was a troubled period with lots of coups and lots of violence. 
But my posting there left me with a deep and abiding admiration 
for the people of Haiti. I have seen how courageous they are. I 
have seen how hard they work. I have seen the fortitude they 
have displayed in bouncing back from political or natural 
disasters one after another. The resilience and the dynamism of 
its people are among the most valuable resources that Haiti 
possesses.
    Secretary Clinton has called Haiti ``a test of resolve and 
commitment,'' and that challenge extends to the country's 
leaders, to its people, to its donors, including the United 
States of America. We must never lose sight of the fact that 
the success of that country is ultimately in the hands of 
Haitians themselves. We must recognize there are no quick fixes 
in building capacity in Haiti. It is going to take time.
    It is of critical importance that we help strengthen, 
expand, and diversify Haiti's private sector. Without a healthy 
economy, Haiti will remain poor. It will remain dependent. And 
this truth has to drive our collaboration with the private 
sector, and our investment in initiatives that are truly 
sustainable. It is Haiti's leaders who must foster an 
environment conducive to economic development and prosperity 
because without responsive, accountable, and transparent 
governance, without the rule of law, without the proper laws to 
attract investment, without a fully functioning government, 
sustained development will not be possible.
    If confirmed, I will press Haiti's leaders and its people 
on these key matters.
    In our efforts to help Haitians build a better future, 
attention and support from Congress has been invaluable, and I 
thank you for that. If confirmed Ambassador to Haiti, I will 
look forward to working with you in addressing the country's 
crucial issues.
    Haiti is often described as the poorest nation in the 
Western Hemisphere, and perhaps in terms of money, it is. But 
it is among the richest countries in terms of culture and 
history and courage. The great pride the Haitians feel for 
their remarkable country makes success not only achievable but 
believable. If confirmed, I will work hard with Haitians to 
make sure their endless sacrifices and the bravery of the 
people who suffered through that horrific earthquake are 
rewarded with a better quality of life and with renewed spirit.
    I thank you.
    [The prepared statement of Ambassador White follows:]

            Prepared Statement of Ambassador Pamela A. White

    Thank you, Mr. Chairman. I am honored to appear before you today as 
President Obama's nominee to serve as U.S. Ambassador to the Republic 
of Haiti. I am grateful for the trust and confidence President Obama 
and Secretary Clinton have placed in me by nominating me to this 
crucial post. If confirmed, I look forward to working with you on 
Haiti, a country with which the United States shares broad, deep, and 
longstanding ties, and one that, as we have seen in the past few years 
in particular, many Americans care about very deeply.
    Mr. Chairman, for 35 years it has been my privilege and my pride to 
serve the United States. I began my government service in a tiny 
village in Cameroon as a Peace Corps Volunteer. As an officer for the 
U.S. Agency for International Development, I have worked and raised a 
family in numerous countries, including Ivory Coast, Niger, Burkina 
Faso, Senegal and South Africa. As Mission Director for USAID in Mali, 
in Tanzania and in Liberia, and as Ambassador to The Gambia, I have 
worked hard to ensure that diplomacy and development take their 
rightful place alongside defense as the core instruments for promoting 
United States interests abroad.
    My USAID service also took me to Haiti, where I lived and worked 
from 1985 to 1990. It was a troubled period, with coups and violence, 
and a legacy of misrule the effects of which are felt to this day. But 
my posting also left me with a deep and abiding admiration for the 
people of Haiti. I have seen how courageous they are. I have seen how 
hard they work. I have seen the fortitude they have displayed in 
bouncing back again and again from political or natural disasters. The 
resilience and dynamism of its people are among the most valuable 
resources that Haiti possesses, and are key factors in United States 
involvement with that country.
    Those strengths have repeatedly been put to the test in Haiti's 
often turbulent history, and seldom more severely than in the 2-plus 
years since the devastating earthquake of January 12, 2010. Even before 
that catastrophe, in February 2009, Secretary Clinton identified Haiti 
as a foreign policy priority and initiated a comprehensive, whole of 
government review of the U.S. Government's engagement with that 
country. The earthquake, with its staggering human and material losses, 
gave added urgency to our efforts.
    Secretary Clinton has called Haiti ``a test of resolve and 
commitment,'' and that challenge extends to the country's leaders, to 
its people, and to donors, including the United States. We must never 
lose sight of the overriding fact that, as committed as we are to 
Haiti, the success of that country is ultimately in the hands of the 
Haitians themselves. We can help plan, encourage, and support, but 
goals must reflect the priorities that the government and people of 
Haiti have identified, and on which they are leading the way.
    In order for Haiti to be able to take the lead, the United States 
and other donors must equip key Haitian ministerial and government 
institutions with the capacity they need to manage funds, people, 
projects, and procurement. If the Haitian Government cannot deliver 
basic services to its people, there will continue to be the 
inefficiencies and crisis of confidence that have hampered development 
for decades. We must recognize that there are no quick fixes or 
shortcuts in building capacity in Haiti's governmental and 
nongovernmental sectors; the process requires a long-term commitment on 
our part.
    We must also recognize the risk of spreading our engagement too 
thin to have lasting impact. The United States has focused additional 
attention on specific sectors and areas, with other donor partners 
concentrating on other areas in which they are more specialized. Today, 
we are supporting Haiti as partners in four sectors and working in 
three defined geographic regions. Together with Haitian and 
international partners, we seek to diminish and remove the most 
significant impediments that have limited Haiti's economic growth and 
development.
    Some ask what the United States assistance has achieved, especially 
since the earthquake. While progress has been slower than we or the 
Haitian people would like, there have been tangible accomplishments. 
First, we helped saved lives and ameliorated the worst effects of the 
earthquake and the cholera epidemic. As of March 1, the U.S. Government 
had built 28,653 transitional shelters in Haiti, repaired 6,002 damaged 
houses to shelter 8,102 households, provided hosting support to 26,523 
households, and provided rental vouchers to roughly 1,200 households, 
thereby housing over 322,000 individuals. These efforts, along with 
support from the international community, have reduced the number of 
internally displaced people living in camps from roughly 1.5 million to 
490,545 since the summer of 2010. In addition, our efforts have removed 
2.31 million cubic meters of rubble--almost half of all the rubble that 
has been removed.
    With Haiti's most pressing humanitarian needs being addressed, the 
United States has increasingly shifted its assistance toward the 
country's longer term development. Gaps and shortfalls must be filled 
in order to foster stability and economic growth in Haiti. The country 
requires critical infrastructure, an efficient and reliable energy 
sector, a modernized agricultural sector capable of serving both 
domestic and export markets, internationally competitive ports, an 
accessible system of health care and facilities that goes beyond 
meeting emergency needs, and a policing and justice system that serves 
the needs of its people. We are working with Haitian and international 
partners in a Haitian-designed and -led process to meet those needs.
    The United States is responding to Haiti's desire for regional 
investments that support the development of economic corridors outside 
of Port-au-Prince. In particular, we have targeted some of our most 
significant investments in one of Haiti's poorest regions in the North. 
Working with partners from the private sector, bilateral and 
multilateral stakeholders, nongovernmental organizations, and Haiti's 
national government and local governments, we have broken ground on 
what will be one of the largest industrial parks in the Caribbean, at 
Caracol on the country's north coast. The initiative will transform one 
of Haiti's poorest regions, creating 15,000 new jobs that should grow 
to 20,000 jobs by 2016. The project also includes new housing 
settlements for 25,000 people complete with electricity, water, social 
services, and job opportunities nearby. The plans also encompass a 
state-of-the-art container port, an upgraded energy system to provide 
reliable electricity for 100,000 people and businesses; and 
rehabilitated health clinics and reference hospitals in the region. At 
the same time as we seek to create opportunities in industry, we are 
also working to support the agricultural sector, from which more than 
60 percent of Haitians derive income, by increasing farmers' access to 
credit and linking smallholder farmers to viable markets and improving 
farm incomes and productivity. Our work in the agricultural sector will 
also serve to address some Haiti's environmental problems and induce 
farmers to remain in rural areas, instead of flocking to Port-au-
Prince.
    The examples I have just cited reflect the critical importance the 
United States attaches to helping Haiti strengthen, expand, and 
diversify its economy. It is indisputable that no long-term development 
goals in Haiti can be sustainable without the growth of the private 
sector. The people of Haiti need that if they are to see improvement in 
their quality of life; the Government of Haiti needs that if it is to 
develop a tax base that will allow Haiti and not donors to fund 
essential social services. Regardless of our efforts in other areas, 
without a healthy economy Haiti will remain poor and dependent, and 
this truth has to drive our collaboration with the private sector and 
our investment in initiatives that are truly sustainable.
    The United States is addressing assistance obstacles from our end, 
such as bringing our staffing up to needed levels and providing 
additional procurement resources. Our pace of programming is 
accelerating. We are working to ensure that requirements such as 
environmental assessments and seismic data are met in order to carry 
out our projects successfully. We are taking steps to increase local 
contracting as more of our reconstruction programs are designed and 
awarded, and are making headway in putting solicitations out for 
competitive bidding as quickly as possible.
    This brings us back to the indispensible ingredient of Haitian 
ownership of its recovery. It is Haiti's leaders who must foster a 
political, societal, and economic environment conducive to economic 
development and prosperity, because regardless of how much stakeholders 
invest in Haiti, without responsive, accountable, and transparent 
governance; without just application of the rule of law; without new 
laws and changes in existing ones to attract investment; and without a 
fully staffed and functioning government in every branch, sustained 
development will not be possible.
    High expectations lifted President Michel Martelly into office. It 
will now take hard work and dedicated people on all sides to translate 
those hopes into results and help Haiti fulfill its ambitions. The 
Parliament's recommendation and President Martelly's recent appointment 
of justices to Haiti's Supreme Court provide meaningful leadership to 
the judiciary and are cause for hope. We are also encouraged by the 
Martelly administration's steps to tackle corruption in the crucial 
energy sector. The respected U.S. Government-financed turnaround 
management team that his administration appointed to the serve at the 
state-owned electric company has already identified $1.6 million a 
month in savings by rooting out waste, fraud, and corruption. Last week 
the Government of Haiti signed a far-reaching agreement with the 
management team to achieve ambitious targets in improving the utility's 
financial viability and expand the number of customers served.
    The resignation of Prime Minister Garry Conille on February 24 
comes as a setback to development, as Haiti once again risks being left 
without a fully functioning government able to tackle the many 
development challenges it faces. Haiti needs a government fully engaged 
in development decisions with the will to make choices and speed up the 
formal approval process. Haiti also needs a government that can 
reassure donors that it is on the path to strengthening the rule of 
law, ending a culture of impunity, showing no tolerance for corruption, 
and reaffirming its commitment to democracy by ending the inexcusable 
delays in holding elections. This is the moment that requires making 
tough choices and putting policy before politics. If confirmed, I will 
press Haiti's leaders and its people to show through actions their 
commitment to democratic values and a genuine openness to business.
    In our efforts to help Haitians build a better future, the 
sustained attention and concrete support we have received from Congress 
have been invaluable, and I thank you for them. There is widespread 
understanding on Capitol Hill of why Haiti is important to the United 
States: its proximity to our country, the extensive personal and 
historical ties between the two nations, the value of a more stable and 
prosperous partner in the Caribbean, the risks posed by potential 
trafficking or refugee flows. If confirmed as Ambassador to Haiti, I 
look forward to working with you in addressing these crucial issues.
    It would be a mistake to understate the scale of the challenges 
facing Haiti, or the need for a long-term commitment in order to 
achieve lasting progress. But the news from Haiti is by no means all 
negative. According to a recent Gallup poll, Haitians rate their lives 
better now than they did before the earthquake. Haitians' optimism is 
evident in a number of other areas as well, including the highest 
confidence in government institutions on record.
    Haiti is often described as the poorest nation in the Western 
Hemisphere. But it is not when it comes to the resilience and 
creativity of its people and its natural economic potential. It is 
among the richest in terms of history and culture and courage. The 
great pride the Haitians feel for their remarkable country makes 
success achievable and believable. If confirmed by the Senate, I will 
do my utmost to give Haitians and Americans both further cause for hope 
and optimism about Haiti.

    Senator Menendez. Thank you, Ambassador.
    Ambassador Thomas-Greenfield.

       STATEMENT OF HON. LINDA THOMAS-GREENFIELD, OF LOU-
     ISIANA, TO BE DIRECTOR GENERAL OF THE FOREIGN SERVICE

    Ambassador Thomas-Greenfield. Thank you, Mr. Chairman. Mr. 
Chairman and distinguished members of the committee, I am 
honored to appear before you today as President Obama's nominee 
to be the next Director General of the Foreign Service and 
Director of Human Resources at the Department of State.
    If confirmed as Director General, I would be responsible 
for managing the recruitment, assignment, welfare, professional 
development, promotion, and retirement of the Department's 
Civil Service, Foreign Service, locally employed staff, and 
others who work at the State Department.
    Since my return from Liberia as chief of mission just 2 
weeks ago and reengagement within the Department, I have been 
reminded of the huge breadth of the Bureau's activities. I am 
excited by the opportunity to strengthen the security and 
prosperity of our Nation by leading and building an effective 
civilian workforce.
    For 30 years, I have had the pleasure and the honor of 
working alongside talented State Department employees serving 
at our overseas missions and in the Department here in 
Washington and around the United States. I am proud to count 
many of them as my friends and all of them as my colleagues. 
They, like me, are pleased that the Department of State in 2011 
once again ranked in the top 10 among large Federal agencies in 
the Best Places to Work in the Federal Government. It really is 
a great place to work.
    Mr. Chairman, I would like to take the opportunity to 
introduce my family: my husband, Lafayette Greenfield, a 
retired Foreign Service specialist; our daughter, Lindsay, who 
recently joined the 123d Foreign Service Specialist class; and 
our son, Deuce, who also grew up in the Foreign Service and now 
is in law school. And we are very much a Foreign Service 
family.
    Of course, the nature of the service has changed 
dramatically since I joined 30 years ago, with those changes 
accelerated by the events of 9/11. Sixty-five percent of all 
State overseas positions are now at hardship posts, and two-
thirds of our diplomats abroad are serving in those difficult 
posts. They willingly face hardship and risk for the honor of 
serving their country and the opportunity to make a difference.
    Like the Secretary, I believe these men and women are some 
of the most courageous, hard-working, and capable people I have 
ever met. They and their families deserve our support and, if 
confirmed, I will work hard to ensure that they have what they 
need to do their jobs well.
    One of the Secretary's highest priorities is increasing the 
size of the State Department's staffing by 25 percent. This is 
a hiring initiative known as Diplomacy 3.0, for Diplomacy, 
Development, and Defense, representing the three pillars of our 
foreign policy.
    With 3.0, the Department has been able to fill some of its 
vacant positions as well as to fund new positions in support of 
our highest foreign policy priorities. It has also enabled us 
to double the size of our training complement. In 2011, we were 
able to increase the number of positions filled by language-
qualified employees from 62 percent to 70 percent.
    Recruiting a talented workforce that is truly reflective of 
the diversity of America is also critical to our staffing and I 
know important to you, Mr. Chairman. I am eager and I am 
energized to lead this effort, and if confirmed, ensure that we 
have the skills, the innovation, and diversity necessary to 
advance our Nation's interests.
    The Department has made a great deal of progress, but more 
needs to be done to ensure that the Foreign Service reflects 
the face of America. We must continue to work wholeheartedly 
toward this goal.
    We must also focus on assigning our men and women to posts 
and positions where they can best achieve our highest foreign 
policy goals. I would note this year that the Department is on 
track to fill over 800 positions in Afghanistan, Iraq, and 
Pakistan. I have no doubt that Foreign Service employees will 
continue to step forward and volunteer for these tough 
assignments as they have done in the past. If confirmed, I will 
work with others in the Department to help these dedicated 
public servants and their families manage these high-stress 
assignments.
    Over 10,000 Civil Service colleagues provide the critical 
Washington base of support, along with 56,000 locally employed 
staff worldwide, to keep our embassies and consulates 
functioning effectively. If confirmed, I will continue to 
develop and manage programs to fully utilize all of our staff, 
and I will also work to ensure that they are compensated fairly 
for their contributions to our mission.
    Foreign Service overseas comparability pay remains a 
management priority. This is a basic fairness issue. Foreign 
Service employees' base pay should not be reduced when they 
serve overseas.
    In closing, Mr. Chairman, I am pleased to have the 
opportunity to address you and members of the committee, and if 
confirmed, I ask for help in ensuring that we are able to 
strengthen American diplomacy through our greatest resource, 
its people.
    I will provide a more detailed written statement for the 
record.
    Thank you very much.
    [The prepared statement of Ambassador Thomas-Greenfield 
follows:]

        Prepared Statement of Ambassador Linda Thomas-Greenfield

    Mr. Chairman and distinguished members of the committee, I am 
honored to appear before you today as President Obama's nominee to be 
the next Director General of the Foreign Service and Director of Human 
Resources at the Department of State. I am gratified and humbled that 
President Obama and Secretary Clinton have chosen me for this key 
position.
    If confirmed, I look forward to rejoining the HR Bureau where I 
once served as Staff Assistant 20 years ago. As Director General, I 
would be responsible for managing the recruitment, assignment, welfare, 
professional development, promotion, and retirement of the Department's 
Civil Service, Foreign Service, Locally Employed staff, and others who 
work at the State Department. Since my return from Liberia as chief of 
mission just 10 days ago and reengagement within the Department, I have 
been reminded of the huge breadth of the Bureau's activities. I am 
excited by the opportunity to strengthen the security and prosperity of 
our Nation by leading and building an effective civilian workforce.
    For 30 years, I have had the pleasure and the honor of working 
alongside talented, dedicated Foreign Service and Civil Service 
employees, Locally Employed staff, Family Members, and contractors 
serving at our overseas missions and in the Department here in 
Washington and around the United States. I am proud to count many of 
them as my friends--and all of them as my colleagues. They, like me, 
are pleased that the State Department in 2011 once again ranked in the 
top 10 among large Federal agencies in the ``Best Places to Work in the 
Federal Government'' ranking. It is a great place to work.
    Mr. Chairman, I would like to take the opportunity to introduce my 
husband, Lafayette Greenfield, a retired Foreign Service Specialist; 
our daughter, Lindsay Greenfield, who recently joined the 123rd Foreign 
Service Specialist class; and our son, Deuce Greenfield, who also grew 
up in the Foreign Service and is now in law school. I guess you could 
say that the Foreign Service is in our blood.
    Of course, the nature of the Service has changed dramatically since 
I joined 30 years ago, with those changes accelerated by the events of 
9/11. For instance, the number of positions deemed too dangerous for 
family members to accompany has grown from approximately 200 in 2001 to 
over 1,300 today. In addition, 65 percent of all State overseas 
positions are now at hardship posts, facing crime, pollution, and other 
challenging living conditions. Two-thirds of our diplomats abroad are 
serving in those difficult posts. They willingly face hardship and risk 
for the honor of serving their country and the opportunity to make a 
difference. This puts a tremendous burden on our families.
    Like the Secretary, I believe these men and women are some of the 
most courageous, hard-working, and capable people I have ever met. They 
and their families deserve our support and, if confirmed, I will work 
hard to ensure they have what they need to do their jobs well.
    One of the Secretary's highest priorities is increasing the size of 
State's diplomatic staffing by 25 percent. This is the hiring 
initiative known as ``Diplomacy 3.0'' (D 3.0)--for Diplomacy, 
Development, and Defense--representing the three ``pillars'' of our 
foreign policy strategy.
    With D 3.0 hiring, the Department has been able to fill some of its 
vacant positions as well as to fund new positions in support of our 
highest foreign priority goals. It has also enabled us to double the 
size of our training complement, which enabled more overseas positions 
to remain filled while replacements received required language and 
functional training. Because of this much needed influx in resources 
that allows us to train, in 2011 we were able to increase the number of 
positions filled by language-qualified employees from 62 percent to 
over 70 percent.
    Recruiting a talented workforce that truly reflects the diversity 
of America is critical to our staffing efforts. I am eager and 
energized to lead this effort, if confirmed, and ensure that we have 
the skills, innovation, and diversity necessary to advance our Nation's 
interests.
    Aggressive recruitment outreach including through social media, has 
contributed to diversity recruitment gains. For instance, from 2005 to 
present African-American takers of the Foreign Service Officer Test 
increased 61 percent, Hispanics 82 percent; and women 131 percent. Pass 
rates for these groups increased 112 percent, 172 percent, and 131 
percent respectively. And, hiring of African-Americans increased 36 
percent and hiring of Hispanics increased 43 percent. The Department 
has made a great deal of progress, but we must continue to work 
wholeheartedly toward this goal.
    We must also focus on assigning our men and women to posts and 
positions where they can best achieve our highest foreign policy goals. 
This year, the Department is on track to fill over 800 positions in 
Afghanistan, Iraq, and Pakistan.
    I have no doubt that dedicated Foreign Service employees will 
continue to step forward and volunteer for these tough assignments, as 
they have done in the past. If confirmed, I will work with others in 
the Department to help these dedicated public servants and their 
families manage these high-stress assignments.
    Over 10,000 Civil Service colleagues provide the critical 
Washington base without which our embassies and consulates could not 
function effectively. Many of them volunteer to go overseas to 
difficult posts. They contribute to almost every aspect of the 
Department's operations from human rights to narcotics control to trade 
to environmental issues. They are also the domestic counterparts to 
consular officers abroad, issuing passports and assisting U.S. citizens 
in trouble overseas. To maximize our effectiveness, we must increase 
our flexibility to deploy employees where most needed. Therefore, we 
are creating more opportunities for Civil Service employees to work 
overseas.
    Of the approximately 56,000 Locally Employed (LE) staff employed 
worldwide by all U.S. agencies overseas under chief of mission 
authority, nearly 45,000 work for the Department of State. These loyal 
colleagues are a key component of our mission. They have been at our 
embassies the longest, and they perform dozens of essential functions 
that keep our missions open even under the most difficult 
circumstances. If confirmed, I will ensure that we continue to develop 
and manage programs to fully utilize our local staff. I will also work 
to ensure they are compensated fairly for their contributions to our 
mission.
    Foreign Service Overseas Comparability Pay (OCP) remains a 
management priority. This is a basic fairness issue; Foreign Service 
employees' base pay should not be reduced when they serve overseas. If 
OCP is taken away in the future, we know it will not only impact our 
employees' morale and salaries, but also their retirement. I look 
forward to working with you, Mr. Chairman, and other members of the 
committee to ensure that does not happen.
    I am pleased that the Department of State ranks high as an ideal 
employer. If confirmed, I will do all that I can to make it an even 
better, more ``family friendly'' employer, and more representative of 
the face of America.
    In closing, Mr. Chairman, I am pleased to have the opportunity to 
address you and the members of the committee. If confirmed, I ask for 
your help in ensuring that we are able to strengthen American Diplomacy 
through our greatest resource--our people. I look forward to helping 
the Secretary ensure that the Department and its people are ready to 
meet our foreign policy challenges and objectives.

    Senator Menendez. Thank you, Ambassador.
    Ms. Winstanley.

  STATEMENT OF GINA K. ABERCROMBIE-WINSTANLEY, OF OHIO, TO BE 
              AMBASSADOR TO THE REPUBLIC OF MALTA

    Ms. Abercrombie-Winstanley. Mr. Chairman and members of the 
committee, it is a privilege to appear before you today as 
President Obama's nominee to serve as the United States 
Ambassador to the Republic of Malta. I am honored by the 
confidence placed in me by President Obama and Secretary 
Clinton.
    I would also like to thank Senator Brown for his 
introductory statement.
    If confirmed, I look forward to working with this committee 
and the Congress in advancing U.S. interests in Malta.
    I am delighted and proud to be accompanied today by members 
of my family: my husband, Gerard, and my daughter, Kara. I am 
also joined by my brother, John; my sister, Navy captain 
retired, Lynne Hicks; and my brother-in-law, colonel retired, 
Larry Hicks. I am also supported today by many friends and 
loved ones.
    My family has personal connections to Malta. My father-in-
law made many stops there as a naval officer during World War 
II and my niece studied nursing in Malta at St. Luke's Hospital 
for Nursing.
    After 27 years in the Foreign Service, I believe my 
experience developing and implementing policy on 
counterterrorism issues with European, African, and Middle 
Eastern partners, as well as advancing U.S. interests on a 
bilateral basis in the Middle East, will enhance my 
effectiveness as chief of mission, should you decide to confirm 
me.
    Malta is a valued European partner, often serving as a 
bridge between the West and the Middle East. I have a unique 
background to strengthen the relationship between the United 
States and Malta. This includes my service in the Middle East 
as Consul General in Jeddah, Saudi Arabia and tours in Iraq, 
Israel, and Egypt, as well as my tenure as Director of Near 
East, South Asian Affairs at the National Security Council at 
the White House, and as a professional staff member, a proud 
one, working for this committee under then Ranking Member 
Biden.
    Over 50 years ago, Malta's courageous resistance during 
World War II prompted Franklin Delano Roosevelt to refer to 
Malta as a nation that stood alone but unafraid in the center 
of the sea, one tiny bright flame in the darkness. Malta is 
small in size but has never backed away from occupying a large 
role when history has called upon it. We have seen this 
recently in its commendable actions in support of the 
aspirations of the people of Libya.
    As we recently witnessed, Malta's strategic location in the 
Mediterranean Sea is important to both global security and 
international commerce. Last February when U.S. citizens and 
others were evacuated from Libya to Malta, the Maltese 
Government assisted 20,000 evacuees from 90 countries, 
including more than 200 American citizens. Maltese officials 
and the U.S. Embassy in Valletta worked side by side to arrange 
emergency and humanitarian services to meet evacuees as they 
arrived in Malta and assist in their onward travel.
    Though not a member of NATO, Malta provided emergency 
landing services for NATO planes and cooperated closely with 
NATO on its maritime embargo. Malta authorized thousands of 
overflight requests in support of Operation Unified Protector, 
free of charge and at a substantial cost to its ability to 
route lucrative commercial traffic.
    Malta has offered to be a hub for all humanitarian 
assistance to Libya.
    On the trade and investment front, the recently ratified 
double taxation agreement bolsters the already strong economic 
relationship between the United States and Malta by fostering 
greater investment in trade. The United States is Malta's 
second-largest trading partner outside of the EU. American 
firms directly employ over 2,000 people in Malta, not counting 
the several thousands who work for U.S. franchises. In the 
small nation, that means 1 out of every 50 Maltese workers is 
employed by an American company.
    Malta shines as a beacon of peace and economic success in 
the southern Mediterranean and is ready to provide essential 
assistance and know-how to its transitioning North African 
neighbors.
    As a career Foreign Service officer, my life's work has 
been to strengthen our great country's political and economic 
ties with other nations and to achieve results through mutual 
understanding, communication, and cooperation. If confirmed, I 
pledge to do everything I can to lead an Embassy that 
represents the finest values of the United States and to 
advance American interests by strengthening the bonds between 
the United States and Malta.
    Mr. Chairman and members of the committee, thank you for 
this opportunity to appear before you, and I would be pleased 
to answer any questions you have.
    [The prepared statement of Ms. Abercrombie-Winstanley 
follows:]

          Prepared Statement of Gina K. Abercrombie-Winstanley

    Mr. Chairman and members of the committee, it is a privilege to 
appear before you today as President Obama's nominee to serve as the 
United States Ambassador to the Republic of Malta. I am honored by the 
confidence placed in me by President Obama and Secretary Clinton. If 
confirmed, I look forward to working with this committee and the 
Congress in advancing U.S. interests in Malta.
    I am delighted and proud to be accompanied today by my family: my 
husband, Gerard, my son, Adam, and my daughter, Kara. I am also joined 
by my brother, John, my sister, Lynne Hicks, a retired Navy Captain, 
and my brother-in-law, Larry Hicks, a retired Colonel. I am also 
supported today by many friends and loved ones. My family has personal 
connections to Malta: my father-in-law made many stops in Malta as a 
naval officer during World War II, and my niece studied nursing in 
Malta at St. Luke's School of Nursing.
    After 27 years in the Foreign Service, I believe my previous 
experience developing and implementing policy on counterterrorism 
issues with European, African, and the Middle Eastern partners, as well 
as advancing U.S. interests on a bilateral basis in the Middle East, 
will enhance my effectiveness as chief of mission, should you decide to 
confirm me. Malta is a valued European partner, often serving as a 
bridge between the West and the Middle East. I have a unique background 
to strengthen the relationship between the United States and Malta. 
This includes my service in the Middle East as Consul General in 
Jeddah, Saudi Arabia, and tours in Iraq, Israel, and Egypt, as well as 
my tenure as Director for Near East South Asian Affairs at the National 
Security Council of the White House, and as a professional staff member 
working for this committee under then-Ranking Member Biden.
    Over 50 years ago, Malta's courageous resistance during World War 
II prompted Franklin Delano Roosevelt to refer to Malta as the nation 
that ``stood alone but unafraid in the center of the sea; one tiny 
bright flame in the darkness.'' Malta is small in size but has never 
backed away from occupying a large role when history has called upon 
it. We have certainly seen this most recently in its commendable 
actions in support of the aspirations of the people of Libya.
    As we recently witnessed, Malta's strategic location in the 
Mediterranean Sea is important to both global security and 
international commerce. Last February, when U.S. citizens and others 
were evacuated from Libya to Malta, the Maltese Government assisted 
20,000 evacuees from 90 countries, including more than 200 U.S. 
citizens. Maltese officials and U.S. Embassy Valletta worked side by 
side to arrange emergency and humanitarian services to meet evacuees as 
they arrived in Malta and assisted in their onward travel. In addition, 
Maltese authorities waived passport and other entry requirements, 
easing the evacuees' burdens.
    Though not a member of NATO, Malta provided emergency landing 
services for NATO planes and cooperated closely with NATO on its 
maritime embargo by providing manifests for Maltese-flagged ships. 
Malta authorized thousands of over flight requests in support of 
Operation Unified Protector free of charge, and at a substantial cost 
to its ability to route lucrative commercial traffic. Malta has offered 
to be a hub for all humanitarian assistance to Libya, and as such, the 
World Health Organization has asked it to serve as a base for its 
shipments.
    On the trade and investment front, the recently ratified Double 
Taxation Agreement (DTA) bolsters the already strong economic 
relationship between the United States and Malta by fostering greater 
investment and trade. The United States is Malta's second-largest 
trading partner outside of the EU, accounting for approximately 5 
percent of total trade, and American buyers account for approximately 9 
percent of Malta's total exports. American firms directly employ over 
2,000 people in Malta, not counting the several thousands who work for 
U.S. franchises. In this small nation, that means one out of every 50 
Maltese workers is employed by an American company. These American 
businesses continue to grow stronger. For example, in the wake of the 
worldwide financial crisis, as a stimulus measure, Malta provided 
targeted government assistance of 0.7 percent of GDP to manufacturing 
firms in 2009. One of the companies which received assistance, U.S. 
parts manufacturer Methode Electronics, not only retained its American 
workforce in 2009, but increased employment in its Maltese subsidiary 
as well. American investment overseas is vital, and Malta works to the 
benefit of both countries.
    Malta shines as a beacon of peace and economic success in the 
southern Mediterranean, and is ready to provide essential assistance 
and know-how to its transitioning North African neighbors. As a career 
Foreign Service officer, my life's work has been to strengthen our 
great country's political and economic ties with other nations, and to 
achieve results through mutual understanding, communication, and 
cooperation. If confirmed, I pledge to do everything I can to lead an 
Embassy that represents the finest values of the United States, and to 
advance American interests by strengthening the bonds between the 
United States and Malta.
    Mr. Chairman and members of the committee, thank you for this 
opportunity to appear before you. I would be pleased to answer any 
questions that you may have.

    Senator Menendez. Well, thank you all very much.
    Let us also welcome your family and friends because 
service, of course, is a demand upon families, and we 
appreciate them being here supporting you.
    I will start off the questioning.
    Ambassador White, let me ask you. There are many of us who 
are frustrated with the progress of reconstruction and of 
assistance to the Haitian people despite both our commitment as 
a country and the world's commitment. And so as you approach 
this assignment, could you share with the committee what you 
think are the key obstacles to a more rapid reconstruction and 
development in Haiti?
    And as part of that, could you talk about political 
instability as part of the equation, if you believe that is 
part of the equation? I happen to believe it, but I would like 
to hear your views on it.
    And last, I am just going to lump this all together, but 
will repeat it if necessary.
    Some of the latest reports about the government 
appropriating land seemed to reveal it doing so at the expense 
of the most vulnerable populations, and that is upsetting. If 
there is going to be land reconfiguration, you would hope that 
vulnerable populations would be the beneficiaries.
    So could you speak with us a bit about reconstruction and 
how we can do this more successfully, what are the obstacles, 
how we address them, and go from there?
    Ambassador White. Everyone, I do believe, is a bit 
frustrated with the slowness of the reconstruction.
    But could I just for one second say that Ambassador Merton 
and the accomplishments of his team has done in Haiti after 
living through that horrific earthquake. When they woke up one 
morning, 250,000 bodies were in the street and 10 million cubic 
feet of rubble was everywhere in Haiti, and they put on their 
boots and they put on their gloves and their staffs did and 
many volunteers, many people went down there to help and they 
made a difference. I mean, they got 1.2 million people in 
temporary shelters. So they got them in shelters. They fed 
them. They took care of them.
    To this day, they removed half the rubble. And you know, 
half of 10 million cubic feet is something to talk about--10 
million cubic feet. You can have dump trucks back to back from 
Key West to Bangor, ME. That is how many dump trucks that would 
take. And that they have taken almost half of that out with the 
USG efforts, another million cubic meters were taken out with 
wheelbarrows and who knows what by private citizens.
    The 1.5 million people were homeless, and today it is 
490,000. So well over a million people have been moved from the 
tents into something at least better than tents, different 
things, but better than tents. And like I said, half the rubble 
is gone.
    So accomplishments in an incredibly difficult country even 
in the best of times, good for them and good for the U.S. 
Congress for giving them the money to move forward.
    Now, one of the problems, of course, with Haiti is it lacks 
capacity. They have not had a functioning government. It took a 
long time for Preval to go and for Martelly to get in and then 
name a Prime Minister who unfortunately did not last very long. 
They are now looking for a new one. So there has been--the key 
pieces of government that are needed--the Haitian Government 
that are needed--to get this recovery moving quicker have not 
been in place very long. And we have got to have that going or 
we are going to have trouble making reconstruction and recovery 
any faster.
    I also think that the humanitarian response drained every 
ounce of people's strength for about a year, and then they 
started looking toward sort of a longer term recovery. To get 
those pieces in motion, especially to get the pieces in motion 
if you are going to use Haitian NGOs and Haitian diaspora and 
Haitian qualities, that just takes time. There is nothing you 
can do about it.
    And Ambassador Thomas-Greenfield and I served in Liberia 
together and we kind of picked Liberia up from this post-war 
disaster, and what do you do and how you do it? And I must say 
I think we did a really great thing.
    Senator Menendez. So are you telling the committee that 
things are going as they should?
    Ambassador White. I think that we have got the pieces in 
place if we can get the government to work, and that is a big 
``if.'' I hope that we can make them do that. I think we can 
put some pressure on them to make them do that. I think they 
want to make that happen. They want Haiti to succeed. But, yes.
    Just in the last month, I keep getting updates on some of 
the activities that USAID is doing in Haiti, and I see that 
they are awarding contracts, bigger contracts, reconstruction 
contracts. A new factory is going to be built in the north. It 
is going to come up with 22,000 jobs. There is nothing like 
giving people a job that is going to allow them to move the 
country forward, but we need the government to move too.
    Senator Menendez. So as I listened to your answer, the 
government is the biggest obstacle toward the type of further 
progress we would like.
    Ambassador White. I actually do believe that is true; yes.
    Senator Menendez. Ambassador Greenfield, you and I had a 
good conversation yesterday, and as I said to you then, Pastor 
Suarez called me again and said be nice. And what ensues is not 
about you but about the Department. And so I want to visit that 
with you on the record.
    I believe the State Department has the worst record of the 
hiring of minorities, particularly of Hispanics. This is 
something that I have been pursuing since my days in the House 
on the International Relations Committee. This is something I 
have pursued on this committee, and I do not seem to get 
anybody's attention.
    Now, sometimes for a Senator the only way to get somebody's 
attention is to hold up a nominee, and it is not my desire to 
do that here.
    But it also cannot continue this way. Your predecessor came 
before the committee not too long ago and answered a series of 
questions. It sounded really great until we went from 
percentage terms to actual numbers. And as I shared with you, 
in the State Department's Civil Service over the last 3\1/2\ 
years, we increased the number of Hispanics by four. In 2009 
versus today on female Hispanics, we increased the number by 
20, but of course, what we started from is incredibly low. 
Among the Foreign Service employees, we have similar numbers. 
So I will not gauge in percentages anymore because the 
percentages always paint a different picture.
    And when I listened to those who are in the Foreign Service 
from the Hispanic community, I often hear about the challenges 
those individuals face not only getting through the test, which 
is one thing, but then the subjective element of not being able 
to orally communicate effectively, which is incredibly 
subjective. Now, with all due respect, if that is the standard 
of all ability, then I believe there are many people from our 
community who can meet that standard.
    So I am trying to get a sense of how you, in this position, 
are going to change the course of events because the current 
way of doing things is not acceptable. The last census makes 
that pretty clear. And so if you could share with me and the 
members of the committee how you will go about changing the 
course of events in a way that will give me some hope so that 
we can vote your nomination out of this committee and on the 
floor with the expectation that things will change.
    Ambassador Thomas-Greenfield. Thank you, Senator. We did 
have a good conversation yesterday, and I can tell you that you 
did get my attention such that I was afraid to even give you 
those statistics that were in my official testimony, and I 
decided I would not give them.
    Senator Menendez. I accepted that as what the Department 
told you to say.
    Ambassador Thomas-Greenfield. Yes.
    Senator Menendez. So I get it.
    Ambassador Thomas-Greenfield. But you did get my attention.
    I had the opportunity to look at these charts on the board, 
and unfortunately those numbers in those charts reflect the 
reality. And what they reflect is the reality of the challenge 
that is going to be before me if I am confirmed by the Senate. 
And if I am confirmed as the next Director General, I can 
assure you that this will be one of my top priorities as 
Director General. And I said to you yesterday I am sure that 
all the other Director Generals have said the same thing.
    Senator Menendez. They have.
    Ambassador Thomas-Greenfield. And you said that to me 
yesterday as well. But I am also going to say to you that I do 
take this personally. I take it as a personal commitment that I 
am making to this committee that I will work diligently to 
improve those numbers, and I will not sleep unless those 
numbers are improved. I will personally put my own hand on all 
of the recruitment policies. I will review those policies to 
ensure that if there is anything in the implementation of our 
policies that is blocking increasing those numbers, that we 
will work to remove those.
    I am concerned that these numbers are so low. I am equally 
concerned that the African American numbers have gone down 
since I joined the Foreign Service 30 years ago.
    So we have a lot of work to do, and I will be working with 
the staff in the Director General's office, if I am confirmed, 
to ensure that when I come before you the next time--in fact, 
you will not have to call me. I will be directly in touch with 
you to let you know what progress we are making on getting this 
done. And I will look forward to working with you and your 
staff to get your ideas on how we might move forward to improve 
these numbers not just for Hispanics but for all groups.
    The Foreign Service is not successful if it does not 
represent the face of America. I have had the experience of 
being in the Foreign Service for 30 years, and I have seen this 
for 30 years. I am in the position now to make a difference, 
and I do intend to use my position to make a difference.
    Senator Menendez. Well, I appreciate your answer, and there 
are one or two things I want to follow up with you, but in 
deference to my colleagues, I am going to have them go and we 
will come back. But I do appreciate your answer.
    Senator Rubio.
    Senator Rubio. Thank you.
    Ambassador White, when I was in Haiti earlier this year, 
one of the major obstacles--and I think I mentioned that to you 
when we talked earlier today--one of the major obstacles that I 
found to private investment in the country is the absence of a 
credible land registry. And there are numerous competing claims 
for a plot of land, for example. And so investors, particularly 
in Florida, people that are interested in going to Haiti and 
doing some sort of investment and business venture, are worried 
that there is nowhere to register their property claims. And I 
think that is something that the Haitian Government shared with 
us as well during our visit.
    What ideas do we have? What could the U.S.'s role be in 
terms of creating capacity in that regard, both from your 
experience in serving there before and your experience around 
the world. Have you encountered that? And what is it that we 
can do from a capacity-building standpoint? What programs do we 
have in place or should we think about putting in place to help 
in that regard?
    Ambassador White. It is a huge problem. It is a problem in 
every country I have ever served in. It was a problem in 
Liberia, God knows. It is always a problem because there has 
not been any formal system of getting deeds. It has been a 
worse system, worse in Haiti, because the little registry that 
there was before the earthquake was destroyed during the 
earthquakes, and now we are starting not only from zero but 
minus-zero.
    There has been a small start when they are trying to set up 
these communities of just kind of discussion with people in the 
communities and deciding, yes, we will on the basis of who 
lived there for what amount of time so we can just kind of get 
it rolling. But there are several stakeholders, including the 
U.S. Government, that are working with the Ministry of Justice, 
that are working with the Bureau of Lands that are trying to 
map out where these plots are and who owns them and what kind 
of paperwork is needed. And this is going to take a while.
    But I do think that it is not only the United States of 
America like I said, but it is other donors as well. There has 
been progress. There will be more progress. There is an 
enormous amount of attention from both the Haitian Government 
and donors on this issue, and I do see that we are moving 
forward. And you are right. It has got to be done.
    Senator Rubio. Thank you.
    I guess a question for Ambassador Greenfield. I have been 
on the committee now for a year, so some of this is new to me.
    What are the challenges to recruiting people to be 
interested in the Foreign Service in the modern era? I mean, is 
it a challenge, when we go on college campuses or across the 
country? I read somewhere--maybe it was in your testimony--
about the use of social media and other platforms to get people 
excited about it. We have a lot of talented young people around 
the world. I think this young generation of Americans are the 
greatest connectors and collaborators in world history in terms 
of working with other people on things through the use of 
social media. What are some of the challenges we face in 
getting people interested in Foreign Service other than the 
pay?
    Ambassador Thomas-Greenfield. I was going to start with 
pay.
    Thank you for that question. That is an excellent question.
    I think some of the challenges are life in the Foreign 
Service. It is not just the job of the individual who is being 
hired. The whole family becomes part of this, and it is very 
hard sometimes for people to make the decision or for families 
to make the decision to sacrifice their own lives for a Foreign 
Service career of another family member. So I think that is one 
of the big challenges.
    The other, I think, is the fear of living overseas and 
leaving everything behind to go and live in a foreign country 
and try to learn the culture and the life of living in a 
foreign country.
    I think we can address those concerns of people, and we are 
attempting to address those concerns because once they come in 
the Foreign Service, they see that it is easy. But I think we 
have to look in a more strategic way at those life changes that 
people are required to make if they go into the Foreign 
Service.
    Senator Rubio. Thank you.
    And, Ms. Winstanley, I have a question actually directly 
related to Malta. It is an issue we also encountered when we 
were over there. It has to do with the issue of human 
trafficking. And I have read some reports where there has been 
some--let me begin by saying that I think our relationship with 
the Government of Malta is excellent. We are very grateful for 
that partnership. We are very grateful for that alliance that 
we have and for all the cooperation they have given. By no 
means is this a criticism of the government or that alliance, 
but a recognition of a problem that by our own trafficking in 
persons report we know exists today.
    Malta received a tier 2. They are on the watch list status 
for a second year in a row. They are both a source and a 
destination country for European women that are being subjected 
to sex trafficking.
    Surprisingly enough--there are multiple sources that say 
this--in 2010 the Government of Malta did not even identify a 
single victim of trafficking despite very many credible reports 
in that regard.
    What ideas--and I think from your service elsewhere as 
well, but what ideas do we have about helping to address that 
issue? Obviously, it is a complicated one. It is a global one. 
But given its strategic location as a gateway between the 
Middle East and North Africa and the rest of the West, I do not 
think that problem is going to get any better unless it is 
addressed honestly. So what can we do from the position you are 
going to occupy to be of assistance in that regard?
    Ms. Abercrombie-Winstanley. Thank you, Senator. A wonderful 
question and certainly this would be, if confirmed, one of my 
priorities when I arrive in Malta.
    The Maltese have had trouble with identifying victims and 
we have been working with them to help them do so, as well as 
ensuring that they do not hold victims responsible or charge 
them for crimes that are directly related to them having been 
trafficked. We worked with them for a workshop this past July 
to help them identify victims to address that specifically. In 
the last couple of months, they also have had a case that they 
brought to successful prosecution giving someone a 10-year 
sentence for trafficking in persons. This is the first 
successful prosecution and shows that they are moving in the 
right direction. They have got a chairman of the board to 
counter trafficking in persons, and as I said, it will be my 
priority when I get there.
    Senator Rubio. Thank you.
    Senator Menendez. Well, thank you very much.
    Senator Durbin.
    Senator Durbin. Thanks to all three of you.
    Ambassador White, I was recently in Port-au-Prince, as I 
mentioned, and I stayed at a nice place and there was a heavy 
rainstorm. And the woman who kind of the manager of the 
property--we were looking out the window at the rain, and she 
said tomorrow morning in Port-au-Prince they will report how 
many people died. I said, died? She said, from the rain. I 
said, it is a heavy rainstorm but why would people die? She 
said, there will be drownings in Port-au-Prince as a result of 
rainfall.
    The story behind that has a lot to do with the fact that 
this country has very little, if any, infrastructure to move 
water or sewage for that matter. It is just open. It runs 
through the streets and overwhelms residences and drowns 
children, that sort of thing.
    But there is a second part to the story, and that is what 
has happened to Haiti as a country. Lift this up and show it. 
It is not difficult to see the border between Haiti and the 
Dominican Republic----
    Ambassador White. It surely is not.
    Senator Durbin [continuing]. Because to the right on this 
island of Hispaniola is the Dominican Republic which has had a 
serious effort to plant trees. To the left is Haiti where the 
trees have just been removed. So when the rain falls, it comes 
rolling down these hills and mountains into these cities, 
drowning the poor people who live there.
    I have tried to put some money in, as I mentioned earlier, 
for various projects, and one of them is reforestation in 
Haiti. They cannot reclaim this land for agricultural purposes 
or any purpose until they deal with that issue. And it is hard 
because people chop down every tree they happen to grow because 
they need wood for heat when it gets chilly by their standards.
    When I brought this up with the previous President, he kind 
of laughed at me and said it will never work. I think it has to 
work. And when President Martelly weighs this as one of his 
concerns, I hope that you will make it one of yours when you 
are Ambassador, that we can join in this effort toward 
reforestation.
    I would like to have your comment.
    Ambassador White. Yes. I could not agree with you more. It 
will be something that I will look at.
    Unfortunately, during the 5 years that I was in Haiti, I 
literally saw that happen right before my eyes. It kept coming 
lower and lower and lower. They kept chopping more and more 
trees. And back in those days, AID tried desperately to stop 
it, too, by planting trees, planting trees. They would chop 
them down. We would plant. They would chop them down. We would 
plant. It was just an endless cycle of wasted money to tell you 
the honest-to-God truth.
    And so what we have decided to do now are kind of two 
things. Well, actually three things.
    One, we are going to tie planting of trees to fruit trees 
and trees that can actually give a profit, and they sell the 
mango or they sell the cocoa or they sell the coffee, whatever. 
So there will be less incentive to cut down a tree. That is one 
thing.
    The second thing is we are going to do some plantings high 
up and try to protect them so that they will take root. It 
takes maybe 6 months to a year to get the root in there. We are 
going to have to use some protection of some fir trees, et 
cetera, to keep on the higher levels. The fruit trees will not 
grow up there.
    But I think the key that we did not use 25 years ago was 
that we have got to give a decent substitute for charcoal or 
they are just going to keep cutting down the trees because they 
need something to cook their food with. I mean, people have got 
to eat. So we have got to decide what is that alternate fuel 
and how can we use it, how can we introduce it. And we are 
starting some pilot programs and using gas, using some 
briquettes that are made out of things that are not wood, et 
cetera. So I think that is going to have to be the key, that we 
are going to find a substitute for the wood so the wood can do 
what it needs to do and save the banks from falling into the 
ocean and killing people.
    Senator Durbin. The other thing that was very obvious--and 
you can see it when you catch a plane to go to Port-au-Prince--
is how many Americans and others are literally volunteering 
their lives to help these people. It is a noble thing and a 
heartwarming thing. But it is frustrating too. There are so 
many NGOs stumbling over one another doing this and that thing. 
You often wonder if there is any coordination even among 
American NGOs about what they are trying to achieve.
    There is a second aspect of this. One NGO, in particular, 
was close to Senator Mike DeWine of Ohio, and Senator DeWine 
made more than 20 trips to Haiti. That NGO was called Hands 
Together. It was run by a Catholic priest. They have schools 
and orphanages and feeding places and the like. And I visited 
them again when I was just recently there. Father Tom does a 
great job. He has given his life to this. And he has so many 
volunteers and helpers. They do wonderful work with a limited 
amount of money.
    He sent me an e-mail 2 weeks ago, and his chief of staff 
was gunned down right out in front of his school. And he was 
heartbroken and ready to give up because security is just 
absent from many, many places, Cite Soleil in Port-au-Prince, 
for example.
    And now we hear from President Martelly, whom I admire and 
think has the potential of really adding something very 
positive to Haiti, that he wants to create an army. It would 
seem that a police force may be more important at this moment 
in terms of establishing at least basic law and order in this 
island.
    What are your thoughts about this notion of a Haitian army?
    Ambassador White. Yes; that is an excellent question. Thank 
you, Senator.
    We struggled with this also in Liberia. Ambassador Thomas-
Greenfield and I, believe me, had many, many meetings with 
President Sirleaf on standing up an army, standing up a 
functional police force.
    I believe that we came to the conclusion then, and I have 
certainly come to the conclusion and the administration has 
come to the conclusion, that what we need in Haiti and what we 
are going to put our resources against is a strong police 
force. We need to stabilize the country. We have got to stop 
these killings. We have got to stop the rapes of the women. We 
have got to stop abuse. And that is not an army's job. That is 
a strong police force job. So I feel very strongly about that, 
to tell you truth.
    And let me just mention that the discoordination, if you 
will, of a million NGOs--they want to do the right thing and 
their heart is in the right place. Again, we found the same 
thing in Liberia. They were pouring in there, especially lots 
of Liberian Americans who had spent years and years in the 
States and wanted to go back. They started a school here and a 
clinic there, and then, oh, they did not have books. They did 
not have medicine. You know, what were they doing and who were 
they coordinating with?
    The minister--the fabulous Minister of Plan there, was my 
best friend, now the Minister of Finance, a Harvard graduate--
and I decided that we would in his ministry, in the Ministry of 
Plan, start a donor mapping using IT. So we used spatial 
technology. It was cutting-edge. We had a picture and we had a 
map and we had a little description who was it, what were they 
doing, how much were they putting, and were they having any 
real impact, success of any kind. It took us 2 years to put it 
together, but today he can bring the screen up and he knows 
where all these people are. And we are going to do that in 
Haiti too.
    Senator Durbin. Good.
    The last point I will make is that I learned while I was 
there that what was once a thriving coffee industry has all but 
disappeared in Haiti. Some 10 percent of what was their top 
production remains. I have approached a company in Chicago that 
sells coffee that they import from all around the world and 
asked them if they would make this a special project. There is 
not any reason why others could not join them. So perhaps our 
insatiable appetite for coffee will lead to some more commerce 
coming out of Haiti.
    Thank you.
    Ambassador White. Thank you. Just so you know, also--now I 
am sounding like I am 3 million years old instead of just a 
million years old. But in any case, in Tanzania we did a 
fabulous coffee project. Starbucks came over and they were 
putting coffee--that they used to pay 2 cents a kilo for and 
now it is up to like 30 cents. And it is selling like hotcakes. 
I do not know why we could not do the same thing in Haiti and 
have it that much closer to the United States of America. So I 
am with you on that one.
    Senator Durbin. Thanks.
    Senator Menendez. Thank you, Senator Durbin.
    Ambassador Greenfield, let me just go back to you for a 
moment. For my friends at the State Department, the charts that 
are displayed here show the demographics of America after the 
2010 census. And I look at the 2011 State Department figures, 
and Native Americans and Hispanic Americans are the only groups 
that are underrepresented by population as a percentage of the 
population. In the case of Hispanics, when comparing their 
representation in the State Department to the size of their 
U.S. population, the underrepresentation is pretty dramatic.
    And then I look at 2009--and this is why I am a little 
upset at the testimony that was given previously--2011 numbers 
are worse than 2009 numbers. So we are not only dramatically 
underrepresented, we are moving in the wrong direction.
    So with that again as the premise of why I have focused on 
this so much, I would like to ask, Will you commit to look at 
the recruitment efforts outside of traditional schools? I 
appreciate those schools from which we have drawn the Foreign 
Service. They are some of the greatest schools, but they are 
not where a lot of the pools of these diverse communities are 
necessarily at. And there are very good schools with very good, 
diverse pools that would be maybe helpful in the recruitment 
process. Is that something that you can tell me you will do?
    Ambassador Thomas-Greenfield. Absolutely.
    Senator Menendez. In terms of the oral exam, will you, as 
part of your overall review of this process, look at how the 
oral exam is being performed in a way that makes it somehow 
more objective and less subjective and therefore a filtering 
system by which the progress does not take place?
    Ambassador Thomas-Greenfield. I have asked that question as 
a result of our meeting yesterday to talk to the folks who 
administer the oral exam to see how it is administered and to 
look at the issues that you have raised. They have assured me 
that that is not an issue, that in fact the pass rate of the 
oral exam for Hispanics is even with other populations. It is 
the written exam that is the issue. But I do assure you that I 
will look at both, and if there is a problem, we will work to 
fix it.
    There clearly is a problem, based on the chart that you 
have given me here, with our recruitment efforts. Trying to 
figure out where that is and how we address it will be one of 
my highest priorities. And I will be relentless.
    Senator Menendez. I appreciate that answer.
    Something is wrong because your predecessor came in and 
told us how many people were recruited, took the test and 
passed the test, but then they do not get into the Foreign 
Service. So if the hardest part is getting people and then 
passing the written test and then they do not enter in the 
Foreign Service, there is disconnect there, and what that tells 
me is look at the oral exam. But I would be open to learning 
that there are other issues.
    I always believe that at an institution, it starts from the 
top and works its way through the entire process in a way that 
leads everyone to understand that there is shared 
responsibility to make progress in this effort. Is that 
something that you will seek to do within the Department?
    Ambassador Thomas-Greenfield. Yes, sir. And we are looking 
at all of leadership in the Department because the recruitment 
part of it is a big part of it, but it is not all of it. We 
also have an issue of mentoring so that we retain the people, 
the small numbers of people that we recruit, and that is the 
role of our leaders. And I will, as Director General, if I am 
confirmed, really drill that into all of our ambassadors, all 
of our senior leaders in the Department that they must take 
responsibility for mentoring staff who are coming in. One of 
the problems that I think that many Hispanics and African 
Americans and other minorities have when they come in the 
Foreign Service, there are not leaders that they have who 
mentor them, and we are going to make sure that that happens as 
well. But it is not just my problem. I will make it the entire 
Department's problem.
    Senator Menendez. Thank you.
    I know that this precedes you, but do you know if the 
Department has submitted its diversity and inclusion strategic 
plan as required by the March 1 memo from the OPM Director, 
John Barry?
    Ambassador Thomas-Greenfield. It is in final draft, and I
understand it is due on March 16 and it will be turned in by 
that date.
    Senator Menendez. I know your confirmation has to take 
place, but I hope that internally there is a way in which they 
can allow for your input so that some of the things we have 
talked about might be incorporated in that ultimate memo.
    Finally, not on a minority hiring question, but do you 
believe that, as the Director General, you are going to have 
the authority and the flexibility with respect to the type of 
personnel policy that will allow the State Department to deal 
with the diplomatic challenges of the rapidly changing world we 
find ourselves in?
    Ambassador Thomas-Greenfield. I think I will have that
authority and flexibility, but it is not only the role of the 
Director General again just with recruiting and retention. It 
is a Departmentwide responsibility and there are a number of 
entities within the State Department that have responsibility 
for some kind of hiring. I would give, for example, the new CSO 
Office. The director of that office was here for his hearing 
yesterday. They will be looking at how they can bring in people 
in a search type of way to deal with emergencies so that if we 
do not have people who are already employed, we can bring them 
in quickly so that they can address some of our emergent needs.
    Senator Menendez. Well, thank you very much for your 
answers.
    Finally, Ms. Winstanley, I do not want you to think I left 
you out of the equation, though I am sure you would be happy to 
be left out. [Laughter.]
    Senator Menendez. It is not that bad. Ambassador Greenfield 
took it all for you. She is going to be a great Director 
General.
    Let me ask you. I have heard many good things about Malta, 
but there is one that as the United States continues to pursue 
trying to deter Iran's march to nuclear weapons, is of real 
concern to us. And I want to hear that you would make it one of 
your priorities if you are confirmed. It is with reference to 
Iran's shell game with its cargo shipping line, IRISL. It is an 
entity which has been designated by the United States and the 
European Union because of its central role in evading sanctions 
designed to stop the movement of controlled weapons, missiles, 
and nuclear technology to and from Iran. Some 57 ships 
designated by OFAC, the Office of Foreign Assets Control of the 
United States, the U.N., and the EU continue to fly the Maltese 
flag despite their clear connections to IRISL. Thirty-three of 
those ships are currently in Iranian ports or have been there 
this year.
    So I would hope, if you are confirmed, that you will raise 
this at the highest levels of the Maltese Government and urge 
them to cut business ties to ensure that IRISL is not using 
them as a shell process to evade the tremendous efforts that 
the Obama administration and this Congress pursued using 
peaceful diplomacy tools, which are sanctions, to deter the 
Iranians from their nuclear weapons program. Can you make that 
commitment to the committee?
    Ms. Abercrombie-Winstanley. Senator, I absolutely can make 
the commitment that, if confirmed, this will be among my 
highest priorities.
    The Maltese have taken some steps in the recent past 
including agreeing not to reflag any additional Iranian ships. 
So they will not be reflagging new Iranian ships. They have 
also been supportive of enforcing U.N. sanctions with regard to 
Iranian cargo and they have interdicted ships and seized 
illegal cargo. So they have taken what we consider some 
important steps. They are small steps, what we consider small 
wins. We are going to be working for big wins. So this will be 
something I will take up at an early opportunity, if confirmed.
    Senator Menendez. Thank you.
    Senator Rubio.
    Senator Rubio. Thank you.
    Ambassador White, we talked about this earlier today as 
well when the issue of the restavek, which is a concept I was 
not familiar with until very recently. For those who are 
watching or may be in the audience and do not know what it is, 
it is an unfortunate practice of very poor families in Haiti 
over the decades to place their children with better-off 
families who provide them employment, usually domestically, in 
exchange for providing for these children and sometimes even 
educating them.
    The problem, of course, has been that over the years there 
are now people that have taken advantage of that system or have 
taken advantage of that problem and make it much, much worse, 
as you are aware. A moment ago, Senator Durbin showed us a 
picture of the Haitian-Dominican border. In addition to a 
deforestation problem on that border, there is the reality that 
on that border you can buy a child, that there are children 
that are trafficked and sold as child prostitutes both into the 
Dominican Republic and in those border towns in that region. It 
is a very tragic situation.
    As we met with folks in Haiti, one of the solutions that 
has clearly been offered is the idea of providing every child--
and it is one of the priorities of the President, President 
Martelly, is to provide children educational opportunities. One 
of the things that I was struck by during my visit was these 
very poor families but children walking to and from school in 
impeccable uniforms which is an indication of a real societal 
value for education. Families will do anything if they can get 
their kids into a school. In fact, we visited one of these 
schools. It was called the Institute for Human and Community 
Development. They specifically focused on victims of human 
trafficking, providing them an educational opportunity.
    But there are still challenges along the way. One of the 
challenges I found, unfortunately, is that there is the idea 
that this is more of a cultural problem than a human tragedy. 
And I am not saying that is widespread in the society, but 
there are some that view it that way.
    The other is as you said, that there is not the 
governmental capacity to deal with this. What I thought the 
most enlightening approach was the more children they can get 
into a school setting, which in my understanding is a very 
cost-effective measure, the likelier it will be for these 
parents not to put their kids in this environment.
    And by the way, not to put the blame completely on the 
parents. I mean, there are folks posing as NGO members who are 
going into camps and saying they have got jobs for these kids, 
and in fact, they are nothing but traffickers who are doing 
these horrible things.
    So what initiatives can we do in support of that ambition 
of providing--given our current set and as your background with 
USAID, you are probably even more insightful in this regard. 
What can we do in terms of helping the Haitian people build 
more capacity in their educational front particularly for 
children so that we are accomplishing the dual goals of, No. 1, 
creating intellectual and academic capacity, you know, 
workforce capacity, in the country, but at the same time giving 
these children an alternative and their families an alternative 
to the restavek situation? So what are our existing programs 
and platforms and what can we build on?
    Ambassador White. Thank you very much, Senator.
    Yes. In my mind over the years, we have not put enough 
emphasis not only on primary education but secondary education. 
If a young girl graduates only from primary school, she does 
not have a longer life. She does not have a higher earning 
wage. She does not have fewer children. If she spends 2 years 
in secondary school, then we are starting to make a difference. 
So we need to not only concentrate on--not we, the United 
States Government, but the donors as a whole because education 
happens not to be one of our focus areas, although we are doing 
it around some of our development corridors, but we are paying 
attention to the national level in certain areas like 
curriculum. But we have got to concentrate on education.
    We have got to make sure that the police are trained in 
recognizing child abuse, and it is different from what the 
traditional restavek was supposed to be. It was supposed to be 
that someone cared for the children from the rural areas into 
the city areas that they could not take care of them in the 
rural areas. They could not provide any services. Instead it 
has become in many instances just a domestic service and often 
abusive.
    We just signed a huge contract with several organizations--
three I believe--that are going to look into issues of youth 
employment, girl abuse, women abuse, and especially this 
restavek story that is going on down there because we all know 
that it is untenable from a human rights' point of view.
    Senator Menendez. Thank you, Senator Rubio.
    Thank you all for your testimony. I want you to know that 
you must have a lot of friends because this room is almost--not 
quite--but almost as filled as when George Clooney was here 
today. [Laughter.]
    There are not as many cameras, but there are a fair number 
of people here.
    Thank you for all of your responses to the questions.
    The record will remain open until this Friday. I would urge 
the nominees, if you receive a question from any member, that 
you answer it expeditiously. It will expedite the process of 
your nomination.
    And with the thanks of the committee to all the nominees, 
this hearing is adjourned.
    [Whereupon, at 4:15 p.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


      Responses of Linda Thomas-Greenfield to Questions Submitted
                      by Senator Richard G. Lugar

    Question. Based on your most recent tour as Ambassador to Liberia, 
can you share your thoughts on how the State Department could better 
train its Foreign and civil service officers to prepare for working in 
those environments? What's missing and what do you see as some critical 
steps the Department could take to strengthen its focus on prevention 
and mitigation?

    Answer. One thing I learned is that, as the Secretary observed in 
her recent Quadrennial Diplomacy and Development Review (QDDR), it is 
vital that agencies learn to work better together in support of U.S. 
development and diplomacy goals. This is nowhere more important than in 
countries in which we are working to prevent, mitigate, or respond to 
conflict such as Liberia. In Liberia, I practiced the concept of ``one 
team, one mission'' that brought all the agencies together. With this 
objective in mind, the Foreign Service Institute (FSI) and USAID have 
created their first-ever joint courses: a distance learning course on 
Development in Diplomacy, and a new classroom course on Partnership in 
Development and Diplomacy. Both courses stress the importance of joint 
planning and execution of development and diplomacy goals across 
agencies, and offer simulated exercises to train Foreign Service and 
Civil Service employees how to do such cooperative work in the field. 
We also have Area Studies courses that prepare employees from different 
agencies for the social, political, cultural, economic, religious, and 
governmental dimensions of the countries where they will serve 
together.
    In addition, the State Department is taking steps to strengthen its 
focus on conflict prevention and mitigation. In November 2011 State 
announced the establishment of a new Bureau, the Bureau of Conflict and 
Stabilization Operations (CSO). The responsibilities of this new Bureau 
will be to anticipate major security challenges; provide timely, 
operational solutions; build integrated approaches to conflict 
prevention and stabilization; and to leverage partnerships with 
nongovernmental and international partners.

    Question. According to the 2010 Quadrennial Diplomacy and 
Development Review, more than 25 percent of State and USAID's personnel 
serve in the 30 countries classified as highest risk for conflict and 
instability. The QDDR recommended expanding training for all 
predeployment staff that are going to those countries. However, class 
schedules and deployments often do not line up and Foreign Service 
officers are unable to complete the trainings. Distance-learning 
courses could fill this gap until there are opportunities for in-depth 
and in-person study. What steps will you take to develop a more 
comprehensive course offering that includes distance-learning courses 
on crisis and conflict prevention and ensure they are offered--and 
taken by FSOs?

    Answer. FSI is working to revamp its training offerings in this 
area with the new CSO Bureau, and can explore the creation of a 
distance learning course, which would require both time and resources, 
in that context. In recognition of the unique challenges posed by the 
growing number of countries with a high risk for conflict and 
instability, FSI created a Stability Operations Training Division 
focused on predeployment training for employees assigned to 
Afghanistan, Iraq, or Pakistan and training in support of conflict 
prevention and reconstruction operations. The courses for Afghanistan, 
Iraq, and Pakistan are offered on a monthly basis throughout the 
transfer cycle to provide every opportunity for employees to attend.
    FSI and the staff of Under Secretary of State for Civilian 
Security, Democracy, and Human Rights are discussing how the Department 
might expand training to employees headed to other countries at risk 
for conflict and/or instability. One idea is to use FSI's current 
``Foundations in Conflict Prevention and Response'' course, which is 
currently directed at members of the CSO Bureau's Civilian Response 
Corps, as the basis for a course that would be targeted at any Foreign 
Service and Civil Service employees serving in posts where conflict 
and/or instability may be an issue.

    Question. Within the State Department and USAID there seems to be 
virtually no mid- and senior-level career training made available on 
crisis prevention. This deficit is problematic for future leaders of 
the Foreign Service. How do you think the absence of such courses can 
be addressed and what role do you see for yourself in helping to ensure 
such training is available?

    Answer. The Foreign Service Institute (FSI) and the Bureau of 
Conflict and Stabilization Operations (CSO) are working together to 
expand the emphasis on conflict prevention in FSI's ``Foundations in 
Conflict Prevention and Response'' course, which is directed at the 
Civilian Response Corps. FSI and CSO are discussing with the J family 
of bureaus ways to offer similar training to all officers deploying to 
pre- and post-conflict countries. FSI is also exploring how to 
integrate conflict prevention and response training into existing 
courses in our Political Tradecraft and Area Studies divisions.
    Working effectively in pre- and post-conflict countries requires 
strong leadership. As such FSI sends out trainers to conduct onsite 
Crisis Management Training at all our overseas missions, with exercises 
that include the Ambassador and other senior management. Every post 
receives this training at least every 2\1/2\ years. FSI also offers a 
classroom course on its campus on ``Leading in a High Threat Post.'' If 
confirmed as DG, I will strongly support these efforts and will ensure 
that we continue to expand training as needed.

    Question. What has been the impact of the U.S Government National 
Security Language Initiative in terms of recruitment to the Foreign 
Service? How many new FSOs received NSLI grants/training?

    Answer. The State Department's programs for high school and 
university students launched under the National Security Language 
Initiative in 2006 are having a significant impact in increasing the 
pool of Americans studying and mastering critical-needed foreign 
languages. More than 1,500 American students are participating in these 
exchange programs each year. As more of these students finish their 
education and develop in their careers, we expect a growing number will 
pursue a career in the Foreign Service. In a recent survey of the 2006-
2011 alumni of one of our programs, the Critical Language Scholarship 
Program, just over half of the respondents are still in school, while 
about a quarter are employed full-time. Of those employed full time, 
two-thirds say that their language skills have helped them obtain their 
current job. Nearly a quarter of those employed are working in 
government service (18 of them working for the State Department or 
USAID), while another half are working for nongovernmental 
organizations, international organizations, and educational 
institutions, furthering their skills and knowledge.
                                 ______
                                 

           Response of Pamela A. White to Question Submitted 
                      by Senator Richard G. Lugar

    Question. Are you supportive of the establishment of a United 
States-Haiti enterprise fund?

    Answer. The United States attaches critical importance to helping 
Haiti strengthen, expand, and diversify its economy. No long-term 
development goals in Haiti can be sustainable without the growth of the 
private sector. This is essential both to improve the quality of life 
of the people of Haiti and to develop a tax base that will allow the 
Government of Haiti and not donors to fund essential social services. 
An enterprise fund on the model of those that have succeeded in Central 
and Eastern Europe and funded with sufficient, additional resources is 
worth examining and could potentially add to our existing tools for 
promoting a healthy private sector in Haiti. These include an active 
Development Credit Authority program with local banks for small and 
medium enterprise lending; the current discussion for the provision of 
assistance to help Haitian financial institutions provide loans to 
finance the construction and repair of homes and business; a mobile 
money operation with cell phone companies and the Gates Foundation; and 
assistance for investment in micro, small, and medium enterprise in 
Haiti especially by the Haitian-American diaspora.
                                 ______
                                 

          Responses of Pamela A. White to Questions Submitted 
                       by Senator Robert Menendez

    Question. Can you explain what your role and objectives as 
Ambassador to Haiti would be, if you are confirmed?

    Answer. The United States has a solid strategy for contributing to 
the reconstruction and development of Haiti, one that reflects 
Secretary Clinton's vision of a more promising future for that country. 
If confirmed I will work with all my energy to translate the goals of a 
more prosperous and stable Haiti into reality. Because the success of 
Haiti's recovery is ultimately up to the Haitians themselves, I will, 
if confirmed, work to establish the strong working relations with 
Haiti's decisionmakers that will help us expedite that process.

    Question. As the United States Government shifts from emergency aid 
to longer term development programming, what steps will you take to 
ensure this transition is carried out in a way that will not further 
marginalize vulnerable earthquake victims? How will you ensure there 
are no gaps in the provision of basic services for Haitians who remain 
displaced?

    Answer. One of the important obligations of the Government of Haiti 
is ensuring that its plans for the country's reconstruction work 
benefit the widest possible range of citizens. Providing basic services 
to Haitians displaced by the earthquake remains a crucial task of the 
Government of Haiti. These challenges underscore the importance of 
building capacity in Haitian institutions. The United States 
coordinates closely with other donors and with Haitian authorities to 
help the Government of Haiti take the lead in the country's recovery 
and fulfill the key responsibilities of a sovereign government toward 
its citizens. USAID will continue to provide basic health services to 
over 40 percent of the population.

    Question. What progress do you see on the Martelly government's 16/
6 initiative to rehouse 6 camps into 16 neighborhoods?

    Answer. The United States fully supports the Martelly 
administration's 6/16 initiative, whereby six priority camps located in 
public spaces will be closed and their residents reintegrated into the 
16 neighborhoods from which they originate. Together with International 
Organization for Migration, USAID's Office of Transitional Initiatives 
is supporting Mayor Parent's initiative in Petionville, which has 
dismantled two camps in two public parks in the heart of the city and 
provided camp residents with options--which provided resettlement 
assistance to more than 1,300 people.
    This initiative builds on lessons learned in Haiti over the last 19 
months and works in phases: registration/census of camp residents, 
announcement of the program, options counseling with residents, 
relocation, and followup after reintegration.

    Question. As Ambassador, would you increase diplomatic efforts to 
encourage the Haitian Government to adopt comprehensive housing 
solutions and ensure the protection needs of vulnerable communities are 
integrated into the Haitian Government's 6/16 housing plan?

    Answer. The U.S. Government is working with Haitian officials, at 
both the national and local levels, and the International Organization 
for Migration, which is the lead agency in the camp management cluster, 
to find long-term, sustainable solutions for the 490,545 people still 
living in precarious situations in displaced persons camps. USAID has 
successfully piloted a program to offer choices to camp residents 
including housing repairs to structurally sound, existing homes; 
installation of temporary shelters; or 1-year rental vouchers. The 
majority of IDPs accepted rental assistance and moved out of the camps 
voluntarily.

    Question. Can you provide an assessment of the adequacy of 
information being provided publicly regarding the reconstruction 
efforts?

    Answer. One of the greatest benefits of the Interim Haiti Recovery 
Commission (IHRC) was its public releases to Haitians regarding 
reconstruction progress, and the comprehensive report at www.cirh.ht on 
the progress of each individual reconstruction project. Now, the 
Government of Haiti is working with the Inter-American Development Bank 
(IDB) and United Nations Development Program (UNDP) to improve the 
government's ability to use information technology to update these 
progress reports and to get out information to Haitian citizens about 
progress in the reconstruction.

    Question. Since the Interim Haiti Reconstruction Commission (IHRC) 
has been
 allowed to lapse, how effectively are international donors able to 
coordinate foreign aid and reconstruction activities with each other 
and with the Haitian Government?

    Answer. The October 2011 lapse of the mandate of the Interim Haiti 
Recovery Commission did present a coordination challenge. In response 
to this challenge, the resident representatives of the 12 major public 
sector donors (aka the G12), all of whom were members of the IHRC Board 
of Directors, have continued their coordination with each other on the 
ground and with the Office of the Prime Minister.

    Question. How would you suggest improving coordination among donors 
and with the Haitian Government?

    Answer. The greatest opportunity to improve donor coordination is 
through advancing the Government of Haiti's efforts to make it easier, 
more routine, and more automated to collect information from donors 
using improved information technology. Both the Inter-American 
Development Bank (IDB) and the United Nations Development Program 
(UNDP) are supporting Haitian Government efforts in this regard. I 
helped advance such initiatives and experienced their positive impact 
during my tenure in Liberia, and look forward to the success of these 
efforts in Haiti, if I am confirmed.


     NOMINATIONS OF CARLOS PASCUAL, JOHN STEVENS, AND JACOB WALLES

                              ----------                              


                        TUESDAY, MARCH 20, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Carlos Pascual, of the District of Columbia, to be an 
        Assistant Secretary of State (Energy Resources)
John Christopher Stevens, of California, to be Ambassador to 
        Libya
Jacob Walles, of Delaware, to be Ambassador to the Tunisian 
        Republic
                              ----------                              

    The committee met, pursuant to notice, at 2:50 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Barbara Boxer 
presiding.
    Present: Senators Boxer, Menendez, Coons, Udall, Lugar, and 
Risch.

            OPENING STATEMENT OF HON. BARBARA BOXER,
                  U.S. SENATOR FROM CALIFORNIA

    Senator Boxer. Good afternoon, everybody.
    Today, the full Senate Foreign Relations Committee meets to 
consider three nominees for important posts at the State 
Department: Carlos Pascual to be Assistant Secretary of State 
for Energy Resources; John Christopher Stevens to be Ambassador 
to Libya; and Jacob Walles to be Ambassador to the Republic of 
Tunisia.
    I am so pleased also to welcome Senator Christopher Coons. 
Where is he? Is he here? I will be so pleased--oh, there you 
are. [Laughter.]
    I am so pleased to see you here. I doubt you are going to 
speak from there, Senator. Going to say a few words about Mr. 
Walles in short order.
    Thank you so much, Senator.
    The first nominee we will consider is Ambassador Pascual, 
who currently serves as a special envoy and Coordinator for 
International Energy Affairs at the Department of State.
    Prior to this position, he served as the United States 
Ambassador to Mexico and as the Coordinator for Reconstruction 
and Stabilization at the State Department. Ambassador Pascual 
also served as the vice president and director of the Foreign 
Policy Studies Program at the Brookings Institution from 2006 
to 2009.
    Ambassador Pascual, you have been nominated to lead the 
newly established Bureau of Energy Resources at the Department 
of State.
    And when Hillary Clinton, our Secretary of State, announced 
the new Bureau, she aptly stated, ``You can't talk about our 
economy or foreign policy without talking about energy. With a 
growing global population and a finite supply of fossil fuels, 
the need to diversify our supply is urgent.''
    And I couldn't agree with her more. So if you are 
confirmed, you will be responsible for heightening attention to 
urgent global energy needs and helping to formulate effective 
U.S. international policy in such fields as biofuels, natural 
gas, and renewable energy.
    And then our second nominee, John Christopher Stevens, 
recently served in Benghazi, Libya, as the special envoy to the 
Libyan Transitional National Council, or TNC. Prior to this 
post, Mr. Stevens served as the Director of the Office of 
Multilateral Nuclear and Security Affairs at Department of 
State.
    Mr. Stevens is a career member of the Foreign Service.
    He joined the State Department in 1991. And I am very proud 
to say he is a Californian.
    Mr. Stevens, you have been nominated to be the U.S. 
Ambassador to Libya. And like so many, I watched in awe as the 
Libyan people fought with tremendous courage to bring an end to 
the brutal regime of Col. Muammar Gaddafi.
    But now the Libyan people are facing another extraordinary 
challenge, building a functioning government, civil society 
from the ground up. If confirmed, we hope you will be able to 
help convince the Libyan people to lay down their arms, to put 
aside their differences, continue the hard work of building a 
new and better future for Libyan men, women, and children.
    And our final nominee is Jacob Walles, who currently serves 
as Deputy Assistant Secretary of State for Near Eastern 
Affairs. Mr. Walles is also a career member of the Foreign 
Service, having joined the Department of State in 1981.
    Prior to this post, he was a senior fellow at the Council 
on Foreign Relations, and he also served at the U.S. consul 
general--as the U.S. consul general and chief of mission in 
Jerusalem.
    Mr. Walles has been nominated to be the U.S. Ambassador to 
Tunisia. And as we all know, the Tunisian people recently 
elected the al-Nahda Party into power, which describes itself 
as a moderate Islamist party. While many al-Nahda leaders have 
made encouraging statements about their commitment to democracy 
and a separation of religion and state, we have seen troubling 
proposals from some government officials that could push the 
country in the opposite direction.
    If confirmed, we hope you will work to encourage the 
Tunisian Government to continue to build a strong 
representative and democratic government that respects the 
rights of all Tunisian people, in particular maintains the 
extraordinary rights that Tunisia has long offered to women.
    So that completes my opening remarks, and I would turn to 
Senator Lugar. And when he is completed, we will turn to 
Senator Coons.

           OPENING STATEMENT OF HON RICHARD G. LUGAR,
                   U.S. SENATOR FROM INDIANA

    Senator Lugar. Well, thank you very much, Madam Chairman.
    I join you in welcoming our distinguished panel. I would 
like to extend a personal welcome to Chris Stevens, who spent a 
year on the committee staff in the 2005-2006 timeframe.
    He then went to Tripoli as deputy chief of mission during 
reopening of diplomatic relations with Libya after 27 years. 
For much of that tour, Chris was the charge d'affaires and lead 
interlocutor with the Gaddafi government. Chris was assigned 
again to Libya exactly a year ago, but this time his post was 
to be in Benghazi as the special envoy from our Government to 
the Transitional National Council.
    Chris has served his country for 22 years on issues related 
to North Africa and the Middle East. He served as a Peace Corps 
Volunteer in Morocco, and as a Foreign Service officer, he 
served tours in Saudi Arabia, Egypt, Syria, Jerusalem, and 
Libya.
    I understand his family is here from Oakland, CA, as the 
chairman has pointed out. I hope he will introduce them to the 
committee.
    Madam Chairman, I valued Chris's knowledge and insight 
while he was on my staff, and also have appreciated his 
willingness to offer counsel on the situation in Libya over the 
past year. I am very pleased the President has nominated a man 
whose substantive knowledge, experience, and respected 
leadership are so well suited to this posting.
    It is also a pleasure to welcome Ambassador Carlos Pascual, 
whose distinguished record is well known to the committee. In 
particular, I appreciate his efforts to promote the Nunn-Lugar 
Cooperative Threat Reduction Program as Ambassador to Ukraine, 
and I had the privilege of visiting with him in the Embassy 
during that tenure. Through the Nunn-Lugar partnership, Ukraine 
is nuclear weapons free.
    Carlos also served as the first Coordinator for 
Reconstruction and Stabilization, a position I had long 
believed was needed to make our policies in post-conflict 
situations more effective. Currently, Ambassador Pascual serves 
as International Energy Coordinator, a position I prescribed 
and was signed into law by President Bush in 2007 with the 
primary mission of putting energy at the top of our diplomatic 
agenda and better leveraging relevant activities and expertise 
across our Government.
    America's dependence on foreign oil imports from volatile 
and unreliable regimes is one of our foremost national security 
vulnerabilities. Iran's threat to shatter global economic 
recovery and splinter allied opposition to their nuclear 
weapons program by using their oil exports as leverage is just 
the most visible example today.
    The hundreds of billions of dollars we use to buy oil from 
autocratic regimes complicate our own national security 
policies by entrenching corruption, financing regional 
repression and war, and inflating Defense Department costs. 
Given the multiple crises in the Middle East, and the certainty 
that threats to oil supplies are not limited to the current 
Iran situation, President Obama did not act in our national 
interest, in my judgment, when he rejected approval of the 
Keystone XL pipeline. Even his own Energy Department says that 
Keystone would help lower gasoline prices.
    Ambassador Pascual, I understand that you were not involved 
in the 1,217 days of Keystone XL analysis or the final 
decision. However, you will be responsible for any future 
applications and will need to restore confidence in the State 
Department's independence from White House politics. I would 
like you to share with us today specific steps you will take to 
ensure an expeditious review of any new Keystone XL 
application.
    While broad energy security solutions will take time, I 
urge the administration to put in place, now, credible plans to 
manage an oil supply disruption. In particular, among the most 
significant challenges to enforcing strong sanctions on Iranian 
oil is concern over high gas prices.
    In addition to steps to increase domestic supply liquidity, 
international planning is needed. The administration should 
actively accelerate pipeline alternatives around the Strait of 
Hormuz and approve Keystone XL. It should work to improve data 
transparency and reporting in oil markets, such as prospects 
for new production to come online in Iraq, South Sudan, and 
Colombia.
    It needs to update international emergency response 
coordinating mechanisms and it needs to bring two of the 
fastest-growing oil consumers, China and India, into that 
system. And it should state clearly that restricting trade in 
energy is against U.S. interests. In other words, protecting 
Americans from oil price spikes takes more than talk of a 
release from the Strategic Petroleum Reserve.
    Ambassador, I would appreciate your assessment of where we 
stand on achieving each of these goals.
    Finally, Jake Walles has served with distinction over a 30-
year career in the Foreign Service--much of that time focused 
on promoting peace and stability in the Middle East. Most 
recently he served as Deputy Assistant Secretary of State with 
responsibility for Egypt, The Levant, Israel, and Palestinian 
affairs.
    Given the importance to the United States of Tunisia's 
continuing transition to democracy, I am pleased that someone 
with his wealth of regional experience and perspective has been 
nominated to this post.
    I thank you, Madam Chairman, for the opportunity to make 
this statement.
    Senator Boxer. Thank you so very much.
    And now we have the Honorable Chris Coons is going to 
introduce Mr. Jacob Walles to be Ambassador to the Tunisian 
Republic. And we know that Mr. Walles is from Delaware, and 
therefore, this is very appropriate.
    Senator, please proceed.

            STATEMENT OF HON. CHRISTOPHER A. COONS,
                   U.S. SENATOR FROM DELAWARE

    Senator Coons. Thank you, Madam Chairwoman.
    It is rare that Delaware gets to contribute to the rank of 
Ambassador. So I appreciate both you and Ranking Member Lugar 
allowing me to make a brief statement of introduction.
    I am very proud of Jake Walles, who was not only born and 
raised in Delaware until he went off to college at Wesleyan 
University, but also attended the same high school that I did. 
So there is a double source of pride for our home State.
    As you both mentioned, for more than 20 years, Mr. Walles 
has served with distinction in the State Department, where he 
has played critical roles in Middle East and North African 
affairs. He served at the U.S. Embassy in Tel Aviv at the 
Office of Special Assistant for the Middle East Process, as 
chief of mission in Jerusalem, and now Deputy Assistant 
Secretary for Near Eastern Affairs.
    In all these roles, he has demonstrated an adept 
understanding of developments in a very difficult region and a 
unique ability to manage a host of relationships and issues.
    In his current position as Deputy Assistant Secretary of 
State for Near Eastern Affairs, he has overseen developments in 
a time of great regional transition and turmoil. He has a keen 
understanding of U.S. interests in the Middle East and has done 
a particularly good job briefing committee staff, I am told, on 
many regional developments and issues. These experiences will 
serve him well as U.S. Ambassador to Tunisia, a country at the 
heart of the Arab Spring, which has experienced significant 
political transition in the last year.
    As Secretary Clinton recently told our committee, the new 
Islamist government in Tunisia has demonstrated great promise, 
especially with regards to human rights, women's rights, and 
economic reform. And it is my hope with your leadership, should 
you be confirmed for ambassadorship, that these positive trends 
and this emerging new chapter in our longstanding relationship 
with Tunisia will continue to mature.
    I first met Jake at a dinner more than a year ago now with 
Israeli President Shimon Peres. At that dinner, President Peres 
said the uniqueness of the United States is that this is the 
only great power in history that became great not by what it 
took, but by what it gave, by helping other people regain their 
independence and their future.
    This exemplifies, I think, what makes American diplomacy so 
great, helping others through tough transitions. This has been 
a real accomplishment of the Arab Spring that we have played a 
supportive role, and it is my hope that with your leadership, 
Tunisia will one of the best examples of a new government 
emerging from a very difficult transition.
    I am confident Jake Walles will make a great Ambassador and 
continue to make the people of Delaware proud.
    Thank you, and thank you, Madam Chairwoman.
    Senator Boxer. Thank you so much.
    Well, with that, we might as well start with you, Mr. 
Walles.
    And I would ask each of you, if your family is here and you 
would like to acknowledge them, we would be thrilled to do 
that. They can stand, and we can give them the proper thanks. 
They deserve thanks because you are giving a lot of yourselves 
to your country.
    Go ahead, Mr. Walles.

STATEMENT OF JACOB WALLES, OF DELAWARE, TO BE AMBASSADOR TO THE 
                       TUNISIAN REPUBLIC

    Mr. Walles. Thank you, Chairman Boxer, Ranking Member 
Lugar, Senator Coons.
    It is an honor to appear before you today as President 
Obama's nominee to be the U.S. Ambassador to the Republic of 
Tunisia. I am grateful to the President and to Secretary 
Clinton for the confidence and trust they have shown in me.
    I would also like to thank Senator Coons for coming to 
introduce me today. I am proud of my roots in Delaware and 
pleased, Senator, that you took the time out of your busy 
schedule to join us today.
    I have served our country as a Foreign Service officer over 
these past 30 years and spent much of my career working on the 
Middle East, pursuing our objectives of peace, regional 
stability, and economic cooperation. For 4 years, I served as 
consul general and chief of mission in Jerusalem.
    Most recently, I have overseen U.S. policy in the Near 
East, dealing with the changes that have swept the Arab world 
in the past year. If confirmed by the Senate, I hope to use 
this experience to enhance our bilateral relationship with 
Tunisia, where the Arab Spring began just over a year ago.
    The people of the United States and Tunisia share over 200 
years of history. Only 3 years after the United States declared 
our independence, we signed our first agreement of friendship, 
cooperation, and trade with Tunisia. In 1805, the Tunisian 
Ambassador to the United States had the first known Ramadan 
iftar dinner with an American President. Since then, we have 
fought together against common enemies and helped each other in 
times of need.
    This historic bilateral relationship now has a new 
touchstone, the momentous events of the Arab Spring that began 
in Tunisia in December 2010. The Tunisian revolution triggered 
the transformations now underway across the Middle East and 
North Africa. It also marked the beginning of a new phase of 
cooperation between Tunisia and the United States.
    Tunisia is now leading the region into an era of democratic 
transition and serving as a model for others to follow. Tunisia 
is well-placed to do this, with its history of tolerance and 
respect for the rights of women and minorities.
    The United States has an interest in seeing that this new 
democratic model in the region succeeds. In the words of 
Secretary Clinton, ``We should do all we can to assist Tunisia 
in realizing a future of peace, progress, and opportunity.''
    As we know from our own Nation's history, building a 
democracy is difficult and time-consuming. Tunisia's first 
steps deserve praise, particularly the constituent assembly 
elections held in October 2011, which were the first truly 
democratic elections in that country in decades.
    I share President Obama's view that we must support a 
people that have mustered the courage to stand up for their 
rights and who have taken courageous steps toward freedom and 
democracy. Just as we supported Tunisia after its independence 
in 1956, we have a chance now to support Tunisia's transition 
to democracy.
    We have a range of tools at our disposal to support 
Tunisia's transition. In the interest of time, however, I would 
refer you to my full statement, which we have submitted for the 
record. I would be pleased to answer any questions that you 
might have.
    And in closing, Madam Chairman and members of the 
committee, I just want to say thank you again for allowing me 
today to discuss our interests in Tunisia. I believe that we 
have the opportunity of a generation before us, and I am 
excited about this new chance to serve our country.
    If confirmed, I look forward to working with you, with the 
other members of the committee, and with the Congress to 
continue to advance United States interests and promote our 
relationship with Tunisia.
    Thank you very much.
    [The prepared statement of Mr. Walles follows:]

                   Prepared Statement of Jacob Walles

    Chairman Boxer, Ranking Member Lugar, distinguished members of the 
committee, it is an honor to appear before you today as President 
Obama's nominee to be the U.S. Ambassador to the Republic of Tunisia. I 
am grateful to President Obama and Secretary Clinton for the confidence 
and trust they have shown in me.
    I have served our country as a Foreign Service officer over the 
past 30 years in advancing American interests abroad. I have spent much 
of my career working on, and living in, the Middle East, pursuing our 
objectives of peace, regional stability, and economic cooperation. For 
4 years, I served as consul general and chief of mission in Jerusalem, 
where I successfully managed a growing post in a complex political 
environment. Most recently, I have overseen U.S. policy in the Near 
East, dealing with the policy ramifications for the United States of 
the changes that have swept the Arab world in the past year. If 
confirmed by the Senate, I hope to use this experience to enhance our 
bilateral relationship with Tunisia, where the Arab Spring began just 
over a year ago.
    The people of the United States and Tunisia share over 200 years of 
history, with rich cultural, economic, and security ties. Only 3 years 
after the United States declared our independence, we signed our first 
agreement of friendship and trade with Tunisia. In 1805, the Tunisian 
Ambassador to the United States became the first to have a Ramadan 
iftar celebration dinner with an American President. Since then, we 
have fought together against common enemies, pursued the goals of 
regional stability, and helped each other in times of need. The United 
States operated a robust economic assistance program in Tunisia from 
1957 to 1994. And Tunisia has responded in our recent time of need, 
offering assistance to address the oil spill in the Gulf of Mexico in 
2009.
    Our historic bilateral relationship now has a new touchstone--the 
momentous events of the Arab Spring that began in Tunisia in December 
2010. The Tunisian revolution captivated the international community 
and triggered the transformations now underway across the Middle East 
and North Africa. It has also marked the beginning of a new phase of 
bilateral and people-to-people cooperation between the United States 
and Tunisia. Tunisia is now leading the region into a new era of 
democratic transition and serving as a model for others to follow. The 
United States has an interest in seeing that this new democratic model 
succeeds in the region. In the words of Secretary Clinton, ``we should 
do all we can to assist Tunisia in realizing a future of peace, 
progress, and opportunity.'' If confirmed, I will do all that I can to 
help Tunisia succeed on this path.
    As we know from our own Nation's history, building a democracy is 
difficult and time-consuming. That process is rarely without 
controversy, setbacks, and sometimes disappointment. But Tunisia's 
first steps deserve praise, particularly the Constituent Assembly 
elections in October 2011, which were the first truly democratic 
elections in that country in decades. In our engagement with the 
Tunisian Government we have seen their commitment to meeting the 
legitimate aspirations of the Tunisian people.
    I share President Obama's assessment that it is incumbent upon us 
to support people and governments that have mustered the courage to 
stand up for their rights and take courageous steps toward democracy, 
despite the challenges and difficulties that lie ahead. Just as we 
supported Tunisia shortly after its independence in 1956, now we have a 
chance to support Tunisia's efforts to achieve critical goals in its 
democratic transition, including accountable governance, economic 
growth, and security.
    We have a number of tools at our disposal that will allow us to 
support their efforts. Shortly after the revolution, the Department of 
State marshaled a strong package of assistance for elections and 
capacity-building for civil society to advance the rule of law and 
promote freedom of expression. With these forms of assistance, we 
sought to support the Tunisian people's efforts to contribute to the 
national political debate and decisionmaking process and to play 
active, constructive roles in their country's political transformation. 
If confirmed, I will continue the work that we have already begun in 
these areas, drawing on the resources of the Middle East Partnership 
Initiative (MEPI) and the U.S. Agency for International Development.
    The Tunisian revolution was not only about greater democratic 
freedoms, it was also about greater equality and opportunity in the 
economic life of the country. The people called for transparency, 
anticorruption, and the ability to improve their socio-economic 
standing through merit and hard work, rather than through connections 
and secrecy. We are sensitive to Tunisia's economic development needs, 
and we will do all we can to support them.
    If confirmed, I would welcome the opportunity to utilize the 
authorities and tools of the entire U.S. Government to help Tunisia 
address these needs. As an economic officer in my 30-year Foreign 
Service career, I have gained experience to draw on in enhancing our 
bilateral economic partnership with Tunisia. I will work with the 
Departments of Commerce and Treasury to promote responsible, market-
oriented reforms that will increase Tunisia's attractiveness as an 
investment destination and place the country on a solid macroeconomic 
foundation. I will work with the Overseas Private Investment 
Corporation to facilitate the entry of American businesses and products 
into the Tunisian market, and with the U.S. Trade Representative to 
maximize the utility of our bilateral Trade and Investment Framework 
Agreement and other trade facilitation tools.
    Programs are also needed to address the demands of young Tunisians 
eager for even more academic exchange and English language training. 
Our Fulbright program, previously underutilized in Tunisia, is now in 
heavy demand. We also have other tools at our disposal as well, and I 
would welcome the opportunity to expand recently developed university 
linkages and community college partnerships to build the capacity of 
Tunisia's educational system to better prepare Tunisian students for 
the demands of the modern global economy.
    A prosperous, democratic Middle Eastern country, in which citizens 
are free to apply honest effort toward achieving a higher standard of 
living, is an important symbol that the age of autocratic and opaque 
control of the political and economic environment in the Arab world is 
a thing of the past. It is therefore in our interest to work toward 
sustainable, inclusive, and free-market economic growth in Tunisia 
through a range of mechanisms.
    If confirmed, I will also endeavor to promote Tunisia's increasing 
engagement with the international community and greater cooperation on 
our regional security and foreign policy goals. Tunisia has 
demonstrated that it shares our interest in peaceful and cooperative 
relations across the Middle East and North Africa region and, if 
confirmed, I will continue our efforts to help build Tunisia's capacity 
to continue to be a good neighbor. I will work with the Department of 
Defense to continue to support the Tunisian military's efforts to 
secure the country's borders, improve its strategic planning capacity, 
and develop whole-of-government approaches to the national security 
challenges that the Tunisians face.
    Madam Chairman and members of the committee, in closing I would 
like to thank you again for allowing me to discuss ways that we might 
advance U.S. interests in Tunisia. I believe that we have the 
opportunity of a generation before us, and I am excited about this new 
opportunity to serve our country in the critical period ahead. If 
confirmed, I look forward to working with you, with the rest of the 
Senate Foreign Relations Committee, and with the Congress to continue 
to advance U.S. interests and promote our bilateral relationship with 
Tunisia. I would be pleased to answer any questions you may have.

    Senator Boxer. Thank you so much.
    Mr. Stevens.

  STATEMENT OF JOHN CHRISTOPHER STEVENS, OF CALIFORNIA, TO BE 
                      AMBASSADOR TO LIBYA

    Mr. Stevens. Madam Chairman, Ranking Member Lugar, and 
Senator Coons, thank you for the honor of appearing before you 
today.
    I wish to thank the President for nominating me to serve as 
Ambassador to Libya and for the confidence that he and the 
Secretary have shown in me.
    At your invitation, Madam Chairman, I would also like to 
acknowledge my mother, Mary Commanday, and my stepfather, 
Robert Commanday, who are visiting from the Bay area this week.
    Senator Boxer. Oh, good. Will they stand for us, please? 
Welcome.
    Mrs. Commanday. Thank you very much.
    Senator Boxer. How is it back there?
    Mrs. Commanday. We have been here all week. [Laughter.]
    Senator Boxer. You have been here all week. I heard it 
rained quite a lot, but we need the rain.
    Mrs. Commanday. Chris grew up in Larkspur and San Anselmo.
    Senator Boxer. No kidding? That is where I raised my 
children.
    We'll continue this over a cup of tea after. Please 
proceed.
    Mr. Stevens. Thank you.
    It has been a great privilege to be involved in U.S. policy 
toward Libya at different points over the past several years, 
as Ranking Member Lugar has noted. I first served in Tripoli in 
2007 in a country that was firmly in the hands of an oppressive 
dictator.
    Last March, I led a small team to Benghazi as the special 
envoy to the Transitional National Council. It was a time of 
great excitement as the Libyan people first experienced 
freedom. But it was also a time of significant trepidation for 
what might come next.
    Should I be confirmed, it will be an extraordinary honor to 
represent the United States during this historic period of 
transition in Libya. Libyans face a significant challenge as 
they make the transition from an oppressive dictatorship to a 
stable and prosperous democracy.
    Colonel Gaddafi deliberately weakened the country's 
institutions, banned even the most rudimentary of civil society 
organizations, and outlawed all electoral activity.
    During his rule, corruption was rewarded, initiative 
discouraged, and independent thought suppressed. To change such 
a system will take some time and much effort.
    Libya's new leaders must build democratic institutions from 
scratch, consolidate control over militias, ensure that all 
Libyans are represented and respected in the new government, 
and dispose of the country's oil wealth fairly and 
transparently.
    Despite these difficult challenges, there are some signs of 
progress. The interim government is paying salaries and 
providing basic goods and services to the Libyan people. It is 
reconstituting government ministries, preparing for elections 
in June, and ensuring that Libyans throughout the country are 
represented by the new government.
    Libya's oil production, which is important in stabilizing 
world oil prices, is expected to reach preconflict levels by 
the end of the year. It is clearly in the United States 
interests to see Libya succeed as a stable and prosperous 
democracy.
    Such an outcome would enhance our security and economic 
well-being. It would also serve as a powerful example to others 
in the region who are struggling to achieve their own 
democratic aspirations.
    There is tremendous goodwill for the United States in Libya 
now. Libyans recognize the key role the United States played in 
building international support for their uprising against 
Gaddafi. I saw this gratitude frequently over the months I 
served in Benghazi.
    If confirmed, I would hope to continue the excellent work 
of Ambassador Cretz and his team in assisting the Libyans with 
their transition and forging strong ties between United States 
and Libyan officials, business communities, students, and 
others.
    Thank you, and I look forward to your questions.
    [The prepared statement of Mr. Stevens follows:]

             Prepared Statement of John Christopher Stevens

    Madam Chairman, Ranking Member Lugar, and members of the committee, 
thank you for the honor of appearing before you today. I wish to thank 
the President for nominating me to serve as Ambassador to Libya, and 
for the confidence that he and the Secretary have shown in me.
    It has been a great privilege to be involved in U.S. policy toward 
Libya at different points over the past several years. I first served 
in Tripoli in 2007, in a country firmly in the hands of an oppressive 
dictator. Last March I led a small team to Benghazi as the Special 
Envoy to the incipient Transitional National Council. It was a time of 
great excitement as the Libyan people first experienced freedom. But it 
was also a time of significant trepidation for what might come next. 
Should I be confirmed, it will be an extraordinary honor to represent 
the United States during this historic period of transition in Libya.
    Libyans face significant challenges as they make the transition 
from an oppressive dictatorship to a stable and prosperous democracy. 
Colonel Qadhafi deliberately weakened the country's institutions, 
banned even the most rudimentary of civil society organizations, and 
outlawed all electoral activity. During his rule, corruption was 
rewarded, initiative discouraged, and independent thought suppressed. 
To change such a system will take some time and much effort. Libya's 
new leaders must build democratic institutions from scratch, 
consolidate control over militias, ensure that all Libyans are 
represented and respected in the new government, and dispose of the 
country's oil wealth fairly and transparently.
    Despite these difficult challenges, there are already signs of 
progress. The interim government is paying salaries and providing basic 
goods and services to the Libyan people. It is reconstituting 
government ministries, preparing for elections in June, and ensuring 
that Libyans throughout the country are represented by the new 
government. Libya's oil production--which is important in stabilizing 
world oil prices--is expected to reach preconflict levels by the end of 
the year. Several polls have shown the interim leadership is still 
viewed favorably by the majority of the population.
    It is clearly in the U.S. interest to see Libya become a stable and 
prosperous
democracy. Such an outcome would enhance our security and economic 
well-being, through, for example, security cooperation in the region, 
steady oil and gas production, and opportunities for U.S. businesses as 
Libyans rebuild their country. It would also serve as a powerful 
example to others in the region who are struggling to achieve their own 
democratic aspirations.
    There is tremendous goodwill for the United States in Libya now. 
Libyans recognize the key role the United States played in building 
international support for their uprising against Qadhafi. I saw this 
gratitude frequently over the months I served in Benghazi--from our 
engagements with the revolution's leadership to our early work with 
civil society and new media organizations. If confirmed, I would hope 
to continue the excellent work of Ambassdor Cretz and his team in 
assisting the Libyans with their transition, and forging strong ties 
between U.S. and Libyan officials, business communities, students, and 
others.
    As you know, the administration has proposed a modest package of 
technical assistance for Libya during the transition period. It is fair 
to ask why the United States should provide any assistance at all to 
Libya, given the country's wealth. Libya's new leaders have often 
stated that the country intends to fund its own operations and 
reconstruction, and they are, in fact, already doing so, tapping their 
petroleum revenue and other assets of the previous regime.
    It is in the U.S. interest to fund a limited number of activities 
that address immediate security and transition challenges. These U.S.-
funded programs are aimed at: preventing weapons proliferation; 
providing advice to the interim government on elections and other 
transitional governance issues of immediate concern; and promoting a 
vibrant civil society. A limited investment in the immediate transition 
needs of Libya now will pay dividends for a lasting U.S.-Libya 
partnership in the years to come, and will help ensure that Libya 
contributes to regional stability and security.
    Should I be confirmed, it would be a great honor to lead our 
Embassy in Tripoli in setting the foundations for a mutually beneficial 
relationship with a newly democratic Libya.
    Thank you and I look forward to your questions.

    Senator Boxer. Thank you so much.
    The Honorable Carlos Pascual.

STATEMENT OF HON. CARLOS PASCUAL, OF THE DISTRICT OF COLUMBIA, 
    TO BE AN ASSISTANT SECRETARY OF STATE, ENERGY RESOURCES

    Ambassador Pascual. Madam Chairman, Ranking Member Lugar, 
it is an honor to be here before you today as the President's 
nominee to be the first Assistant Secretary of State for the 
Bureau of Energy Resources.
    I thank President Barack Obama and Secretary of State 
Hillary Rodham Clinton for their trust and confidence. I 
appreciate the opportunity to submit a longer version of this 
testimony for the record.
    My 12-year-old boy wishes that he was here. He has a math 
test. But he asked me to send you a high-five and a fist bump 
for listening to his daddy.
    Senator Boxer. That is cute.
    Ambassador Pascual. The fact that this position of 
Assistant Secretary for Energy Resources has been created is a 
testimony to the leadership of the members of this committee, 
starting with legislation, Senator Lugar, that you introduced 
in 2006 to create a Coordinator for International Energy 
Affairs.
    Senator Lugar, I remember well the opportunity I had to 
introduce you in December 2007 at the Brookings Institution, 
where you sketched a comprehensive global energy strategy, and 
through such bipartisan cooperation, our oil imports today are 
at their lowest levels since 1995.
    Secretary Clinton built on these foundations in proposing 
to President Obama to create the Bureau of Energy Resources. 
The State Department's first Quadrennial Diplomacy and 
Development Review concluded that the effective management of 
energy resources is fundamental; fundamental to our national 
security and economic prosperity. It underscored as well the 
importance of diplomatic leadership.
    The Department of Energy has unsurpassed technical capacity 
and deep relationships with energy ministries around the world. 
The Department of Commerce, together with OPIC, Ex-Im, and TDA, 
can help convert American energy expertise into business 
opportunities. USAID has the capacity to offer technical advice 
to bring energy services to deprived populations.
    But by working with these agencies to create a strategic 
platform for our government, an Energy Resources Bureau can 
make more effective use of our resources to safeguard America's 
energy security.
    The opportunity to be considered for this position is a 
high point of my career. While working on the former Soviet 
states as Ambassador to Ukraine, as Ambassador to Mexico, and 
as vice president of the Brookings Institution, energy security 
reverberated in my work. Across these experiences, this lesson 
became clear. Governments must set strong, market-based 
incentives for the development of energy resources. But the 
success of those policies depends on private investment and 
strong commercial relationships.
    If confirmed in the position of Assistant Secretary for 
Energy Resources, I will make it my highest priority to draw on 
the expertise in government, the private sector, and the not-
for-profit sector to inform an energy diplomacy strategy 
focused on America's energy security.
    Hydrocarbons today make up 85 percent of the world's fossil 
fuel sources. We must use our diplomacy to ensure that access 
to oil, natural gas, and coal, but also to renewable energy is 
adequate, reliable, sustainable, affordable for the future.
    Today's markets are global. And in today's world, energy 
producers and consumers are not adversaries. We both depend on 
stable markets to foster global economic growth.
    Today, we see the importance of our energy diplomacy as we 
implement under the National Defense Authorization Act of 2012, 
which was spearheaded by this committee, sanctions to deny 
revenue to Iran's nuclear program. Iran has used every 
opportunity to threaten actions to disrupt oil markets. The 
best immediate counter to these threats is unrelented 
engagement with producers and consumers to help facilitate 
market relationships that keep supply and demand in balance.
    As the State Department's Coordinator for International 
Energy Affairs, I have traveled since January to Saudi Arabia, 
the United Arab Emirates, Libya, Iraq, Turkey, China, Nigeria, 
Angola, and Colombia, and conferred with our European allies. 
And we have engaged the world's main energy producers. They 
have reinforced to us that they will meet market demand as it 
arises.
    With those who import Iranian crude oil, we have left no 
doubt about our seriousness of purpose. Today, Secretary 
Clinton announced that 11 countries--10 that had imported 
Iranian crude oil in the European Union, plus Japan--have 
significantly reduced their volumes of imports of Iranian crude 
oil. Their actions underscore the success of our policy in 
strictly enforcing the provisions of the NDAA as passed by the 
Congress.
    If confirmed as Assistant Secretary for Energy Resources, I 
pledge to make the pursuit of good governance and transparency 
in the energy sector a central theme of the work that I do. The 
Cardin-Lugar amendment to the Dodd-Frank Wall Street Reform and 
Consumer Protection Act set a new standard for transparency in 
extractive industries, and I hope the regulations expected from 
the SEC reflect the clear intent of the law.
    As this committee knows, the purpose of American foreign 
policy is to make our Nation prosperous and strong.
    Energy diplomacy is one of our strongest tools to achieve 
the fundamental purpose of our foreign policy. I would welcome 
the opportunity to take on this challenge, if confirmed as 
Assistant Secretary for Energy Resources.
    I look forward to your questions.
    [The prepared statement of Ambassador Pascual follows:]

           Prepared Statement of Ambassador Carlos E. Pascual

    Madam Chairman, Ranking Member Lugar, members of the committee, I 
am honored to appear before you today as the President's nominee to be 
the first Assistant Secretary of State for the Bureau of Energy 
Resources or ``ENR.'' I thank President Barack Obama and Secretary of 
State Hillary Rodham Clinton for their trust and confidence. If 
confirmed by the United States Senate, I will bring to this position 
more than 25 years of practical experience in government and as a 
leader in one of the world's most respected think tanks--as well as an 
absolute dedication to my country.
    The fact that this position of Assistant Secretary for Energy 
Resources has been created is a testimony to the vision and leadership 
of members of this committee, starting with legislation Senator Lugar 
introduced in 2006 to create in the State Department a ``Coordinator 
for International Energy Affairs.'' Our Nation is indebted to Senator 
Lugar and this committee for keeping energy security at the forefront 
of American foreign policy. Senator Lugar, I remember well the 
opportunity I had to introduce you in December 2007 at a policy address 
at the Brookings Institution. There, you presented the Nation with a 
bold challenge to promote strong diplomacy, entrepreneurial innovation, 
and energy diversification as a platform for security. Through 
consistent bipartisan cooperation and the capabilities of the American 
private sector, today we see that U.S. oil imports have been falling 
since 2005. We have more oil and gas rigs operating in the United 
States today than the rest of the world combined. Our oil imports as a 
share of total consumption have declined from 57 percent in 2008 to 45 
percent in 2011--the lowest level since 1995.
    Secretary Clinton built on these foundations in proposing to 
President Obama to create the Bureau of Energy Resources. This Bureau 
emerged from the State Department's first Quadrennial Diplomacy and 
Development Review (QDDR). The QDDR's conclusions on energy were at the 
same time simple and profound: the effective management of global 
energy resources is fundamental to our national security and economic 
prosperity. Further, it became clear that diplomatic leadership in this 
area will strengthen American capacity to use our vast energy resources 
in government and the private sector to our national benefit. The 
Department of Energy has unsurpassed technical capacity in energy 
research and innovation and deep relationships with energy ministries 
around the world. The Department of Commerce, together with the 
Overseas Private Investment Corporation (OPIC), Export-Import Bank of 
the United States (EXIM), and the U.S. Trade and Development Agency 
(TDA), have the capacity to help convert American energy expertise into 
trade and investment opportunities. USAID has the capacity to bring 
technical advice to developing nations seeking to bring energy services 
to deprived populations. By working with other agencies advancing 
America's international energy interests to forge a coherent strategic 
platform that brings together these capabilities, the creation of an 
Energy Resources Bureau is a multiplying force. It can make our Nation 
stronger and more targeted in our ability to pursue our energy security 
goals.
    The opportunity to be considered for this position is a high point 
in my career, where I have consistently seen energy issues reverberate 
in importance. From 1997 to 2004, I had the opportunity to work on the 
transition of the former Soviet states to economically independent and 
self-sufficient nations. The mismanagement of Soviet energy resources 
was one of the very factors that contributed to the collapse of the 
Soviet Union. Later, strong U.S. policies--particularly the development 
of multiple pipelines--reinforced the independence of the Caspian 
states. Internal reform of Ukraine's electric power sector in 2000 
created the basis for investments that allowed Ukraine to close the 
Chernobyl nuclear power plant. Even in this decade, lack of 
transparency in commercial energy relationships has caused gas supply 
crises between Russia and Ukraine that have also shaken European 
markets. While serving as the Vice President of Brookings, I had the 
chance to learn of the dynamic interplay between energy markets and 
technological change from cochairing with Daniel Yergin a semiannual 
seminar on energy security. Across these experiences, this lesson 
became clear: governments must set strong market-based incentives for 
the development of energy resources, but the success of those policies 
will depend on private investment and strong commercial relationships.
    If confirmed in the position of Assistant Secretary for Energy 
Resources, I will make it my highest priority to draw on the expertise 
in government, the private sector, and the not-for-profit sector to 
inform an energy diplomacy strategy focused on America's energy 
security. Hydrocarbons today make up 85 percent of the world's fuel 
sources. We must use our diplomacy to insure that access to oil, 
natural gas, and coal are adequate, reliable, and affordable. We must 
use our diplomacy to forge policies that make our energy future 
sustainable--both commercially and environmentally. To do this we must 
have strong and consistent relationships with energy producers--
producers of all forms of energy in all parts of the world. Today's 
markets are global. And in today's world, energy producers and 
consumers are not adversaries. We both must understand that stable 
markets foster the best climate for global economic growth.
    Today we see the importance of our energy diplomacy as we 
implement, under the National Defense Authorization Act of 2012, 
sanctions designed to deny Iran revenue from petroleum sales, which in 
turn fund Iran's illicit conduct. Iran now faces unprecedented and 
damaging sanctions applied by the United States and our partners around 
the world. Iran has used every opportunity to undermine our efforts by 
threatening actions to disrupt oil markets. The best immediate counter 
to these threats is unrelenting engagement with producers and consumers 
to help facilitate market relationships that keep supply and demand in 
balance. Such engagement has been central to my role as the State 
Department's Coordinator for International Energy Affairs. Since 
January, I have traveled to Saudi Arabia, the United Arab Emirates, 
Libya, Iraq, Turkey, China, Nigeria, Angola and Colombia--and conferred 
with European allies.
    As we have engaged, the world's main energy producers have reacted 
in a similar and consistent way: they will meet market demand as it 
arises, because producers, like consumers, have an interest in economic 
growth that is linked to energy access. In Europe we have seen complete 
solidarity as they took action on January 23 to ban all new contracts 
for Iranian crude oil and phase out existing contracts by July 1. With 
those who import Iranian crude oil, we have left no doubt about our 
seriousness of purpose. We have seen a rise in oil prices as countries 
work out transitions from Iran to other suppliers. At any given time we 
will see production declines in parts of the world, as have occurred 
recently in South Sudan and Yemen. But the global relationships we are 
forging place us in a position of strength, as a leader in our goals 
toward Iran, and as a partner with other key producers in promoting 
stable energy markets at price levels consistent with economic recovery 
in the global economy.
    We have also seen that improved stability and market incentives 
create opportunities. Libya has restored over 1 million barrels per day 
of production, a testimony to that country's desire to forge a new 
future. Iraq in 2011 increased its production of oil by nearly 300,000 
barrels per day, and could realistically see another 500,000 barrels 
per day increase in 2012. Production prospects are strong from 
discoveries on the west coast of Africa, from the presalt fields in 
Brazil and of course here in the United States. In a global market of 
about 90 million barrels per day, there is not a magic bullet in 
achieving energy security. But the converse is also a strength--
diversification in global production adds resiliency. And when 
diversification is combined with good business climates and market 
incentives for production, then we have a platform for efficient energy 
markets and sustainable economic growth. These goals will guide our 
energy diplomacy.
    Our challenge as well is to look ahead, foster innovation and 
investment, assess changing markets and politics, and create business 
opportunities. In the United States we have experienced a natural gas 
revolution, due to technology and private investment. U.S. natural gas 
production grew in 2011--the largest year-over-year volumetric increase 
in history--and easily eclipsed the previous all-time production record 
set in 1973. We have learned valuable lessons to share on environmental 
safeguards, transparency, and regulation. Australia, Indonesia, Russia, 
Argentina, and Qatar just to name a few--have vast additional gas 
capacity that will come into the market in the coming 5 years. 
Increasingly gas is being traded as LNG, potentially changing the very 
structure of that market. One can envisage gas trading relationships 
not exclusively dominated by point-to-point pipelines that make 
consumers beholden to single suppliers. As a resurgent gas supplier, 
understanding this market will help us shape the rules--to make them 
transparent, predictable, and thus to our commercial benefit. These 
changes in global gas markets are fundamental to both our geopolitical 
and commercial interests, and to the effective conduct of American 
foreign policy.
    Business opportunities abound as well in clean and renewable energy 
and energy efficiency. American companies are world leaders in wind, 
solar, hydro, power transmission, efficient generation, and smart 
grids. The scale of this market is huge. The International Energy 
Agency estimates that from 2011 to 2035, the world will see $5.9 
trillion in new investments in hydroelectric and other renewable power, 
$2.8 trillion in coal, gas and oil-fired plants, and $1.1 trillion in 
nuclear power. This shift to renewable power is market driven, and 
unprecedented in the world's economic history. It is big business. 
Fostering market environments to compete in these fields is good for 
energy security, and it will generate export markets and American jobs 
in a field where we are commercial leaders.
    This changing face of global electric power also requires us to 
change the lens through which we see energy and economic development. 
Access to energy is the strongest driver of economic growth. To achieve 
universal access to energy by 2030, developing nations need to invest 
hundreds of billions of dollars in power infrastructure, but that is 
just 2.5 percent of global private investments in power. The challenge 
will be making strategic use of limited public resources to attract 
private capital to the markets of developing economies. Already, many 
poor people pay more for diesel-generated power than we do. The key to 
change is to create viable business models that bring efficient and 
reliable power to the poor, to foster their growth, to make it possible 
to educate their children, and to bring greater stability to where they 
live.
    If confirmed as Assistant Secretary for Energy Resources, I pledge 
to make the pursuit of good governance and transparency in the energy 
sector a central theme for the Energy Resources Bureau. The Cardin-
Lugar amendment to the Dodd-Frank Wall Street Reform and Consumer 
Protection Act set a new standard for transparency in extractive 
industries, and I hope the regulations expected from the SEC reflect 
the clear intent of the law. This effort compliments other efforts the 
State Department already undertakes, including strong engagement on the 
Extractive Industries Transparency Initiative, and a technical 
assistance program called the Energy Governance and Capacity 
Initiative, which provides advice and assistance to countries with 
emerging oil and gas industries, to help those countries manage their 
resources and revenues responsibly. Good governance and transparency 
will in the end help ensure that resources are used wisely, to the 
benefit of all citizens. That is good for economic growth, stability, 
and our foreign policy interests.
    As this committee well knows, the purpose of American foreign 
policy is to make our nation prosperous and secure. We have learned 
that in an interconnected world, we advance our security and prosperity 
when our friends and allies advance with us. Energy diplomacy is one of 
our strongest tools to achieve the fundamental purpose of our foreign 
policy. With the wise stewardship of resources, and by fostering 
private innovation and investment to expand energy access, we can 
ensure that the world's energy resources become a sustained driver of 
growth and stability. I would welcome the opportunity to take on this 
challenge if confirmed as Assistant Secretary for Energy Resources.
    I look forward to your questions.

    Senator Boxer. Thank you.
    I wanted us to talk about energy because I picked up on 
some of Senator Lugar's comments. He and I agree on a lot, but 
we don't agree on everything, and that is an area where I just 
see the world quite differently. And it makes your job, Mr. 
Pascual, very interesting.
    But Senator Lugar talked about protecting Americans from 
oil price spikes, and I couldn't agree with him more. That is 
where we agree. We want to protect Americans from these spikes 
at the pump because it hurts, and it hurts us as we are getting 
on with our economic recovery.
    And my view is I look at the oil companies. They are the 
ones who are raising the prices. So I want to know why are they 
raising the prices? Are they doing badly? Do they need to make 
sure they can maintain?
    Well, you look at it. The five big oil companies' profits 
went up 75 percent last year. And instead of thanking America 
for it, they don't. They push up the cost of a gallon of gas, 
week after week, week after week, week after week.
    And this is before any troubles were brewing in the Middle 
East, brewing worse troubles in Iran. And now, of course, you 
add that, and you have got a lot of speculators on Wall Street 
that are pushing up the futures. So I would just say in order 
to protect American consumers, we should press the oil 
companies to not punish the American public as they make record 
profits, No. 1. And No. 2, we should use the power that 
Congress gave the CFTC to protect, make sure we don't see more 
of the speculating.
    Now I think the other problem is, as we have seen these 
prices go up, we have seen petroleum exports from America go up 
by 67 percent over what period was that? Since 2009. We are 
exporting American-made petroleum, and we ought to keep it 
here.
    Now we are importing less. And Ambassador Pascual, you are 
right. We are importing less, and why? One reason is fuel-
efficient cars. Thanks to President Obama and bipartisan 
leadership in Congress, we are using fuel-efficient cars. That 
is really helping us. And moving toward electric, hybrid, and 
all the rest.
    Less demand. That is good. So less demand for imports. But 
if we could keep some of the American-grown oil here, we would 
have even less, fewer imports.
    So I am not going to ask you anything about what I just 
said because it is way too political and it is not in your 
portfolio. But I do want to ask you a question that I think is 
in your portfolio, Mr. Ambassador.
    We are trying to move toward alternatives to imported oil. 
Advanced biofuels like cellulosic fuel, algae, I see a lot of 
it in our State, Mr. Stevens, and we are making progress. And I 
see us as an exporter of these technologies.
    Do you, as you look at your portfolio and how it looks at 
this, can you talk to us about the potential for America to be 
the leader on these alternative fuels? Because the whole world 
is thrown off kilter when there are these problems in the 
Middle East and so on.
    Mr. Ambassador.
    Ambassador Pascual. Madam Chairman, thank you for raising 
that issue, and it is absolutely essential that we have a 
balanced portfolio of energy resources that we look at when we 
look at the world economy.
    On biofuels, the United States is largest producer of 
biofuels. We are the largest exporter of biofuels right now. We 
are one of the leading researchers in new technologies in 
biofuels.
    Interestingly, today, we are exporting biofuels to Brazil, 
which is an interesting dynamic that has occurred in the 
relationship. We have a particularly strong relationship with 
Brazil on the development of biofuels. As a result of our work 
together with Brazil, we have been undertaking joint research 
projects in Central America and in parts of Africa.
    We have worked together in the context of the Global 
Biofuels Energy Partnership, which is a broader international 
organization that has created standards on the development of 
biofuels so that in the process of developing them, we can 
assure that they are done in a way that is economically sound, 
socially sound, and environmentally sound. And that many of the 
questions that have been raised in the past and the tradeoffs 
between biofuels and food production don't have to become an 
argument for the future because we have clarity in the way that 
these issues are assessed and developed.
    The critical thing here is that a market in biofuels is 
developing internationally. We are a leader in this field. I 
would just only underscore as well the importance of the United 
States being a leader in other forms of renewable 
technologies--in wind and solar and transmission and smart 
grids.
    And in particular, in the area of smart grids and 
information technology, increasingly, the world is going to 
have to adopt these technologies to make the best possible use 
of the energy sources that are available to them. And this 
isn't just a question of an environmental issue. The 
environmental part is important, but the export of American 
products and goods and services and the creation of jobs in 
this wide-open field is one where we have a competitive 
advantage.
    Senator Boxer. Well, Mr. Ambassador, I really thank you for 
your terrific response because I see this as a great growth 
sector for America, these clean energy alternatives. Because, 
again, the whole world suffers when there is instability in the 
Middle East, and this would be a great role for us.
    I want to talk about Tunisia for a minute. Well, I want to 
talk about the role of religion and politics not just in 
America, but in Tunisia. That is a joke.
    Anyway, on one side are the Salafists, who adhere to a 
strict interpretation of Islam, are calling for a much more 
significant role for religion in the country's political 
system. On the other side are those who very much want to 
maintain Tunisia's historically secular political system.
    According to the Agence France Presse, just today thousands 
of Tunisians marched in the capital city of Tunis, holding 
banners saying, ``Leave my Tunisia free'' and ``Separation of 
religion and state.''
    Mr. Walles, do you expect to see these protests grow in 
size and scope? Are you concerned that both sides could pull 
further apart and present significant challenges for this 
emerging democracy?
    Mr. Walles. Thank you, Senator Boxer, for the question.
    I think, as I look at what has happened in Tunisia, they 
were the first country to experience a revolution in the Arab 
Spring, and they have been going through a process, first of 
having elections. Now they are in the process of drafting a 
constitution.
    What happened in Tunisia is for 30 years, there was a 
repressive regime that pretty much suppressed any free 
political discourse, and that lid has now been lifted. And 
there is this discussion going on in Tunisia about these very 
issues.
    As they draft a constitution, they have to go through a 
process of deciding what form of government do they want? Do 
they want a parliamentary system or Presidential system, or a 
mixture of that? And what is the relationship between religion 
and the state?
    And as you said, there are extremes on both sides here, and 
we have seen some extremist statements from the Salafists in 
particular, but the fact of the matter is that most of the 
political discourse and the discussion has been within what is 
the proper bounds of a political discussion there.
    And the election that they had, the party that got the most 
votes was the al-Nahda Party, which is a moderate Islamist 
party, as you described them. But they decided to go into a 
coalition government with two other parties, both secular 
parties, one from the center, one from the left. So there is a 
fairly broad range of views within the government.
    And each of the parties in the government have talked about 
the need to work together and to compromise and to look for 
ways to develop a consensus on how you would deal with these 
issues. So while there are extreme voices, the bulk of the 
Tunisian population is represented by these parties in the 
government that are looking for ways to work together.
    You mentioned also the rights of women, which is an area 
where Tunisia has led the Arab world. They have some of the 
strongest protections for the rights of women in their 
constitution and in their penal code. And there have been 
voices as well, calling for that to be rolled back, but we have 
also seen from within the government, and including in the 
Islamist al-Nahda Party, talking about the need to maintain 
those protections.
    So there is a lot of discussion going on, a lot of turmoil 
about the way forward. They are going to have to find Tunisian 
solutions to these problems.
    But as we have approached the Arab Spring, whether it is in 
Tunisia or elsewhere, we have always emphasized the importance 
of universal values--protection of the rights of minorities, 
protection of the rights of women, free speech, freedom of 
association, freedom of religion. That is a touchstone for our 
approach across the Arab Spring, and I think that also needs to 
be the focus of our approach in Tunisia as well.
    Senator Boxer. Thank you very much.
    I will hold my question for you, Mr. Stevens, until my 
second round and call on Senator Lugar.
    Senator Lugar. Well, thank you very much, Madam Chairman.
    Just to indicate our degree of accord, I would point out 
that I have been driving a Prius for the last 6 years. 
[Laughter.]
    Senator Boxer. Me, too.
    Senator Lugar. There we go. So you can understand the 
bipartisan outlook we have on these things.
    I would say, beyond that, as a corn farmer, I have been 
promoting corn ethanol for the last 15 years, and this has 
become a very prominent part of the biofuels. I appreciate 
there are all sorts of debates about corn ethanol, but 
nevertheless, it has displaced maybe 9 percent of the oil usage 
that we have in this country, and I hope it will do more.
    Let me just say in the Ag Committee, we take up regularly 
the CFTC, the Commodity Futures Trading Commission, and this 
deals with the question of so-called speculations. Others would 
just say price finding. But the dilemma illustrated by the oil 
price controlled by the CFTC and so forth is that there is 
great fear throughout the world, not just in our country, that 
the supplies transited through the Strait of Hormuz are likely 
to be affected by problems in Iran or elsewhere. Therefore, 
with both these possible severe disruptions of supply and the 
view of many that the Saudis alone have a reserve capable of 
addressing a significant supply decrease in mind, we are in a 
precarious predicament in which there could be a huge spike in 
price of gasoline in a short period of time, given the foreign 
policy questions we are discussing today.
    Which gets us back to, Ambassador Pascual, the fact that 
essentially these are questions of the security of our country, 
but they have a high content of diplomacy that we believe 
belongs in the State Department at the highest levels. And in 
testimony before this committee during the duration of time I 
have served, we have had one hearing after another in which it 
was recalled that Franklin Roosevelt and the Saudi monarchs 
came to some sort of implicit agreement that we in the United 
States needed oil.
    They needed also our friendship and, if not, protection. 
And attempting to maintain this over the years, of course, has 
brought us into the Middle East in many ways, and we have 
expended hundreds of billions of dollars over the course of the 
years even in times of relative peace in the region just to 
keep clearing the path and to making certain that our naval 
power was sufficient.
    So these are diplomatic considerations that are closely 
intertwined with our national defense, that I think these 
issues affect all of us. What I simply want to ask you, 
Ambassador Pascual, is that given the precarious nature of the 
oil situation, as we look at it presently and as reflected in 
prices at the pump or any other indicator, what are the 
provisions that our country can make?
    One of them, obviously, is to use less, conserve and, 
therefore, do those things which we can in our buildings, quite 
apart from our cars and transportation systems and every other 
way that we use fossil fuels or any other sort of fuel.
    We can, obviously, as the chairman has suggested, push very 
hard for biofuel substitution for almost anything else that 
might be there. And we have made great progress.
    Indeed, the 59 percent of the oil we were importing maybe a 
couple of years ago is down to 50 percent. That is significant. 
That is 50 percent, and it gets to the guts of how our whole 
economy works at this point, given our international 
responsibilities.
    So can you outline for us, at least in the work you have 
been doing already, prior to assumption of this new position 
and confirmable situation, how the State Department looks at 
this overall picture now of the prices that are clearly rising 
because of fears and the reality that there is very little 
reserve left anywhere in the world we could call upon?
    Ambassador Pascual. Senator, thank you very much.
    This is an issue of great interest to the American people, 
and it is of great concern to Secretary Clinton, to the 
President, and certainly to members of this committee.
    One of the things that we have to recognize is in this 
period where there have been rising energy prices and some 
degree of speculation in the market, as you and Madam Chairman 
have both indicated, Iran has tried to use that opportunity in 
every possible way to talk up the potential risk and push 
prices up. We have to recognize that that is its intent.
    At the same time, the best way to counter that is to be 
able to look at all the possible energy sources that we have, 
as both of you have indicated, to have diversification in our 
energy strategy and policies.
    In the United States today, we now have more oil and gas 
rigs operating than the rest of the world combined. We have 
significantly increased our production of oil. We have 
significantly increased our production of natural gas as well, 
which is another very important issue to be able to get back 
into.
    If we look at the situation internationally, there is no 
magic bullet that one can use and say that this is going to 
resolve the world's energy problems. But it underscores the 
importance of having a broad and diversified strategy, and that 
is one of the reasons why in my job over the past months, I 
have been so busily engaged, for example, in going to the 
Middle East and engaging with Saudi Arabia and Kuwait and the 
United Arab Emirates.
    And in those discussions, it has been interesting to the 
extent to which those countries have been reinforcing that they 
will respond to market demand. And indeed, even yesterday, 
there was an extraordinary meeting of the Saudi cabinet of 
ministers at the end of which they said the kingdom will work 
individually and in cooperation and coordination with the GCC 
and other producers inside and outside OPEC to ensure adequate 
oil supply, stabilize oil markets, and bring down oil prices to 
reasonable levels.
    It is an indication of the changing environment that we 
have today where producers and consumers have to have shared 
interests. It is why in visits to Iraq, for example, we have 
been working with them not only over the past year to help them 
increase their production by 300,000 barrels a day, but looking 
ahead, developing a strategy and a framework and a relationship 
in which we can help them secure their plans of producing 
another 500,000.
    My colleague to my right already indicated in Libya the 
significant recovery that we have seen to 1.4 million barrels a 
day and the potential of reaching higher levels by the end of 
the year. There are a number of other countries that are 
critical to engage in. In our own hemisphere, Colombia, Brazil, 
Canada, I would just underscore as significant countries and 
contributors to world energy markets.
    And the point of this is, is that this issue is not simply 
resolved by talking to one country, but by dealing with many 
countries in a concerted and strategic way. But at the same 
time, undertaking the kinds of actions that you and Senator 
Boxer have indicated of reducing our own consumption, ensuring 
that we have energy efficiency and fuel efficiency measures to 
be able to reduce the demand in the United States.
    Senator Lugar. I thank you very much.
    Thank you, Madam Chairman.
    Senator Boxer. Thank you so much, Senator.
    Senator Menendez.
    Senator Menendez. Thank you, Madam Chair.
    Ambassador Pascual, let me ask you--well, before I do, let 
me just say I spoke to Secretary Clinton earlier today when she 
informed me of the exemption of the sanctions to the 10 
European Union countries and Japan because of those nations' 
significant reductions in petroleum purchases from Iran. And as 
the author of the sanctions, I support the Secretary's decision 
and applaud the action of our friends and allies in the 
European Union and Japan for their forthright and expedient 
action.
    And I think it sends a very clear message to others in the 
world about what they will need to do to offset their purchases 
of Iranian oil and, hopefully, create stability in the oil 
markets.
    That, plus the swift determination on Saturday, which is 
the financial messaging service provider cutting off services 
to the Central Bank of Iran and 30 designated Iranian banks 
that are on our list, is having a real impact. And that impact 
can be seen through Iran's currency plummeting as well as 
Iran's oil shipments in February falling to a 10-year low. This 
is exactly what we were trying to achieve.
    So that is the good news. The rest of what I want to get a 
sense of, since you will be in a key position based on how we 
wrote the law, is how do you define significant reduction and 
what level of reduction predicated your decision to recommend--
I assume you were part of this process--to recommend the EU and 
Japan be exempted from sanctions today?
    Ambassador Pascual. Senator, thank you very much. Thank you 
for your leadership in passing the legislation. Thank you for 
your very encouraging statement.
    I think that you hit on the key word in your statement 
about how to think about the issue of significant reduction, 
which is encouragement, example to others. Japan was a model, a 
model in the sense of a country that went through the tragedy 
of Fukushima, and at the same time, it worked to build the 
national consensus within its political system to underscore 
the fact that the threat of Iran was so great that it was 
necessary to continue to reduce their imports of Iranian crude.
    If Japan was able to do what it did over a course of 4 
years, but in particular in the second half of last year, 
drastically reducing its imports of Iranian crude oil, that 
should be an example to others that they could potentially do 
more.
    The European Union was another important example in which 
they have essentially ended new purchases, new contracts for 
Iranian crude oil, and are phasing out contracts, existing 
contracts by July 1. In other words, they are going to zero. 
The European Union did that for its own reasons, and we applaud 
the rationale.
    If we had been involved with a country in the negotiation 
and had preemptively or ahead of time taken a position on a 
specific percentage, we might have actually prescribed a 
percentage that was less than what that country was willing to 
do. And so, I think, going back to your words, example, 
encouragement, example to others.
    Here are two examples of what one country and a set of 10 
countries, the European Union as a whole, have done. And what 
we are looking for is for countries to come to us and tell us 
if they believe that they should be in that category that 
deserves an exemption. What are the kinds of significant 
reductions that they are willing to pursue?
    And to engage in a dialogue on that basis in order to be 
able to exact what we want through this legislation and I 
believe was your intent, which was to deny export markets to 
Iran.
    Senator Menendez. Well, let me explore this a little bit 
more with you. I appreciate your answer, but am not suggesting 
that you have a numerical number in mind.
    But obviously, from the European Union, which is going to 
be zero, to Japan, which is about, what, 30-percent reduction 
or a 25-percent reduction?
    Ambassador Pascual. The Japanese reduction, the current 
reduction is one that is privileged commercial information. But 
what is publicly available is that over the last half of last 
year, depending on the data source, that seasonally adjusted, 
they reduced between 15 and 22 percent.
    Senator Menendez. OK. So it seems to me that if the 
Japanese, with everything that they faced with the tsunami, the 
knocking out of their nuclear power, could in this time period 
do what they did that that would be, in my mind, the low mark 
for other nations who want to achieve the avoidance of 
sanctions. Would you agree with that?
    Ambassador Pascual. I think, Senator, that we want to 
continue to press for other countries to use these as examples 
and be able to present the best case that they can if they 
believe that they should be considered.
    I think that there are factors that we are going to have to 
take into account, including the percentage of their imports 
that come from Iran, the impact that they would have on their 
national economy, the kind of alternatives that they might have 
in the near term to seek other supplies. And on the basis of 
that, believe what is the best possible case that we can be 
able to work out with these individual countries.
    Senator Menendez. Have you already made any determination 
about which countries' sanctions will and won't apply at this 
point?
    Ambassador Pascual. No, sir.
    Senator Menendez. Beyond today's announcement?
    Ambassador Pascual. The determinations--the only 
determinations that have been made are the two that were 
announced by the Secretary of State today, the 10 European 
countries and Japan.
    Senator Menendez. What countries are you most concerned 
about in the context of reducing purchases of petroleum from 
Iran at this point?
    Ambassador Pascual. Sir, there are 23 countries that have 
imported crude oil from Iran. Eleven of them were covered 
today. Of the remaining 12, I think there is public information 
on the overall levels of how much those countries are 
importing.
    I would rather not go into the question of concern because 
what we would really like to see is those countries coming to 
us in a way that is open and engaging and shows a coincidence 
with the United States and our other partners that we all have 
a concern for reducing revenue to Iran and being able to 
negotiate and work out with them the best possible circumstance 
to reduce their imports.
    Senator Menendez. Well, let me just say that as much as I 
was complimentary, I think that what was done today was 
probably the easy part, to some degree, in terms of determining 
these countries. And we applaud them.
    But the next tranche is going to be a lot more difficult. 
And so, the standards that are set as you move toward the next 
tranche of countries that on the list that are not in the 
universe that was exempted today is going to be incredibly 
important. We are going to be looking to engage with you to get 
a sense of the outline of what is an exemption at the end of 
the day because that is going to set the standard.
    And of course, and I will close on this and wait for the 
second round, as the Secretary herself said, when she was 
before the full committee, and I asked her if she expected that 
significant reduction was every 180 days? And her answer was 
``yes.''
    So, how we start off is incredibly important in that 
regard.
    Senator Boxer. Thank you, Senator.
    Just we have a vote at 4 p.m., do we not? OK. So we are 
going to try to complete this, but I think we will have time 
for a second round.
    Yes, Senator.
    Senator Risch. Yes, Madam Chairman, I will yield back to 
you for the second round.
    Senator Boxer. Are you sure?
    Senator Risch. Positive.
    Senator Boxer. OK. I want to ask a question about Libya. 
And thank you for taking on this challenge. This is not an easy 
time to go over there. I am just very proud that you have 
accepted this challenge.
    As one who backed the decision to engage in the U.N. no-fly 
zone, obviously, there is much to be proud of--the successful 
overthrow of Gaddafi and watching the Libyan people try to 
build a new government, a civil society from the ground up.
    But I want to ask you about something troubling--the 
militias that refuse to disarm. Today, there may be up to 
200,000 fighters in Libya who are refusing to lay down their 
arms despite pleas from the highest levels of the transitional 
Libyan Government.
    What plans has the Libyan Government outlined to demobilize 
militia groups? What steps has it actively taken to implement 
those plans? What assistance has the U.S. Government offered? 
And just overall, are you concerned that armed militias could 
play an intimidating role in the runup to the planned elections 
in June?
    Mr. Stevens. Thank you, Madam Chairman, for your kind 
remarks and for your question.
    This is probably the most serious question that Libyan 
authorities face right now, the issue of disarming and 
demobilizing and reintegrating the militias into Libyan 
civilian life. As you said, there are thousands and thousands 
of militia members scattered around the country and based in 
the capital and Benghazi as well.
    The Libyan authorities are grappling with this issue as we 
speak. In fact, they already began some months ago in the final 
days of the revolution. And the plans that they have put 
together have a goal of incorporating some of them into the 
security forces, be they the police or the military, and some 
of them into civilian life, hopefully, the private sector or 
perhaps other civilian government jobs.
    In terms of the steps they have taken, they have coalesced 
around more than one plan. I have to say it is not as organized 
as one might like it to be. But the steps that they are 
following involve, first of all, registering the names and 
personal data of the militia members, and they have made quite 
a bit of progress on this. Long lists of these people, who they 
are, where they are from, what skills they have, and where they 
would like to fit into Libyan society. So this is the first 
step.
    And then, beyond that----
    Senator Boxer. So, if I can interrupt? So they want to 
reintegrate them? Because that is important. Remember in Iraq 
what happened? Said no more Baath Party members of the militia, 
and they just turned them all away, and that started a whole 
what I would say ``civil war.''
    So that is very interesting. Thank you for that 
information. Continue.
    Mr. Stevens. They are very mindful of the Iraq experience, 
and in fact, some of them use the phrase ``debaathification'' 
as something that they would want to avoid. So just to finish 
this thought, the next step would be to actually hire portions 
of them into the security services and the military and then 
direct others into the civilian areas of life, including 
training.
    Now what are we doing about this? Well, the U.N. is taking 
the lead role in organizing the international effort to help in 
many of these areas, and one of them is providing advice and 
assistance based on other experiences that countries like 
ourselves and the EU members have had around the world with 
similar situations.
    And so, we and the EU and other countries are working with 
the U.N. to provide assistance in this area, mainly in the form 
of advice.
    Senator Boxer. Thank you.
    I am just going to give back the rest of my time and call 
on Senator Lugar.
    Senator Lugar. Thank you, Madam Chairman.
    Mr. Walles, Tunisia essentially has not been overlooked by 
all the drama going on elsewhere, but there has been an 
assumption that democracy and democratic institutions have made 
substantial progress. In your opening statement, you 
illustrated ways that that is so.
    What I am curious about is what the benchmarks for knowing 
that, as a matter of fact, these institutions have taken hold? 
It was a surprise perhaps to many Americans to begin with that 
the Arab Spring began in Tunisia, as this would not have seemed 
to have been the logical focal point. But nevertheless, it did 
occur, and as the chairman has pointed out, some unusual people 
were elected in the legislative process.
    What I wonder is just as further observation, many of the 
people most celebrated in the Arab Spring were young people 
demonstrating in the squares, using Twitter and other forms of 
social media. But what seems to have followed is a reimposition 
of older people, whether they be religious leaders or elderly 
politicians who were not with the previous government. And the 
young people do not seem to be playing an increasingly 
significant role.
    Are we likely to see, therefore, a resumption again someday 
of people who feel that they are not getting the fulfillment in 
terms of jobs and their lives because even though there has 
been a change of regime and supposedly more democracy and human 
rights and so forth, somehow or other, they are still coming 
out on the short end of it?
    Mr. Walles. Thank you, Senator Lugar, for the question.
    You know, I have been working the past year on Egypt and a 
number of other countries that have been going through this. 
Each of these countries is a little bit different, and the 
circumstances in each country are different as they proceed.
    Tunisia went first, as we noted earlier. And they have had 
their election of a constituent assembly. They are now in the 
process of drafting a constitution. The constitution, I think, 
will be an important benchmark because they are going to have 
to grapple with a lot of difficult issues, including the 
relation between religion and the state, the role of women, 
things like that.
    So that is an important thing that we need to watch out 
for. Once they have a constitution, they will then elect a 
parliament, a permanent parliament. Right now, it is just a 
constituent assembly, and then they will also elect a 
President. And so, that is another benchmark as well.
    In Tunisia, as elsewhere in the Middle East, young people 
played an important role in the revolution. I think they will 
have to play an important role in the progress to democracy as 
well.
    There were a lot of reasons why the revolution took place 
in Tunisia, why this started in Tunisia, but economic pressure 
was an important thing. There is a very high unemployment rate 
in Tunisia now, particularly among young people. The 
unemployment rate for young people is about 30 percent.
    And particularly in the interior areas, which are much more 
disadvantaged, there is a very high rate of disaffection among 
youth. So that is an area that they are going to have to look 
at as well. So it is not just about building these institutions 
and the building blocks of the political process. It is also 
about building the economic underpinning for that so they can 
be a prosperous country as well.
    Those are areas that we are going to look to. We have been 
supporting. And if confirmed, those are things that I would be 
looking at as well.
    Senator Lugar. Thank you very much.
    I will yield my time to others.
    Senator Boxer. Thank you.
    We are going to go Senator Menendez, Senator Risch, Senator 
Udall.
    Senator Menendez. Thank you, Madam Chair.
    Ambassador Pascual, just two final questions. There are 
energy analysts that are projecting that Iran's oil exports 
will fall by as much as 50 percent in the coming months, 
meaning that Iran might lose the capacity to export between 
800,000 to 1 million barrels per day of oil. Is that estimate 
one that you share, or do you have a different one?
    Ambassador Pascual. If one looks at the commitments made by 
the European Union to eliminate their imports of Iranian crude 
oil, if we look at reductions made by Japan, if we look at 
other statements that other countries have made, while it is 
difficult to predict an exact number, that is in the ballpark 
of what countries have been saying that they are going to 
reduce in Iranian crude imports.
    Senator Menendez. On a slightly different topic, the 
Spanish company Repsol has begun to drill in Cuban waters, 
despite the fact that Cuba is clearly incapable of mitigating a 
leak that would harm U.S. interests in the Caribbean. Does your 
office have a role in this project? Have you had conversations 
with Repsol on their drilling in Cuba?
    Ambassador Pascual. No, sir. My office does not have a role 
in this. I have not had conversations with Repsol about this 
issue. We have discussed issues with Repsol, particularly to 
their imports of Iranian crude oil, which they have actually 
now brought to zero.
    Senator Menendez. OK. And finally, Mr. Stevens, I have the 
families of 32 of 189 Americans who died on Pan Am Flight 103. 
And as someone who has been supportive of our efforts in Libya, 
but I also believe it is very important, as I told the Prime 
Minister when he visited the committee, that in order for Libya 
to be able to move forward in its future, it must reconcile 
events of the past.
    And there are still many of these families who believe that 
justice has not been achieved for them. And while their loved 
ones can never be replaced, a sense of justice is desired and 
is ripe.
    So my question is have you met or will you meet with the 
Department of Justice about their open Pan Am case before 
departing for Tripoli? And is it your understanding of U.S. 
policy to continue to actively pursue information about the 
bombing and other terror attacks orchestrated by the Gaddafi 
regime against U.S. citizens?
    Mr. Stevens. Thank you, Senator.
    The Pan Am 103 bombing was a horrific act and one that we 
cannot forget, and I certainly will keep on my mind when I go 
to Libya, if I am confirmed.
    I do plan to meet with the Justice Department officials in 
the coming days and weeks to discuss their case, which I 
understand is ongoing, and I am referring to the criminal case. 
And we have, as you know, raised this issue with the interim 
Libyan authorities, including during the visit of the Prime 
Minister of Libya a week or so ago when you met with him.
    So, Senator, absolutely, that would be on the top of my 
list of issues----
    Senator Menendez. So you will visit with Justice before 
going to Tripoli?
    Mr. Stevens. Absolutely.
    Senator Menendez I appreciate you say you will keep it on 
the top of your mind. I would like it to be one of your 
priority items in your agenda.
    Mr. Stevens. It certainly would be, sir, if I am confirmed.
    Senator Menendez. Thank you very much.
    Thank you, Madam Chairman.
    Senator Boxer. Thank you.
    Senator Risch.
    Senator Risch. Briefly, we are going to vote in a minute. 
So I want Senator Udall to have a chance. But I just have one 
question on the import reductions.
    I understand that this information is I don't know whether 
it is classified or what you call it. But when are we going to 
get numbers on this? How can we make a judgment on this without 
having actual numbers of what the cutback is going to be?
    Ambassador Pascual. Actual data on performance by countries 
usually is a couple of months in time lag. What we have seen 
already from the European Union is that they have taken legally 
binding measures that they cannot execute new contracts. That 
is happening already right now.
    As a result of that, they are not putting in place any 
additional supplies in the supply lines. They have committed to 
completely phase out or end existing contracts by July 1.
    We have been in regular contact with the European Union to 
determine if that has been the case, and indeed, we have seen 
from the European Union continued phase-down of all of those 
contracts. We have also seen, anecdotally, that as a result of 
the measures that have been put in place on prohibitions on 
finance and on insurance, especially for ships and for tankers, 
that many countries have simply not been able to import Iranian 
crude because they can't get ships.
    All of these things have actually accelerated the process 
of implementation. We are continually analyzing what the 
implications might be in terms of the numbers of volumes. But 
we, unfortunately, don't actually see that reflected in the 
data coming out of countries for a 1-to-2-month time lag.
    Senator Risch. How about the Japanese? You spoke of the 
European Union.
    Ambassador Pascual. The Japanese, as I mentioned, going 
forward, the information that they have provided us is 
commercially privileged because of the contracts that are 
involved. But what is public is what the import trends have 
been over the last 6 months of 2011.
    And from that, we have looked at different sources of data, 
including the International Energy Association, our own 
domestic data on actual ship movements, and depending on the 
data source, when you look at seasonally adjusted data, they 
have reduced imports in the range of 15 to 22 percent.
    Senator Risch. What is your level of confidence in that 
estimate?
    Ambassador Pascual. It is extraordinarily high. It is 
recorroborated by every type of data source, both what is 
coming out of the country by their customs data as well as 
shipping data, which is based on commercially available 
information on ship movements, liftings, and unloadings.
    Senator Risch. Thank you, Madam Chairman.
    I want Senator Udall to have a chance. So I yield my time.
    Senator Boxer. Senator Risch, thank you. And thank you for 
pressing on that. I think that was very helpful.
    Senator Udall, welcome.
    Senator Udall. Thank you, Chairman Boxer.
    Good to be with you all today.
    Mr. Stevens, one of the programs that Gaddafi left behind 
was a huge water project known as the Great Manmade River. The 
goal of this project was to bring water to arid regions of the 
country and improve the agricultural capabilities of the 
country. What is the current status of this project?
    I know issues have been raised in terms of sustainability 
and whether this was a good project or not. Is the United 
States supporting the project? What are you doing in terms of 
environmental review if you are going to work to move it 
forward?
    Mr. Stevens. Thank you for the question, Senator.
    The Great Manmade River Project, of course, is one of 
Gaddafi's legacies. It was actually begun before he came to 
power and got its start during oil exploration by an American 
company that stumbled on some water out in the desert in 
southern Libya.
    Since then, it has provided a good portion, if not the 
majority of Libya's water supply. Critics say that it is 
expensive and that it is a waste, that they are trying to grow 
agriculture in areas which they shouldn't. People on the other 
side say, well, it is a resource they have, and why shouldn't 
they use it?
    During my time in Benghazi during the revolution, it 
largely continued to work unaffected. There was a brief 
interruption at one point, but they since made the repairs that 
were necessary, and now it continues to provide significant 
water to Libyans, both to cities and to farmers.
    We are not providing any sort of assistance at all to this 
project. It is strictly funded by the Libyan Government, and 
they are using foreign contractors from Korea and Turkey and 
other places to help them.
    Senator Udall. Thank you.
    Ambassador Pascual, one of the issues, and I know you have 
heard about it some here from various questions that have come 
at you, but is the gas prices and how they are getting out of 
hand and how people back home in New Mexico and California and 
Indiana, all places across the country, people, you know, why 
at this particular time are they spiking?
    And I am wondering what, from your standpoint and what 
would you do as Assistant Secretary to improve the energy 
security of the United States, and what should be the short and 
long-term priorities to increase energy stability 
internationally?
    Ambassador Pascual. Senator, thank you very much.
    We had had an opportunity to discuss it, and I think you 
put it in exactly the right terms of energy security for the 
United States because that is, indeed, what the American people 
are looking for.
    One of the things that we have underscored throughout this 
discussion is that there is no single answer, but it needs a 
diversified strategy. That diversified strategy has to include 
what we are doing at home, including the measures and the steps 
that we have pursued to increase production, where we have had 
significant increases in our productions of both oil and gas 
over the past 5 years.
    It has been important to reduce our consumption and the 
kinds of fuel efficiency and other efficiency measures that we 
put in place in the United States that have cut consumption.
    On the international side, one of the things that we have 
done and in my position as Coordinator for International Energy 
Affairs that we have been seeking to do is to engage all major 
producers and partners to understand what the prospects are for 
their production, to understand where there are potential 
bottlenecks where we can work together, to engage with energy 
companies to understand where we might be able to resolve 
issues that allow them to increase their investment and 
increase their productive capabilities.
    We have spent time working with countries in the Middle 
East, and we have had consistent assurances that they will now 
respond to market demand. I mentioned yesterday an 
extraordinary meeting of the Saudi Cabinet that resulted in a 
conclusion that they will continue to produce supplies that 
will actually seek to balance out prices on the international 
market.
    And we have to recognize in the context of this that one of 
the things that Iran will do is do everything possible to talk 
up insecurity and risk and making statements such as cutting 
off the Strait of Hormuz. And when things like that happen, it 
creates speculation in the futures markets as well.
    And so, it is critical to continue on this all-out front to 
provide a sense and perception, but also the reality that 
supplies can be available and to do that--and by doing that to 
be able to counter the other factors related to the risk and 
speculation which could be in the marketplace.
    Senator Udall. OK. Thank you.
    And one final question for Mr. Walles. The former President 
Ben Ali was known to use the domestic security services to 
repress dissent in the country. Furthermore, it is believed 
that the security services outnumbered the military 
considerably, with nearly 200,000 members.
    How is the new government dealing with the remnants of the 
domestic security services, and what will the United States do 
to help improve the human rights situation in Tunisia to ensure 
a similar organization is not formed by future governments?
    Mr. Walles. Thank you, Senator, for the question.
    You are correct that in the past under the Ben Ali regime, 
the internal security forces were an instrument of repression 
on the population. That is no longer the case, although these 
security forces continue to exist. And this is a priority issue 
for the new government in terms of how they would reform these 
security forces.
    Many of the members of the current government, including 
the ministers, were imprisoned under Ben Ali or they were 
exiled during that period. So they have firsthand experience 
with this repression. So they are not, by any means, prepared 
to continue that sort of thing.
    But in order to make sure it doesn't happen again, they are 
going to have to reform the security forces so they are not an 
instrument of repression. They are an instrument to provide 
security for the people, which is what they should be doing.
    In terms of what the United States could do, this is an 
area that we have begun to look at a little bit. We have 
experience in other places in the Middle East where we have 
worked with security forces and helped them reform. I know from 
my time in Jerusalem, we began a program like that for the 
Palestinians, and that has been a success.
    Whether that would apply in the Tunisian case is something 
we are going to have to look at. I think the first step will be 
for the Tunisian Government to decide what they want to do with 
those security forces and how they want to reform them, and 
then we can look at whether it would be appropriate for us to 
assist in that.
    Senator Udall. Thank you very much.
    And Chairman Boxer, thank you, and thank you for your 
testimony today. I look forward to moving these nominations 
forward expeditiously.
    Senator Boxer. Senator Udall, thank you so much for coming 
here and asking those questions.
    And Senator Lugar, thank you so much for chairing this 
hearing with me today and for your thoughtful questions.
    I want to thank our nominees. They are outstanding. I can't 
imagine why we shouldn't act on each and every one of you 
expeditiously.
    We will leave the record open for 24 hours to accommodate 
any of our colleagues who would like to submit written 
questions.
    And again, we are going to do everything we can to move 
forward quickly.
    Thank you for making the sacrifices for your country.
    And we stand adjourned.
    [Whereupon, at 4:05 p.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


      Responses of John Christopher Stevens to Questions Submitted
                      by Senator Richard G. Lugar

    Question. Please provide detail for the committee on the Libyan 
fiscal situation, particularly as it pertains to assets frozen and 
unfrozen around the world.

    Answer. Libyan authorities recently released the 2012 budget, which 
totals 68.5 billion LYD (or $55 billion). According to local press 
reports, it is a balanced budget which relies heavily on oil revenues.
    In December 2011 the U.N. delisted the assets of the Libyan Central 
Bank and the Libyan Arab Foreign Bank. The United States also removed 
sanctions on those two government entities, leaving very few assets 
frozen under U.S. jurisdiction. Those assets are now available to 
Libyan authorities. The Libyan Government has not requested that 
sanctions be lifted from the two remaining government entities listed 
at the U.N., Libyan Investment Authority (LIA) and the Libyan African 
Investment Portfolio (LAIP), pending its reorganization of their 
management structures.

    Question. You are headed to an Embassy which was greatly damaged in 
the revolution. Please describe the Department's plans for rebuilding 
your Embassy and facilities.

   Has the Government of Libya made any offers to assist in the 
        reconstruction?
   What money has been designated and what planning has been 
        done by OBO?
   What is the plan for consulates, if any?

    Answer. Due to the level of destruction at the former Embassy 
compound, the Department has established an Interim Embassy until such 
time as a New Embassy Compound can be built.
    At this time, the Government of Libya has not specifically offered 
to assist in the reconstruction of the U.S. Embassy but is engaged with 
the Department of State on the issue of land acquisition as we conduct 
initial site searches for the New Embassy Compound.
    OBO is working closely with Department offices and other agencies 
that will be working in the Interim Embassy to ensure that the facility 
adequately meets security and operational needs of all tenants. 
Evaluation teams have traveled to Libya to review existing facilities 
to ensure proper planning and usage of the facilities.
    Funding for building the Interim Embassy will come from all 
agencies that will make use of the facility. Within the Department, the 
Bureau of Resource Management is fully aware of the financial needs 
associated with the Interim Embassy.
    Currently, the Department is staffing a small office in Benghazi, 
Libya, that is responsible for monitoring the pulse of political action 
in eastern Libya. However, once national elections have taken place, 
the Department will reassess its utility.

    Question. Will assignments for Tripoli staff be conducted in a 
normal fashion, or are they being given shortened assignments and 
special incentive packages?

    Answer. There is a temporary incentive package for personnel 
assigned to Tripoli now and in the 2012 summer and winter 2012/2013 
cycles. The Department will return to a 2-year tour of duty when 
security and living conditions normalize.
    Embassy Tripoli is operating in extremely difficult conditions. 
U.S. Government employees are housed on a secure compound, two to four 
persons per bedroom and up to four people per bathroom depending on the 
number of personnel. All movements off-compound must be coordinated 
with a security package. Due to the limited living space, employees are 
not permitted to take unaccompanied baggage, household effects, 
consumables, or personal vehicles to post.
    The incentives package entails 1-year assignments, with 35 percent 
hardship pay, 25 percent danger pay, and the provision of two Rest and 
Recuperation (R&R) trips or one R&R and two Regional Rest Breaks (RRB).
    This package is being reevaluated as the situation in Tripoli 
changes and will be adjusted based on the overall security, stability, 
and openness of the situation.

    Question. Gas prices for many Americans currently top $4 per gallon 
and worldwide the price of a barrel of oil is $107. You stated in the 
hearing that Libya expected to be back to prewar levels of oil 
production by the end of the year, but would you provide more details 
on the status of the Libyan production and export capacity? Are 
American firms back fully, and if not, what reasons are they expressing 
to you?

    Answer. Even though the United States imports little oil from 
Libya, restoring Libya's participation in the global oil market will 
have the effect of stabilizing supplies, which is important for our 
ability to access supplies at an affordable price--a key element of our 
energy security policy. Libya is making significant progress in 
restoring output to its precrisis oil production level of about 1.6 
million barrels per day and is currently producing over 1.4 million 
barrels per day, according to the Libyan authorities.
    Most of the U.S. firms involved in production in Libya have 
reopened their offices in Tripoli and are taking steps to resume normal 
operations. U.S. firms have identified both security and logistical 
constraints in their meetings with us and we have engaged with the 
Libyan authorities on these issues.

    Question. If you were addressing American businessmen, what would 
you want to tell them about opportunities in Libya? Do you expect to 
have a Senior Commercial Officer from the Department of Commerce as a 
member of your Country Team to assist American companies interested in 
investing in Libya?

    Answer. As Ambassador Cretz has so often stated--and the Libyans 
have repeated publicly--Libya is now ``open for business.'' U.S. 
Embassy Tripoli, in coordination with the Department of State's Bureau 
for Economic and Business Affairs, established a series of sector-
specific teleconferences which provide a ``direct line'' for American 
companies to the U.S. Ambassador. The Embassy has completed six sector-
specific teleconferences to assist the American private sector identify 
commercial opportunities in Libya. These teleconferences have focused 
on sectors including infrastructure, security and health care, and have 
had upward of 100 participants per call. This program has been such a 
success that Secretary Clinton has asked the Department of State to 
expand it worldwide. If confirmed, I will continue the program in 
Libya, in order to keep U.S. companies abreast of all commercial 
opportunities emerging with Libya's political and economic transition.
    The demand by the U.S. private sector for commercial opportunities 
in Libya is big, and it's only getting bigger. There is also tremendous 
demand in Libya for goods and services produced by U.S. companies. 
Broadly, there is great need for infrastructure, information and 
communications technology, oil and gas services, power generation, 
transportation products, and infrastructure, including rail.
    I refer you to the Department of Commerce for details on their 
staffing plans in Libya and elsewhere. If confirmed, I certainly would 
want Department of Commerce representation in the Country Team at 
Embassy Tripoli.

    Question. What, if any, role will U.S. assistance play in the 
security sector reform elements you discussed in the hearing?

    Answer. The United States will continue to play a supporting role 
to the transitional Government of Libya (GOL) in security sector 
reform. We will work with the U.N. Support Mission in Libya (UNSMIL) 
and international partners to coordinate our assistance, and if 
confirmed, I will assist in these efforts.
    Libya's Ministry of Defense (MOD), Ministry of Interior (MOI), 
Ministry of Justice (MOJ), and intelligence services are being 
reconstituted in the wake of the revolution. Currently, there is 
minimal absorptive capacity within the GOL for robust security sector 
assistance. The greatest need is for technical expertise to help the 
GOL shape its security apparatus and to assist GOL efforts to disarm, 
demobilize, and reintegrate (DDR) revolutionary fighters.
    UNSMIL and our international partners have taken the lead in 
assisting the GOL to implement a DDR process. UNSMIL is diligently 
working to facilitate GOL security sector coordination through the 
creation of a Libyan national security staff. The U.K. has embedded a 
technical expert in the Libyan MOI to assist in standing up a GOL 
police force. Jordan has signed a memorandum of understanding (MOU) 
with the MOI to train 10,000 new police cadets in basic police 
curriculum. The Libyan MOD has launched an assistance coordination 
mechanism to keep track of assistance to the armed forces, avoid 
duplication and identify gaps. The French have conducted joint maritime 
training with the Libyan Navy. Qatar and the UAE have committed to MOD 
assistance, but have not had any real engagement or response to date.
    UNSMIL is also working closely with the GOL to coordinate the DDR 
process. The GOL and UNSMIL report that Libya's Warrior Affairs 
Committee has registered 148,000 fighters to date. Assisted by the 
international community, the GOL has announced a 3-year plan to 
integrate 25,000 revolutionaries into the regular military and 25,000 
into the police forces. The remaining revolutionary forces will be 
reintegrated into civilian life through initiatives to develop small 
and medium business enterprises, or through new educational and 
training opportunities.
    We aim to support these efforts by deploying targeted security 
sector assistance that will focus on bolstering GOL capacity and 
leveraging international assistance. In April, the Department's Export 
Control and Related Border Security (EXBS) program will fund the 
deployment of a team from the Bureau of International Security and 
Nonproliferation, Office of Export Control Cooperation, and the 
Department of Homeland Security, Customs and Border Protection, to 
conduct a 1-week consultation and basic enforcement training overview 
for Libyan MOI, MOD, and Customs Officials who will be leading the 
efforts to develop and integrate Libya's border security forces. We 
introduced the Defense Institution Reform Initiative (DIRI) program to 
Libyan Prime Minister El-Keib during his March 2012 visit. If accepted 
by the GOL, DIRI will provide a team of experts to advise the MOD on 
rightsizing its security forces and integrate rebel fighters into the 
Libyan armed forces.
    Over the summer, the Anti-Terrorism Assistance (ATA) program will 
send an assessment team to evaluate the current capacity of Libyan law 
enforcement units that perform counterterrorism functions and to 
examine whether and how we can begin offering ATA training in the 
coming year.
    In late March, we will deploy a security sector transition 
coordinator to U.S. 
Embassy Tripoli who will coordinate and report on these border security 
and MOI training efforts. We are also using the congressionally 
notified Presidential Drawdown authority to provide nonlethal personal 
equipment to the MOD as it forms a national military capable of 
providing protection to the civilians and civilian populated areas 
within Libya.
    Additionally, funding from the FY 2011 Middle East Response Fund 
(MERF) will be used to support a DDR advisor in Tripoli whose focus 
will be on reintegrating militias into civilian life through advising 
the GOL on creating employment and education opportunities for former 
militia fighters.

    Question. Libya faces significant needs as it develops its civil 
society in this period of transition. The United States is prepared to 
assist with training and technical assistance. With oil production at 
1.4 million barrels per day and expected to increase--to what degree is 
Libyan able to use its own national assets to bear the costs of this 
development.

    Answer. We do not have detailed information on the exact 
expenditures of the Libyan Government in various sectors, including in 
civil society. We, however, do have evidence that the government has 
taken steps to ensure it has funds to meet the country's needs 
including by working to get the production of oil back to prewar 
levels. The government has also passed a budget of $55 billion, helping 
to ensure that ministries can pursue reform, renovation, and capacity-
building projects.
    The Libyans have repeatedly stated they want to pay for the 
reconstruction and reform of their country and promote civil society. 
In the near term, however, Libya is spending the majority of its 
resources on ensuring that salaries are being paid and that basic 
services are provided to the Libyan people. The United States and the 
international community are currently filling short-term gaps in 
priority sectors and funding actors that we believe should receive 
assistance independent of the government, including certain civil 
society groups and the media.
                                 ______
                                 

            Responses of Jacob Walles to Questions Submitted
                      by Senator Richard G. Lugar

    Question. What, if any, have been the concrete results of U.S. 
transition support programs in Tunisia to date? How should the U.S. 
Government shape its future foreign aid programs in terms of balancing 
objectives related to security, democracy, the economy, and regional 
policy? How, if at all, can or should the United States assist with 
security sector reform?

    Answer. The United States is committed to supporting Tunisia's 
transition to democracy and helping to establish a foundation for 
political stability and economic prosperity. Since the revolution, we 
have committed approximately $197 million from FY 2010 and FY 2011 
resources to support Tunisia's transition.
    Securing a successful transition to democracy in Tunisia is a key 
policy priority for the United States, the importance of which cannot 
be overstated. A successful Tunisia will set a clear example for other 
democratic transitions underway in the Middle East and North Africa. 
Success will require progress in all four areas--security, democracy, 
economy, and regional policy. Following the revolution, U.S. efforts 
focused heavily on supporting Tunisia's political transition, 
especially in the runup to the October 2011 Constituent Assembly 
elections. We are now seeking to provide critical support needed to 
stabilize the economy and promote broad-based economic growth. We are 
also bolstering our efforts to assist Tunisia by promoting regional 
stability, countering terrorism, preventing the proliferation of 
illicit items, building law enforcement investigative capabilities, and 
enhancing border security efforts. Moving forward, we will continue to 
work with the Tunisian Government to build its capacity, to support 
civil society as they participate constructively in national political 
debate, and to support the Tunisian military and civilian security 
forces' efforts to improve the rule of law, promote regional security, 
and respect the rights of the Tunisian people.
    Following the revolution, initial U.S. Government assistance 
efforts focused heavily on supporting Tunisia's political transition 
and election preparations. This included technical assistance to the 
Independent Elections Committee (IEC). We also supported voter 
education, facilitated political party outreach to women and youth, and 
helped to expand opportunities for women and youth to run for office 
and play leadership roles. The Tunisian elections were fair, credible, 
and transparent.
    Since then, we are developing a robust economic assistance package 
that includes programs designed to ease the fiscal strain on the 
Government of Tunisia while encouraging private sector investment and 
market-oriented reforms. In this regard:

   We are finalizing with the Government of Tunisia a loan 
        guarantee program to support its economic stabilization and 
        economic reform goals.
   Tunisia will benefit from a Millennium Challenge Corporation 
        (MCC) Threshold Program, which will support policy reform that 
        can lead to faster growth and generate employment.
   We intend to capitalize a U.S.-Tunisian Enterprise Fund with 
        an initial $20 million to help Tunisians launch small and 
        medium enterprises that will be the engines of long-term 
        opportunity.
   The Peace Corps will return to Tunisia this year to provide 
        English language training and programs to help prepare Tunisian 
        students and professionals for future employment, build local 
        capacity, and foster citizenship awareness at the grassroots 
        level.
   USAID will implement an Internet Communication and 
        Technology (ICT) sector development program. We are also 
        supporting an OPIC franchising facility in Tunisia, as well as 
        programs focused on developing entrepreneurship and 
        employability skills.

    Our security assistance for Tunisia includes $17.5m in FMF and 
$1.854m in IMET in FY12. Our bilateral military relationship, which has 
always been good, has grown stronger in the days since the revolution. 
We have a regular high-level bilateral dialogue with the Tunisian 
military, the Joint Military Commission, during which we share our 
respective regional security priorities, assess the Tunisian military's 
needs as they support Tunisia's territorial integrity, and discuss ways 
to support those needs to serve our mutual bilateral interests.
    Security sector reform is also an important priority for the 
Government of Tunisia. Prior to the revolution, the Ministry of 
Interior was a key player in the regime's oppressive rule. The current 
government is aware of that legacy and wants to change it. Tunisia has 
a new Minister of Interior, a former political prisoner of the Ben Ali 
regime, who is untainted by collaboration with the former regime. He 
will lead Tunisia's reform efforts in this critical sector.
    The United States stands ready to respond to Tunisian requests for 
support in this area. A ready and capable police force that respects 
human rights and adheres to the rule of law is critical to the success 
of a democratic country.
    If confirmed as Ambassador, I would work actively to maintain 
programs that address all of these objectives--security, democracy, 
economy, and regional policy--in a balanced way.

    Question. How would you evaluate al-Nahda's economic policy 
platform? To what extent does the coalition government share a common 
view of economic policy priorities and how to approach them? What steps 
are being taken to promote economic growth and job creation, and to 
address socio-economic grievances and regional economic disparities?

    Answer. Even prior to the current government's assumption of 
office, al-Nahda reiterated its commitment to market-oriented economic 
growth.
    Further, all political parties currently represented in government 
recognize Tunisia's urgent need to attract investment and create jobs. 
These are Tunisia's top two economic priorities today, and the parties 
are united in their pursuit of those goals.
    The coalition partners are working together to develop the details 
of a common approach to these challenges, and each party has affirmed 
the need for greater accountability, transparency and foundational 
reform to make Tunisia's economy more vibrant, inclusive, and 
responsive to the global market. They are aggressively courting foreign 
direct investment. And they are working together to pass a new budget 
to facilitate development in previously marginalized regions of the 
country in order to close the developmental divide.

    Question. The Peace Corps can be a powerful asset in promoting U.S. 
interests and values, particularly among Tunisia's more vulnerable 
populations in the interior of the country. How do you intend to 
leverage the presence of Peace Corps Volunteers in Tunisia to good 
effect?

    Answer. The Peace Corps represents an important opportunity to 
enhance people-to-people ties between Tunisia and the United States. As 
it does in other countries, the Peace Corps will work with the Tunisian 
Government to determine programming, priorities, and volunteer site 
placement.
    If confirmed as Ambassador, I will support the Peace Corps in its 
discussions with its Tunisian partners to ensure that Peace Corps 
Volunteers reach the most vulnerable populations in the south and 
interior of the country, and are meeting the needs of the communities 
in which they serve.
                                 ______
                                 

        Responses of Christopher Stevens to Questions Submitted
                        by Senator Barbara Boxer

    Question. According to the United Nations, as many as 6,000 
detainees--about three quarters of those arrested during Libya's civil 
war--continue to be held in prison facilities run by individual militia 
groups operating outside the control of the government.
    International human rights groups including Amnesty International 
and Human Rights Watch have provided deeply disturbing evidence of what 
appears to be widespread abuse.

   If confirmed, how will you work to promote the humane 
        treatment of prisoners in Libya?

    Answer. I share your concern regarding continuing reports of 
arbitrary detention and prisoner abuse. I, too, find these reports 
deeply troubling and, if confirmed, I would continue to raise the issue 
at the highest levels of the interim Government of Libya, as I 
understand Ambassador Cretz and his team are currently doing.
    Ambassador Cretz and his team have stressed the importance that the 
United States places on protecting human rights and the specific need 
for the Government of Libya to get all detainees and detention 
facilities under central government control as soon as possible. Our 
Embassy has also joined with other like-minded embassies and 
multilateral organizations to press these points, a practice that I 
would continue if confirmed.
    The interim Libyan Government has made positive statements 
regarding its respect for human rights, condemnation of torture, and 
commitment to consolidating control over militias and detention 
centers, including informal sites where most allegations of 
mistreatment originate. We recognize that this will be an important 
step in ensuring humane treatment and in establishing registration and 
review processes in accordance with international standards, but the 
government needs to go further.
    If confirmed, I would continue the close contact with the Ministry 
of Justice that Ambassador Cretz and his team have maintained. I would 
continue to emphasize that the United States stands ready to assist 
Libya as it seeks to develop new Libyan judicial and corrections 
systems that meet international standards by ensuring due process and 
protecting basic human dignity.
    I would also continue to promote continued Libyan Government 
collaboration with the International Committee of the Red Cross, the 
Office of the U.N. High Commissioner for Refugees, and the 
International Organization for Migration which can provide technical 
assistance on protection of migrants and refugees as well as visit 
detainees, as our Embassy in Tripoli is already doing.

    Question. In November 2011 I held a joint Foreign Relations 
subcommittee hearing with my colleague Senator Casey to examine the 
role of women in the Arab Spring with a specific focus on Egypt, 
Tunisia, and Libya.

   If confirmed, will you commit to working to help ensure that 
        women play a strong, meaningful role in in the political 
        process in Libya and that their rights are fully protected?

    Answer. Libyan women played a vital role in the 2011 civil uprising 
and revolution that toppled Moammar Qadhafi. During my time as the 
Special Envoy to the Transitional National Council in Benghazi last 
year, I had the privilege to meet and work with many inspirational 
Libyan women supporting the cause of the people. If confirmed, I am 
committed to ensuring that women are encouraged and supported to play a 
strong, meaningful role in the political process in Libya and that 
their rights are fully protected in law and in practice.
    After 42 years of Qadhafi's dictatorship, Libyans have very limited 
experience with democracy and an open political process. Most 
candidates, both men and women, have no experience in the democratic 
realm and the challenge for the Libyan people will be to create a 
national dialogue in which all of Libya's diverse population can 
participate. A number of Libyan women activists are already urging 
strong women's participation in decisionmaking bodies and speaking out 
about the importance of electing women in the June elections. Under the 
electoral law passed in February of this year, 80 of the 200 delegates 
to the interim National Congress will be elected from lists submitted 
by political parties. Party lists are required to alternate between 
male and female candidates, a process known as the ``zipper quota.'' 
Observers hope that the law will lead to increased participation by 
women in the government. A similar system was used in Tunisia and, 
based on that experience, some electoral experts expect that around 10-
15 percent of the Parliament will be comprised of Libyan women. This is 
still far lower than women's percentage of the population but is a 
start.
    Numerous women's groups and women-led organizations have emerged in 
Tripoli, Benghazi, and outlying areas since the beginning of the 
revolution. A few of these organizations, most of which are led by 
women who have management experience working for international 
corporations or significant experience outside Libya, have successfully 
initiated or completed projects that include a women's rights march to 
advocate at the Prime Minister's office, national conferences for youth 
and women, a reconciliation campaign, the establishment of women's 
centers and holding fundraising events. Many of the women's 
organizations are loosely constituted groups with limited 
organizational capacity to plan or implement activities beyond charity 
functions but have expressed a desire to expand their activities. Both 
experienced and inexperienced organizations have begun approaching our 
Embassy in Tripoli for assistance with conferences to inform women 
about their rights and prospective roles in elections, constitutional 
development, civil society, and the economy.
    I believe that the United States can help to provide targeted 
amounts of technical assistance to help these organizations build up 
their capabilities in these nascent stages, as we are already doing 
through USAID's Office of Transition Initiatives (OTI) and the Middle 
East Partnership Initiative (MEPI). I understand that the United States 
is one of the only donors currently providing support to these local 
grassroots women's organizations and, if confirmed, it's a priority I 
will continue to emphasize.
    USAID/OTI has already been providing support to women-led 
organizations as well as others that have significant female 
participation. USAID/OTI is currently planning initiatives such as: 
holding a national workshop on women in elections that will train women 
to educate people in their home communities about the importance of 
having female representation in the constituent assembly and 
constitutional commission; developing a toolkit of materials to be used 
in multiple training opportunities; and replicating a successful 
women's center that aims to facilitate engagement among women about how 
they can engage in political life. In addition to these new activities 
being developed, as mentioned above, USAID/OTI has already funded 
women's NGOs for the following projects: a constitutional workshop for 
government, political, and civil society leaders; a public awareness 
campaign to promote reconciliation, unity, and forgiveness as a means 
to move the nation toward a peaceful transition; and a youth training 
session that included a field visit to a local women's NGO.
    MEPI programs in the sphere of women's empowerment include: a 
program to help Libyan businesswomen and women entrepreneurs connect 
with their counterparts throughout the region; a National Democratic 
Institute-led candidate training for a group of aspiring women 
politicians; and a small grants and capacity-building program for 
several small women-led or women-focused civil society organizations. 
These organizations are working to combat discrimination against women, 
encourage the participation of Libyan housewives in the political 
process, support the advocacy efforts of women with disabilities and 
establish a women's training center.
    I applaud and support all of these programs and, if confirmed, 
would like to continue similar programming in support of women's 
political participation and the protection of women's rights in the new 
Libya.
                                 ______
                                 

            Responses of Jacob Walles to Questions Submitted
                        by Senator Barbara Boxer

    Question. As you know, the leaders of Tunisia's ruling al-Nahda 
Party have stated that they intend to uphold the country's progressive 
laws regarding women.
    However, many remain concerned about the future of women's rights 
in Tunisia, particularly in light of growing calls by hard-liners for 
an Islamic State.

   Do you believe that al-Nahda will uphold and protect women's 
        rights? Or are you concerned that they could make modifications 
        to the country's laws to appease more hard-line elements?
   If confirmed, will you commit to working with Tunisia's 
        leaders to encourage the promotion of women's rights in the 
        country's new constitution, and to convey the message that 
        women's rights are critical to security and prosperity in 
        Tunisia?

    Answer. As you note, the leaders of the an-Nahda Party have 
affirmed their intention to uphold and protect the rights Tunisian 
women are afforded under that country's constitution, as have other 
parties represented in Tunisia's current government.
    We believe that the majority of Tunisians support the rights 
Tunisian women enjoy. Those rights have long been a source of 
justifiable pride, and they are essential to Tunisia's future political 
and economic success.
    Equality under the law is a core tenet of our foreign policy. If 
confirmed, I will strongly convey the message that the advancement of 
women's rights and political and economic participation are critical to 
Tunisia's democracy and prosperity, and that these rights should 
continue to be enshrined in the Tunisian Constitution.

    Question. As you may know, Tunisia made gains regarding freedom of 
the press following the ouster of longtime Tunisian President Zine El 
Abedine Ben Ali. In fact, Tunisia rose 30 slots--from 164th to 134th--
on the Reporters without Borders ``2012 Press Freedom Index.''
    However, significant problems remain.
          1. Reporters without Borders has documented a number of 
        attacks by Tunisian police on independent journalists.
          2. A television station executive is facing trial and 
        possible jail time for screening the award-winning French film 
        Persepolis.
          3. And recently, the government provoked controversy when it 
        appointed two individuals associated with the Ben Ali regime to 
        senior posts in the State media.

   Are you concerned about these developments?
   If confirmed, will you commit to working to promote freedom 
        of the press in Tunisia?

    Answer. Freedom of the press is an important universal value that 
must be respected in order for Tunisia's transition to democracy to 
succeed. I understand that our Embassy has already registered with the 
highest levels of the Government of Tunisia our concern about these 
cases. Tunisia is making progress in its democratic transition, but 
such transitions are often difficult and they take time.
    If confirmed, I will continue to underscore our belief that freedom 
of expression is a fundamental human right and key to Tunisia's 
democratic success.
    I will also continue our efforts to invest in Tunisia's capacity to 
responsibly exercise that freedom, including through training Tunisian 
journalists on the fundamentals of responsible, fact-based reporting.
                                 ______
                                 

            Response of Carlos Pascual to Question Submitted
                     by Senator Benjamin L. Cardin

    Question. The SEC will soon issue rules to implement section 1504 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act. How 
will you use the example set by the United States on this issue to 
further encourage transparency in the extractive sector in other 
countries? In particular, in your new role, will you place a priority 
on encouraging EU progress on their similar legislation? Also, will you 
place a priority on encouraging an extractives transparency agenda 
within the G20 and other forums? Please describe your plans and 
strategy on this issue.

    Answer. As Secretary Clinton underscored in recent testimony, the 
State Department will use its full diplomatic capabilities to encourage 
transparency in extractive industries around the world. Once the SEC 
issues the rules to implement section 1504, if confirmed, we will help 
educate other nations about the changes in U.S. law and explain how the 
new rules may affect countries and companies around the globe. Already 
we have taken advantage of excellent materials written by 
nongovernmental organizations on section 1504 and shared them with the 
EU and many countries with extractive industries in order to sensitize 
them to the legislation, its scope and importance. When the SEC's rules 
are issued, we will consult with these transparency organizations and 
draw on their materials and other publicly available information. We 
will use our extensive network of embassies to educate host governments 
and corporations about the existence and application of the Wall Street 
Reform and Consumer Protection Act. In addition, if confirmed, I will 
work through our posts overseas to help host governments create the 
necessary conditions for companies listed in the United States to be 
compliant with U.S. law.
    The State Department has engaged senior European Union officials on 
the Dodd-Frank Act since September 2011 in anticipation of SEC rules. 
EU representatives and parliamentarians are well aware of our interest 
in creating a common platform for transparency. With issuance of SEC 
rules, ENR proposes to engage EU officials on compatibility with 
possible EU regulations. Similarly, we will work with the G20 to 
advance the principles in Dodd-Frank, building on the strong 
anticorruption platform already created in the G20. The Seoul G20 in 
2010 set up an Anticorruption Working Group that provides an excellent 
vehicle to seek action by others comparable to Dodd-Frank.
    Already, the 2010 G20 Seoul Anticorruption Action Plan commits 
countries ``to promote integrity, transparency, accountability and the 
prevention of corruption, in the public sector, including in the 
management of public finances'' and to combat corruption in specific 
sectors. We will use the G20 Anticorruption Working Group to drill down 
to actionable steps, including in the critical areas of transparency 
and integrity in public procurement, fiscal transparency, adoption and 
enforcement of laws criminalizing foreign bribery, and public integrity 
measures.
    Our promotion of transparency around the world is supported by the 
example we set here at home. In addition to Dodd-Frank, the President 
recently announced our intention to implement the Extractive Industries 
Transparency Initiative in the United States. This international effort 
results in disclosure by companies of payments they make to 
governments, and by governments of payments they receive from 
companies. As the United States moves to become an EITI candidate 
country itself, we will look to encourage other members of the G20 to 
join the EITI as well. Moreover, through the Open Government 
Partnership (OGP), we are urging many of the more than 40 countries now 
developing national action plans to include EITI or other extractive 
industry transparency efforts in their plans.

 
NOMINATIONS OF TRACEY ANN JACOBSON, RICHARD B. NORLAND, KENNETH MERTEN, 
                 MARK A. PEKALA, AND JEFFREY D. LEVINE

                              ----------                              


                       WEDNESDAY, MARCH 21, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Tracey Ann Jacobson, of the District of Columbia, to be 
        Ambassador to the Republic of Kosovo
Hon. Richard B. Norland, of Iowa, to be Ambassador to Georgia
Hon. Kenneth Merten, of Virginia, to be Ambassador to the 
        Republic of Croatia
Mark A. Pekala, of Maryland, to be Ambassador to the Republic 
        of Latvia
Jeffrey D. Levine, of California, to be Ambassador to the 
        Republic of Estonia
                              ----------                              

    The committee met, pursuant to notice, at 10:02 a.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Jeanne 
Shaheen, presiding.
    Present: Senators Shaheen, Cardin, Lugar, and Barrasso.

           OPENING STATEMENT OF HON. JEANNE SHAHEEN,
                U.S. SENATOR FROM NEW HAMPSHIRE

    Senator Shaheen. Good morning, everyone. My mike does work. 
I am delighted to welcome everyone here to the Senate Foreign 
Relations Committee hearing to consider the nominations of 
Tracey Ann Jacobson to be Ambassador to the Republic of Kosovo; 
Richard Norland to be Ambassador to Georgia; Kenneth Merten to 
be Ambassador to the Republic of Croatia; Mark Pekala to be 
Ambassador to the Republic of Latvia; and, Jeffrey Levine to be 
Ambassador to the Republic of Estonia.
    I am the person conducting this hearing this morning, 
because I chair the European Affairs Subcommittee, and I am 
very honored to have the ranking member of the full Foreign 
Relations Committee, Senator Dick Lugar, here as part of this 
hearing. You are all career diplomats, so you know that usually 
there are not a lot of Senators who come to these hearings, and 
that that is not a bad thing. [Laughter.]
    So we're delighted to be here with all of you today.
    Our nominees have been appointed to take on critical 
ambassadorial positions in countries throughout Europe and the 
Caucasus. Each of these posts will be important in 
strengthening U.S. influence and safeguarding American 
interests.
    I want to congratulate all of you on your nominations and 
welcome you and your families here today as we discuss the 
challenges and opportunities that you may face as you take on 
these new
responsibilities.
    Over the last 6 decades, the transatlantic community has 
committed itself to building the Europe that is whole, free, 
and at peace. The countries represented here today reflect the 
progress that we have made and the force for reform that 
institutions like NATO and the European Union have played over 
the last half century.
    However, as we will no doubt hear from our witnesses, the 
job is far from done, and we still have many challenges before 
us.
    Latvia and Estonia are relatively young but active and 
influential members of NATO and the EU. As Baltic countries, 
they are a testament to the success of the West's open-door 
policies and have led the charge among other post-Soviet states 
to promote democracy and Euro-Atlantic integration.
    In addition, Estonia has recently met its NATO commitments 
to spend 2 percent of its GDP on defense, an impressive feat 
considering that only three of the 28 NATO countries have met 
that commitment in 2011.
    Croatia, already a member of NATO, is slated to become the 
28th member of the EU next summer. Though it continues to 
struggle with economic difficulties and some corruption at 
home, Croatia stands as a model for the rest of the countries 
of the Western Balkans. And I hope that it will maintain its 
leadership in the region and continue to play a positive role 
in moving Serbia, Kosovo, Bosnia, and others toward EU 
integration.
    Since the Rose Revolution in 2003, Georgia has made 
tremendous progress on its reform agenda and today seeks full 
Euro-Atlantic integration.
    It is punching well above its weight, to use a boxing term, 
as a NATO partner country in Afghanistan and will soon be the 
largest per capita contributing nation in that fight.
    Georgia deserves to see some forward movement on its 
membership aspirations at the upcoming NATO summit in Chicago.
    Still, we must continue to emphasize the importance of 
Georgia continuing down the path of democratic reform, and the 
upcoming elections will be a critical test for the 
sustainability of Georgia's democratic future.
    Kosovo faces many daunting challenges beyond its struggle 
for international recognition, including unemployment, weak 
rule of law, corruption, and challenging relations with its 
neighbor Serbia.
    Both Kosovo and Serbia have made some difficult yet 
necessary decisions to engage each other in technical dialogue 
over the last year. The progress made under the EU-sponsored 
talks allowed both countries to move further down the path to 
future EU membership earlier this year, a welcome development 
after some violence in northern Kosovo last summer.
    Our diplomats working closely with our European colleagues 
must do more to creatively engage on the Serbia-Kosovo issue 
and work to find a long-term solution to the challenge of 
northern Kosovo.
    Again, I want to thank each of you for your willingness to 
take on these important and challenging posts, and I will just 
introduce each of you briefly, and then I'll turn it over to 
you for your testimony.
    First today we have Ambassador Tracey Ann Jacobson, who has 
been nominated to be the U.S. Ambassador to Kosovo. Ambassador 
Jacobson is the Deputy Director of the Foreign Service 
Institute. Prior to her tenure there, she served as U.S. 
Ambassador to both Tajikistan and Turkmenistan.
    Next we have Ambassador Richard Norland, our nominee for 
the post in Georgia. Ambassador Norland currently serves as the 
international affairs adviser and deputy commandant at the 
National War College and was previously the U.S. Ambassador to 
Uzbekistan.
    We also have Ambassador Kenneth Merten, the President's 
choice to be the Ambassador to Croatia. Ambassador Merten has a 
distinguished 25-year career in the Foreign Service and has 
served throughout Europe, in Central and South America, and is 
currently our Ambassador to Haiti.
    Mr. Mark Pekala has been nominated to take up the post in 
Latvia. Mark is currently a director in the Bureau of Human 
Resources and has served previously as the deputy chief of 
mission in France and the Deputy Assistant Secretary of State 
for Europe. This will be Mr. Pekala's first ambassadorial 
posting.
    And finally, we have Jeffrey Levine, who has been nominated 
to be the U.S. Ambassador to Estonia. Mr. Levine has served in 
a number of countries throughout Europe and is currently the 
Director of Recruitment, Examination, and Employment at the 
State Department. This will be his first ambassadorial posting 
as well.
    Again, thank you all for being here, for your willingness 
to serve, and I hope that you will feel free to introduce any 
family or friends who may be here with you this morning.
    Ambassador Jacobson.

   STATEMENT OF HON. TRACEY ANN JACOBSON, OF THE DISTRICT OF 
      COLUMBIA, TO BE AMBASSADOR TO THE REPUBLIC OF KOSOVO

    Ambassador Jacobson. Thank you. I would like to introduce 
the Kosovo desk officer, Wendy Brafman, and my very good 
friend, Susan Bauer, from State, Dave Recker from Justice, and 
Lt. Zac Schneidt from the Marines, and in absentia, my partner, 
David Baugh, who serves at the British Embassy in Kabul.
    Madam Chairwoman, Senator Lugar, members of the committee, 
I am honored to appear before you as President Obama's nominee 
to be the third U.S. Ambassador to the Republic of Kosovo.
    I have had the privilege of serving twice as U.S. 
Ambassador to Turkmenistan and Tajikistan, where my teams and I 
worked successfully on a range of issues, including the 
promotion of democracy and human rights, economic development, 
and security cooperation. I believe these and other experiences 
have prepared me well to be the chief of mission in Kosovo.
    This administration, as the one before it, has consistently 
made clear its commitment to Kosovo's sovereignty, territorial 
integrity, and independence, and its integration into regional 
and international institutions. This commitment will be the 
guiding principle of my mission as well, if confirmed.
    After 4 years of independence, Kosovo has come a long way. 
It is now recognized by 87 countries and is a member of the 
World Bank and International Monetary Fund. It is likely to 
meet another benchmark this year, with the end of supervised 
independence and the closure of the International Civilian 
Office.
    The goal of completing the integration of the Balkans into 
a Europe whole, free, and at peace has been an overarching, 
nonpartisan approach by successive U.S. Governments since the 
1990s. Euro-Atlantic integration remains a top policy priority 
in our relationship with Kosovo as with all its neighbors, 
because this will promote necessary domestic reform and 
regional cooperation.
    Kosovo has made several concrete steps toward this future 
recently. In January, Kosovo and its partners welcomed the 
European Commission's intention to launch a visa liberalization 
dialogue. And in March, it welcomed the decision to launch a 
feasibility study for a stabilization and association 
agreement.
    The EU consensus decisions in December of last year and 
February of this year mean that all members of the European 
Union, even those that have not recognized Kosovo's 
independence, see that its progress of the European path is 
good for the region and good for Europe as a whole.
    Kosovo's relations with its neighbors, in particular 
Serbia, are key to regional stability and cooperation. That is 
why the United States has fully backed the ongoing EU-sponsored 
dialogue between Serbia and Kosovo, which has resulted in 
significant achievement since it was launched last March.
    The two sides have been able to conclude a series of 
agreements that will improve the daily lives of citizens in 
both countries, to include the restoration of two-way trade, 
mutual recognition of university diplomas, and free movement 
across each other's borders.
    The political leadership in Kosovo has shown maturity and 
foresight in taking some tough decisions to reach these 
agreements, which were not without their domestic critics.
    I believe this political will is also motivated by an 
understanding that Serbia's progress on its European path is 
good for Kosovo, too.
    The United States has been able to consistently support 
Kosovo every step of the way, as it has demonstrated a forward-
looking approach. And if confirmed, I will ensure that we 
continue to support Kosovo's positive development.
    Kosovo faces a daunting agenda with many pressing reform 
priorities. The United States must continue to focus on 
Kosovo's progress as a multiethnic democracy, ensuring respect 
for the rights of all of its communities--Kosovo Serbs, Roma, 
and others--and protection and preservation of their cultural 
and religious heritage.
    Kosovo's reform agenda also includes tackling corruption, 
cementing the rule of law, further developing the energy 
sector, removing barriers to business and investment, and 
strengthening public administration to improve governance.
    NATO's Kosovo Force, KFOR, remains a relevant and crucial 
presence in Kosovo, as it helps to maintain, in accordance with 
its mandate, a safe and secure environment throughout the 
country. Its role has been particularly challenging in northern 
Kosovo, where tensions have run high and where hard-line Serb 
elements continue to deny Kosovo's authority and full freedom 
of movement to the international community.
    On occasion, these tensions have escalated into violence, 
resulting in injuries to Kosovo troops, including Americans. 
Given this situation, it is likely that KFOR staffing will 
remain at current levels for the foreseeable future.
    A solution to the situation in the north and normalization 
of relations requires a durable modus vivendi that respects 
Kosovo's sovereignty, takes into account the opinions of the 
citizens of the north, and allows both Serbia and Kosovo to 
make progress on their respective European paths.
    Madam Chairwoman, if confirmed, I will work with you, 
members of this committee and Congress, the Government and 
people of Kosovo, our European allies, the EU Rule of Law 
Mission, NATO, the OSCE, and the U.N., as well as our regional 
partners, to meet our shared goal of building a more stable, 
democratic, peaceful, and prosperous Balkan region.
    I would like to emphasize, as I've done before this 
committee before, that, if confirmed, I will not only be 
President Obama's representative, but also the leader of an 
interagency team, and I will take seriously my obligation to 
ensure a positive, productive, and safe environment for the 
people of my mission.
    Thank you for the opportunity to appear before you today, 
and I look forward to answering any questions you may have.
    [The prepared statement of Ambassador Jacobson follows:]

               Prepared Statement of Tracey Ann Jacobson

    Madam Chairman, members of the committee, I am honored to appear 
before you today as President Obama's nominee to be the third United 
States Ambassador to the Republic of Kosovo.
    I have had the privilege of serving twice as U.S. Ambassador--to 
Turkmenistan and Tajikistan--where my teams and I worked successfully 
on a range of issues including the promotion of democracy and human 
rights, economic development, and security cooperation. Prior to that I 
was deputy chief of mission in Latvia, where my main focus was to 
support Latvia's Euro-Atlantic aspirations. I believe these experiences 
have prepared me well to serve as chief of mission in Kosovo.
    This administration, as the one before it, has repeatedly made 
clear its commitment to Kosovo's sovereignty, territorial integrity and 
independence, and its integration into regional and international 
institutions. This commitment will be the guiding principle of my 
mission, if I am confirmed. After 4 years of independence, Kosovo has 
come a long way. It is now recognized by 86 countries and is a member 
of the World Bank and International Monetary Fund. Kosovo will likely 
reach a major benchmark with the end of supervised independence and the 
closure of the International Civilian Office this year. The 
International Steering Group must first determine that Kosovo has 
adopted the constitutional and legislative amendments to ensure that 
key principles of the Comprehensive Status Proposal are incorporated 
and preserved, and progress on this is well underway.
    The goal of completing the integration of the Balkans into a Europe 
whole, free, and at peace has been the overarching, nonpartisan 
approach of successive U.S. administrations since the 1990s. Euro-
Atlantic integration remains a top policy priority in our relationship 
with Kosovo, as with all its neighbors, because this will promote 
necessary domestic reforms and regional cooperation. Kosovo has 
recently made several concrete steps in its advancement toward this 
future. This year, Kosovo and its partners welcomed the European 
Commission's launch of a visa liberalization dialogue and the 
announcement of its intention to launch a Feasibility Study for a 
Stabilization and Association Agreement. The European Union (EU) 
consensus decisions taken in February and last December mean that all 
EU members, even the five that have not recognized Kosovo's 
independence, believe that Kosovo's progress on a European path is good 
for the region and for Europe as a whole.
    Kosovo's relations with its neighbors, in particular Serbia, are 
crucial to regional stability and integration. This is why the United 
States has fully backed the ongoing EU-facilitated dialogue between 
Kosovo and Serbia, which has achieved significant progress since its 
launch last March. The two sides have concluded several agreements that 
will improve the daily lives of the citizens of both countries, such as 
the restoration of two-way trade, mutual recognition of university 
diplomas, and the ability to move freely across each others' borders. 
The political leadership in Kosovo has shown maturity and foresight in 
making some tough decisions to reach these agreements, which have not 
been without domestic critics. I believe the political will shown by 
Kosovo's leadership to reach practical agreements with its neighbor is 
also motivated by the understanding that Serbian progress on its 
European path is good for Kosovo, too. The United States was able to 
support Kosovo every step along this way, as it demonstrated maturity 
and a forward-looking approach. If confirmed, I will ensure that the 
U.S. Government continues that support and backing for Kosovo's 
positive development.
    In the development of its democracy, Kosovo has a daunting agenda 
with many pressing reform priorities. The United States must continue 
to focus on advancing Kosovo's progress as a multiethnic democracy, 
ensuring respect for the rights of all of Kosovo's communities--Kosovo 
Serbs, Roma, and others--and the preservation of their cultural and 
religious heritage. Kosovo's reform agenda also includes tackling 
corruption, cementing rule of law, further developing the energy 
sector, reducing barriers to business and investment, and strengthening 
public administration to improve governance.
    Like other post-socialist societies, Kosovo still has much to do in 
developing the conditions for sustained, private sector-led expansion. 
It must reduce redtape, decentralize decisionmaking authority, and--
most importantly--ensure an independent judiciary and efficient court 
system to see that investors have legal certainty and timely resolution 
of disputes. There are some promising signs: as annual economic growth 
continues, spending remains within budgetary limits and inflation is 
stable.
    NATO's Kosovo Force (KFOR) remains a relevant and crucial presence 
in Kosovo, helping to maintain, pursuant to its mandate, a safe and 
secure environment throughout the country. Its role has been 
particularly challenging in northern Kosovo, where the tensions have 
run high, and hard-line Serb elements deny Kosovo's authority and the 
full freedom of movement for the international community. On several 
occasions, this tension has escalated to violence, resulting in 
injuries to several KFOR troops, including Americans. Given this 
situation, KFOR will likely remain at current troop levels for the 
foreseeable future. A solution to the situation in the north and 
normalization of relations require a durable modus vivendi that 
respects Kosovo's sovereignty, takes into account the views of the 
citizens of the north, and allows both Kosovo and Serbia to proceed on 
their respective Euro-Atlantic paths.
    Madam Chairman, if confirmed, I will work with you, members of this 
committee and Congress, the Government and people of Kosovo, our 
European allies, the EU Rule of Law Mission (EULEX), NATO, the OSCE and 
the U.N., as well as regional partners to meet our shared goal of 
building a more stable, democratic, peaceful and prosperous Balkan 
region.
    In my current position as the Deputy Director of the Foreign 
Service Institute, I have the privilege to mentor students at all 
levels from 47 government agencies. So I would like to emphasize, as I 
have during previous appearances before this committee, that if 
confirmed I will be not only the President's representative to Kosovo, 
but also the leader of an interagency team, and I will take seriously 
my responsibility to ensure a positive, productive, safe environment 
for the people of my mission.
    Thank you for the opportunity to appear before this committee 
today. I look forward to answering any questions you may have.

    Senator Shaheen. Thank you very much.
    Ambassador Norland.

         STATEMENT OF HON. RICHARD B. NORLAND, OF IOWA,
                  TO BE AMBASSADOR TO GEORGIA

    Ambassador Norland. Thank you, Madam Chairman, Senator 
Lugar.
    First, let me introduce my wife, Mary Hartnett, who's here 
with us today. And let me also thank Georgia desk officers, 
K.G. Moore and Laura Hammond for their help in preparing me for 
this testimony.
    It is a privilege to appear before you today as President 
Obama's nominee to serve as the U.S. Ambassador to Georgia. I 
am honored by the confidence placed in me by the President and 
by Secretary Clinton, and if confirmed, I look forward to 
working with this committee and the Congress in advancing 
United States interests in Georgia.
    Madam Chairman, we meet today on the eve of the 20th 
anniversary of United States-Georgia relations, which were 
established on March 24, 1992. As President Obama noted during 
President Saakashvili's visit to Washington earlier this year, 
Georgia has made extraordinary progress during this time in 
transforming itself from a fragile state to one that has 
succeeded in significantly reducing petty corruption, 
modernizing state institutions and services, and building a 
sovereign and democratic country.
    Georgia has also demonstrated itself to be a reliable 
partner on issues of importance to the United States and the 
international community, such as Afghanistan, nonproliferation, 
and trade.
    Much works remains to be done, however, as you pointed out. 
And if confirmed, I will build on the tremendous efforts of my 
predecessor, Ambassador John Bass, and of this committee and 
your colleagues in Congress to deepen our partnership with the 
Government and people of Georgia in these and other areas.
    Of paramount importance, I want to emphasize that the 
United States commitment to Georgia's territorial integrity and 
sovereignty remains steadfast. The United States will continue 
to take an active role in the Geneva discussions to address 
security and humanitarian concerns, and to pursue a peaceful 
resolution to the conflict. I experienced these challenges 
firsthand while serving in Georgia and working on conflict 
issues there in the early 1990s. The United States will 
continue efforts to persuade Russia to fulfill its 2008 cease-
fire obligations, while also working on the essential task of 
improving broader Georgia-Russia relations.
    Equally significant will be the strengthening of democratic 
institutions and processes in Georgia, especially in light of 
parliamentary elections this fall and Presidential elections in 
2013.
    The elections provide Georgia with an extraordinary 
opportunity to realize its first peaceful and fully democratic 
transfer of power. Free and fair elections will bring Georgia 
closer to Euro-Atlantic standards and integration. To get 
there, the Georgian Government will have to build on reforms 
made to date to foster greater political competition, labor 
rights, judicial independence, and media access.
    I strongly believe that advancing our key interests in 
Georgia's long-term security and stability is directly linked 
to the Government's furthering democratic reforms.
    As President Obama indicated, the United States continues 
to support Georgia's NATO membership aspirations. The Chicago 
summit is indeed an opportunity to highlight Georgia's progress 
toward meeting membership criteria as well as its significant 
partnership contributions. As you pointed out, Georgia 
currently contributes some 850 troops to ISAF and plans to 
deploy another 750 troops this fall, which will make it the 
largest non-NATO contributor.
    As a former deputy chief of mission in Kabul, I am keenly 
aware of the importance of our mission to help the Afghan 
people and of the hostile environment in Helmand province, 
where brave Georgian troops operate without caveats.
    Georgian soldiers and their families have also made 
extraordinary sacrifices with, sadly, 15 soldiers killed in 
action and more than 100 wounded, many severely. The United 
States will continue to work with the Georgian Government to 
care for the wounded soldiers.
    Sustaining robust bilateral security and defense 
cooperation with Georgia also will remain a high priority, if I 
am confirmed. Our plans for security assistance and military 
engagement with Georgia are to support Georgia's defense 
reforms, to train and equip Georgian troops for participation 
in the ISAF mission, and to advance Georgia's NATO 
interoperability.
    Both Presidents agreed in January to enhance these programs 
to advance Georgian military modernization, reform, and self-
defense capabilities. Economic linkages to the wider world have 
long formed the lifeblood of the Caucuses region.
    And if confirmed, I will also work to deepen economic and 
trade relations between the United States and Georgia. 
President Obama took our relations in this area to a new level 
in January when he announced the launch of a high-level 
dialogue to strengthen trade ties, including the possibility of 
a free trade agreement.
    In the interest of time, Madam Chairman, my testimony has 
been submitted for the record. I will close by saying that, 
taken together, these efforts will help bring Georgia closer to 
achieving its Euro-Atlantic integration goals. And if 
confirmed, I pledge to do my very best to advance U.S. 
interests there. Thanks very much for considering my 
nomination, and I look forward to your questions.
    [The prepared statement of Ambassador Norland follows:]

                Prepared Statement of Richard B. Norland

    Madam Chairman and members of the committee, it is a privilege to 
appear before you today as President Obama's nominee to serve as the 
United States Ambassador to Georgia. I am honored by the confidence 
placed in me by President Obama and Secretary Clinton. If confirmed, I 
look forward to working with this committee and the Congress in 
advancing U.S. interests in Georgia. I am pleased to introduce my wife, 
Mary Hartnett.
    Madam Chairman, we meet today on the eve of the 20th anniversary of 
United States-Georgia relations, which were established on March 24, 
1992. As President Obama noted during President Saakashvili's visit to 
Washington earlier this year, Georgia has made extraordinary progress 
during this time in transforming itself from a fragile state to one 
that has succeeded in significantly reducing petty corruption, 
modernizing state institutions and services, and building a sovereign 
and democratic country. Georgia has also demonstrated itself to be a 
reliable partner on issues of importance to the United States and the 
international community, such as Afghanistan, nonproliferation, and 
trade. Much work remains to be done, however, and if confirmed, I will 
build on the tremendous efforts of my predecessor, Ambassador John 
Bass, and of this committee and your colleagues in the Congress, to 
deepen our partnership with the government and people of Georgia in 
these and other areas.
    Of paramount importance, I want to emphasize that the United States 
commitment to Georgian territorial integrity and sovereignty remains 
steadfast. The United States will continue to take an active role in 
the Geneva discussions to address security and humanitarian concerns, 
and to pursue a peaceful resolution to the conflict. I experienced 
these challenges first-hand while serving in Georgia and working on 
conflict issues there in the early 1990s. The United States will 
continue efforts to persuade Russia to fulfill its 2008 cease-fire 
commitments, while also working on the essential task of improving 
broader Georgia-Russia relations.
    Equally significant will be the strengthening of democratic 
institutions and processes in Georgia, especially in light of 
parliamentary elections this fall and Presidential elections in 2013. 
The elections provide Georgia with an opportunity to realize its first 
peaceful and fully democratic transfer of power. Free and fair 
elections will bring Georgia closer to Euro-Atlantic standards and 
integration. To get there, the Georgian Government will have to build 
on reforms made to date to foster greater political competition, labor 
rights, judicial independence and media access. I strongly believe that 
advancing our key interest in Georgia's long-term security and 
stability is directly linked to the government's furthering democratic 
reforms.
    As President Obama indicated, the United States continues to 
support Georgia's NATO membership aspirations. The Chicago summit is an 
important opportunity to highlight Georgia's progress toward meeting 
membership criteria as well as its significant partnership 
contributions. Georgia currently contributes some 850 troops to ISAF 
and plans to deploy another 750 troops this fall, which will make it 
the largest non-NATO contributor. As a former deputy chief of mission 
in Afghanistan I am keenly aware of the importance of our mission to 
help the Afghan people, and of the hostile environment in Helmand 
province where brave Georgian troops operate without caveats. Georgian 
soldiers and their families have also made extraordinary sacrifices 
with 15 soldiers killed in action and more than 100 wounded, many 
severely. The United States will continue to work with the Georgian 
Government to care for their wounded soldiers.
    Sustaining robust bilateral security and defense cooperation with 
Georgia will also remain a high priority if I am confirmed. Our plans 
for security assistance and military engagement with Georgia are to 
support Georgia's defense reforms, to train and equip Georgian troops 
for participation in ISAF operations, and to advance Georgia's NATO 
interoperability. Both Presidents agreed in January to enhance these 
programs to advance Georgian military modernization, reform, and self 
defense capabilities.
    Economic linkages to the wider world have long formed the lifeblood 
of the Caucasus region, and, if confirmed, I will also work to deepen 
economic and trade cooperation between the United States and Georgia. 
President Obama took our relations in this area to a new level in 
January when he announced the launch of a high-level dialogue to 
strengthen trade relations, including the possibility of a free trade 
agreement. Through this dialogue our two countries can pursue 
cooperation that will benefit both U.S. and Georgian citizens alike. 
With the support of Congress we can continue to help Georgia strengthen 
rule of law, provide commercial and judicial training, and improve 
investment protections through continued U.S. assistance. Finally, 
building on Georgia's successful first Millennium Challenge Corporation 
(MCC) compact, I will also continue the work being done to develop a 
second compact proposal that, if completed, will make significant 
investments in the Georgian people through education.
    Madam Chairman, taken together, these efforts will help bring 
Georgia closer to achieving its Euro-Atlantic integration goals and, if 
confirmed, I pledge to do my very best to advance U.S. interests there. 
Thank you very much for considering my nomination, and I look forward 
to your questions.

    Senator Shaheen. Thank you.
    Ambassador Merten.

        STATEMENT OF HON. KENNETH MERTEN, OF VIRGINIA, 
          TO BE AMBASSADOR TO THE REPUBLIC OF CROATIA

    Ambassador Merten. Madam Chairwoman, members of the 
committee, it is a privilege to appear before you today as 
President Obama's nominee to serve as the U.S. Ambassador to 
Croatia. I am honored by the confidence placed in me by the 
President and the Secretary of State.
    If confirmed, I look forward to working with this committee 
and the Congress in advancing U.S. interests in Croatia.
    I am delighted and proud to be accompanied today by desk 
officer, Susan McFee, who is behind me there, and by my wife, 
Susan, and my daughter, Elisabeth. Sadly, my daughter, Caryl, 
could not get away from university today in Charlottesville to 
join us.
    We have been a Foreign Service family for over 20 years and 
have all felt proud to be given the chance to represent the 
United States at postings in Germany, France, the U.S. mission 
to the European Union, and three times in Haiti.
    As you are aware, my current assignment in Haiti has been 
slightly more eventful than we had hoped, but I am proud of the 
way my family and my colleagues at the Embassy responded 
following the earthquake to come to the aid of the Haitian 
people and to evacuate over 16,000 American citizens.
    While I hope not to face any similar crises in Croatia, my 
experience in Haiti demonstrates that I am an effective manager 
of people and resources, critical for any chief of mission.
    Our bilateral relationship with Croatia has never been 
stronger. In fact, this afternoon, Secretary Clinton will meet 
with Foreign Minister Vesna Pusic to discuss our many common 
interests and how we will further strengthen our partnership 
under Croatia's new government. Just a few weeks ago, Attorney 
General Holder met with his Croatian counterpart to discuss our 
cooperation on rule-of-law issues. We have a robust military-
to-military relationship. And next month, we will host the 
second Brown Forum, a regional conference held in honor of 
former Commerce Secretary, Ron Brown, focused on how to create 
positive conditions for increased trade and investment among 
the United States, Croatia, and the region. And these are only 
a few examples to illustrate our strong ties.
    Croatia has made remarkable progress in only two decades 
since independence, becoming a NATO member in 2009, and now 
standing on the threshold of the European Union with full EU 
membership expected in 2013. The citizens of Croatia deserve to 
be congratulated for all they have accomplished.
    Croatia's success in implementing often difficult reforms 
and creating a strong democratic society demonstrate that it is 
positioned to serve as a role model and a leader in the region 
for European and Euro-Atlantic integration.
    Indeed, the United States supports the positive decisions 
Croatia has made to improve regional cooperation. We also 
encourage Croatian leaders to continue their efforts toward 
good neighborly relations and to continue working with 
neighbors to address bilateral and regional challenges, such as 
refugees and transnational crime.
    As an international partner, Croatia has proven itself to 
be an active and committed NATO ally, as evidenced by its 
important contributions to global security, particularly in 
ISAF, KFOR, and U.N. peacekeeping missions.
    While Croatia has come a great distance in terms of 
democratic progress, there is more to be done. The Croatian 
economy continues to be challenged by high unemployment and 
anemic growth. This reflects both the global economic crisis 
and domestic challenges. The recently elected Government 
recognizes the urgent need for economic reform, and the United 
States will support Croatia's efforts to undertake those 
reforms to improve the business and investment climate so that 
sustainable economic growth and prosperity can be achieved. 
This in turn can be the basis for expanding our economic and 
trade relations.
    If I am confirmed, I will seek to forge an even stronger 
partnership with Croatia, building on the excellent work of our 
outgoing Ambassador, James Foley, and our country team in 
Zagreb.
    My foremost priority as Ambassador will be promoting United 
States interests in Croatia while pursuing our goals of 
strengthening the rule of law, fighting corruption, promoting 
economic growth and prosperity, reinforcing democratic 
institutions, and promoting regional security. I will actively 
seek to deepen our strategic alliance through NATO, ISAF, the 
Adriatic Charter, and other cooperative means.
    I will also work closely with our EU partners to help 
Croatia complete the few remaining accession requirements. I 
look forward to Croatia's celebrating its full EU membership in 
2013.
    Madam Chairwoman and members of the committee, thank you 
for this opportunity to appear before you today. I will be 
pleased to answer any questions you have.
    [The prepared statement of Ambassador Merten follows:]

                Prepared Statement of Kenneth H. Merten

     Madam Chairman and members of the committee, it is a privilege to 
appear before you today as President Obama's nominee to serve as the 
United States Ambassador to the Republic of Croatia. I am honored by 
the confidence placed in me by the President and Secretary Clinton. If 
confirmed, I look forward to working with this committee and the 
Congress in advancing U.S. interests in Croatia.
    I am delighted and proud to be accompanied today by my wife, Susan, 
and my daughter, Elisabeth. My daughter, Caryl, could not get away from 
university in Charlottesville to join us. We have been a Foreign 
Service family for over 20 years and have all felt proud to be given 
the chance to represent the United States at postings in Germany, 
France, at our mission to the European Union and three times in Haiti. 
As you are aware, my most recent assignment in Haiti was more eventful 
than we had hoped, but I am proud of the way my family and my 
colleagues at the Embassy responded following the earthquake, to come 
to the aid of the Haitian people and to evacuate over 16,000 American 
citizens. While I hope not to face any similar crises in Croatia, my 
experience in Haiti demonstrates that I am an effective manager of 
people and resources, critical for any chief of mission.
    Our bilateral relationship with Croatia has never been stronger. In 
fact, this afternoon Secretary Clinton will meet with Foreign Minister 
Vesna Pusic to discuss our many common interests and how we will 
further strengthen our partnership under Croatia's new government. Just 
a few weeks ago, Attorney General Holder met with his Croatian 
counterpart to discuss our cooperation on rule-of-law issues, including 
Croatia's ongoing efforts to root out corruption and bring suspected 
war criminals to justice. We have a robust military-to-military 
relationship, which includes a joint NATO unit in Afghanistan and the 
State Partnership Program with the Minnesota National Guard. Next 
month, we will host the second Brown Forum, a regional conference held 
in honor of former Commerce Secretary, Ron Brown, focused on how to 
create positive conditions for increased trade and investment among the 
United States, Croatia, and the region. And these are only a few 
examples to illustrate our strong ties.
    Croatia has made remarkable progress in only two decades since 
independence and a costly war, becoming a NATO member in 2009, and now 
standing on the threshold of the European Union, with full EU 
membership expected in 2013. The citizens of Croatia deserve to be 
congratulated for all they have accomplished. Croatia's success in 
implementing often difficult reforms and creating a strong democratic 
society demonstrate that it is positioned to serve as a role model and 
leader in the region for European and Euro-Atlantic integration.
    Indeed, the United States supports the positive decisions Croatia 
has made to improve regional cooperation. We also encourage Croatian 
leaders to continue their efforts toward good neighborly relations and 
to continue working with neighbors to address bilateral and regional 
challenges such as refugees and transnational crime. As an 
international partner, Croatia has proven itself to be an active and 
committed NATO ally, as evidenced by its important contributions to 
global security, particularly in the International Security Assistance 
Force (ISAF) in Afghanistan, the Kosovo Force (KFOR), and U.N. 
peacekeeping activities. These contributions to regional and global 
stability reflect our shared values and the depth of our partnership 
with Croatia.
    While Croatia has come a great distance in terms of democratic 
progress, there is more to be done. The Croatian economy continues to 
be challenged by high unemployment and anemic growth. This reflects 
both the global economic crisis and domestic challenges, including a 
cumbersome bureaucracy and an investment climate that needs to be much 
more welcoming to business. The recently elected Croatian Government 
recognizes the urgent need for economic reform. The United States will 
support Croatia's efforts to undertake reforms to improve the business 
and investment climate so that sustainable economic growth and 
prosperity can be achieved. This in turn can be the basis for expanding 
our economic and trade relations.
    If I am confirmed, I will seek to forge an even stronger 
partnership with Croatia, building on the excellent work of our 
outgoing Ambassador, James Foley, and our country team in Zagreb. My 
foremost priority as Ambassador will be promoting U.S. interests in 
Croatia while pursuing our goals of strengthening the rule of law, 
fighting corruption, promoting economic growth and prosperity, 
reinforcing democratic institutions, and promoting regional security. I 
will actively seek to deepen our strategic alliance through NATO, ISAF, 
the Adriatic Charter, and other cooperative means. I will also work 
closely with our EU partners to help Croatia complete the few remaining 
accession requirements and look forward to celebrating its full EU 
membership in 2013.
    Madam Chairman and members of the committee, thank you for this 
opportunity to appear before you. I would be pleased to answer any 
questions that you may have.

    Senator Shaheen. Thank you very much.
    Mr. Pekala.

           STATEMENT OF MARK A. PEKALA, OF MARYLAND, 
           TO BE AMBASSADOR TO THE REPUBLIC OF LATVIA

    Mr. Pekala. Thank you, Madam Chairwoman, distinguished 
manners of the committee. It is a genuine privilege to appear 
before you today, and I thank you.
    I am deeply grateful to President Obama and Secretary 
Clinton for their support and confidence in nominating me to be 
the next U.S. Ambassador to the Republic of Latvia.
    If confirmed by the Senate, I pledge to devote all my 
energy to represent the United States to the very best of my 
ability and to advance U.S. interests in Latvia, while further 
strengthening the partnership between our two countries.
    I am fully committed to working closely with this 
committee, your staff, and your congressional colleagues to 
advance our common objectives and shared agenda.
    With your permission, I would like to introduce my wife, 
Maria. We are the very happy and proud parents of Julia and 
Nora, age 10 and 7, who have spent nearly two-thirds of their 
lives overseas while Maria and I have tried our best represent 
the American people.
    I would also like to introduce and thank Julie-Anne 
Peterson, the Latvia desk officer at the State Department.
    Over the last 10 of my nearly 25 years of government as 
deputy chief of mission in France, deputy chief of mission in 
Estonia, and Deputy Assistant Secretary of State responsible 
for our bilateral relations with for 15 European countries, 
including Latvia, as well as director of the entry-level 
division of human resources at the State Department.
    I believe that these experiences have prepared me well, if 
confirmed, to lead our mission and to exercise American 
leadership in Latvia.
    Last year, Latvia celebrated the 20th anniversary of 
regaining its independence; 2012 will mark 90 years of unbroken 
diplomatic relations with our friend and ally.
    Since 1991, Latvia has embraced democracy and the 
principles of an open market; it is an excellent partner in a 
good environment in which to carry out the President's national 
export initiative dedicated to supporting U.S. businesses, 
increasing U.S. exports, and creating jobs in the United 
States.
    If confirmed, I will work with United States businesses to 
expand their markets into Latvia. United States exports to 
Latvia have been rising over the last 2 years, and recent 
successful advocacy by Embassy Riga on behalf of the American 
companies IBM and Datacard demonstrates that there is scope for 
expanded United States investment in the Latvian market.
    Latvia was hit extraordinarily hard by the economic crisis, 
losing nearly 25 percent of its GDP. But it has proven itself 
to be both resilient and innovative in meeting its economic 
obligations and finding creative ways to offer its expertise to 
its post-Soviet neighbors. After weathering its economic storm, 
Latvia is actively contributing to assistance projects in 
Moldova, including a rule-of-law program in cooperation with 
USAID.
    Latvia also provides training for Afghan railroad officials 
and is planning to participate in a training program for Afghan 
air traffic controllers.
    If confirmed, I will work with Latvia to continue this 
crucial development engagement.
    In 2004 Latvia joined NATO. It is a valued member of the 
alliance, contributing approximately 200 troops and police 
trainers in Afghanistan. In addition, the Latvian National 
Armed Forces have successfully developed a high-demand niche 
capability with their Joint Terminal Attack Controller, or JTAC 
program.
    Latvia is one of only six other allied countries certified 
to call in United States close air support on the battlefield.
    Standing with the alliance does not come without cost. 
Latvia has suffered the loss of four soldiers and had nine 
wounded during its years in Afghanistan. We are deeply grateful 
for Latvia's contributions and for its decision to remain with 
us in Afghanistan until 2014.
    As a native of Michigan, I am particularly proud of 
Latvia's partnership with the Michigan National Guard, now in 
its 20th year. In Afghanistan, Latvia successfully ran an 
operational mentoring and liaison team, or OMLT, with the 
Guard.
    Today, Latvia is once again is teaming up with its National 
Guard partners to train soldiers in Liberia, an effort that 
underlines not only how far Latvia has come in the 20 years 
since its regained its independence, but also its increasing 
focus and venturing outside its neighborhood to share the 
valuable lessons learned during its evolution from newly 
independent country to mature democracy.
    Although Latvia has made tremendous strides in democracy 
and the rule of law, it is still struggling to come to terms 
with some aspects of its past, particularly the legacies of 
World War II and Soviet rule.
    Latvia has work to do to promote social integration of its 
minority populations. We are encouraged to see the Latvian 
Government considering measures that would improve integration 
of this population. We hope that the recent language referendum 
can be used by both sides as a means to open a constructive 
dialogue between ethnic Russians and ethnic Latvians.
    If confirmed, I hope to use my position as Ambassador to 
support outreach efforts to all minority communities in Latvia.
    Should the Senate confirm my nomination, I will dedicate 
myself to protecting and advancing United States interests in 
Latvia.
    I thank you again for the privilege of appearing before you 
today, and I welcome any questions you may have.
    Thank you.
    [The prepared statement of Mr. Pekala follows:]

                   Prepared Statement of Mark Pekala

    Madam Chairman, distinguished members of the committee, it is a 
genuine privilege to appear before you today, and I thank you. I am 
deeply grateful to President Obama and Secretary Clinton for their 
support and confidence in nominating me to be the next U.S. Ambassador 
to the Republic of Latvia. If confirmed by the Senate, I pledge to 
devote all my energy to represent the United States to the very best of 
my ability and to advance U.S. interests in Latvia, while further 
strengthening the partnership between our two countries. I am fully 
committed to working closely with this committee, your staff, and your 
congressional colleagues to advance our common objectives and shared 
agenda.
    With your permission, I would like to introduce my wife, Maria. We 
are the very happy and proud parents of Julia and Nora, age 10 and 7, 
who have spent nearly two-thirds of their lives overseas while Maria 
and I have tried our best to represent the American people.
    Over the last 10 of my nearly 25 years of Government service, I 
have served as deputy chief of mission in France, deputy chief of 
mission in Estonia, and Deputy Assistant Secretary of State, 
responsible for our bilateral relations with 15 European countries, 
including Latvia, and as Director of the Entry-Level Division of Human 
Resources at the State Department. I believe that these experiences 
have prepared me well, if confirmed, to lead our mission--and to 
exercise American leadership--in Latvia.
    Last year, Latvia celebrated the 20th anniversary of regaining its 
independence; 2012 will mark 90 years of unbroken diplomatic relations 
with our friend and ally. Since 1991, Latvia has embraced democracy and 
the principles of an open market. It is an excellent partner and a good 
environment in which to carry out the President's National Export 
Initiative, dedicated to supporting U.S. businesses, increasing U.S. 
exports, and creating jobs in the United States. If confirmed, I will 
work with U.S. businesses to expand their markets into Latvia. U.S. 
exports to Latvia have been rising over the past 2 years, and recent 
successful advocacy by Embassy Riga on behalf of American companies IBM 
and DataCard demonstrates that there is scope for expanded U.S. 
investment in the Latvian market.
    Latvia was hit extraordinarily hard by the economic crisis, losing 
nearly 25 percent of GDP in the global economic crisis. But it has 
proven itself to be both resilient and innovative in meeting its 
economic obligations and finding creative ways to offer its expertise 
to its post-Soviet neighbors. After weathering its economic storm, 
Latvia is actively contributing to assistance projects in Moldova, 
including a rule of law program in cooperation with USAID. Latvia also 
provides training for Afghan railroad officials and is planning to 
participate in a training program for Afghan air traffic controllers. 
If confirmed, I will work with Latvia to continue this crucial 
development engagement.
    In 2004, Latvia joined NATO. It is a valued member of the alliance, 
contributing approximately 200 troops and police trainers in 
Afghanistan. In addition, the Latvian National Armed Forces have 
successfully developed a high-demand niche capability with their Joint 
Terminal Attack Controller (JTAC) program. Latvia is one of only six 
other allied countries certified to call in U.S. close air support on 
the battlefield. Standing with the alliance has not come without cost; 
Latvia has suffered the loss of four soldiers and had nine wounded 
during its years in Afghanistan. We are deeply grateful for Latvia's 
contributions and for its decision to remain with us in Afghanistan 
until 2014.
    As a native of Michigan, I am particularly proud of Latvia's 
partnership with the Michigan National Guard, now in its 20th year. In 
Afghanistan, Latvia successfully ran an Operational Mentoring and 
Liaison Team (OMLT) with the Guard. Today, Latvia is once again teaming 
up with its National Guard partners to train soldiers in Liberia--an 
effort that underlines not only how far Latvia has come in the 20 years 
since it regained its independence, but also its increasing focus on 
venturing outside its neighborhood to share the valuable lessons 
learned during its evolution from newly independent country to mature 
democracy.
    Although Latvia has made tremendous strides in democracy and rule 
of law, it is still struggling to come to terms with some aspects of 
its past, particularly the legacies of World War II and Soviet rule. 
Latvia has work to do to promote social integration of its minority 
populations. Almost a third of Latvia's residents are ethnic Russians, 
of whom just under 300,000 are noncitizens. We are encouraged to see 
the Latvian Government considering measures that would improve 
integration of this population; we hope that the recent language 
referendum can be used by both sides as a means to open a constructive 
dialog between ethnic Russians and ethnic Latvians. If confirmed, I 
hope to use my position as Ambassador to support outreach efforts to 
all minority communities in Latvia.
    Latvia is also making progress in coming to terms with the horrific 
events of the Holocaust, but more needs to be done. The restitution of 
private property is largely finished, but we need to see further 
progress on compensation for communal and heirless properties. If 
confirmed, I pledge to work diligently with the Government of Latvia 
and the local Jewish community to address Holocaust legacy and property 
restitution issues.
    Should the Senate confirm my nomination, I will dedicate myself to 
protecting and advancing U.S. interests in Latvia. I thank you again 
for the privilege of appearing before you today and I welcome any 
questions you may have.

    Senator Shaheen. Thank you very much.
    Mr. Levine.

        STATEMENT OF JEFFREY D. LEVINE, OF CALIFORNIA, 
          TO BE AMBASSADOR TO THE REPUBLIC OF ESTONIA

    Mr. Levine. Madam Chair, members of the committee, it is an 
honor to appear before you today as President Obama's nominee 
to be the next United States Ambassador to the Republic of 
Estonia. I'm grateful to the President and to Secretary Clinton 
for the trust they have placed in me.
    If confirmed, I will work tirelessly to advance the 
interests of the United States and further strengthen the 
already deep and productive relationship we enjoy with Estonia.
    Madam Chair, with me today are my wife, Janie, and son, 
Nick. I'm very fortunate to have a supportive family who has 
shared the joys and challenges of my 27-year Foreign Service 
career. Nick will be remaining in the United States to start 
college, but if I am confirmed, I hope he will share at least 
part of this adventure on school breaks.
    I also would like to introduce Rodney Hunter, the State 
Department's desk officer for Estonia.
    For nearly 50 years, the United States refused to 
acknowledge the illegal and forcible occupation of Estonia by 
the Soviet Union. Their regular statements of support that came 
from the White House and Congress served as signals of hope for 
Estonians both in Estonia and abroad. Since 1991 and the 
reestablishment of Estonia's independence, each American 
President and every Congress have continued the support as 
Estonia transformed itself from a Soviet satellite to the 
strong and reliable democratic ally that it is today.
    Estonia is a modern free-market success story. Even during 
the worldwide economic crisis, Estonia's fiscal and economic 
situation has steadily improved. After more than a year as a 
member of the eurozone, Estonia's economic situation is 
stronger than ever. In the midst of Europe's economic problems, 
Moody's upgraded Estonia's credit rating last year.
    Estonia is also sharing the benefits and lessons of its 
success with other democracies and nations in transition across 
the globe.
    Since it became a NATO ally in 2004, Estonia has shown 
unwavering support for shared objectives around the world. 
Estonian troops served with us in Iraq and continue to operate 
without caveats in southern Afghanistan.
    Estonia has expressed its commitment to stay on the ground 
as the NATO mission transforms into advice and assistance. This 
commitment will remain strong, though Estonia has paid a high 
price for the service with the lives of 11 of its brave 
soldiers in Iraq and Afghanistan, the second-highest per capita 
loss in Afghanistan of any ISAF partner.
    Estonia has also contributed to many other military 
missions, including Kosovo, Bosnia-Herzegovina, and the Horn of 
Africa. Estonia's military remains a force in transition, but 
one that is willing to take on dangerous missions side by side 
with American troops.
    Our support remains a crucial tool to help Estonia create a 
military even more capable of serving alongside United States 
forces in the future. Estonian soldiers and officers attend 
training in the United States and have proven themselves 
accomplished and knowledgeable partners on the ground in 
Afghanistan and around the world.
    As you noted, Estonia has also committed 2 percent of its 
GDP to defense spending, serving as a model for other allies 
and sharing the burden of our common security.
    Estonia is a world leader in information technology and an 
Estonian entrepreneur is the creator of Skype, now used around 
the world. It hosts the NATO Cyber-Security Center of 
Excellence in Tallinn, which the United States joined 
officially in 2011. Estonia's innovative Cyber Defense League 
works closely with the Maryland National Guard to boost cyber 
security in both our countries.
    In joint operations with the FBI and Secret Service, 
Estonia has been crucial in bringing a number of cyber 
criminals to justice in the United States.
    Estonia is also a pioneer in e-governance. In its last 
election, one quarter of Estonians voted online; electronic 
medical records are fully accessible from any doctor's office; 
and its citizens have unprecedented access to information about 
their government. Moreover, Estonia has willingly shared this 
expertise with more than 40 nations, from Tunisia to India to 
the Ukraine.
    If confirmed, I will work to continue our strong 
cooperation on cyber issues and find ways to leverage United 
States support of Estonia's endeavors to ensure that our 
assistance to young democracies, like Moldova, for example, is 
as effective as possible.
    The United States also welcomes Estonia's ongoing efforts 
to build strong communal relations among all Estonians, 
including the country's sizable Russian-speaking population.
    If confirmed, I hope to work closely with my public 
diplomacy colleagues in Washington and in the region to further 
utilize social media resources to better reach out to all in 
Estonia, including the Russian-speaking minority and especially 
the young people.
    Madam Chair, members of the committee, the history of 
relations between the American people and Estonia is one of 
trust and mutual support. Just as we stood side by side with 
the Estonian people during their difficult past, Estonians 
today are at our side as we meet common challenges and seize 
joint opportunities.
    Estonians are not just dependable allies and strong 
partners but also close friends of the American people. If 
confirmed, I will dedicate myself to advancing that friendship 
and promoting United States interests in Estonia to further our 
partnership.
    Thank you again for allowing me to appear before you today. 
I look forward to your questions.
    [The prepared statement of Mr. Levine follows:]

                Prepared Statement of Jeffrey D. Levine

    Madam Chairman, members of the committee, it is an honor to appear 
before you today as President Obama's nominee to be the next U.S. 
Ambassador to the Republic of Estonia. I am grateful to the President 
and to Secretary Clinton for the trust they have placed in me. If 
confirmed, I will work tirelessly to advance the interests of the 
United States and further strengthen the already deep and productive 
relationship we enjoy with Estonia.
    Madam Chairman, with me today are my wife, Janie, and son, Nick. I 
am indeed fortunate to have a supportive family who has shared the joys 
and challenges of my 27-year Foreign Service career. Nick will be 
remaining in the United States to start college but--if I am 
confirmed--I hope he will share at least part of this adventure on 
school breaks.
    For nearly 50 years, the United States refused to acknowledge the 
illegal and forcible occupation of Estonia by the Soviet Union. The 
regular statements of support that came from the White House and the 
Congress served as signals of hope for Estonians both in Estonia and 
abroad. Since 1991 and the reestablishment of Estonia's independence, 
each American President and every Congress have continued this support 
as Estonia transformed itself from a Soviet satellite to the strong, 
reliable, and democratic ally, that it is today.
    Estonia is a modern free-market success story. Even during the 
worldwide economic crisis, Estonia's fiscal and economic situation has 
steadily improved. After more than a year as a member of the eurozone, 
Estonia's economic situation is stronger than ever; in the midst of 
Europe's economic problems, Moody's upgraded Estonia's credit rating 
last year. Estonia is also sharing the benefits and lessons of its 
success with other democracies and nations in transition across the 
globe.
    Since it became a NATO ally in 2004, Estonia has shown unwavering 
support for our shared objectives around the world. Estonian troops 
served with us in Iraq and continue to operate without caveats in 
southern Afghanistan. Estonia has expressed its commitment to stay on 
the ground as the NATO mission transforms into advice and assistance. 
This commitment remains strong, though Estonia has paid a high price 
for this service with the lives of 11 of its brave soldiers in Iraq and 
Afghanistan, the second highest per capita loss in Afghanistan of any 
ISAF partner. Estonia has also contributed to many other military 
missions, including in Kosovo, Bosnia/Herzegovina, and the Horn of 
Africa.
    Estonia's military remains a force in transition, but one that is 
willing to take on dangerous missions, side by side with American 
troops. Our support remains a crucial tool to help Estonia create a 
military even more capable of serving alongside U.S. forces in the 
future. Estonian soldiers and officers attend training in the United 
States and have proven themselves accomplished and knowledgeable 
partners on the ground in Afghanistan and around the world. Estonia has 
also committed 2 percent of its GDP to defense spending, serving as a 
model for other allies in sharing the burden for our common security.
    Estonia is a world leader in information technology, and an 
Estonian entrepreneur is the creator of the Skype technology now used 
around the world. It hosts the NATO Cyber-Security Center of Excellence 
in Tallinn, which the United States joined officially in 2011. 
Estonia's innovative Cyber Defense League works closely with the 
Maryland National Guard to boost cyber security in both our countries. 
In joint operations with the FBI and Secret Service, Estonia has been 
crucial in bringing a number of cyber criminals to justice in the 
United States.
    Estonia is also a pioneer in e-governance. In its last election 
one-quarter of Estonians voted online, electronic medical records are 
fully accessible from any doctor's office, and its citizens have 
unprecedented access to information about their government. Moreover, 
Estonia has willingly shared this expertise with more than 40 nations, 
from Tunisia, to India, to Ukraine. If confirmed, I will work to 
continue our strong cooperation on cyber issues, and find ways to 
leverage U.S. support for Estonia's endeavors to ensure that our 
assistance to young democracies like Moldova, for example, is as 
effective as possible.
    The United States also welcomes Estonia's ongoing efforts to build 
strong communal relations among all Estonians, including the country's 
sizeable Russian-speaking population. If confirmed, I hope to work 
closely with my public diplomacy colleagues in Washington and in the 
region to further utilize ``social media'' resources to better reach 
out to all in Estonia, including the Russian-speaking minority and 
especially to young people.
    Madam Chairman, members of the committee, the history of relations 
between the American people and Estonians is one of trust and mutual 
support. Just as we stood side by side with the Estonian people during 
their difficult past, Estonians today are at our side as we meet common 
challenges and seize joint opportunities. Estonians are not just 
dependable allies and strong partners, but also close friends of the 
American people. If confirmed, I will dedicate myself to advancing that 
friendship and promoting U.S. interests in Estonia to further our 
partnership.
    Thank you again for allowing me to appear before you today. I look 
forward to your questions.

    Senator Shaheen. Thank you very much, Mr. Levine.
    And thank you all for your testimony and for introducing 
your family members who are here. We especially appreciate 
their being here this morning and their support for the work 
that you have been doing and will continue to do.
    I know that Senator Lugar has some time constraints, so, 
Senator, would you like to begin the questioning?
    Senator Lugar. Thank you very much, Madam Chairman.
    Let me ask Ambassador Norland, you are aware of the 
Cooperative Threat Reduction Program in Georgia in which we 
recently have completed a central reference laboratory to 
address poten-
tial natural and bioterrorist infectious disease outbreaks 
which threaten Georgia, the United States, and others.
    This is taking some time and effort, but to my knowledge, 
this facility is presently functioning. I would just simply ask 
at the outset that you be aware of the project, and likewise be 
helpful in working with Georgian authorities to gain the 
greatest benefits from this, similar to other laboratories set 
up in the area under the Nunn-Lugar program where information 
is shared with the United States with the thought of stopping 
any potential biological threat.
    A specific question comes with regard to NATO, and I 
introduced the NATO Enhancement Act, which would encourage 
further NATO enlargement and designate all countries expressing 
a national interest in joining NATO, including Georgia, as 
potential aspirant countries.
    As you have studied the Georgian situation in preparation 
for your ambassadorship, what is the lay of the land as you see 
it? And what steps could the United States take constructively 
to help Georgian aspirations?
    Ambassador Norland. Well, thank you for both questions,
Senator.
    On the CTR issue, let me start by congratulating you for 
two decades of work on nonproliferation. These reference 
laboratories are sort of a continuation of that work. I am 
aware of this kind of project because we had one in Uzbekistan 
under way. I'm aware that the one in Georgia was recently 
inaugurated. It is an extremely important project, both for 
what it represents in terms of nonproliferation issues, but 
also in terms of public health, animal disease control, and 
things that are important to agriculture.
    The Embassy or mission there I understand is supporting the 
project actively, and the U.S. Army plans to actually station 
some people there to work with the Georgians to make sure the 
laboratory properly carries out its functions.
    On the NATO issue, also let me thank you and members of the 
committee for the tremendous work over the years that you have 
done in support of NATO enlargement, and particularly for the 
support you're lending to Georgia's NATO aspirations. We 
welcome this support from the Congress, and we strongly support 
Georgia's NATO aspirations.
    NATO has declared that Georgia will be a member, so the 
issue really has to do with how and when. There is no single 
path to NATO membership. As it stands now, as I understand, the 
annual national program and the NATO-Georgia council all their 
primary mechanisms through which Georgia and the allies are 
pursuing the issue of Georgia's membership.
    But a lot of emphasis at the same time is being placed on 
steps Georgia is taking already in the direction of membership. 
Its contributions to ISAF, which we noted already today, the 
steps it has taken on defense reform and modernization, and the 
steps which I alluded to regarding democracy and economic 
progress. These are all part of the package that go into 
meeting the criteria for NATO membership.
    As I carried out my consultations, I have become aware of a 
serious effort on the part of the administration to use the 
Chicago summit to signal acknowledgment for Georgia's progress 
in these areas and to work with the allies to develop a 
consensus on the next steps forward.
    And I can assure you that, if confirmed, carrying that 
forward will be an extremely important part of my duties.
    Senator Lugar. Well, that is a very, very important 
statement. I appreciate your leadership in that area. And you 
know you will have the support back here of many of us as you 
proceed.
    Let me ask you, Mr. Pekala, speaking of the NATO summit in 
Chicago, I am reminded of the NATO summit that occurred in Riga 
in 2006. I was honored to be the dinner speaker before the day 
of the summit and took that occasion to recall that the 
previous winter had been one in which natural gas shipments 
from Russia to Ukraine had been terminated. That also occurred 
in other countries, but it was especially conspicuous in regard 
to Ukraine, with ramifications in Germany.
    So I suggested that article 5 of the NATO charter really 
ought to be expanded to energy security, that warfare in Europe 
might not commence through troops marching across territory or 
aircraft bombings, but simply by cutting off the gas or cutting 
off the oil.
    This has been a subject of great importance, obviously not 
only to the country that you're going to represent, but its 
neighbors, and for that matter, all of Europe is represented 
with ideas like the Nabucco pipeline or other smaller projects.
    What is the situation now as you perceive it in the country 
that you are about to represent--the United States--in Latvia? 
What is the energy predicament? And what degree of energy 
independence or security does it have?
    Mr. Pekala. Senator, thank you for that very important 
question. We share your concerns, obviously.
    We in the State Department, you, many others, over the past 
many years, have been talking to countries in the region about 
the importance of diversifying the sources of energy and 
diversifying the ownership of the pipelines that bring that 
energy to various countries.
    The situation in Latvia is evolving. They do understand the 
importance of diversity of ownership and supply. They are 
subject to a near-Russian monopoly on their gas and oil. But in 
other areas, the picture is a lot more optimistic.
    Latvia only imports a tiny percentage of its energy, that 
mostly from Estonia. They produce most of their own energy 
through hydroelectric plants and other means. And they are 
working with the other two Baltic States on other means of 
renewable energy sources. They are working with Estonia and 
Lithuania on a possible nuclear power plant in Lithuania, and 
they are talking to Estonia and Lithuania and many other 
countries in the region about a possible LNG, a liquefied 
natural gas terminal, somewhere in the Baltics, also thinking 
about tapping into supplies that might be in Germany and Poland 
and elsewhere. And the Latvians, like others, are looking into 
shale oil and shale gas as a means of diversifying their supply 
and enhancing their independence.
    So the good news is that the Latvians clearly understand, 
along with you and us and many others, the importance of 
diversification, and they are working hard on establishing 
means to work hard on that in the 21st century to increase 
their independence.
    Senator Lugar. I appreciate that response. Obviously, you 
are on top of the subject, and I congratulate you.
    Thank you, Madam Chairwoman.
    Senator Shaheen. Thank you, Senator.
    You probably saw us doing some quick whispering up here. We 
think we are going have some votes called very shortly, so 
Senator Cardin is going to go next, and then I will continue. 
We will recess to vote, and then I will come back if there are 
still questions.
    So, Senator Cardin.
    Senator Cardin. Thank you very much, Madam Chair.
    What I will do is I will pose a question to all five that I 
will ask be answered for the record, so we don't need to take 
the time now.
    But let me make the point, if I might, and that is, first, 
thank all five of you for your public service. And I thank you 
for your families. You have all had an incredible career of 
public service, and you are continuing that, and we know this 
is sacrifice not only for you, but for your families. We 
appreciate that very much.
    All five of the countries that are represented here have a 
lot in common. They are all strategically important to the 
United States. We have excellent relationships with all five 
countries. And they are countries that we want to continue to 
strengthen those ties.
    I have the honor of chairing the U.S.-Helsinki Commission, 
the Senate chair of the commission. And my question deals with 
the highlighting the important role that you can play as 
Ambassador to continue the advancements on the human dimensions 
of the OSCE.
    I particularly mention Estonia, because Estonia has been a 
successful country in using the OSCE format in dealing with its 
Russian-speaking minority, and I applaud the Estonian 
Government. I've been there. I've worked with them, in using 
the OSCE to advance the humans rights issues.
    [The written answers submitted for the record by Ambassador 
Merten, Mr. Pekala, and Mr. Levine follow:]

    Ambassador Merten. The OSCE has played a key role in Croatia's 
transformation into a NATO Ally and soon-to-be EU member. Evidence of 
its progress can be seen in the decision to close the OSCE Office in 
Zagreb, truly a success story for the region and the organization. Yet 
more work remains. If confirmed, as Ambassador I will strongly 
encourage Croatia to continue to meet its OSCE human dimension 
commitments on human rights and fundamental freedoms, both for the 
citizens of Croatia and so that Croatia can be a model for the rest of 
the region. These commitments include protecting human and minority 
rights, ensuring civil society and independent media have space in 
which to operate, and inviting international election observation.
                                 ______
                                 
    Mr. Pekala. If confirmed as Ambassador, I would work closely with 
the Government of Latvia on the full panoply of OSCE activities 
throughout its geographic area of activity. We greatly value the work 
that the OSCE has accomplished. Both the United States and Latvia share 
its goals and objectives. We see Latvia as an excellent partner in 
these endeavors and anticipate a robust relationship on these issues in 
the future.
    In particular, I would urge close cooperation with OSCE 
institutions, with the aim of improving transparency. In the context of 
the OSCE, Latvia has demonstrated a willingness to share the experience 
it has gained through its democratic transition to assist other states 
in the region, and as part of OSCE's efforts to support OSCE partner 
states in the Mediterranean and North Africa.
                                 ______
                                 
    Mr. Levine. If confirmed, I will work closely with the Government 
of Estonia to advance our shared goal of strengthening the OSCE's human 
dimension. I believe that Estonia has a deep appreciation for OSCE's 
democratization and human rights work, as it benefited directly during 
Estonia's own democratic transition. Today, Estonia serves as an 
example of transparency, openness, and freedom and works to share its 
experience and expertise with other countries in the OSCE region, such 
as Belarus and Moldova. Estonia also takes the protection of freedoms 
of the press, speech, and Internet seriously, both domestically and 
abroad.
    Estonia has also worked over the past year to take several positive 
steps on its own issues of minority rights and citizenship, and it has 
reduced the number of people in the country who lack citizenship. While 
there is still some distance to go, Estonia is moving in the right 
direction. If confirmed, I will work closely with the Government of 
Estonia, as well as through our social media platforms with the public, 
to ensure that progress continues.

    Let me, if I just might very quickly, mention in Kosovo, 
there are challenges. There are serious challenges. Kosovo is 
not a member of the OSCE, because of the blockage of a minority 
number of countries within the OSCE. But it needs to pay 
attention to the rights of all of its citizens, and I will be 
asking, Ms. Jacobson, that you pay particular sensitivity to 
that in your role, when confirmed, as Ambassador.
    As Ambassador, what is the important role that you can play 
to continue the advancements on the human dimensions of the 
OSCE?
    [The written answer submitted for the record by Ambassador 
Jacobson follows:]

    The Government of Kosovo is not currently a participating State, 
but its admission would be welcome in the future. Much work takes place 
every day in Kosovo that furthers the OSCE's comprehensive view of 
security, especially in the human dimension. Supporting OSCE's efforts 
to protect human rights and strengthen democracy will be a critical 
element of my mission, if I am confirmed. If confirmed, I would look 
forward to working with the OSCE and would also hope to have the same 
good partnership with the Helsinki Commission that I enjoyed as 
Ambassador to Turkmenistan and Tajikistan. This partnership resulted in 
significant achievements, for example in the area of religious freedom 
in Turkmenistan.
    In Kosovo there has been a lot of progress made in the area of 
human rights with regard to protection of all communities, as required 
in the Constitution, and some progress has also been made in terms of 
bringing to justice those officials who commit abuses.
    The GoK is also taking steps to address irregularities and 
electoral manipulations which marred Assembly elections in 2010. In 
preparation for the next parliamentary elections, a legislative 
committee is revising the electoral code, while another committee is 
preparing constitutional changes that would allow direct election of 
the President. Further, after some criticism of the lack of serious 
sentences and fines for people who committed electoral abuses, we have 
noted a positive trend since 2011 toward serious sentences and fines 
for election fraud; 27 people have been sentenced to terms, and more 
than 100 people have been fined.
    There also remain concerns about discrimination, for example 
against ethnic and religious minorities, disabled persons and members 
of the lesbian, gay, bisexual and transgender community. Additional 
human rights issues included allegations of prisoner abuse as well as 
corruption and favoritism in prisons; lengthy pretrial detention; 
judicial inefficiency; intimidation of media by public officials and 
criminal elements; limited progress in returning internally displaced 
persons (IDPs) to their homes; government corruption; trafficking in 
persons; and child labor in the informal sector.
    Roadblocks established by Serb hard-liners in northern Kosovo have 
also seriously restricted basic rights for citizens in the north, 
including the free movement of goods, people, and services. Serb hard-
liners have employed violence and intimidation against domestic 
opponents and international security forces, which resulted in deaths 
and injuries during the year.
    Tackling these issues is going to take a concerted international 
effort to address, and will require leadership by the United States in 
cooperation with Kosovo.

    My main question, though, is to Ambassador Norland, if I 
might. You've come from Uzbekistan, which is not exactly the 
best nation as an example of the advancement of human rights. 
Georgia has problems. They are strategically important to us. 
They are moving forward in transition. I had a chance to talk 
to President Saakashvili when he was here about what he is 
doing as far as open and free elections for both the Parliament 
and for the Presidency. We know that there are efforts to limit 
those who are eligible to run for President, and there have 
been statements made by the opposition that they are being 
denied opportunities to fairly compete in the national 
elections.
    So my question to you is--and you can answer this for the 
record--that'll be fine--as to what steps you would take as 
Ambassador to make sure that Georgia continues its transition 
to free and open elections, allowing fair opportunities for 
opposition candidates to compete in the election?
    And, Madam Chair, I can have those answered for the record.
    Senator Shaheen. Well, I would actually like to hear the 
answer, so we have a few minutes before we have to recess for 
the vote. So perhaps, Ambassador Norland, you can go ahead and 
respond.
    Ambassador Norland. Thank you, Senator.
    And thank you, Senator Cardin, for the question, and for 
your work in support of the Helsinki Accords. I am familiar 
with that work from when I was with, at the time, CSCE in 
Georgia, and the principles that are represented by the accord 
are actually principles on the table still today with respect 
to the conflict zones in Georgia and also with respect to the 
democratic process that you have touched on.
    If confirmed, I would seek to develop broad firsthand 
knowledge of Georgia's performance with respect to promotion of 
rule of law and fundamental freedoms afforded under Helsinki 
Accords and to urge the Georgians to take all necessary steps 
to ensure they are in full compliance.
    Georgia has made progress toward becoming a full democratic 
state. The elections this year and the Presidential elections 
next year are testimony to that.
    But, as you indicate, there are very real concerns. While 
there has been real progress, there are real concerns about 
what you might call of the level playing field. And there are 
reports of harassment of opposition candidates that trouble us 
deeply. The role of the so-called chamber of control and party 
financing is drawing a lot of concern in Georgia and in the 
international community.
    I can tell you already our mission is raising these 
concerns publicly and privately with the Georgian Government. 
And if confirmed, it would be my role to continue to monitor 
very carefully Georgia's observance of the principles that we 
hold dear. This would be a central priority for my mission.
    The United States already spends millions of dollars in 
assistance to promote civil society, rule of law, and democracy 
in Georgia. And we need to be careful stewards of those funds 
to make sure that we are getting the results we're looking for.
    Finally, I would just point out, given Georgia's interests, 
Georgia's aspirations to NATO membership, and our support for 
those aspirations, how these elections are conducted is very 
important litmus test, and we will be watching carefully to 
make sure that the way these elections unfold are in keeping 
with NATO standards.
    Senator Cardin. I would just underscore the issue of 
qualification of opposition candidates. That has been used in 
too many European countries as a way of trying to block 
opposition opportunities. I would just urge our presence there 
to have the widest possible opportunities for opposition to 
effectively be able to compete on a level playing field.
    Ambassador Norland. Yes, sir.
    Senator Cardin. Thank you, Madam Chair.
    Senator Shaheen. Thank you. Would you like to hear a 
response from Ambassador Jacobson, too, on the Kosovo issue?
    Senator Cardin. Yes, thank you.
    Ambassador Jacobson. Thank you for the opportunity.
    If I am confirmed, the issue of human rights and promotion 
of democracy will be a critical element of my mission, as it 
was in my missions in Turkmenistan and Tajikistan. And I would 
look forward to working in very close partnership with the 
Helsinki Commission, a partnership which I think produces real 
results;
for example, our progress on the issue of religious freedom in 
Turkmenistan.
    In Kosovo, there has been a lot of progress made in the 
area of human rights with regard to protection of all the 
communities, which is included in the constitution. And some 
progress has also been made in terms of bringing to justice 
those officials who commit abuses.
    The Government is currently working on electoral law in 
preparation for parliamentary elections, which could occur as 
early as next year, and also looking at constitutional 
amendments to allow the direct election of the President.
    After some criticism of the lack of serious sentences and 
fines for people who committed electoral abuses, we have noted 
a positive trend in 2011 toward serious sentences and fines. 
And, in fact, 27 people have been sentenced to terms and more 
than 100 people have been fined.
    There are still serious problems with discrimination, 
societal discrimination, for example, against ethic and 
religious minorities, against disabled and LGBT people. There 
are issues with corruption and rule of law. There are a variety 
of issues that are going to take a concerted international 
effort, including leadership by the United States in 
cooperation with Kosovo, to address.
    I would also point out that the human rights situation in 
the North is not helped by the existence of the illegal 
parallel institutions, which do prevent full human rights; for 
example, the freedom of movement.
    And these issues would all be critically important to my 
mission, if confirmed.
    Senator Cardin. I am just pointing out there appears to be 
an opening with Serbia as it relates to north Kosovo. There 
appears to be a willingness to talk more openly about these 
issues, and Serbia is trying to become the leader; chair an 
office in the OSCE.
    So there is some opportunity, we think, to make significant 
progress in this area. And I agree with your assessment. But I 
think the United States can play a very important role, and our 
Embassy in Kosovo can be a critical partner.
    Thank you, Madam Chair.
    Senator Shaheen. Thank you.
    At this point, we will recess for about 15 minutes while we 
vote. And I will return. I'm not sure who else will.
    Thank you.

    [Recess.]

    Senator Barrasso [presiding]. Thank you for resuming this. 
We apologize for the fact that there is a vote going on. 
Senator Shaheen will be back shortly.
    I wanted to first thank all of you for your willingness to 
serve, and congratulate you on your appointments, and look 
forward to additional discussions.
    I'm going to start, if I could, with the nominee to Kosovo.
    Ambassador Jacobson, in November last year, I traveled to 
Camp Bondsteel in Kosovo. That was my second visit. I spent 
Thanksgiving with the troops. We have 23 Wyoming Air National 
Guardsmen there. They are members of Detachment 3, the B 
Company, 777th Aviation Support Battalion. For the next 6 
months, they are going to continue to provide helicopter 
support and maintenance to the 112th Aviation Regiment. Also 
able to meet at the time on Thanksgiving Day with the Charge 
d'Affaires, Michael Murphy, and had a nice visit.
    On paper, our forces in Kosovo are classified as the third 
responder in support of the peacekeeping operations. However, 
we know that more often than not when violence erupts, these 
forces become the first responders when Kosovo security forces 
and European Union forces can't assist.
    So with the drawdown that is occurring there, I just want 
to know how we can encourage the people of Kosovo to step up 
and provide the type of security that people of Kosovo demand, 
expect, and who can we trust to make sure that that happens and 
what role you will plan that.
    Ambassador Jacobson. Thank you for the question, Senator.
    KFOR staffing is currently at about 5,800 troops, which the 
United States usually forms around 10 percent. We are what is 
known as Gate 2 in terms of the level of staffing. Given the 
violence that occurred last summer and the conditions on the 
ground, we see the staffing levels remaining relatively 
consistent for the near foreseeable future, because KFOR, as 
you mentioned, does play an incredibly important role in terms 
of maintaining security throughout the country.
    In addition to that, KFOR is playing an important role in 
terms of mentoring and advising the Kosovo security force, 
which has responsibility in four major areas, including civil 
emergency, fire suppression, disposal of hazardous materials, 
explosive ordnance disposal. And KFOR will continue to play 
that role as the Kosovo security force develops.
    The commander of KFOR has recommended that the full 
operating capacity status for the Kosovo security force. This 
is a decision that has to be taken by the North Atlantic 
Council. And that decision will inform how we go forward in the 
future.
    Senator Barrasso. Thank you.
    Ambassador Norland, I had a chance to travel to Georgia 
with Senator McCain and others, and meet with the President 
there. On December 31, 2011, President Obama signed the 
National Defense Authorization Act for Fiscal Year 2012. It 
specifically calls on the Secretary of Defense to submit a plan 
to Congress for the normalization of U.S. defense cooperation 
with Georgia, including the sale of defensive weapons.
    If confirmed as United States Ambassador to the Republic of 
Georgia, will you be committed to stepping up the United States 
defense security cooperation with Georgia and support efforts 
to assist in developing Georgia's self-defense capabilities?
    Ambassador Norland. Senator, yes. Thank you for the 
question. And thanks for your support for Georgia, for NATO 
enlargement, and for Georgia's defense capabilities.
    I firmly believe that a robust military-to-military 
relationship needs to be a part of United States-Georgia 
relations. And fortunately, during President Saakashvili's 
meeting with President Obama on January 30, I think some 
important forward impetus was given to that relationship.
    We have already seen approval of a shipment or the purchase 
of M4 carbines by the Georgians. There's going to be I think 
enhanced focus on support for Georgian defense reforms, for 
Georgia's ability to participate in the ISAF mission, and for 
NATO interoperability in that regard.
    As we speak, the U.S. Marines are wrapping up today an 
exercise, Agile Spirit, with Georgian military, in support of 
their ISAF presence. The Georgia National Guard here in the 
United States has a very important and active relationship with 
the military in Georgia. Deputy Assistant Secretary Wallander 
from the Department of Defense was there recently, and I 
understand a Georgian Deputy Minister of Defense is coming here 
next month to pick up the dialogue following the Presidential 
meeting here on this issue.
    Absolutely, if confirmed, I see it as an essential part of 
my mission to develop a robust military-to-military bilateral 
defense cooperation arrangement with Georgia.
    Senator Barrasso. Thank you, Mr. Norland. I appreciate it.
    Ambassador Merten, with regard to Croatia, I'm just 
wondering how Croatia has been impacted by the global economic 
crisis, and what sort of efforts have been taken by Croatia to 
boost its competitiveness, to boost its economic growth, and 
how the United States may be involved and helpful in future 
efforts.
    Ambassador Merten. Thanks so much.
    I think Croatia's accession to the European Union, if that 
goes forward as planned next summer--summer 2013--will be a 
large boon to the Croatian economy.
    One of the things I hope to focus on, should I be fortunate 
enough to be able to get out to post, is to work with the 
Croatians on investment and economic growth issues. I firmly 
believe that as a good partner economically, we can work with 
them and help them to develop their economy, to develop a 
business-friendly environment, which is very welcoming to 
foreign investment, particularly American investment.
    And, ultimately that is good for the American people, 
because a good, strong economic partner in Croatia will help 
create and generate jobs here in the United States.
    Senator Barrasso. Thank you.
    Mr. Pekala, the former President of Latvia is an orthopedic 
surgeon, and I'm an orthopedic surgeon. We trained with the 
same professors. So we have great relationships unrelated to 
all the things that you're going to be doing. But if you ever 
get into a pinch, let the orthopedic surgeons come in, and we 
can help.
    Latvia was significantly impacted by the global economic 
crisis. The country's gross domestic product dropped by 17 
percent in 2009, unemployment rose to 18 percent in 2010. In 
2008, the IMF provided a stabilization loan to Latvia.
    What steps is the Government taking in response to the 
economic crisis? And what kind of impact will the uncertainty 
in the eurozone have on Latvia?
    Mr. Pekala. Senator, thank you for that question, and I can 
ask former President Zatlers and you, then, if it hurts when 
I----
    Senator Barrasso. It hurts when you do that, stop doing 
that.
    Mr. Pekala. Exactly. [Laughter.]
    As you well stated, Latvia was hit very hard by the 
economic crisis. I mentioned in my prepared remarks that 
between 2008 and 2010, as you said, GDP in Latvia went down by 
25 percent.
    Prime Minister Dombrovskis, starting right away after the 
economic crisis hit, undertook a very serious program of 
reducing Government expenditures in increasing revenue. And 
after 2010, and as you mentioned the IMF, some European 
countries, especially Nordic countries, and the European Union, 
undertook a lending program to Latvia. With the seriousness of 
the Government program, and the assistance from these other 
places, Latvia has very impressively rebounded.
    Last year, 2011, their growth rate was 5.5 percent, one of 
the highest growth rates in the European Union. In the last 
quarter of 2011, their growth rate was 5.7 percent, the highest 
growth rate in the European Union. They have been very serious 
about the measures taken in the government and the economy to 
improve.
    There is great news on this for Latvia, of course. As you 
mentioned, unemployment went down from 20 through 15; it's now 
at 12. Still high but going in the right direction.
    And there's good news for the Latvians and for us. One of 
the elements of the good news for us is that there is really 
fertile ground now for increased American investment in Latvia. 
That has grown over the last 2 years. Last year it was about 
$600 million, a growth of almost 70 percent from the previous 
year. And if I am confirmed, I intend to put very high on my 
list of priorities enhancing American investment in Latvia. 
This creates American jobs. It is good for all of us. Good for 
America, good for Latvia.
    Another element of the benefit here is that Latvia has now 
reengaged and restarted its assistance program in its 
neighborhood and beyond. Through the economic crisis, it wasn't 
able to do so, it was so strapped. Some Government agencies 
lost 40 percent of their budgets, 30 percent of their people, 
during the economic crisis. But Latvia's back, and it has 
restarted its assistance program.
    They are extremely well engaged with Georgia and have been 
over many years with the Ministry of Interior and Justice of 
the Ministry of Foreign Affairs, and the Ministry of Defense, 
on what Georgia can do to improve its democratic reforms and 
get closer to NATO membership. And they have a very important 
assistance program with Moldova, again, to teach the lessons 
that they have learned as they have evolved.
    So there's good news for Latvia. And we want to be a part 
of that and help them and help America at the same time.
    Senator Barrasso. Thank you.
    Mr. Levine, I want to ask about the energy sector in 
Estonia. And I know they have called for diversification of 
Europe's energy supplies, the Government of Estonia is looking 
at different energy sources to reduce the country's dependence 
on Russian gas supply. So I just want to ask you, what kind of 
energy resources Estonia has and what progress is being made 
toward more energy independence, and what your evaluation is of 
the effectiveness of the country's energy independence 
strategy.
    Mr. Levine. Thank you, Senator.
    Estonia is lucky to have large deposits of oil shale, which 
provides the majority of its oil and petroleum products. It is 
dependent on Russia for gas, which provides about 15 percent of 
their energy needs. But so far, that relationship has been 
working smoothly.
    They have been very much a proponent of a European energy 
strategy and, themselves, tried to diversify. As was mentioned 
earlier, they are a part of the partnership that is looking at 
a nuclear power plant in Lithuania. And working with Finland, 
they have been laying cables to connect themselves to the 
Finnish electricity grid.
    Their expertise in oil shale I think is both an opportunity 
for them on the energy front as well as the commercial front. 
They have purchased oil shale property in the United States, 
about 30,000 acres in Utah, and hope to bring that into 
production by 2016, producing about 30,000 barrels a day.
    I think that kind of partnership between our two countries 
on both energy and technology is one of the benefits that we 
can enjoy.
    Senator Barrasso. Well, thank you.
    And, Madam Chairman, I now note a number of young people in 
the audience, obviously family members. And I congratulated 
each of the nominees. I also want to thank and congratulate 
each of the families. I know that it is a major family 
commitment to take on these kind of responsibilities for the 
United States.
    Thank you, Madam Chairman. No further questions.
    Senator Shaheen [presiding]. Thank you very much, Senator 
Barrasso. And thank you for bringing reinforcements to keep the 
hearing going while I was voting.
    I want to follow up on the economic question that you asked 
Mr. Pekala, to Mr. Levine, because one of the things--a number 
of you mentioned that effect the economic crisis on the 
countries that you're hoping to serve. But Estonia, actually, 
seems to have weathered the current economic crisis in Europe 
much better. To what do you attribute that? What are they doing 
right?
    Mr. Levine. I believe that Estonia is doing a lot right. 
They're viewed as one of the most open, most liberal economies 
in the world. And the policies that they have pursued very much 
in the free market realm are working for them.
    They are back to positive growth. Unemployment is down. 
They are followers of Maastricht Criteria. And they have a 
relatively small population. And all those factors combined has 
led to a real economic success story.
    With that said, I would like to see greater commercial and 
economic activity between the United States and Estonia in a 
way that will benefit both of our economies.
    Senator Shaheen. Thank you. You mentioned in your testimony 
NATO's Cyber Defense Center of Excellence, which is in Estonia. 
Can you comment on what impact that has had on Estonia? And 
also on NATO? What lessons have been learned from having that 
Center of Excellence there that we may be ought to learn here 
in the United States?
    Mr. Levine. Thank you, Senator.
    Their expertise in cyber security is one of the niches that 
Estonia has been able to offer to both the alliance and the 
world at large. At the center, they are working on issues 
directly related to NATO's internal cyber security, and in 
partnership with the Maryland National Guard, they have a 
similar program working on the development of cyber security 
strategies that are applicable to the society at large.
    We do have participants at the center in Tallinn. And it is 
viewed as a very successful enterprise.
    Senator Shaheen. And many people believe that the 2007 
cyber attacks that have made Estonia one of the leaders in 
cyber security, because of their need to respond to those 
attacks, that those attacks originated in Russia. Can you talk 
about how Estonia feels about the current Obama 
administration's reset policies toward Russia, and what the 
impact of both the 2007 attack and that reset policy have had 
on Estonia?
    Mr. Levine. Thank you, Senator.
    I would characterize the Estonian-Russian relationship as 
cool but correct. And our reset provided them a little bit more 
space in order to pursue the practical cooperation that they 
had with the Russians on things like border control, 
immigration.
    Outside of that, there isn't a lot of contact between the 
two governments. The reset, as I said, it allows them a little 
bit more space, but we wouldn't expect their own bilateral 
relationship to have any major improvements until there is a 
reconciliation of the 50 years of history that they had 
together.
    It is a very different view of the Soviet occupation, very 
different view of what that era was about, is going to be an 
obstacle in a closer relationship.
    Senator Shaheen. Thank you.
    Ambassador Jacobson, in your testimony, if I can find it 
here, you had a really good summary, I think, of what would be 
important to resolving the current situation with Serbia. And 
you say that a solution to the situation in the North, 
normalization of relations, require a durable modus vivendi 
that respects Kosovo's sovereignty, takes into account the 
views of the citizens of the north, and allows both Kosovo and 
Serbia to proceed on their respective paths.
    How do we help that happen?
    Ambassador Jacobson. Well, I think we have to continue to 
engage using the United States leadership with our 
international partners, with the government and with the people 
of Kosovo, with our regional partners.
    One of the examples that I think is useful in this regard 
is the Kosovo Serbs who live in the south. And there are 
actually a lot more of those in the south than there are in the 
north. And they have been able to take full advantage of the 
far-reaching protections afforded them both by the 
comprehensive status proposal and by Kosovo's own 
constitutions.
    I'm talking about local self-government and autonomy. I'm 
talking about the fact that the Kosovo Serbs in the south 
participate in all levels of government, from municipal--and 
there are Serb-majority municipalities in the south, all the 
way to the national level. And I think this is an important 
model.
    But just as important is the idea of engagement and 
dialogue, and Prime Minister Thaci has said that he and his 
government will reach out to community leaders in the north. 
This is something that we absolutely promote and encourage.
    And if I am confirmed, I will do my best to listen; to 
understand the interests of all the stakeholders in this issue; 
and to work with our international partners, with the Congress, 
and with the government and the people of Kosovo to work toward 
that durable modus vivendi based on practical agreements that 
make a difference in people's lives that I mentioned in my 
testimony.
    Senator Shaheen. And is there any evidence that in the 
northern part of Kosovo that those parallel structures that you 
mentioned are becoming a concern for Serbs who live in that 
area?
    Ambassador Jacobson. Well, I think recent polling in the 
north of Kosovo has indicated that 70 percent of the Serbs that 
live up there don't see that Belgrade has any sort of plan for 
their future. And this I think is a point. Nobody has any 
objections to Serbia providing legitimate, transparent 
assistance to Serbs in Kosovo in the areas of health and 
education and social welfare. But I don't see that that is what 
the illegal parallel structures are providing.
    They are, in fact, interested in preserving their own 
authority, and in some cases have actually created an 
atmosphere of intimidation and fear for those in the north who 
do wish to cooperate with the international community and with 
the Government in Kosovo.
    So clearly, this is an issue that is going to require 
sustained engagement, leadership, and contacts.
    Senator Shaheen. And is there evidence that that 
environment of fear is coming from Belgrade? Or is it coming 
from the local Serbs in the northern part of the country?
    Ambassador Jacobson. I think an environment of fear is a 
complex thing, and without having been there myself, I wouldn't 
want to ascribe the origins to it. But it certainly does exist, 
and it's something that we have to work toward ameliorating, 
both in terms of the security situation on the ground that is 
assisted by KFOR and in terms of our diplomatic engagement, and 
also in terms of ours assistance programs, some of which have 
been hampered in the north by the lack of freedom of movement.
    I have in mind some of USAID proposals for infrastructure, 
so we have had to focus more on community-building, short-term 
job creation. We have in fact created 1,600 jobs.
    So this is, I think, the kind of engagement that we need to 
continue together with our international partners in the 
countries of the region to reduce those levels of tension over 
time.
    Senator Shaheen. And one of the sources of conflict has 
been concern among Serbs about attacks on the Serbian 
monasteries that we have seen in the past. Is there a general 
acceptance now by the Kosovars that those monasteries are 
important historical and religious--I don't want to use the 
term ``artifacts''--religious symbols? So accepting their 
presence there without destroying them, because obviously that 
will continue, until that point happens, that will continue to 
be a source of conflict.
    Ambassador Jacobson. Well, I think the fact that the 
Government of Kosovo has really engaged in this reconstruction 
and implementation commission, which was established together 
with the Serbian Orthodox Church and the ministries of culture 
of both Serbia and Kosovo, to rebuild and repair those 
religious buildings that were destroyed in the 2004 riots is 
really testament to that fact.
    In fact, the Government of Kosovo not only financially 
supports that effort but also provides 17 sites with protection 
from the Kosovo security force.
    Societal discrimination does still exist--I don't want to 
downplay that--in Kosovo with harassment or vandalism against 
both Serbian Orthodox sites. Also, last year there was 
vandalism in a Jewish cemetery in Pristina, which the 
Government moved quickly to clean up and denounce.
    The Protestants have complained that they haven't been able 
to open a cemetery in Decani, and the Islamic community has 
protested the ban on headscarves in religious institutions.
    So these are all examples that appear in our religious 
freedom report. And if confirmed, I would work very hard on 
issues of respect for religious diversity.
    I've learned through my engagement with religious leaders 
at FSI that some of them don't like the word ``tolerance,'' 
because it indicates that I'm just putting up with you.
    So the eventual goal is to produce a requirement that 
respects and promotes religious diversity. And I would work 
very hard on that issue with religious communities and leaders 
and with the government and people of Kosovo, if confirmed.
    Senator Shaheen. Thank you very much.
    Ambassador Norland, I know that Senator Cardin raised some 
concerns about open elections in Georgia and some of the 
activities that raise questions about how free the opposition 
is to compete in those elections.
    Yesterday, the Atlantic Council had a panel discussion here 
about NATO and the upcoming summit in Chicago, which as you 
point out, and others have, I did in my remarks, Georgia has 
aspirations and has been promised membership in NATO, 
ultimately.
    But one of the points that former Secretary Albright made 
yesterday is that there is a connection between rule of law, 
and free and open elections, and government values, and 
participation in NATO.
    And so can you talk about how important an open, 
competitive election for Georgia's future, both for continued 
support here in the United States and Europe, and also in terms 
of NATO acceptance, will be?
    Ambassador Norland. Yes, Senator, thanks.
    I think that the relationship is pivotal, that Europe and 
the United States are closely watching the conduct of these 
elections to determine whether they meet the criteria that are 
expected of a NATO member country.
    There are real concerns about the way certain aspects of 
these elections are being conducted, harassment of opposition. 
Our goal is to see a level playing field.
    We have extended thanks to Congress. We have extensive 
assistance programs to try to develop the rule of law, to 
promote a civil society, the role of the media.
    And it is not that we are focused on any particular 
individual. What we are seeking to do is to protect the 
integrity and support the integrity of the process. And I think 
Georgian officials are beginning to understand that, in fact, 
they are being watched, that this is being monitored closely, 
and that it is being viewed as a litmus test for their 
membership in NATO.
    We hope that they will take the right steps.
    Senator Shaheen. Thank you. I certainly hope that is the 
case as well.
    As you remember so well, back in 2008, the Russian--there 
was a conflict between Georgia and Russia over Abkhazia and 
South Ossetia. There's not a lot that is being heard right now 
about what the status of that situation is, except that Russia 
has not complied with all of the terms of the agreement that 
ended that conflict, or at least created a cease-fire.
    So can you talk about whether there any recent measures 
that we have taken to encourage Russia to fulfill its 
obligations under the agreement?
    Ambassador Norland. Well, first of all, let me thank you 
for your participation in the Atlantic Council publication on 
Georgia in the West, because I think a lot of good ideas are 
contained in there, which I know will help guide me, if I am 
confirmed.
    Senator Shaheen. My staff appreciates your mentioning that.
    Ambassador Norland. What happened in Georgia in 2008 was a 
tragedy. And I think the entire international community is 
seized now with the issue of how do we overcome that tragedy 
and find a way to move forward, and, if you will, in a way, to 
move back toward the status quo ante.
    We continue to object to the presence of Russian troops in 
the occupied territories, and we strongly support Georgia's 
sovereignty and territorial integrity. These are matters of 
principle.
    You asked what additional steps can we take now; what is 
the prospect for galvanized movement on this? I will know 
better if confirmed and able to get out and get a sense on the 
ground of what is possible.
    But quite clearly, we need to continue to use the forum in 
Geneva and other fora to urge Russia to fulfill its 2008 cease-
fire obligations.
    There is no military solution to the situation, so the 
issue is how do we galvanize out diplomacy. As George Kennan 
would say, all measures short of war, to try to address the 
situation.
    In addition to the talks in Geneva, there's another round 
coming up at the end of this month. We can find ways to try to 
take steps to, for example, get international monitoring 
groups, whether from OSCE, the EU-monitoring mission, or 
others, into the occupied territories themselves and not simply 
on the margins.
    Try to get humanitarian assistance into those areas, and 
look for small confidence-building measures that can lay the 
groundwork for progress, such as Georgia's no-first-use-of-
force declaration. Hopefully, Russia would reciprocate--the 
projects that OSCE is doing with regard to water management in 
South Ossetia, or the UNDP's youth projects in Abkhazia.
    I think if we approach these issues in a spirit of 
transparency with a desire to minimize regional tensions and 
find a way forward, I think diplomacy can play a very important 
role in getting us out of this mess.
    Senator Shaheen. Thank you very much.
    Ambassador Merten, you talked about Croatia's EU 
membership, which will soon happen, in 2013. Can you talk a 
little bit more about how that membership is going to benefit 
Croatia? And what might be the impact of that on some of 
Croatia's neighbors in the Western Balkans?
    Ambassador Merten. Thanks for that question.
    I think full EU membership for Croatia opens up, obviously, 
a huge market for Croatian producers. It also presents them 
with a challenge, however, because they're going to need to 
raise the bar of their competitiveness to at least meet the 
level of their EU neighbors.
    But given Croatia's past performance over recent years, I 
am quite confident that the Croatian private sector and 
Croatian Government will be able to meet those challenges.
    Regarding the rest of the immediate neighborhood, if you 
will, I think Croatia sets a good example for the way other 
countries in the region can move forward. We have a mature 
partnership now with Croatia. We no longer have an AID mission 
there. They have made terrific progress. And I think they show 
a good roadmap to other countries in the region, to what is 
possible.
    And I am very optimistic that their EU membership will give 
them great opportunities if they are able to take advantage of 
them.
    Senator Shaheen. I had the opportunity to visit Croatia a 
couple years ago with Senator Voinovich when he was still in 
the Senate. And as I am sure you are aware, he is beloved in 
the Western Balkans. But one of the things we did was to meet 
with the Prime Minister at the time who had been very 
successful in cracking down on corruption, much more so, I 
think, than was anticipated when she took over that job.
    Can you talk about the extent to which many of those 
reforms are continuing and how big a challenge that continues 
to be in the country?
    Ambassador Merten. Of course. Thank you.
    My understanding is that there continue to be some 
challenges in that area. However, I think, as, again, part of 
Croatia's EU accession process, they have had to put in certain 
safeguards in place. As I understand it, they are still in the 
process of doing some of that, so there is some of the 
remaining homework, if you will, that needs to be done by 
Croatia before they can fully join next year.
    We will certainly encourage them, should I be confirmed, in 
continuing to meet those requirements and any offers of 
assistance or advice that we can offer, I would certainly make 
those available.
    Senator Shaheen. Thank you very much.
    Mr. Pekala, in your testimony, you talked about the effort 
to reach out to the minority communities in Latvia.
    What kind of things do you have in mind as you're talking 
about outreach? What could you do as the U.S. Ambassador, to 
help with that effort?
    Mr. Pekala. Madam Chairwoman, thank you for the question.
    I think we can operate on two levels in Latvia. And if I am 
confirmed, I would try to operate on both.
    On the overall approach to tolerance and understanding and 
dialogue, we, the United States, represent the world's best 
example of how multicultural societies can work in terms of 
diversity, inclusion, understanding, study, and conferences, 
and education, and teaching teachers, and so on.
    And we can present the example of how this works in 
practice. And Latvians understand that. And of course, they 
look to us for some examples.
    Under that level, on the ground, the Embassy now in Riga is 
very active on bringing people together and helping them 
achieve this kind of dialogue and understanding. So when they 
have events, they don't include any particular ethnic group and 
exclude others; they bring everyone together. And sometimes 
they find people haven't met their colleagues who speak a 
different language. And they can provide the lubrication and 
the mechanism for people to make these connections.
    As we all know, there are few things more powerful than 
just people-to-people connections. Our Embassy in Riga is doing 
a great job on those. If confirmed, I would like to continue 
and accentuate and reinforce those.
    And we have a simple goal of getting people together, help 
them understand each other, help them tolerate and move 
together on what will be, eventually, a fully integrated 
multicultural society.
    Senator Shaheen. Well, as you point out in your testimony, 
again, one of those groups are ethnic Russians. And obviously, 
given the history, the relationship with Russia has been 
challenging.
    There are some Latvians who suggest that NATO isn't 
prepared to deal with Russia, should conditions between Russia 
and its Baltic neighbors deteriorate. Do you share those 
concerns? And can you talk about why Latvians might be feeling 
that way right now, beyond just the historical context?
    Mr. Pekala. Madam Chairwoman, I don't share that view. I
believe that most Latvians, certainly officials and most of the 
population, feel that their strategic context, their historic 
and geographical connections with Russia, shifted in 2004, when 
Latvia joint NATO.
    They feel very confident about the article 5 guarantees of 
their security in NATO.
    I was serving in Estonia on March 29, 2004, when the Baltic 
States join NATO. And in Estonia, Latvia, Lithuania, this was a 
historic moment, a really joyous day when they found that their 
security concerns were shared now in an alliance that was not 
only throughout Europe but across the Atlantic as well. They 
take great comfort and pride in being associated with the 
United States and NATO.
    They can be very confident of this article 5 commitment. I 
think most of them are confident. And we take every opportunity 
to demonstrate that. I won't go on and on about Baltic air 
policing, but they feel, again, that this is a very real 
commitment to their security, a very real undertaking by the 
allies, and particularly the United States.
    I think they feel pretty comfortable about the security in 
the context of NATO and beyond.
    Senator Shaheen. Great, and thank you very much for that
answer.
    And I'm very impressed that your daughters are still awake. 
So, good job, girls. [Laughter.]
    Mr. Pekala. Thank you.
    Senator Shaheen. Thank you all very much. I have no further 
questions.
    We will keep the record open for 24 hours in case there are 
questions submitted.
    And I wish you all great luck in your new roles. And if 
this committee can be helpful to you in any way, please let us 
know.
    The hearing is adjourned.
    [Whereupon, at 11:36 a.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


         Responses of Richard B. Norland to Questions Submitted
                      by Senator Richard G. Lugar

    Question. Little progress has been made in bringing Russia back in 
line with its international commitments to withdraw from the breakaway 
regions of Georgia, and confidence-building measures across the 
administrative boundary line have met with limited success and 
enthusiasm. If you are confirmed as Ambassador, what priorities will 
you pursue with respect to the breakaway territories of Georgia, in 
terms of advocating U.S. policies and bringing greater transparency to 
the situation?

    Answer. If confirmed, my priorities on this issue will be to 
continue to voice U.S. objection to Russia's occupation and 
militarization of the separatist Georgian regions of Abkhazia and South 
Ossetia and to insist that Russia fulfill its obligations under the 
2008 cease-fire agreement, including withdrawal of its forces to 
preconflict positions and free access for humanitarian assistance. I 
will also support diplomatic efforts by the United States, as an active 
participant in the Geneva discussions, to work with the cochairs and 
others in pursuit of a resolution to the conflict. In addition, if 
confirmed, I will continue to speak out in support of Georgia's 
territorial integrity, as the United States did recently in statements 
regarding the March 10 illegitimate ``elections'' in the separatist 
region of Abkhazia. We will also continue to support strongly Georgia's 
efforts to prevent any further recognitions of the occupied 
territories.
    The United States is supportive of efforts by all stakeholders to 
reach a peaceful resolution to the conflict, pursue confidence-building 
measures, increase transparency, promote security and stability, and 
address humanitarian issues through projects that directly improve the 
lives of the communities on the ground. I will support U.S. efforts to 
continue to press for full access to the separatist regions by the 
European Union Monitoring Mission (EUMM) and international 
organizations like the OSCE to increase transparency and address 
ongoing humanitarian and human rights concerns there.

    Question. Georgia will hold important elections for Parliament and 
President over the next year. Where do you see Georgia in terms of 
ensuring a free and fair playing field for these upcoming elections?

    Answer. The upcoming elections represent an important opportunity 
for Georgia to advance its democratic development through its first 
formal transfer of power via elections. Georgia has made important 
progress on democratic reforms since the Rose Revolution. However, the 
United States is concerned about reports of harassment of opposition 
party members. The United States is committed to supporting free and 
fair parliamentary and Presidential electoral processes in Georgia. The 
administration's focus is on contributing to efforts to strengthen 
processes and institutions, not to support individual candidates, 
specific political parties, or a particular outcome. The United States 
will continue to encourage the Government of Georgia to foster a 
competitive and pluralistic campaign environment leading to elections 
that allow the Georgian people to decide on the leadership that is best 
for them. Ensuring free and fair elections is also vital to Georgia 
achieving the standards necessary to facilitate its Euro-Atlantic 
integration.

    Question. During President Saakashvili's visit to the United 
States, reports suggested that the administration would be conducting 
an ``elevation'' of security cooperation with Georgia that would focus 
on territorial self-defense. What tangible changes will this new 
emphasis entail?

    Answer. President Saakashvili and President Obama discussed 
building upon existing successful programs to help the Georgian 
military continue its institutional reform and defense transformation 
efforts that support Georgia's self-defense, sustain its work with ISAF 
in Afghanistan, and help it operate more effectively with NATO. The 
Department of Defense and Georgian Ministry of Defense are discussing 
specific steps that will help Georgia achieve its goals. The 
administration will also work with the Georgian Government under our 
existing Charter on Strategic Partnership and Bilateral Defense 
Consultations forums to discuss and further develop these concepts, 
subject to fiscal constraints on both sides.

    Question. What is the timeline for negotiation of a free trade 
agreement with Georgia?

    Answer. President Obama and President Saakashvili agreed to 
increase trade and economic cooperation during President Saakashvili's 
visit to Washington earlier this year and agreed to launch a high-level 
dialogue to consider how to accomplish this through enhanced trade and 
investment frameworks, investment agreements, and the possibility of a 
free trade agreement. Initial USTR-led discussions will commence in the 
near future, as well as parallel discussions within the U.S.-Georgia 
Strategic Partnership Commission's economic working group as early as 
this spring.

    Question. Some reports have suggested that opposition supporters in 
Georgia have been detained. Are these reports correct and what steps 
are being undertaken to address this matter?

    Answer. We are not aware of any opposition supporters being 
detained, although there have been some credible reports of their 
harassment. In addition, there are indications that Georgia's new 
campaign finance law is being implemented in a manner which is curbing 
political speech.
    The United States has urged and will continue to urge the 
Government of Georgia to foster a campaign environment that is free and 
fair and perceived as such by the Georgian people. The Embassy has 
worked closely with all interested parties, both inside and outside the 
government, and including the opposition, in an effort to achieve a 
competitive campaign environment. Our focus is on the process and 
ensuring that all qualified candidates and political parties are able 
to compete on equal terms; the administration does not support any 
particular party or candidate.

    Question. Solomon Kimeridze, an opposition supporter, reportedly 
died while in custody. Is this report accurate and what is your 
understanding of the circumstances of his death?

    Answer. Official reports indicate that Solomon Kimeridze died while 
in custody of police in the town of Khashuri. As a result of the 
investigation by the Georgian Government, I understand new rules 
regarding law enforcement monitoring were implemented and the Khashuri 
Chief of Police was relieved of his duties due to ``failure to 
institute safety norms'' which led to injuries reportedly sustained 
from a fall from the third floor to the first floor of the police 
building. Embassy Tbilisi personnel met with Ministry of Justice and 
Ministry of Internal Affairs officials following the incident to 
discuss the ongoing investigation by the Chief Prosecutor's office and 
reiterated the importance of an independent and transparent 
investigation. The United States has raised rule-of-law concerns with 
the Georgian Government and spoken out repeatedly on rule of law and 
human rights issues, including concerns about ensuring the judiciary's 
independence and even-handed and consistent application of due process 
protections.

 
     NOMINATIONS OF SCOTT DeLISI, MICHAEL RAYNOR, AND MAKILA JAMES

                              ----------                              


                        THURSDAY, MARCH 22, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Scott DeLisi, of Minnesota, to be Ambassador to the 
        Republic of Uganda
Michael Raynor, of Maryland, to be Ambassador to the Republic 
        of Benin
Makila James, of the District of Columbia, to be Ambassador to 
        the Kingdom of Swaziland
                              ----------                              

    The committee met, pursuant to notice, at 2:30 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Christopher 
A. Coons, presiding.
    Present: Senators Coons, Udall, and Isakson.

        OPENING STATEMENT OF HON. CHRISTOPHER A. COONS,
                   U.S. SENATOR FROM DELAWARE

    Senator Coons. I am pleased to chair this hearing of the 
Senate Foreign Relations Subcommittee for Africa, considering 
nominees to serve as Ambassador to the Republic of Uganda, the 
Republic of Benin, and Kingdom of Swaziland.
    As always, I welcome my good friend and ranking member, 
Senator Isakson, hopefully as well as some other members of the 
Foreign Relations Committee who may join us.
    I would like to welcome today our distinguished nominees, 
Ambassador Scott DeLisi, the nominee for Uganda; Makila James, 
the nominee for Swaziland; and Michael Raynor, the nominee for 
Benin. I apologize that ongoing votes and deliberations of the 
floor have delayed our start by a few moments. I am grateful 
for your patience.
    These three nominees bring to the table today a vast array 
of professional experience, and I look forward to hearing your 
vision for advancing United States interests, values, and 
policy concerns in Africa. We will speak about three important 
countries in three very different regions of Africa.
    Uganda, a country I visited 25 years ago, but have not had 
the joy yet of returning to. It is a valued strategic partner 
of the United States. Uganda is playing a critical role in 
regional efforts targeting Joseph Kony and the Lord's 
Resistance Army in close coordination with recently deployed 
U.S. military advisers in Central Africa. Uganda is also a 
leading contributor to the AMISOM peacekeeping mission in 
Somalia and has shown a longstanding commitment to countering 
al-Shabaab and other destabilizing forces in the Horn.
    The U.S. Ambassador to Uganda will have the challenging job 
of continuing that strategic partnership, while urging Uganda 
to also improve systems of governance and adopt democratic 
reforms. President Museveni has ruled for 26 years, and 
government security forces have at times taken a heavy-handed 
approach toward political opponents. Also, in my view, a deeply 
troubling bill imposing harsh criminal penalties for 
homosexuality that is currently making its way to the Ugandan 
Parliament, and has been a source of some tension between our 
governments.
    Last, new discoveries of oil promise to bring new revenue 
and economic opportunities to Uganda, but also increase the 
importance and urgency of insuring transparency and combating 
corruption.
    Swaziland, a tiny country on the border of South Africa, 
has a long record of stability, and is a top exporter of 
textiles to the United States under AGOA. Its constitutional 
monarchy has created tension between the dominant royal family 
and pro-democracy opposition groups who want the right to form 
political parties and participate more directly in governance.
    Swaziland has the highest HIV/AIDS infection rate in the 
world with more than a quarter of adults suffering from this 
infection. Challenges for the new Ambassador will include 
working with the government to encourage political freedom and 
democratic reform while continuing our effective health sector 
funding and partnership.
    Last, Benin, a country that Senator Isakson and I had an 
opportunity to visit together last year, has made important 
progress on governance, and has had two decades of peaceful and 
democratic transitions. With vital assistance from the 
Millennium Challenge Corporation, Benin has upgraded and 
rehabilitated its port, and it remains an important producer of 
cotton.
    I would be remiss if I failed to mention the important 
trade between the Port of Wilmington in my home State and the 
Port of Cotonou, making Benin one of the biggest international 
trading partners for the State of Delaware.
    Benin has the potential to be an even more diversified and 
important trading partner with the United States, and I hope 
the new Ambassador will work with President Yayi and his 
government to increase transparency, combat corruption, and 
improve the ease of doing business.
    All three nominees before us have had long, distinguished 
careers with the State Department and bring a wealth of 
experience to these positions. Ambassador DeLisi has 30 years 
of Foreign Service experience, is currently the Ambassador to 
Nepal, previously served as Ambassador to Eritrea, and deputy 
chief of mission to Botswana.
    Ms. Mikala James is also a Senior Foreign Service officer 
currently serving as Office Director for Caribbean Affairs, 
having previously served as Deputy Director in the Office of 
Southern African Affairs, and as the principal officer at the 
consulate general in Juba.
    Last, Mr. Michael Raynor is currently serving as the 
Executive Director of the Bureau of African Affairs, where he 
oversees support of U.S. policy goals for the Bureau and its 53 
overseas embassies, consulates, and offices. He has served 
primarily in Africa, including Zimbabwe, Namibia, Guinea, 
Djibouti, and Congo Brazzaville.
    I look forward to hearing from them after first turning to 
Senator Isakson for some opening remarks.
    Senator Isakson.

           OPENING STATEMENT OF HON. JOHNNY ISAKSON,
                   U.S. SENATOR FROM GEORGIA

    Senator Isakson. Well, thank you, Mr. Chairman. I would ask 
unanimous consent that a prepared statement be put in the 
record.
    Senator Coons. Without objection.
    Senator Isakson. And I want to welcome all of you today to 
this hearing and do what I always do when people accept posts 
that are not necessarily considered the political plums of 
assignments around the world. And your sacrifice for your 
country is noted and appreciated. And we appreciate your 
willingness to serve very, very much.
    I have had the occasion to have quite a relationship with 
the nation of Benin, which Mr. Raynor and I have discussed. The 
Ambassador preceding you, Mr. Knight, has done a phenomenal 
job, and I enjoyed visiting with him, along with Senator Coons.
    President Yayi has done a remarkable job in terms of 
reform, and I have to congratulate and commend Minister of 
Justice Ms. Bedo, who is undertaking the prosecution or the 
hopeful prosecution of the perpetrators of the murder of the 
young Georgian by the name of Kate Puzey, who served in the 
Peace Corps and was brutally murdered in Benin for doing the 
right thing, I might add.
    But I really appreciate the State Department's cooperation 
on this. Aaron Williams has been fantastic. Knight has been 
fantastic. And I am sure that will continue with Michael 
Raynor, and it is my hope that justice will ultimately be done.
    I also congratulate Benin on just entering into their 
second Millennium Challenge contract with further expansion to 
Port Cotonou. That shows that they are working on corruption 
issues and other issues that MCC requires for improvement. And 
like Senator Coons, acknowledge they will continue to be a 
growing trading partner with the United States of America.
    I have never had the privilege of going to Swaziland, but I 
have read the briefs, and I know it has got a number of 
challenges. I know its location is close to South Africa, and a 
part of the world I want to get to one day so I can add it to 
the list of African countries I visited. And I will be 
interested in seeing Ms. James' comment on what alarmed me, 
which was the high rate of AIDS infection in Swaziland, which 
was 25.9 percent of something we are obviously, because of 
PEPFAR and the initiative of President Bush and President 
Obama, interested in trying to make a contribution.
    Mr. DeLisi, it is a pleasure to see you again. I honor you 
for accepting this appointment to Uganda. I look forward to 
going to Uganda in the not too distant future. As you note in 
your prepared testimony, we have introduced advisors, military 
advisors, to help the Ugandan Government and the Democratic 
Republic of the Congo in terms of the issues with Joseph Kony 
and the Lord's Resistance Army. But that is--you are right in 
the garden spot of the Great Lakes Region of all of Africa. The 
friendship the United States has with Uganda has grown since 
the 1986 election, and we appreciate the improvements in 
democracy that have been made there. I look forward to hearing 
your comments, not only about our relationship, but also about 
any comments you have on Joseph Kony and the advisors we have 
deployed in that country.
    So, on behalf of the people of Georgia that I represent, 
thank you for your willingness to serve the country, and I look 
forward to your testimony.
    [The prepared statement of Senator Isakson follows:]

  Prepared Statement of Hon. Johnny Isakson, U.S. Senator From Georgia

    Thank you, Chairman Coons. I am pleased to join you in welcoming 
Ambassador Scott DeLisi, Mr. Michael Raynor, and Ms. Makila James to 
the committee. I appreciate this opportunity to discuss your 
nominations and discuss our bilateral relationships with Benin, 
Swaziland, and Uganda. All three countries present many opportunities 
and challenges.
    Last June, Chairman Coons and I had the opportunity to visit Benin 
to engage Benin's Government on the ongoing investigation into the 
murder of a young Georgian named Kate Puzey who was killed while 
serving as a Peace Corps Volunteer in northern Benin. Finding justice 
for Kate and her family has been a priority of mine and I am thankful 
for the U.S. mission to Benin and the Government of Benin for their 
cooperative efforts and continued dedication to pursuing justice. The 
current U.S. Ambassador to Benin, James Knight, has been a great 
advocate for the United States, particularly for the Puzey family, and 
I have greatly appreciated his efforts during his term.
    President Yayi's continuing reform efforts in Benin are helping to 
develop its economy and his collaborative efforts with fellow ECOWAS 
leaders have seen Benin emerge as a leader on the issues important to 
West Africa. In December 2011, Benin was declared eligible for a second 
compact with the Millennium Challenge Corporation. This compact would 
allow Benin to continue the development of the Port of Cotonou which is 
crucial to economic growth for Benin.
    While I have not had the chance to visit Swaziland or Uganda, I am 
well aware of some of the challenges facing the nominees if they are 
confirmed. Swaziland, with the world's highest HIV infection rate, has 
been the recipient of much U.S. assistance to turn the tide of the 
growth of that rate. As we consider U.S. commitments to global health, 
it is important to understand the strategy for implementation of U.S. 
global health programs in countries such as Swaziland. Swaziland has 
made great strides in increasing its ownership over U.S.-funded HIV/
AIDS treatment programs, and the next Ambassador will be charged with 
encouraging the continuation of this positive trend.
    President Museveni has been in power in Uganda since 1986 and has 
helped to bring stability and democracy to a country that had 
experienced years of civil war. However, concerns have been recently 
been growing about a deterioration in democratic rights and President 
Museveni's increasingly entrenched hold on the Presidency.
    Located in the troubled Great Lakes Region, Uganda is crucial to 
regional security cooperation. There are currently 100 combat-equipped 
U.S. military advisors providing training to the Ugandan military in 
their quest to track down and capture Joseph Kony and the Lord's 
Resistance Army. I look forward to hearing Ambassador DeLisi's thoughts 
on how he plans to continue to engage the Government of Uganda on our 
shared interest of regional stability and security.
    Thank you again, Mr. Chairman, for calling this important hearing. 
I look forward to hearing the testimonies of the nominees.

    Senator Coons. Thank you, Senator.
    I now look forward to hearing from our nominees, starting 
with Ambassador DeLisi, followed by Ms. James, and finally Mr. 
Raynor.
    Please start, if you would, by introducing your families or 
anyone else you would like to recognize that is here in support 
of you. And I would like to also start by thanking both you and 
your families and circle of friends and supporters for 
sustaining your long careers in service to the United States.
    Ambassador.

         STATEMENT OF HON. SCOTT DELISI, OF MINNESOTA,
           TO BE AMBASSADOR TO THE REPUBLIC OF UGANDA

    Ambassador DeLisi. Thank you, Senator, and I am honored to 
introduce my wife, Leah, who has been a partner in diplomatic 
service to our Nation for decades, and probably a better 
diplomat than I am.
    With that, Mr. Chairman, members of the committee, I am 
deeply honored to appear before you today as the nominee to be 
the next United States Ambassador to the Republic of Uganda. I 
am grateful to the President and the Secretary of State for 
their confidence and their support.
    Uganda is a vital partner in a volatile region. As the 
major troop contributor to the African Union mission in 
Somalia, AMISOM, Uganda has made tremendous sacrifices to 
promote peace and stability in the Horn of Africa.
    The Ugandan military has also led regional efforts to 
counter the Lord's Resistance Army. Although the LRA has not 
been active in Uganda since 2006, it continues to cast a wide 
shadow across Central Africa. The United States has supported 
Uganda's constructive role both in AMISOM and against the LRA. 
Most recently, we deployed a small number of U.S. military 
personnel to serve as advisors to Uganda's counter LRA forces 
and those of other regional partners.
    Uganda has also contributed to the peace and development in 
South Sudan, Africa's newest nation and Uganda's neighbor to 
the north, by providing training and assistance to its civil 
service, judiciary, and military.
    Uganda stands out not only for its current contributions to 
regional peace and security, but also for its own transition 
from a state in chaos to one of the region's most stable 
nations. When President Yoweri Museveni came to power in 1986, 
after decades of violent internal strife in Uganda, he 
instituted political reforms and sound macroeconomic policies 
that created a more inclusive government and contributed to 
steady economic growth.
    Against this backdrop, the United States has enjoyed a 
close bilateral partnership with Uganda for the past quarter 
century. We recognize, however, that we must continue to work 
with Uganda to address a number of ongoing challenges in terms 
of broad economic development and the nurturing of a democratic 
political culture.
    On the development front, we have a robust set of programs. 
The President's Feed the Future initiative focuses on improving 
productivity and incomes in the agriculture sector on which 70 
percent of Uganda's citizens rely for their livelihoods.
    Another area of focus has been Northern Uganda where we 
provided $102 million last year to help the region's people, 
including many former LRA abductees, rebuild their lives and 
communities.
    The health sector is another challenge. Although HIV/AIDS 
prevalence rates have decreased from a high of 20 percent in 
the 1990s, they have stagnated at around 6 percent for the past 
decade. Malaria is another lethal threat in Uganda, causing an 
estimated 100,000 deaths per year.
    There are also very significant challenges in the area of 
maternal and child health. Through the Global Health 
Initiative, the President's emergency plan for AIDS relief, the 
President's malaria initiative, we are working the Ugandan 
Government to improve the quality and accessibility of health 
services and to address Uganda's most pressing health concerns.
    We recognize, however, that long-term success will require 
a significant and sustained commitment from the Ugandan 
Government. If confirmed, I will continue to reinforce this 
point and seek to build an even more effective partnership with 
the Ugandan Government, civil society, and faith-based groups 
in the areas of economic development and health.
    We are also working to help Uganda strengthen its 
multiparty democracy and reinforce its respect for human 
rights. Although Uganda's electoral process last year was more 
transparent and peaceful than previous elections, it was 
carried out on an uneven playing field and fraught with 
irregularities. More can be done to improve and empower 
Uganda's governing institutions, and we will continue our 
efforts in that regard. Likewise, we continue to urge the 
Ugandan Government and civil society to respect not just 
political freedoms, but also the fundamental human rights of 
all individuals.
    Finally, Mr. Chairman, if confirmed, the protection of U.S. 
citizens and U.S. business interests in Uganda will be one of 
my foremost concerns for my team and for me.
    In sum, Mr. Chairman, if confirmed, I will seek to 
strengthen our partnership with Uganda as a force for regional 
peace and security. I will also work with the government and 
people of Uganda in pursuit of a healthier, more productive, 
and more prosperous society where protection of citizens' 
political and personal freedoms is a priority for all. 
Achieving these objectives will be critical to Uganda's future 
stability and economic growth, as well as its continued role as 
an important and constructive regional leader.
    I look forward to the opportunity to serve our Nation and 
Uganda if confirmed, and welcome any questions that the 
committee may have.
    Thank you.
    [The prepared statement of Ambassador DeLisi follows:]

             Prepared Statement of Ambassador Scott DeLisi

    Mr. Chairman and members of the committee, I am deeply honored to 
appear before you today as the nominee to be the next United States 
Ambassador to the Republic of Uganda. I am grateful to the President 
and Secretary of State for their confidence and support.
    Uganda is a vital U.S. partner in a volatile region. As the major 
troop contributor to the African Union Mission in Somalia (AMISOM), 
Uganda has made tremendous sacrifices to promote peace and stability in 
the Horn of Africa. The Ugandan military has also led regional efforts 
to counter the Lord's Resistance Army (LRA). Although the LRA has not 
been active in Uganda since 2006, it continues to cast a wide shadow 
across central Africa.
    The United States has supported Uganda's constructive role both in 
AMISOM and against the LRA. Most recently, we deployed a small number 
of U.S. military personnel to serve as advisors to Uganda's counter-LRA 
forces and those of other regional partners. Uganda has also 
contributed to peace and development in South Sudan, Africa's newest 
nation and Uganda's neighbor to the north, by providing training and 
assistance to its civil service, judiciary, and military.
    Uganda stands out not only for its current contributions to 
regional peace and security but also for its own transition from a 
state in chaos to one of the region's most stable nations. When 
President Yoweri Museveni came to power in 1986 after decades of 
violent internal strife in Uganda, he instituted political reforms and 
sound macroeconomic policies that created a more inclusive government 
and contributed to steady economic growth. Against this backdrop, the 
United States has enjoyed a close bilateral partnership with Uganda for 
the past quarter century.
    We recognize, however, that we must continue to work with Uganda to 
address a number of ongoing challenges in terms of broad economic 
development and the nurturing of a democratic political culture.
    On the development front, we have a robust set of programs. The 
President's Feed the Future Initiative focuses on improving 
productivity and incomes in the agriculture sector, on which 70 percent 
of Uganda's citizens rely for their livelihoods. Another area of focus 
has been northern Uganda, where we provided $102 million last year to 
help the region's people, including many former LRA abductees, rebuild 
their lives and communities.
    The health sector is another challenge. Although HIV/AIDS 
prevalence rates have decreased from a high of 20 percent in the 1990s, 
they have stagnated at around 6 percent for the past decade. Malaria is 
another lethal threat in Uganda, causing an estimated 100,000 deaths 
per year. There are also very significant challenges in the area of 
maternal and child health. Through the Global Health Initiative, the 
President's Emergency Plan for AIDS Relief, and the President's Malaria 
Initiative, we are working with the Ugandan Government to improve the 
quality and accessibility of health services and to address Uganda's 
most pressing health concerns.
    We recognize, however, that long-term success will require a 
significant and sustained commitment from the Ugandan Government. If 
confirmed, I will continue to reinforce this point and seek to build 
even more effective partnerships with the Ugandan Government, civil 
society, and faith-based groups in the areas of economic development 
and health.
    We are also working to help Uganda strengthen its multiparty 
democracy and reinforce its respect for human rights. Although Uganda's 
electoral process last year was more transparent and peaceful than 
previous elections, it was carried out on an uneven playing field and 
fraught with irregularities. More can be done to improve and empower 
Uganda's governing institutions, and we will continue our efforts in 
that regard. Likewise, we continue to urge the Ugandan Government and 
civil society to respect not just political freedoms but also the 
fundamental human rights of all individuals.
    Finally, Mr. Chairman, if confirmed, the protection of U.S. 
citizens and U.S. business interests in Uganda will be one of the 
foremost concerns for my team and for me.
    In sum, Mr. Chairman, if confirmed, I will seek to strengthen our 
partnership with Uganda as a force for regional peace and security. I 
will also work with the government and people of Uganda in pursuit of a 
healthier, more productive, and more prosperous society where 
protection of citizens' political and personal freedoms is a priority 
for all. Achieving these objectives will be critical to Uganda's future 
stability and economic growth, as well as its continued role as an 
important and constructive regional leader.
    I look forward to the opportunity to serve our nation in Uganda if 
confirmed, and I welcome any questions the committee may have.

    Senator Coons. Thank you, Ambassador DeLisi.
    Ms. James.

 STATEMENT OF MAKILA JAMES, OF THE DISTRICT OF COLUMBIA, TO BE 
             AMBASSADOR TO THE KINGDOM OF SWAZILAND

    Ms. James. Mr. Chairman and members of the committee, it is 
a great privilege and honor to appear before you today as 
President Obama's nominee to be the Ambassador to the Kingdom 
of Swaziland.
    I am extremely pleased to have my family here with me--my 
husband, Louis Welles; my son, Mandela; and several close 
friends. They have always provided me with unwavering love and 
support throughout my Foreign Service career, and I am most 
grateful to them.
    Mr. Chairman, if confirmed, I look forward to working with 
you and the honorable members of this committee to advance U.S. 
interests in Swaziland. I am confident that based on my 24 
years in the Foreign Service, I am prepared for the challenges 
of leading our efforts to strive for an HIV-free generation, 
promote democracy and good governance, support respect for 
human rights and the rule of law, and foster sustainable 
development in Swaziland.
    Swaziland is an extraordinary country and a valued partner 
to the United States. As one of the few resident diplomatic 
missions in the Kingdom, we have a unique opportunity to engage 
directly and to influence the government on issues of shared 
strategic interest. We must take advantage of the opportunity 
to do so as Swaziland faces an uncertain future.
    After decades of absolute monarchy, the government's 
initial efforts to expand political freedoms have slowed. Swazi 
citizens have limited ability to engage meaningfully in 
politics, and basic rights, such as freedom of assembly, 
speech, and press are restricted. A deeply traditional society 
that prides itself on stability, the Kingdom is beset by modern 
problems: fiscal shortfalls, a devastating HIV/AIDS rate, and 
the need for political change toward a more inclusive 
democratic system. Despite these serious challenges, I am 
confident that progress remains possible, and that we must work 
diligently to pursue our goals in Swaziland.
    If confirmed, I will serve during a crucial moment in Swazi 
history. Under my guidance, the U.S. Embassy would continue to 
advance democracy in Swaziland by encouraging support for key 
government institutions, including Parliament and the 
judiciary. We will support civil society, labor unions, the 
media, and other institutions that hold the government 
accountable, in particular in the run up to the 2013 
parliamentary elections, a possible turning point in 
Swaziland's future.
    I would also work closely with the Government of the 
Kingdom of Swaziland and civil society to enhance the status of 
women and children--a critical area of engagement to help 
address HIV/AIDS and uphold universal human rights. Like many 
Swazis, I, too, am convinced that there is no fundamental 
tradeoff between democracy and tradition, that Swazis can be 
both proud of their culture and proud of their freedom. Perhaps 
the greatest threat to Swaziland's future, however, lies in the 
health of its people. Swaziland has the most severe national 
HIV/AIDS and tuberculosis crisis in the world with a prevalence 
rate of 26 percent and a life expectancy of only 43 years.
    The United States is helping Swaziland fight the HIV/AIDS 
epidemic by providing resources under the President's Emergency 
Plan for AIDS Relief, PEPFAR. The PEPFAR budget for Swaziland 
has risen from roughly $9 million in 2007 to $33 million in 
2011.
    To stem the tide of HIV/AIDS and help improve aid 
effectiveness, the U.S. Government has signed a Partnership 
Framework Agreement with the Government of the Kingdom of 
Swaziland that has contributed significantly to Swaziland's 
prevention of mother-to-child transmission and HIV/AIDS 
treatment programs, amongst some of the most effective in all 
of Africa.
    The aim now is to strengthen public health and community 
systems to sustain the response to the HIV/AIDS epidemic beyond 
the PEPFAR program lifespan. If confirmed, I will work to 
increase Swazi Government accountability and capacity to combat 
HIV/AIDS while promoting Swazi-led efforts to create an HIV-
free generation.
    The Government of Swaziland is also challenged by a fiscal 
crisis that has hampered its ability to operate effectively. If 
confirmed, I will continue our work with the Swazi Government 
to promote economic reforms, provide technical assistance, and 
encourage fiscal transparency and accountability. In addition, 
I will promote labor reform and provide other guidance for 
Swaziland to remain eligible for African Growth and Opportunity 
Act benefits, and I will advocate for U.S. businesses who are 
seeking to enter the Swazi market.
    As a rotating chair of regional organizations, including 
the Southern African Development community and the African 
Union, Swaziland is important to United States interests as it 
wields significance influence despite its small size. It is 
critical to our regional strategic interests that we ensure 
that Swaziland remains stable.
    Fortunately, the United States-Swazi bilateral relationship 
is strong. There is no greater evidence of our friendship than 
the vibrant Peace Corps program through which 66 American 
volunteers are currently engaged in community health, HIV/AIDS 
prevention programs, and youth development. Encouraged by the 
mutual respect our two nations share, and energized by the 
challenges that lie ahead, I look forward to serving as 
Ambassador to Swaziland if confirmed.
    Mr. Chairman and members of the committee, I want to thank 
you for the opportunity to appear before you today, and I will 
be happy to answer any questions you have.
    [The prepared statement of Ms. James follows:]

                   Prepared Statement of Makila James

    Mr. Chairman and members of the committee, it is a great privilege 
and honor for me to appear before you today as President Obama's 
nominee to be Ambassador to the Kingdom of Swaziland. I am extremely 
pleased to have my family here with me--my husband, Louis Wells, and my 
son, Mandela. They have always provided me with their unwavering love 
and support throughout my Foreign Service career and I am most grateful 
to them.
    Mr. Chairman, if confirmed, I look forward to working with you and 
the honorable members of this committee to advance U.S. interests in 
Swaziland. I am confident that based on my 24 years in the Foreign 
Service I am prepared for the challenges of leading our efforts to 
strive for an HIV-free generation, promote democracy and good 
governance, support respect for human rights and the rule of law, and 
foster sustainable development in Swaziland. I have spent the vast 
majority of my Foreign Service career working in or on Africa. I have 
served as Principal Officer in Juba, Southern Sudan; Political Officer 
in Harare, Zimbabwe; and Political/Economic Officer in Kaduna, Nigeria; 
as well as Desk Officer for Sierra Leone and The Gambia; International 
Relations Officer for Africa in the United Nations Security Council; 
and a Member of the Secretary of State's Policy Planning Office 
responsible for Africa. I believe that my experiences in Zimbabwe, a 
country still in transition toward greater democratization, has 
especially prepared me to serve as the U.S. Ambassador to Swaziland as 
it confronts similar challenges in expanding democracy. My overall 
experiences in each of these assignments has prepared me to serve in a 
difficult environment and afforded me a broad knowledge of the region 
and people.
    In my current position as Director of Caribbean Affairs, I have led 
my staff in supporting U.S. policy in the 14 countries and several 
independent territories for which I am responsible, helping to 
strengthen democratic institutions, address major threats to citizen 
security, promote human rights, and encourage economic development. I 
have also served as Deputy Director and Acting Director of the Office 
of Southern African Affairs. These positions, as well as my service in 
Juba, have provided me with the important management skills which I 
would bring to an assignment as U.S. Ambassador to Swaziland.
    Swaziland is an extraordinary country and valued partner of the 
United States. As one of the few resident diplomatic missions in the 
Kingdom, we have a unique opportunity to directly engage and influence 
the government on issues of shared strategic interest. We must take 
advantage of this opportunity as Swaziland faces an uncertain future. 
After decades of absolute monarchy, the government's initial efforts to 
expand political freedoms have slowed. Swazi citizens have limited 
ability to engage meaningfully in politics, and basic rights such as 
the freedom of assembly, speech, and press are restricted. A deeply 
traditional society that prides itself on stability, the Kingdom is 
beset by modern problems: fiscal shortfalls, a devastating HIV/AIDS 
epidemic, and the need for political change toward a more inclusive 
democratic system.
    Despite these serious challenges, I am confident that progress 
remains possible and that we must work diligently to pursue our goals 
in Swaziland. If confirmed, I will serve as Ambassador during a crucial 
moment in Swazi history. Under my guidance, the U.S. Embassy would 
continue to advance democracy in Swaziland by encouraging support for 
key government institutions, including Parliament and the judiciary, 
which engender and uphold democratic values. We would also support 
civil society, labor unions, the media, and other institutions that 
hold the government accountable, in particular in the runup to the 2013 
parliamentary elections, a possible turning point in Swaziland's 
future. I would also work closely with the Government of the Kingdom of 
Swaziland and civil society to enhance the status of women and girls--
critical areas of engagement to help address the HIV/AIDS epidemic, 
support poverty alleviation efforts, and uphold universal human rights. 
Like many Swazis, I, too, am convinced that there is no fundamental 
tradeoff between democracy and tradition, that Swazis can be both proud 
of their culture and proud of their freedom.
    Perhaps the greatest threat to Swaziland's future, however, lies in 
the health of its people. Swaziland has the most severe national HIV/
AIDS and tuberculosis crises in the world, with an HIV prevalence of 26 
percent and a life expectancy of only 43 years. The United States is 
helping Swaziland fight the HIV/AIDS epidemic by providing resources 
under the President's Emergency Plan for AIDS Relief, or PEPFAR. 
PEPFAR's budget for Swaziland has risen from roughly $9 million in 2007 
to $33 million in 2011. To stem the tide of HIV/AIDS and help improve 
aid effectiveness, the U.S. Government has signed a Partnership 
Framework Agreement with the Government of the Kingdom of Swaziland, 
the second-ever agreement of its kind. This Partnership has contributed 
significantly to Swaziland's prevention of mother-to-child transmission 
and HIV treatment programs, among the most effective in all of sub-
Saharan Africa. The aim now is to strengthen public health and 
community systems to sustain the response to the HIV/AIDS epidemic 
beyond the PEPFAR program's lifespan. If confirmed, I will work to 
increase Swazi Government accountability and capacity to combat HIV/
AIDS, while promoting Swazi-led efforts to create an HIV-free 
generation.
    Compounding the challenges of the HIV/AIDS epidemic, the Government 
of Swaziland is challenged by a fiscal crisis that has hampered the 
government's ability to operate effectively. If confirmed, I will 
continue our work with the Swazi Government to promote economic 
reforms, provide technical assistance, and encourage fiscal 
transparency and accountability. In addition, I will promote labor 
reforms and provide other guidance for Swaziland to remain eligible for 
African Growth and Opportunities Act (AGOA) benefits, and I will 
advocate for U.S. businesses seeking to enter the Swazi market. AGOA is 
a critically important program in Swaziland that is helping the country 
address its serious unemployment rate of 41 percent. Swaziland is a 
country that has successfully utilized AGOA and is one of the top 
African exporters of textile to the United States. AGOA employs 
approximately 15,000 Swazi workers in the textile sector, many of them 
women. I would encourage Swaziland to demonstrate the continued 
progress required for renewed AGOA eligibility to ensure its continued 
access to its trade preferences.
    As a rotating chair of regional organizations, including the 
Southern African Development Community (SADC), and the African Union, 
Swaziland is important to U.S. interests as it wields significant 
influence despite its small size. It is critical to our regional 
strategic interests that we ensure Swaziland is stable. Fortunately, 
the U.S.-Swaziland bilateral relationship is strong. There is no 
greater evidence of our friendship than the vibrant Peace Corps 
program, through which 66 American volunteers are currently engaged in 
community health/HIV prevention and youth development. As the impact of 
the Peace Corps Volunteers continues to gradually expand throughout 
2012, I would focus on working with the in-country Peace Corps staff to 
ensure the effectiveness of this important program--the face of America 
throughout much of rural Swaziland--as well as the safety and welfare 
of each of the volunteers. Encouraged by the mutual respect our two 
nations share and energized by the challenges that lie ahead, I look 
forward to serving as U.S. Ambassador to Swaziland, if confirmed.
    Mr. Chairman and nembers of the committee, I want to thank you for 
the opportunity to appear before you today. I will be happy to answer 
any questions you have.

    Senator Coons. Thank you, Ms. James.
    Mr. Raynor.

           STATEMENT OF MICHAEL RAYNOR, OF MARYLAND, 
           TO BE AMBASSADOR TO THE REPUBLIC OF BENIN

    Mr. Raynor. Thank you very much. Mr. Chairman and members 
of the committee, I am honored to appear before you today, and 
grateful to President Obama and Secretary Clinton for the 
confidence they have placed in me as their nominee for 
Ambassador to the Republic of Benin.
    I am happy to introduce my wife, Kate, my son, Bradley, and 
my daughter, Emma. They have all done America proud through 
many years overseas, and I could not be more grateful for their 
support.
    I have focused on Africa during 20 of my 24 years in the 
Foreign Service, including 14 years at our Embassies in Congo, 
Djibouti, Guinea, Namibia, and Zimbabwe, and 6 years in 
Washington, most recently as the Executive Director of the 
Bureau of African Affairs. From this experience. From the 
service I have gained rich experiences upon which I will draw 
to support U.S. interests if confirmed as the next U.S. 
Ambassador to the Republic of Benin.
    Mr. Chairman and Senator Isakson, I greatly respect the 
interest you have taken in Benin. Your visit last June 
highlighted important U.S. Government programs, as well as your 
strong interest in achieving justice for Kate Puzey, a 
wonderful Peace Corps Volunteer who was tragically murdered 
just over 3 years ago. The impressive luncheon you hosted last 
July for President Yayi and three other West African Presidents 
further reflected your significant engagement in the region.
    The United States and Benin have a strong relationship 
founded on common interests and objectives. Benin is a West 
African success story and a proponent of values we Americans 
hold dear. Since the early 1990s, Benin's embrace of democratic 
pluralism has resulted in multiple free and fair elections, 
including peaceful democratic transitions between political 
parties. And it continues to buttress its democratic 
institutions and procedures.
    If confirmed, I will promote U.S. engagement in support of 
good governance, accountability, and capacity-building within 
the government and civil society.
    Benin has a strong record on human rights. Religious 
tolerance and freedom of expression are hallmarks of Beninese 
society. Benin and the United States have collaborated to 
promote women's and children's rights and to counter violence 
against women. If confirmed, I will build upon efforts to 
protect Benin's most vulnerable populations. This commitment 
extends to investing in the health of the Beninese people to 
boost maternal and child health, keep Benin's HIV rate in 
check, and combat malaria and other diseases.
    Benin and the United States share an interest in countering 
terrorism and promoting regional stability. Benin's region 
presents significant terrorist and maritime security concerns. 
Benin participates actively in U.S. international military 
education and training programs, and has contributed to United 
Nations' peacekeeping efforts in Africa and Haiti. If 
confirmed, I will support Benin's capacity to promote regional 
and global security.
    Since embracing free market principles over 20 years ago, 
Benin has pursued economic reforms and diversification. Last 
October, Benin completed a $307 million Millennium Challenge 
Corporation Compact that improved Benin's port and increased 
its citizens' access to entrepreneurial credit, land title, and 
legal remedies. Due to this success, and in light of Benin's 
commitment to good governance an economic development, Benin 
was deemed eligible to develop a proposal for a second MCC 
compact. If confirmed, I will work closely with the Government 
of Benin toward a second compact, both to enhance Benin's 
economic vitality and to promote U.S. commercial opportunities 
in Benin.
    While Benin is indeed a success story, it faces challenges 
to sustaining and building upon its progress. Benin ranks low 
on many of development indicators, including measures of 
education, health, corruption, personal income, and business 
climate. The United States has a strong stake in helping Benin 
overcome these challenges, not only for the sake of the 
Beninese people, but because of the value that a democratic, 
responsible, and economically vibrant Benin brings to the 
United States efforts to promote these values more broadly.
    When he met with President Obama in Washington last July, 
President Yayi reiterated his commitment to building upon 
Benin's strengths, addressing its vulnerabilities, and 
expanding its positive role on the world stage. If confirmed, I 
will work hard to enhance the vital role of the United States 
in these efforts.
    Any discussion of United States interests in Benin must 
sadly include the terrible murder of Kate Puzey, a tragedy not 
only for her family and friends, but for all who stood to 
benefit from her positive influence on the world. Great good 
was brought from this tragedy through the enactment of the Kate 
Puzey Peace Corps Volunteer Protection Act last November, but 
legal justice is needed as well. The United States continues to 
assist Benin in investigating the crime. If confirmed, I will 
press efforts to achieve justice and resolution.
    Thank you, Mr. Chairman, and members of the committee, for 
the opportunity to address you today. If confirmed, I look 
forward to working with you and representing the interests of 
the American people in Benin. I am happy to answer any 
questions.
    [The prepared statement of Mr. Raynor follows:]

                  Prepared Statement of Michael Raynor

    Mr. Chairman and members of the committee, I am honored to appear 
before you today, and grateful to President Obama and Secretary Clinton 
for the confidence they have placed in me as their nominee for 
Ambassador to the Republic of Benin.
    I am happy that my wife, Kate, my son, Bradley, and my daughter, 
Emma, are able to join me today. They have all done America proud 
through many years overseas, and I couldn't be more grateful for their 
support.
    I have focused on Africa during 20 of my 24 years in the Foreign 
Service, including 14 years at our Embassies in Congo, Djibouti, 
Guinea, Namibia, and Zimbabwe, and 6 years in Washington, most recently 
as the Executive Director of the Bureau of African Affairs. From this 
service I have gained rich experience upon which I will draw to support 
U.S. interests, if confirmed as the next U.S. Ambassador to the 
Republic of Benin.
    Mr. Chairman and Senator Isakson, I greatly respect the interest 
you have taken in Benin. Your visit last June highlighted important 
U.S. Government programs as well as your strong interest in achieving 
justice for Kate Puzey, a wonderful Peace Corps Volunteer who was 
tragically murdered just over 3 years ago. The impressive luncheon you 
hosted last July for President Yayi and three other West African 
Presidents further reflected your significant engagement in the region.
    The United States and Benin have a strong relationship founded on 
common interests and objectives. Benin is a West African success story 
and a proponent of values we Americans hold dear. Since the early 
1990s, Benin's embrace of democratic pluralism has resulted in multiple 
free and fair elections including peaceful democratic transitions 
between political parties, and it continues to buttress its democratic 
institutions and procedures. If confirmed, I will promote U.S. 
engagement in support of good governance, accountability, and capacity-
building within the government and civil society.
    Benin has a strong record on human rights. Religious tolerance and 
freedom of expression are hallmarks of Beninese society. Benin and the 
United States have collaborated to promote women's and children's 
rights and to counter violence against women. If confirmed, I will 
build upon efforts to protect Benin's most vulnerable populations. This 
commitment extends to investing in the health of the Beninese people to 
boost maternal and child health, keep Benin's HIV rate in check, and 
combat malaria and other diseases.
    Benin and the United States share an interest in countering 
terrorism and promoting regional stability. Benin's region presents 
significant terrorist and maritime security concerns. Benin 
participates actively in U.S. International Military Education and 
Training programs and has contributed to United Nations peacekeeping 
efforts in Africa and Haiti. If confirmed, I will support Benin's 
capacity to promote regional and global security.
    Since embracing free market principles over 20 years ago, Benin has 
pursued economic reforms and diversification. Last October, Benin 
completed a $307 million Millennium Challenge Corporation Compact that 
improved Benin's port and increased its citizens' access to 
entrepreneurial credit, land title, and legal remedies. Due to this 
success, and in light of Benin's commitment to good governance and 
economic development, Benin was deemed eligible to develop a proposal 
for a second MCC Compact. If confirmed, I will work closely with the 
Government of Benin toward a second compact, both to enhance Benin's 
economic vitality and to promote U.S. commercial opportunities in 
Benin.
    While Benin is indeed a success story, it faces challenges to 
sustaining and building upon its progress. Benin ranks low on many 
development indicators, including measures of education, health, 
corruption, personal income, and business climate. The United States 
has a strong stake in helping Benin overcome these challenges, not only 
for the sake of the Beninese people, but because of the value that a 
democratic, responsible, and economically vibrant Benin brings to U.S 
efforts to promote these values more broadly. When he met with 
President Obama in Washington last July, President Yayi reiterated his 
commitment to building upon Benin's strengths, addressing its 
vulnerabilities, and expanding its positive role on the world stage. If 
confirmed, I will work hard to enhance the vital role of the United 
States in this effort.
    Any discussion of U.S. interests in Benin must sadly include the 
terrible murder of Kate Puzey, a tragedy not only for her family and 
friends but for all who stood to benefit from her positive influence on 
the world. Great good was brought from this tragedy through the 
enactment of the Kate Puzey Peace Corps Volunteer Protection Act last 
November, but legal justice is needed as well. The United States 
continues to assist Benin in investigating the crime. If confirmed, I 
will press efforts to achieve justice and resolution.
    Thank you, Mr. Chairman and members of the committee, for the 
opportunity to address you today. If confirmed, I look forward to 
working with you in representing the interests of the American people 
in Benin. I am happy to answer any questions.

    Senator Coons. Thank you to all three of our nominees 
today. I would like to open our first round of questions by 
just asking each of you in turn if you would, to broadly 
address what you see as the most critical policy objectives for 
the United States in your country of appointment, and, in 
particular, given our fairly difficult and limited budget 
environment in the coming decade, what you see as the means 
that you will use to focus our partnership, our assistance with 
these three countries to make sure that they are effective, and 
what you will be doing to promote trade and responsible 
economic development in partnership between the United States 
and your countries of appointment.
    Ambassador DeLisi.
    Ambassador DeLisi. Thank you for the question, Senator. It 
is wide ranging.
    Certainly in your introductory remarks, you touched on the 
key issues, I think, for us in Uganda. They certainly would be 
part of what I would address if confirmed. Strengthening and 
maintaining the strategic partnership that we have and the role 
that they have continued to play in support of bringing peace 
and stability to both the Horn of Africa and the Great Lakes 
Region is tremendously important. We appreciate the sacrifices 
that Uganda has made, especially in Somalia. We want to keep 
that relationship vibrant.
    But just because we have a strong security partnership does 
not mean that we cannot speak candidly and constructively to 
our partners about issues of concern, and that includes 
democracy and human rights. You have noted that there are 
challenges in that arena, and that is something that I think 
that we have to address.
    And on that front, it is not always about resources. We 
have some money that is in our democracy and governance 
programs that is intended to address those concerns, but it is 
about leadership, and it is about visibility. And I think one 
of the things that an ambassador has to do is be the 
spokesperson, to be seen as visibly and in a very clear way 
demonstrating that we care about these issues. And that is 
something that I have tried to do in Katmandu. It is something 
that I would try to do as well in Kampala if I am confirmed.
    Equally, as we seek to build strong partners in Africa, 
prosperous, stable societies, public health issues are 
critical. We have a robust budget there. We are not strained 
for resources. But I think it is imperative, given that it is a 
resource constrained world, that we look at the budget that we 
have and that we use it in the most effective way possible; 
that we review our programs, make sure they are directed toward 
the support of a comprehensive and strategic vision about what 
we are doing there.
    The other thing that I would hope to be able to do in terms 
of addressing our resources and the constraints is to leverage 
other people's money. I have found it can be an effective tool 
in Nepal and many of the efforts that we launched. We have 
provided leadership, but we have not been able to use the 
resources from partners in the private sector, other diplomatic 
partners, to support the issues of concern on which we have 
led, and I would hope we would be able to continue to do that.
    In terms of building the economic relations, the trade 
relationships, right now we have not a very robust trade 
partnership with Uganda. I would like to see that change, but I 
know that is not going to be easy. It is about building 
infrastructure. It is about addressing some of the fundamentals 
within the Ugandan economy that have to be looked at first 
before they can be the kind of partner that we might want. And 
that is what we are trying to do. We are trying to look at 
issues of corruption. We are looking at issues related to 
energy. We are looking at ways that we can strengthen the 
agricultural sector, which is the heart of the economy, and 
that is where we are directing our Feed the Future resources.
    We will continue to do all of that. And meanwhile, once I 
am on the ground, if confirmed, I will be looking to see what 
other opportunities there are for U.S. business, and we will 
pursue them as strongly as we can.
    Thank you, sir.
    Senator Coons. Thank you, Ambassador.
    Ms. James.
    Ms. James. Thank you, Mr. Chairman.
    As you know, Swaziland does have a very difficult and 
challenging political environment, and so democracy and 
governance are very high on the agenda for me, in particular. 
It has been a challenge because this is an absolute monarchy. 
Political parties are effectively banned, and basic rights have 
been severely restricted. Nevertheless, there are some signs of 
positive developments which I would want to take advantage of 
and really work very hard to engage on.
    Swaziland does have democratic institutions. The court 
system and Parliament are targets of opportunity that I think 
we would want to work very closely on. We try to build capacity 
there with the limited program funding that we do have.
    I also think it is important that we engage heavily with 
civil society and with the government to keep a regular 
dialogue open and to underscore that these are priority issues 
for the United States Government. As Ambassador, I would be 
very visible, very vigilant, in following up on these kinds of 
conversations with all parties in the country.
    We have very limited democracy and governance funds, and so 
it is going to require that we are smart, that we are 
efficient, and that we leverage all of our programs, because 
within a number of our programs, we have the opportunity to 
build good governance capacity.
    Within the PEPFAR program, which is very focused on the 
Health Ministry and the Finance Ministry, we have an 
opportunity to work to build up systems to help address 
accountability and transparency issues. Similarly, with the 
AGOA eligibility requirements, we have an opportunity to engage 
with the government on a regular basis to encourage 
anticorruption efforts and political pluralism. So, we have 
vehicles there that we will use, even though we do not have 
dedicated, significant democracy, and governance funds.
    With respect to promoting trade, I would note that 
Swaziland has actually benefited very much from the African 
Growth and Opportunity Act. They have exported extensively to 
the United States, and that is creating a more prosperous 
Swaziland. A key ingredient for American businessmen who want 
to operate in Swaziland is the need for a market. They need a 
purchasing market, and so to the extent that we are using AGOA 
to help build up Swaziland's own economy and its own income 
there, that is good for the U.S. economy as well.
    There is also a very enabling business environment in 
Swaziland despite the issues we talked about on the political 
front. There is a very good business climate there. Senator 
Isakson, as you may know, Coca-Cola has the largest plant on 
the continent in Swaziland. They have been there for many years 
successfully. They are a good corporation which exercises 
social responsibility. They are a role model. And I would want 
to engage with them to think about how we could bring in more 
businesses there.
    So, I think the enabling business environment and working 
with the government on labor issues, would support the kinds of 
conversations that I would want to have to encourage 
businessmen to look at Swaziland.
    Senator Coons. Thank you, Ms. James.
    Mr. Raynor, if you would.
    Mr. Raynor. Thank you, Mr. Chairman. First, on your 
question with regards to policy objectives, in a nutshell I 
would say that I would see, if confirmed, my objective in Benin 
to be essentially to solidify and build upon the gains that 
Benin has made, and then to look at the obstacles that it faces 
to further progress.
    As you noted, Mr. Chairman, Benin has established quite a 
strong track record in terms of democracy and good governance, 
as well as human rights. Indeed, it also has established a good 
record with regards to economic structural reforms and 
sustained rates of economic growth. As such, it already serves 
as something of a role model within West Africa and beyond of a 
stable, democratic society.
    I think one thing I would do if confirmed would be to 
stress in diplomacy and public diplomacy that these attributes 
are things that we, the United States, value very highly in 
Benin, and they essentially form the cornerstone of our very 
positive relations.
    And from that basis, I would then engage with the 
Government of Benin to look at the obstacles to further 
progress and what we may be able to do with regards to formal 
aid and otherwise to help the country overcome them. These 
obstacles include the need for further progress in areas of 
health and education. Also, the business climate. And I think 
we would need to look at what we are doing with our formal aid, 
and we would have to make sure that evolves in response to 
gains made, in response to the Beninese own assessment of their 
priorities, in response to what other actors in the donor 
community and the international community are engaging on so 
that there is complementarity and a sort of a multiplier effect 
to our engagement.
    Certainly growing Benin's economy, I think, is central to 
its interests in the future, and I would certainly look for 
ways to leverage and build upon the gains made through the MCC 
compact, which, as you noted, Senator Isakson, markedly 
improved the Port. It both expanded and renovated it. It also 
addressed some of the issues related to the business climate in 
the country with regards to access to credit, access to 
judicial process.
    So, I think those are gains that need to be solidified and 
built upon. The prospects of a second compact would also be a 
very encouraging prospect. And, more generally, I think we just 
need to look for ways to assist in Benin in diversifying its 
economy, both diversifying its agricultural sector and its 
broader economy.
    Senator Coons. Thank you, Mr. Raynor.
    Ambassador DeLisi, if I might, one last question this 
round, and then I will turn it over to Senator Isakson.
    Ambassador DeLisi, have we been doing enough as a nation to 
support the pursuit of Joseph Kony and to be actively engaged 
in the efforts to end the Lord's Resistance Army? What more 
could we be doing? How can we sustain this effort? And what has 
the United States been doing to help the communities in 
Northern Uganda recover from the impact of the Lord's 
Resistance Army?
    Ambassador DeLisi. Thank you very much for the question, 
Senator, and I would like to thank you and your colleague, 
Senator Isakson, and others who passed the resolution yesterday 
addressing this issue. The sort of leadership that we have seen 
on the Hill, and I do not say this just because I am here 
before you today, but this is important. It sends a powerful 
message to support what the administration is trying to do in 
pursuit of Joseph Kony and his lieutenants.
    And, yes, I think we are doing well. I am very pleased with 
what I have been able to learn in the few weeks that I have 
been reading. I think we have had a very active engagement and 
support of our African partners, because this is an African-
driven initiative, and I think that that is a good thing.
    But we have been active in support. We have provided over 
$50 million in assistance over the past 4 years as we have 
pursued this. We have now deployed, as you know, special 
operations forces to support, again, our African partners to 
give them both the intelligence and operational coordination 
that is necessary to make this more effective.
    We are looking to partner more effectively with the African 
Union, which is it sees now with this issue, and is launching 
their own initiative to press forward. And that is good. I 
think that will be especially important to us in terms of 
standing up the coordination center in South Sudan, giving us a 
standing headquarters that we can engage with, but also in 
encouraging the regional partners to work together as 
effectively as we need.
    We can always try to do more, but we know that this is a 
daunting task. Kony and his cadre are in an area the size of 
the State of California in some of the most inhospitable 
terrain, some of the most dense jungle, without roads, without 
easy access, not easy to track. This is a long-term effort. But 
we believe that the governments of the region and that the 
Government of Uganda in terms of its role is committed to 
staying the course. I hope that we will be as well.
    I know that there is pending legislation that was 
introduced in the House that would expand the Rewards for 
Justice Program. I think that that would be a tool that would 
be very useful for us if we could apply the Rewards for Justice 
Program to Mr. Kony and his top commanders, again another step 
in the right direction.
    We are looking as well to see what we can do in terms of 
assisting with one of the greatest challenges, and that is 
mobility, and that is something that we will be consulting 
with, and I will be talking to colleagues in the Africa command 
if I am confirmed, and we will look at these issues in 
coordination with colleagues in Washington.
    Finally, turning to Northern Uganda, we provided just last 
year alone, as I noted in my open remarks, $102 million. We 
have seen that close to 95 percent of the people who were 
displaced during the conflict, of those 2 million people, 95 
percent have now returned to their homes, to their communities, 
or are in transitional centers. We are starting to move from 
humanitarian assistance to more traditional development 
mechanisms. We are working with vocational training, creating 
jobs, revitalizing agriculture.
    And in that group that we are assisting are many former LRA 
abductees. There is over 12,000 who have come out in the past 
decade, little more than a decade. And many of them are being 
assisted by our programs in Northern Uganda. But we are doing 
that in partnership with the Government of Uganda, which has 
its own peace recovery and development program for the north, 
and they have been funding it, and they are continuing to do so 
as well.
    And that is the important part that this is in partnership 
with Africa and with African nations. I think we are making 
good progress. We will continue to do so, I hope.
    Senator Coons. Thank you, Ambassador DeLisi. We look 
forward to working with you and sustaining our effective 
engagement on this issue.
    Senator Isakson.
    Senator Isakson. Mr. Raynor, I want to sincerely thank you 
for your prepared statement and your commitment to the Puzey 
family. I want to make sure that statement gets in the hands of 
Kate's mom and dad. They will appreciate the fact that you are 
carrying on where Ambassador Knight began. Senator Coons and I 
are interested in following that and appreciate any 
communication along the way you can give to us as the process 
of that investigation and hopefully ultimately a trail. But I 
want to thank you for your acknowledgment of the gravity of 
that situation and your personal commitment to it.
    And I might also say, Ms. James, I want to thank you for 
mentioning Coca-Cola. Any time somebody mentions the biggest 
business for my home State, I am always grateful.
    Also, Senator Coons and I visited in Ghana a Coca-Cola 
water project. I do not know if you are aware of what Coca-Cola 
is doing in Africa, but they are investing millions of dollars 
in clean water projects where they put in purification systems, 
teach the people how to maintain the system, charge them 7 
cents a day for 5 gallons of water, which is the amount of 
money necessary to maintain and keep the plant in condition. 
And with clean water being the biggest issue, Africa really 
has, among many, many issues, I would encourage you to talk 
with Coca-Cola about that. But thank you for acknowledging 
them.
    And thank you for acknowledging the AIDS problem and the 
AIDS infection rate. And I would only--I read the governmental 
organization of the Kingdom of Swaziland, and it is a kingdom. 
It is not a democracy. I mean, any time the King can dissolve 
the Parliament, you got one person in charge. And I wish you a 
lot of luck with the democracy efforts that you make.
    But I would ask that you, for a second, comment on the 
fact. One thing Senator Coons and I are working on, every time 
we meet with African countries that are in the PEPFAR program, 
is to get the governments receiving--who are in PEPFAR to take 
over more of the human responsibility of testing and delivering 
the retrovirals. The more countries can help--and Tanzania, by 
the way, is doing a great job of that now. The more they can 
replace the manpower that we have been using through NGOs and 
through USAID and through CDC, the more we can put in 
retrovirals, but the less the total cost. So, I would 
appreciate your comment on that.
    Ms. James. Thank you, Senator Isakson.
    First of all, I want to thank you back for your kind words. 
I look forward to engaging with Coca-Cola. I understand they 
are a good corporate partner in the country, and I am very much 
interested to see what more we can do with that partnership.
    With respect to PEPFAR, PEPFAR is a very successful story 
in Swaziland. The program has been active for a while, and it 
is really a partnership with the government. Specifically, you 
mentioned antiretrovirals. I am really pleased to report that 
the Government of Swaziland has basically taken over the 
distribution of all the antiretrovirals. So, we are not in the 
business of doing that. We are in the business of capacity-
building, working with community organizations, getting more 
local engagement in solutions for the orphans and vulnerable 
children. The numbers there are just astronomical, about 10 
percent of the population.
    We are really working at the grassroots level and the 
capacity-building level, and the government has taken ownership 
of the ARV programs. At least since 2010, they have been solely 
in the business of distributing the ARVs. And from all 
accounts, it is going well. It is a multifaceted program.
    As I said, we also have Peace Corps engaged, and I think 
Peace Corps has been doing a great job for us in the rural 
areas, and they are working in partnership, one on one with 
local leaders in small community centers helping to build life 
skills and helping to deal with the needs of orphans and 
vulnerable children. And so, we really have a partnership out 
in the rural areas through Peace Corps as well as PEPFAR staff 
that is working in the major areas engaging with the Ministry 
of Health.
    So, I thank you, and I look forward to furthering that.
    Senator Isakson. Well, I thank you.
    Ambassador DeLisi, when you were referring to the north and 
humanitarian effort, I guess you were talking about Gulu or 
that region of Uganda, is that correct?
    One of the big NGOs in Africa is based out of Atlanta. That 
is CARE, and their presence, as I understand it, is pretty 
complete in Northern Uganda. And I am glad to hear we are going 
from humanitarian focus to vocational focus in trying to bring 
that area back, which was so devastated by Kony and his people.
    On Joseph Kony, I say the same thing to you I said to Mr. 
Raynor regarding his passion on the Puzey case. I think it is 
very important that America's diplomats and America's 
politicians speak forcefully when we see a human tragedy like 
what is going on at the hands of Kony. I traveled to Rwanda and 
saw firsthand how the world looked the other way. And they paid 
no attention to a genocide that was taking place in that 
country.
    And I think it is important that we as a country be a 
leader in focusing when we know there is an injustice. And I 
commend you on your passion for that. And when I go to Uganda 
later on, I intend to meet both with the military personnel as 
well as hopefully yourself or the person that you are 
succeeding, one way or another, to try and help in any way we 
can in the Congress of the United States to do that.
    And one other question on the South Sudan. I have traveled 
to Sudan and Darfur and South Sudan, or near South Sudan. We 
are grateful that the Comprehensive Peace Agreement was 
reached, but we are scared to death that the South Sudan and 
the North will get into a civil war like what happened in the 
past.
    You refer to Uganda's deployment or Uganda's assistance in 
South Sudan. Can you elaborate on what they are doing to help 
stabilize that area?
    Ambassador DeLisi. Senator, I have looked at this somewhat. 
I have not looked at it extensively. From what I have seen, 
though, I know that Uganda has been a longstanding friend of 
the people of the South to begin with, and has supported them 
through their struggles, and now supporting them into 
independence.
    The support at this point in time is largely on two fronts. 
One is to build an effective government, so they are working on 
establishing the government institutions, the military, the 
civil service, all of the things that a nation needs to begin 
to function effectively. And this is a challenge when you are 
starting from scratch in many ways.
    They are also involved very much in the economy of the 
region. I know that South Sudan is the major trading partner 
for Uganda, and there is a lot that goes on there. But the nuts 
and bolts I really cannot speak to at the moment. I would have 
to look at that a little bit closer. But this is one of the 
areas that I know is going to be extremely important as we move 
forward. And, like you, I think we all recognize that this is a 
volatile region. The potential for problems is always there, 
and it also means the potential for new refugee flows if 
problems erupt.
    So, it is in our interest and it is in Uganda's interest as 
well to try to forestall problems, to look at these things, to 
strengthen their regional partners. And that is one of the 
things that is so important to us and why our partnership with 
Uganda has really mattered. It is something that I will work to 
continue to build if confirmed and when I am in Uganda, and I 
know that we have to look across the region broadly, not just 
at Somalia, not just at Sudan, not just at Joseph Kony, but, 
again, many challenges throughout that part of Africa.
    And so far, Uganda has been a very good partner for us in 
addressing them, and I hope will be able to continue that.
    Senator Isakson. Well, I really appreciate your mentioning 
it in your remarks because you are being named Ambassador, and 
I hope confirmed Ambassador, to Uganda, in fact, South Sudan 
may be a major part of your role as you are in Uganda. That is 
a very nasty neighborhood, and to the east of South Sudan you 
have got Somalia. To the north you have got the North of Sudan, 
and you have got the rebels that are fighting, the Janjaweed, I 
think they call them, in the Darfur area. So, there is a lot of 
potential for an expansion of the bad things that have happened 
in West Sudan and in Somalia.
    And I think engagement by Uganda, which has been a forceful 
player in that portion of Africa, and our support for their 
engagement to help the South Sudan go from a fledgling 
democracy to a functioning democracy, will be critically 
important because if we fail to do that, we will be confronted 
with a civil war primarily over petroleum between the north and 
the south, and that would be a tragedy.
    Let me just conclude my remarks by thanking the spouses and 
the families of each one of these nominees because an 
ambassador's job is a team effort. Without your support, they 
could not do their job. Thank you for your support for these 
nominees.
    Senator Coons. I have one more round of questions. Thank 
you.
    If I might, just a few more questions for each of our 
nominees today because you each will be representing us, if 
confirmed, in countries I think with great and complex 
challenges.
    Mr. Raynor, if you might, piracy off the coast of Somalia 
has received a great deal of deserved attention for a number of 
years now. But piracy off of Benin and across the whole West 
African region is also a significant and growing challenge.
    What could we do to more effectively partner with Benin, 
with regional allies, in strengthening maritime security?
    Mr. Raynor. Thank you, Mr. Chairman.
    You are absolutely right. Piracy on the West Coast of 
Africa is certainly growing as a problem and a concern, and 
Benin has taken actually a leadership role in addressing that. 
I think it recognizes the potential impact of piracy on, for 
example, its port, which is a major economic driver in the 
country.
    Therefore, it has taken a lead role in trying to develop a 
national maritime strategy that the United States has been 
providing technical assistance toward. In addition, I think the 
United States can do more to help forge a common strategy 
between the states of Central and West Africa who share that 
coastline so that there is a coordinated approach and a pooling 
of resources.
    Senator Coons. Thank you.
    Ms. James, AGOA has meant a lot for Swaziland. What can we, 
should we be doing to make sure that AGOA is reauthorized in an 
appropriate timeline, and what impact do you think it might 
have, if, as has sadly often been the case here in the 
Congress, we wait right up until its expiration to deal 
legislatively with its reauthorization?
    Ms. James. Well, thank you, Senator, for the question.
    As I noted, AGOA has been very successful in Swaziland. It 
is one of the major producers of textiles on the continent 
exporting to the United States, and it has had an amazing 
impact on the country.
    About 15,000 people are actually employed, but each one of 
those people supports a very large extended family. So, it has 
had a broad impact in the country as well. It has been a source 
of stability, and many of those employees are women, and so we 
would like to see that kind of a program stay in place. It has 
a great impact on the health and the productivity of the 
country.
    With respect to the annual reauthorization, we have had 
some questions and some difficulties with Swaziland's status of 
governance, its levels of transparency and questions of 
corruption. And the AGOA reauthorization process has been an 
entry point for us to engage the government at all levels to 
talk about addressing those issues.
    We have focused heavily on labor rights and practices, and 
I think we can report today that the recent reeligibility 
decision to reapprove their AGOA status was a result of the 
fact that the Kingdom has made some progress, not a lot of 
progress, but progress nevertheless. And we will just keep 
hammering away on the areas of concern still to be addressed. 
The Government of Swaziland has actually begun to have more 
conversations with labor unions and with the international 
labor organization. The government has a tripartite standing 
dialogue that is ongoing on labor issues. So, this conversation 
that we have around AGOA has actually been helping democracy 
and labor and human rights across the board.
    As you may know, the country depends upon imported fabrics. 
It has a third-country preference in place, and that has been 
very important, and that has been a helpful thing for the 
country. If they were to lose that, it would probably have a 
very devastating impact on the ability to continue to operate 
as they have with AGOA. So, it is very important that AGOA 
remain and that it remains strong with all the elements that 
are currently in place.
    Senator Coons. Well, it is my hope and intention to support 
proceeding to the AGOA reconsideration as promptly as we can 
because of concerns that we have already heard from a number of 
African Ambassadors.
    Ms. James. That is very encouraging to hear. Thank you, 
sir.
    Senator Coons. Ambassador DeLisi, there was a tragic murder 
in Uganda, the killing of a gay activist, David Kato, last 
year. And I am concerned about the antihomosexuality bill that 
has been introduced and is proceeding in Uganda. It is one of 
the more extreme such laws being considered around the world 
because it includes the death penalty for homosexual acts.
    I think the opposition in the United States is clear. What 
do you think are its prospects of passage, and, if adopted, 
what are the options you would see in your role as Ambassador?
    Ambassador DeLisi. Thank you, Senator. I share your 
concern, and, as you know, our Embassy, our government has been 
forthright in stating our opposition to the bill.
    In terms of its potential for passage, obviously that is a 
decision that the people and the legislature in Uganda will 
have to make. But I think that I find encouraging several 
signs. First, the Ugandan Human Rights Commission has been very 
forthright, and has spoken out, and has made it clear that this 
bill as written, and I think almost in any form, would be 
contrary to both the Ugandan Constitution and violation of the 
constitution, and contrary to Uganda's international commitment 
and obligations on human rights.
    Other NGOs and civil society groups have become much more 
vocal and have spoken out strongly on this. I just saw an 
article recently in which some of the LGBT organizations said 
that their dialogue, that the community dialogue in Uganda, has 
become richer as a result of this. And they have seen not an 
outpouring of public support, but at least a greater degree of 
support for their efforts. And those are promising signs.
    I am also heartened by the fact that the Ugandan judiciary 
overall has shown consistent support for the rights of all 
communities, all the marginalized communities, and that is also 
promising.
    I hope the bill will not pass. I think most in the 
international community would hope that. I think that there are 
also many in Uganda who recognize that if the bill passes, that 
it has--there is significant potential consequences. The impact 
on Uganda's international reputation and standing, the impact 
on tourism. They are very proud to have been named as tourist 
destination of the year for 2012, and it is the pearl of 
Africa. But this is the sort of thing that does have an impact. 
And so, they have to look, and I think they are looking, at the 
realistic--the practical, pragmatic consequences of this also.
    For us meanwhile, I think that the Secretary has made it 
clear that while we are absolutely committed on these issues, 
we also recognize that it is not always about being punitive or 
lecturing; it is about engaging constructively. It is about 
educating civil society groups, supporting them. It is about 
getting the right sort of debate going, showing people that 
when the rights of any community within your country are being 
brought under attack, when you are discriminating against any 
element within society, all society ends up suffering, and 
everyone's rights are ultimately at risk.
    Those are the sorts of conversations that we have had that 
we will continue to have, no matter what the outcome of the 
legislation, even if it is not passed. We need to continue to 
be affirmative in our engagement and be good partners as we 
discuss these sometimes very sensitive social issues, but 
issues that have to be addressed and recognized, and that the 
fundamental human rights issues involved here are central to 
any engagement with our partners.
    Senator Coons. Thank you, Ambassador.
    I, last, would be interested in hearing a little more 
detail on the regional effort in the hunt for Joseph Kony, how 
the Central African Republics, how Sudan and, in particular, 
the DRC, have responded, how engaged they are with allowing 
Ugandan troops either in their territory or working 
collaboratively with them, and what you see as the critical 
next steps in this ongoing pursuit to remove Joseph Kony and 
his top lieutenants from the battlefield.
    Ambassador DeLisi. Thank you, Senator.
    I think the regional effort is going pretty well overall. I 
had the chance last week--we had our global chief of missions 
conference here, and we took advantage of that to sit down with 
our ambassadors throughout the region and our leadership in the 
State Department to discuss how we are coordinating our efforts 
and what we are finding in the respective capitals in the 
region.
    I think we are seeing very strong support for the overall 
goal of bringing Kony and his commanders to justice, and that 
is good news because these countries are still being affected. 
We see the continuing impact of the LRA in the DRC, and the 
CAR, and, to a degree, in South Sudan.
    I think that the militaries in these countries are 
participating. They are participating actively. Not all of them 
have as much to bring to the table in terms of resources as the 
Ugandans have, but they have long military experience. But it 
is improving. And we are working with those governments in all 
four instances to make sure that that partnership is right, 
that we are giving them the logistical and other support that 
they need to be effective in their efforts to bring Kony to 
justice.
    Overall, the coordination between the four countries is 
good, but there is that concern about Ugandan forces at this 
point in time are not entering into the DRC. The DRC asked the 
Ugandans to refrain from coming into their sovereign territory. 
This was in part due to the elections that were coming in the 
DRC; we understand that. I think that is an issue that does 
need to be addressed, and I know the two governments, the 
governments involved are talking to each other. I know our 
Ambassador in Kinshasa is working on these issues as well. I 
think that with the AU effort, we will also have perhaps 
greater traction in making this happen.
    So, I think that we are moving in the right direction. As I 
said earlier, if we can find ways to bring the Rewards for 
Justice Program to apply here, that could be a good thing. We 
will continue to look at issues of mobility, and sit down and 
say--figure out what--where we can make the greatest additional 
value to this effort in the coming months.
    Senator Coons. Thank you, Ambassador.
    Senator Isakson.
    Senator Isakson. In deference to Senator Udall, who has 
arrived, I am going to ask one question and then give him a 
chance, if that is all right, Mr. Chairman, to----
    Senator Coons. Absolutely.
    Senator Isakson [continuing]. Ask a question. But I would--
actually it is not a question. It is an observation.
    When the chairman and I were in West Africa, and, in 
particular, in Benin, you have got Nigeria, which had its first 
``successful''--and I put that in quotes--democratic election 
with Goodluck Jonathan. And then you have got Benin, and then 
you have got Togo, and then you have got Ghana, and then you 
have got Cote d'Ivoire, I think, is the right--if I got my 
geography right.
    And one of the barriers to their growth or some of the 
trade barriers between the countries and the fact that the 
roads are not always open, many times are manned by folks who 
are collecting corruption fees to let you pass. And so many of 
the goods are perishable--poultry, pineapple in particular, 
which is so prevalent in the region and which the chairman and 
I sat and ate in the middle of a pineapple patch one day, and 
it is the best pineapple I have ever eaten in my life. But the 
problem is it is highly perishable, and the roads are not that 
good. And the barriers to trade are.
    Can you share with us some ideas you might have on 
expanding the trade between countries on the West Coast of 
Africa so they can benefit from their own assets one to 
another?
    Mr. Raynor. Thank you. Thank you, Senator. You are 
absolutely right. It is one of the great hindrances to 
development in Africa, the interconnectivity, or lack thereof, 
between countries. And certainly these are a lot of countries 
that are very close to each other, and that should have very 
robust trading relationships, and for infrastructure reasons 
and other reasons, do not.
    Specifically with regards to infrastructure, it is a 
challenge. It is the sort of thing that one could look at as 
part of the second phase of the MCC potentially. I think 
ultimately it is something that requires collective effort, and 
I think perhaps ECOWAS would be a useful partner in that 
regard. Certainly President Yayi is very strongly engaged in 
ECOWAS. I think issues of economic integration within West 
Africa are central to his concerns and ECOWAS, and I think we 
would certainly look for opportunities to promote that sort of 
dialogue and to look for opportunities to build those linkages, 
and eventually those physical linkages, to improve those trade 
connections.
    Senator Isakson. Thank you very much. And I will defer the 
balance of my time to Senator Udall.
    Senator Coons. Senator Udall.
    Senator Udall. Thank you, Mr. Chairman, and I very much
appreciate your courtesy, Senator Isakson.
    First of all, let me just thank Mr. Raynor for bringing up 
Kate Puzey and her--Peace Corps volunteer, her service to the 
country. We know she died in Benin, and we ended up honoring 
her, I think, in terms of naming a bill after her. And thank 
you for bringing her up.
    You know, Benin recently completed a successful 5-year 
compact with the Millennium Challenge Corporation. How do you 
think that Benin and the United States can build off the 
successes of this partnership and continue to encourage 
economic development?
    Mr. Raynor. Thank you, Senator. Yes, indeed, the MCC was 
quite successful in proving the port and in addressing certain 
aspects of the business climate that have been deficient--
access to credit, access to judicial process.
    I think the first and most important thing is to build on 
those gains and to make sure they are sustained. I think it is 
also important that we look for ways to engage with the 
Government of Benin and the people of Benin to boost U.S. 
commercial engagement in the country. Part of that will be 
looking for opportunities to diversify the economy of the 
country, which right now is very heavily dependent on cotton 
and to the vagaries of the cotton prices and production. So, I 
think it will be important to work with Benin in looking for 
ways, both to invite and promote U.S. engagement, and also for 
ways that Benin can itself expand its economic base.
    I think also part of that is building the human capacity of 
the people of the country. Right now you have got serious 
challenges with regards to education, with regards to health, 
and I think it will be important to continue to build the 
capacity of the people to be active agents for their own 
material as well as other gains.
    Senator Udall. Thank you for that answer. You know, experts 
estimate that Uganda's Albertine Basin holds up to 2.5 million 
barrels of oil. Accessing this reserve could impact both 
Uganda's economy and its environment. What steps can Uganda 
take to ensure that should the decision to access it be made, 
it is done with respect to this ecologically sensitive area, 
and should we be worried that Uganda signed a contract with 
China's CNOOC given China's record of environmental degradation 
in the region?
    Ambassador DeLisi. Thank you very much for the question, 
Senator.
    First of all, they are moving forward. They have recently 
approved the decision to move forward, and you have got three 
major companies that will be operating in the Albertine Basin. 
One of them is CNOOC.
    One of the things that we are doing, and we recognize the 
challenges and the potential for this great potential benefit 
to Uganda could also become a curse. And we all know that this 
is a challenge that has to be addressed.
    We are tackling it in a number of ways. USAID has already 
engaged on these environmental questions and is working with 
the government to talk about if they are going to exploit this 
oil, how do you do this in an ecologically sound way, and how 
do you protect this tremendous natural resource for Uganda? 
Those partnerships will continue I hope. If I am confirmed, 
certainly it would be one of my primary interests to see that 
they continue.
    Equally, USAID, through some of their programs, is working 
with civil society because civil society's voice and role in 
the managing of this and in holding the government accountable 
in looking at these issues will also be important. So, we are 
working with them, showing them what has happened elsewhere, 
giving them the skills that they will need to address these 
questions.
    But equally, we are working with the government. And 
through our new energy governance and capacity initiative, we 
are helping the government to try to build the legal and the 
financial framework, the system that they need to manage this 
resource in an effective way, to tie the resources that they 
are getting to their longer term development goals, and to do 
this in a coherent, effective way, to improve communication 
between ministries, all of this needs to be done.
    I am not familiar with CNOOC's record in terms of their 
environmental protection, but I certainly take you at your word 
that this is a concern. And no matter who it is, though, any of 
these oil companies, as I noted at the outset, this is a very 
sensitive environmental region. So, we are attuned to this, 
have already been working on this, and will continue to do so, 
Senator.
    Senator Udall. Thank you. One other question on Uganda. In 
2010 and early 2011, Uganda's economy and population suffered 
from high food prices, high fuel prices, and high inflation. In 
the past few months, it is my understanding that these 
indicators have leveled or dropped slightly. Is this a long-
term trend, or is Uganda suffering from issues of chronic food 
instability?
    Ambassador DeLisi. I think that it--from what I have read, 
and, again, I am not yet an expert on all of this. But what I 
am seeing and what I am told is that most economists believe 
that it will level, that this leveling off will continue, that 
the degree of economic growth we are going to see in Uganda 
will continue this past year, that it was still 5.8 percent. 
Not quite as robust as in earlier years, but still doing well.
    The issue of food security, though, is one that we really 
have to be cognizant of, and this is part of the reason that 
our Feed the Future Program is looking so closely at where we 
are going. And it becomes all the more of a concern because of 
the high population growth rate in Uganda.
    At present, we were looking at a population of 33 or 34 
million people, but in 20 years it is estimated that that is 
going to be a population of 60 million, and 20 years after that 
it will probably be 90 million.
    So, food security and the sustainability of agriculture 
becomes a crucial factor for us, and this is what we are 
starting to look at very careful, I believe, through our Feed 
the Future Program. Also increasing agricultural livelihoods, 
the whole agricultural process, including agro industries. 
Again, if confirmed, this is an area that I think I will work 
on because we have to be focusing on this in the days ahead.
    Senator Udall. Great. Thank you.
    Mr. Raynor, you mentioned that Benin's economy is dependent 
on cotton production, and we all know that in some of these 
areas, cotton production and this crop have been linked to 
degradation of the soil, in turning areas into deserts. And 
what I am wondering is, you know, is there a sustainable way to 
do this? I mean, is this an environmental threat they should be 
worried about? What, how will the United States work with them 
in order to bolster their economy, but at the same time make 
sure it is done in a sustainable way?
    Mr. Raynor. Thank you, Senator. Yes, in fact, Benin has 
been seeing cotton yields over time, and that is certainly--
desertification is an aspect of the problem they're facing. I 
think that is why one of the things that Benin really does need 
to focus on and we need to focus on in our engagement with 
Benin is ways for them to diversify their agricultural sector.
    Right now, cotton accounts for 40 percent of GDP, 
potentially as high as 80 percent of exports in a given year. 
So, really a vastly disproportionate bet on one commodity. I 
think it would be important for us through USAID engagement, 
Peace Corps engagement, there is a component of our Peace Corps 
activities that focuses exactly on issues of conservation and 
good stewardship of the land. I think we can build upon that. 
We can certainly look for additional ways to bring professional 
expertise to bear, to help the government understand the 
consequences of overreliance on one crop, and to explore 
opportunities for diversification.
    Senator Udall. Great. Thank you very much.
    And, Chairman Coons, good to be here with you. And I once 
again, even though Senator Isakson is not here, thank him for 
his courtesies on yielding time. And really appreciate all your 
hard work on chairing the African Subcommittee. I know you are 
working hard at that, and spending time in Africa, and also 
doing a lot of visits here with many of the officials that come 
through Washington.
    Thank you.
    Senator Coons. Thank you. And, Senator Udall, I am hoping 
you will join us in a future visit to Africa. It would be great 
to have your company.
    Senator Udall. I look forward to it.
    Senator Coons. Senator Isakson is well and widely 
recognized for his graciousness and is a wonderful partner in 
this work. And our trip to West Africa last year was memorable.
    Kate Puzey had Delaware roots. Her father was born in 
Delaware, and there has been a lot of attention paid to that 
case in Delaware as well. And I am really grateful for Senator 
Isakson's focus and leadership on this. And I know it will 
produce long-term benefits to Peace Corps Volunteers who serve 
all over the world, and who are an important part of our 
diplomatic and development presence globally.
    If you will forgive me, I need to go preside. We have had a 
thorough and full hearing. I am, again, impressed with the 
preparation and the professionalism, the dedication and the 
willingness to serve of all three of you, as Ambassadors, as 
nominees to be Ambassadors. It is my hope that the Senate will 
take up your nominations quickly and confirm you.
    I wanted to thank Leah, Louis, Mandela, Kate, Bradley, and 
Emma, for your patience. And neither Bradley nor Emma fell 
asleep. I am quite impressed.
    I was quite struck when my own children just two weekends 
ago asked me if I knew anything about the Lord's Resistance 
Army and Joseph Kony, and whether I was going to do anything 
about it. And I reminded them that I chair the Africa 
Subcommittee, the Foreign Relations Committee. They all three 
expressed quite, you know, they were really rather surprised by 
that and were unaware that I did things as I got on the train 
and went to Washington in the morning.
    So, one of the things that has been most inspiring to me 
about the very broad response of tens of millions of Americans 
and folks around the world is how many young people have been 
inspired and challenged by the issue of the Lord's Resistance 
Army and the hunt for Joseph Kony. And it is my hope that 
working together, we can engage them, and inform, and sustain 
their concern for African-led solutions to African problems, 
for an ongoing American engagement in responsible, mutual 
development, and for the kind of positive role for the United 
States and the world that all three of you have exemplified in 
your service, in the Foreign Service.
    With that, thank you very much.
    The record will be kept open for any members of the 
committee who had questions but were not able to join us today.
    And this hearing is hereby adjourned.
    [Whereupon, at 3:35 p.m., the hearing was adjourned.]

       Additional Questions and Answers Submitted for the Record


  Responses of Scott DeLisi to Questions Submitted by Senator John F. 
                                 Kerry

    Question. Uganda is the youngest country in the world with 
approximately 50 percent of the population under the age of 15. If 
confirmed, what would your strategy be to engage with the youth of 
Uganda?

    Answer. I believe it is essential that we continue to engage 
effectively with the youth of Uganda, and, if confirmed, I would hope 
to emulate what I have done in Nepal in that regard. In Nepal, I have 
used social media (principally Facebook) to spark a dialogue with the 
more than 13,000 young Nepalis who follow that page. We have used it to 
great effect to discuss both U.S. policy and basic issues of 
development, governance, and economic growth. In addition, we created a 
Youth Council that continues to grow and provides us another platform 
from which to reach the youth of Nepal who, as in Uganda, make up a 
majority of the population. If confirmed, I would draw on these 
experiences, including the funding of civil action and democracy, 
building projects through the Youth Council, to deepen our engagement 
with the young people of Uganda. I would also build on Embassy 
Kampala's current activities, including its outreach to a number of 
Ugandan universities and to a group of 30 Youth Advisors drawn from 
academia, NGOs, media, and other civil society backgrounds.

    Question. Section 620M of the Foreign Assistance Act of 1961 
imposes restrictions on assistance to any unit of a foreign country's 
security forces for which there is credible evidence that the unit has 
committed gross violations of human rights. U.S. Embassies are heavily 
involved in ensuring compliance with this requirement. If confirmed, 
what steps will you take to ensure that the Embassy effectively 
implements section 620M?

    Answer. Effective implementation of section 620M starts with the 
selection of host country candidates for security assistance. If 
confirmed, I will ensure that we carefully select units and individuals 
for U.S.-sponsored training based on their records and reputations. I 
will continue to ensure that Embassy Kampala thoroughly vets all 
individuals and units nominated for training before submitting the 
vetting requests to Washington for further review. If confirmed, I will 
make a point to be engaged in, and closely monitor, U.S.-funded 
security sector assistance and training while also ensuring that the 
Embassy's vetting of selected candidates continues to occur in a 
thorough and timely fashion.

    Question. In particular, what actions will you take to ensure, in a 
case in which there is credible evidence that a gross violation of 
human rights has been committed, that assistance will not be provided 
to units that committed the violation?

    Answer. The Department of State does not provide training to 
individuals or units against whom there is credible information of 
gross human rights violations. Leahy vetting is an important tool not 
only for ensuring that U.S. funding is not used to train or assist 
units or individuals who have committed gross human rights violations, 
but also for engaging host country military and security forces on the 
need to put in place accountability mechanisms and strengthen respect 
for human rights. If confirmed, I will ensure that we take advantage of 
any instances where Ugandan candidates do not pass Leahy vetting 
requirements to engage the Ugandan Government in a broader discussion 
of ways that the Ugandan military and police can strengthen respect for 
human rights and institutionalize accountability at all levels.

    Question. What steps will you take to ensure that the Embassy has a 
robust capacity to gather and evaluate evidence regarding possible 
gross violations of human rights by units of security forces?

    Answer. If confirmed, I will review the Embassy's vetting process 
to see if any changes are needed to make it more efficient, 
streamlined, and coordinated across the various relevant sections of 
the Embassy. I will ensure open and regular communication between the 
Defense Attache Office, Regional Security Office, and Political Section 
for the purposes of gathering and evaluating information from a range 
of different sources. I will also ensure that our Ugandan counterparts 
understand and take into consideration the vetting requirements when 
proposing candidates for U.S. security assistance, while at the same 
time encouraging them to institute reform where needed to 
institutionalize respect for human rights within the military and 
security sector.
                                 ______
                                 

            Responses of Makila James to Questions Submitted
                        by Senator John F. Kerry

    Question. Given your previous experience as Director of the Office 
of Caribbean Affairs and Deputy Director of the Office of Southern 
African Affairs as well as your other posts in the field, what lessons 
have most significantly shaped your approach to managing a post like 
Swaziland?

    Answer. Throughout my 24 years as a Foreign Service officer, I have 
served as a Political/Economic Officer in Nigeria, Desk Officer for 
Sierra Leone and The Gambia, Political Officer in Zimbabwe, Principal 
Officer in Southern Sudan, as well as International Relations Officer 
for several Africa-wide positions in the Bureau of International 
Organizations Affairs and as a Member of the Secretary of State's 
Policy Planning Staff, where I have engaged extensively in promoting 
democracy and good governance, respect for human rights and the rule of 
law, and sustainable economic development. In each of these positions, 
I served in or worked on countries that have had authoritarian or 
military regimes, and understand the challenges of engaging with such 
governments while also maintaining a robust dialogue with opposition 
groups and civil society to support their efforts to press for greater 
political rights and freedoms.
    One of the most important lessons I have learned in working on 
these issues is the necessity to engage all parties to underscore the 
mutual rights and responsibilities of governments and their citizens to 
promote democracy and development. The United States remains an 
influential partner for many African governments. Our values are 
respected by their citizens, who look to us to uphold democratic 
principles of good governance and universal human rights--critical 
elements for ensuring development and stability. My experiences have 
also impressed upon me the importance of promoting strong democratic 
institutions, particularly parliaments, courts, and independent 
oversight bodies to ensure transparency and accountability from every 
branch of government. Similarly, my election observation experiences 
have underscored the importance of engaging at all levels to help 
ensure political pluralism, civic education, and a level playing field 
before and after voting takes place.
    If confirmed, I would draw upon these experiences to support all 
elements of the mission in actively engaging with government and civil 
society to help identify opportunities for institutional capacity-
building, promote greater budget transparency, and strengthen oversight 
of government activities at every level. A daunting challenge I have 
worked on in every post, and which is a concern in Swaziland as well, 
is the need to enhance the status of women and children to address the 
HIV/AIDS epidemic, alleviate poverty, and protect universal human 
rights. I would urge the Mission to work closely with civil society 
organizations to expand their ability to participate in dialogue with 
their government on these fundamental rights. Each of my assignments 
has given me the chance to help promote efforts to expand U.S. exports 
and engage with the local private sector to encourage employment and 
development. I would draw on my knowledge of the many U.S. Government 
agencies responsible for trade and business development, along with 
State Department resources, to support American companies in the United 
States and the region who are seeking access to the Swaziland market.
    My experiences as the Director of the Office of Caribbean Affairs, 
in which I am responsible for the management, staff and policies of 
U.S. Government missions serving 14 developing countries, along with my 
experience as Deputy Director of the Office of Southern African Affairs 
and Principal Officer at U.S. Consulate Juba, have provided me with 
strong management skills to support the needs of small posts in 
difficult environments. I appreciate the importance of using limited 
resources wisely in a tight budget environment by seeking efficiencies 
and leveraging all available program funds to pursue our goals, as well 
as taking advantage of the close proximity of our mission in South 
Africa to work with their staff to bring activities to Swaziland. Most 
importantly, in a small mission without a significant U.S. security 
presence, I have learned to be extremely attentive to the safety of all 
Americans employees, as well as U.S. citizens in the country, and to 
ensure high morale within the community. If confirmed, I would bring a 
positive attitude, broad knowledge of American and African culture, and 
a commitment to public service to ensure that Embassy Mbabane is a 
strong diplomatic presence representing U.S. values and interests.

    Question. Male circumcision programs have encountered difficulties 
in Swaziland, although in other countries demand has been very high. 
How would you seek to work with the government and civil society in 
Swaziland to encourage the uptake of this important HIV prevention 
tool?

    Answer. The low level of male circumcision in Swaziland is one of 
the main drivers of the HIV/AIDS epidemic, and it is imperative that we 
do as much as possible to address it. The rapid expansion of male 
circumcision is a top priority of the President's Emergency Plan for 
AIDS Relief (PEPFAR) Partnership Framework Plan. Since 2008, PEPFAR has 
contributed to the circumcision of 36,453 men in Swaziland. In 2011, 
PEPFAR and the Swazi Government launched the Accelerated Saturation 
Initiative (ASI), which is a comprehensive package of HIV prevention, 
care, and treatment services centered on male circumcision. Its target 
was to reach 80 percent of 15-49-year-old men within a 1-year period 
with male circumcision services (approximately 152,000 MCs). The 
initiative, however, has fallen considerably short of that goal, 
reaching only 11,331 males.
    The main challenge facing ASI has been the low demand for male 
circumcision. Many Swazi men fear the pain of circumcision, lack 
information about it, or have heard bad stories and myths. To address 
these challenges, the PEPFAR in Swaziland will restrategize the male 
circumcision program for 2012 based on recommendations from the recent 
visit by the Office of the U.S. Global AIDS Coordinator (OGAC) and the 
male circumcision Technical Working Group (TWG). Recommendations 
focused on augmenting the Government of the Kingdom of Swaziland's 
ownership of the male circumcision program in Swaziland and increasing 
national leadership. While there was high-level buy-in for the campaign 
from the Minister of Health, the Prime Minister, and King Mswati III, 
there were challenges with buy-in from mid-level officials. More 
research will be done on the health seeking behaviors of Swazis and 
exploration of why demand has been low to date, followed by greater 
dialogue with local leaders and government management on the 
implementation of the male circumcision program moving forward. 
Increasing dialogue with civil society would also help the U.S. 
Government understand cultural barriers and myths that have resulted in 
low demand for male circumcision in Swaziland.
    If confirmed, I will encourage the augmentation of the Government 
of the Kingdom of Swaziland's ownership and leadership of the male 
circumcision program, increase dialogue with local leaders on the 
implementation of the male circumcision program, and increase dialogue 
with civil society to understand how the program can best overcome 
cultural barriers and how the local community can encourage men to seek 
male circumcision services.
                                 ______
                                 

           Responses of Michael Raynor to Questions Submitted
                        by Senator John F. Kerry

    Question. Given your experience as Executive Director of the Bureau 
of African Affairs and as Management Officer in Namibia, Guinea, and 
Djibouti, among other posts, what lessons have most significantly 
shaped your approach to managing a post like Benin?

    Answer. These experiences have taught me several lessons in 
building successful teams, eliciting strong performance, fostering high 
morale, and operating effectively in small, isolated, and hardship 
posts like Benin.
    To maximize operational impact and effectiveness at such a post, it 
is essential to engage every element of the mission in establishing 
clear goals within the framework of administration priorities, and to 
lead employees as an integrated team in pursuit of those goals.
    As at my previous posts, many employees in Benin are relatively 
inexperienced, including some who are new to the Foreign Service and 
others who are performing their current functions for the first time. 
In such a context, it is vital that employees receive the guidance, 
mentoring, feedback, training, and encouragement necessary to promote 
their professional development and to help them be as successful and 
happy in their jobs as possible.
    From my previous experiences at difficult, remote posts like Benin, 
I have learned that it is equally important to attend to issues of 
community morale and cohesion: ensuring that working and living 
conditions for employees and family members are safe, secure, pleasant, 
and responsive to the hardships faced; meeting the health, educational, 
recreational, and spousal employment needs of the community to the 
fullest extent possible; and promoting opportunities for community 
members to benefit both professionally and personally from the dynamic 
host-country environment to which they have been posted.

    Question. Though Benin is eligible for trade benefits under the 
African Growth and Opportunity Act, U.S. imports from Benin are 
typically quite limited. Given your previous experience, in what ways 
would you seek to increase trade between the United States and Benin, 
including efforts to increase U.S. exports to Benin and promote 
American business interests?

    Answer. The African Growth and Opportunity Act (AGOA) is about more 
than trade preferences for African products. By creating tangible 
incentives for African countries like Benin to implement the sometimes 
difficult economic and political reforms needed to improve its 
investment climate, AGOA contributes to better market opportunities and 
stronger commercial partners in Africa for U.S. companies. In addition, 
AGOA advances African regional economic integration efforts and helps 
promote larger markets and creating trade opportunities for U.S. 
exports. While Benin alone is a relatively small market that might have 
difficulty attracting U.S. companies, the West African market as a 
whole is a very attractive destination for U.S. trade and investment.
    Over the last several years, Benin has worked hard to increase 
trade and investment. If confirmed, I will work with my team at the 
Embassy to support U.S. business interests in Benin and work with the 
Government of Benin to promote an open business environment. Benin 
successfully completed its $307 million Millennium Challenge 
Corporation (MCC) Compact in October of 2011 and was selected as 
eligible to develop a second Compact. Benin's success with the MCC 
program demonstrates its commitment to providing an open and 
transparent business climate, protecting both rule of law and sanctity 
of contract. One major outcome of Benin's MCC Compact is the 
revitalization of its port in Cotonou. With improved efficiency and 
infrastructure at the port, we can expect Benin to increase trade 
regionally and hopefully attract more trade and investment from the 
United States.

 
   NOMINATIONS OF PETER WILLIAM BODDE, PIPER ANNE WIND CAMPBELL, AND 
                          DOROTHEA-MARIA ROSEN

                              ----------                              


                        WEDNESDAY, MAY 16, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Hon. Peter William Bodde, of Maryland, to be Ambassador to the 
        Federal Democratic Republic of Nepal
Piper Anne Wind Campbell, of the District of Columbia, to be 
        Ambassador to Mongolia
Dorothea-Maria Rosen, of California, to be Ambassador to the 
        Federated States of Micronesia
                              ----------                              

    The committee met, pursuant to notice, at 2:30 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Jim Webb, 
presiding.
    Present: Senators Webb and Inhofe.

              OPENING STATEMENT OF HON. JIM WEBB,
                   U.S. SENATOR FROM VIRGINIA

    Senator Webb. Good afternoon. The hearing will come to 
order.
    Let me begin by saying we are graced with the presence of 
Congresswoman Hochul here, and she has early votes in the 
House, so I will be as quick as I can with my opening statement 
to allow the Congresswoman to make a statement on behalf of one 
of our nominees and then we will get this hearing in the books.
    As everyone here knows, the confirmation process for 
senatorially approved positions is a very intricate and often 
lengthy process. I have gone through it twice myself, first as 
Assistant Secretary of Defense and then as Secretary of the 
Navy. It begins with the vetting of people inside the executive 
branch and then with very detailed examinations of all 
different parts of individuals' experiences and qualifications 
by committee staff over here. So this is simply the second-to-
the-last hurdle to be overcome before people who have given 
great service to our country have the opportunity to do that in 
a different, and I am not going to say more important way, but 
certainly ``very important to the country'' way.
    Today we are hearing the nominations of Ms. Piper Campbell 
to be Ambassador to Mongolia, Ms. Dorothea-Maria Rosen to be 
U.S. Ambassador to the Federated Sates of Micronesia, the 
Honorable Peter Bodde to be Ambassador to the Federal 
Democratic Republic of Nepal.
    Asia is a vast region with more than half the world's 
population and is of vital importance to the United States. 
Countries in this region differ economically, culturally, and 
in their governmental systems. The pursuit of democratic 
governance faces significant difficulties whether in 
consolidating a democratic transition or improving public 
accountability. However, while Asia's democracies may be 
challenged, they are seeking to thrive. Mongolia, Micronesia, 
and Nepal are no different.
    Mongolia, landlocked between Russia and China on the Asian 
Continent, has long sought to maintain its independence, 
officially proclaiming it in 1911 from China. Nearly 80 years 
later in 1990, Mongolia held its first multiparty elections, a 
development in sharp contrast to other countries in the region. 
With a population of less than 3 million, it has continued to 
pursue a democratic path. This year is President of the 
Community of Democracies, an intergovernmental coalition of 
democratic countries.
    Consequently, the United States has become an important 
third neighbor to Mongolia, supporting its democratic 
development. This year, we celebrate the 25th anniversary of 
the establishment of our diplomatic relations. Because of its 
reforms, Mongolia was one of the first countries eligible for 
the Millennium Challenge Account initiative. The United States 
and Mongolia signed a compact agreement in 2007, worth $285 
million, to improve property rights, road infrastructure, 
vocational training, and access to energy by 2013.
    These two countries also share an important security 
relationship. In particular, Mongolia became the 45th nation to 
contribute troops to the NATO mission in Afghanistan, providing 
training to Afghan national forces, and last year increased its 
commitment of troops from 200 to 400. Mongolia has also 
supported the six-party process to denuclearize the Korean 
Peninsula and bring stability to Northeast Asia.
    The Federated States of Micronesia is another important 
economic and security partner for the United States. We share a 
bond, in part based on our collective history following World 
War II when Micronesia became part of the United States-
administered United Nations Trust Territory. In 1979, four 
districts of this trust territory united to form the Federated 
States of Micronesia, and in 1986, it entered into a Compact of 
Free Association with the United States.
    The United States and Micronesia share a distinctive 
relationship through this compact. The United States provides 
economic assistance and security guarantees. Micronesia 
provides rights for the United States to operate military bases 
in the former territories. Micronesian citizens have the right 
to reside and work in the United States as lawful 
nonimmigrants, allowing entry into the United States without a 
visa. I am interested to know more about the mechanics of this 
process and its impact on Micronesia, with a population of some 
100,000 people.
    Micronesia's geostrategic position is important to the 
United States, as well as for the region. The United States is 
a key balancing force in the region, and it is incumbent upon 
us to strengthen our relationships and promote security and 
economic development in the Pacific. It is also important to 
note that Micronesia is a democratic partner for the United 
States in this region. It is in the United States interest to 
support this role in terms of regional democracy.
    Nepal, another landlocked country, located between China 
and India, is still striving toward a system of democratic 
governance. Peace only came to this South Asian nation in 2006 
following a decade-long insurgency led by Nepal's Maoists-
Communist Party. At the time of this committee's last 
consideration of Nepal, a coalition government had formed and 
Nepal faced a considerable task in consolidating its newly 
formed parliamentary system.
    Currently Nepal is confronting a May 27 deadline for the 
completion of its new constitution, and reports of protests 
around this event are troubling. Nepal sits in a prominent 
geostrategic position with a population of nearly 30 million. 
It is in the United States interest to bolster the democratic 
process in an inclusive manner and to promote stability within 
the country.
    Nepal is a threshold country for a Millennium Challenge 
Compact and, with further reforms, will become eligible for 
this assistance. Such a development would not only promote 
economic growth and democratic governance within Nepal, but 
would also strengthen the United States-Nepal relationship.
    We look forward to discussing these and other issues with 
our nominees today.
    I would like to begin by welcoming Ms. Piper Campbell, the 
nominee to be the Ambassador to Mongolia. Prior to this 
assignment, Ms. Campbell was consul general in Basrah, Iraq. 
She has also served as Chief of Staff to the Deputy Secretary 
of State for Management, as an advisor on Asian issues at the 
U.S. mission to the United Nations. Her overseas postings 
include Geneva, Croatia, Brussels, Cambodia, and Manila. Ms. 
Campbell speaks French, Cambodian, Serbo-Croatian, and 
Japanese.
    Second, I would like to introduce Ms. Dorothea-Maria Rosen, 
the nominee to be the U.S. Ambassador to Micronesia. She is 
currently a Diplomat in Residence at the University of Illinois 
in Chicago. Her previous overseas assignments include 
Frankfurt, Berlin, Stuttgart, Bern, Reykjavik, Bucharest, 
Accra, Manila, and Seoul. Ms. Rosen is a lawyer, a member of 
the California State Bar, and served in the Army as a JAG Corps 
captain. She speaks German, French, and Romanian.
    And last, I would like to introduce the Honorable Peter 
Bodde, the nominee to be the U.S. Ambassador to Nepal. Mr. 
Bodde currently is the assistant chief of mission for 
assistance transition at the U.S. Embassy in Baghdad. He 
previously served as the U.S. Ambassador to Malawi and as the 
deputy chief of mission at the U.S. Embassy in Islamabad. His 
other overseas postings include Frankfurt, Hamburg, New Delhi, 
Copenhagen, Sofia, and Guyana. He is no stranger to Nepal where 
he worked as a budget and fiscal officer as deputy chief of 
mission at the Embassy. Mr. Bodde speaks German, Bulgarian, and 
Nepali.
    Again, I would welcome all of you here today and encourage 
all of you to speak English as we go through the hearing. We 
have a tremendous respect for all of the linguistic skills that 
are at the table.
    And Congresswoman Hochul, I am appreciative of you for 
waiting for us to finish the opening remarks, and the floor is 
yours.

                STATEMENT OF HON. KATHY HOCHUL,
               U.S. REPRESENTATIVE FROM NEW YORK

    Ms. Hochul. Thank you, Mr. Chairman. I appreciate the
courtesy.
    On behalf of a very proud western New York community, I am 
honored to introduce nominee Piper Anne Wind Campbell who was 
born and raised in Buffalo, NY. I have known Ms. Campbell and 
her family, her parents in particular, David and Gay Campbell, 
for decades since she was a little girl. I am confident that 
her upbringing in Buffalo has prepared her well to handle any 
adversity, including any weather she might encounter in 
Mongolia. [Laughter.]
    A graduate of Georgetown University's School of Foreign 
Service, Ms. Campbell focused her undergraduate work on the 
Asian region and received a certificate in Asian studies. Later 
she received a master's degree in public administration from 
Harvard's Kennedy School with a specialization in negotiation 
and conflict resolution, certainly skills that will serve her 
well in her new capacity.
    Ms. Campbell has outstanding professional and academic 
qualifications for this post. A senior Foreign Service officer 
with 22 years of experience, Ms. Campbell currently serves as 
the consul general in Basrah, southern Iraq, one of our largest 
and certainly our most trying overseas posts.
    She has completed several tours with an Asian focus, as 
previously stated, including tours as the deputy chief of 
mission in Cambodia, an expert on Asian issues with the U.S. 
mission to the United Nations, counselor of humanitarian 
affairs in Geneva during the Asian tsunami, and a first tour as 
a consular and management officer at the U.S. Embassy in 
Manila.
    She has demonstrated her skills as a manager in Cambodia 
and Basrah, as well as her command over complex policy issues 
as Chief of Staff to the Deputy Secretary of State and, 
earlier, in war-torn Croatia.
    Many years ago as an attorney on the staff of Senator 
Daniel Patrick Moynihan, I guided Ms. Campbell in applying for 
an internship with the Senator's office. So I also know she 
understands the important role the Senate plays in foreign 
affairs issues.
    The Campbells have instilled in her a belief that we should 
look out for our neighbors, not just here in the United States, 
but abroad as well. In 2004, her father started All Hands--
hands.org--an organization that assists international 
communities affected by national disasters. Working with her 
parents, she certainly has a firsthand understanding of the 
importance of reaching out to and uniting the global community.
    Ms. Campbell has the skills, the energy, and aptitude to 
represent the United States in engaging with an important 
partner Mongolia. She truly represents all that is good and 
noble about public service, and I am confident that she will be 
a phenomenal U.S. Ambassador on behalf of our great country.
    Thank you very much, and I have to go vote.
    Senator Webb. Thank you very much for being with us today, 
Congresswoman Hochul.
    Just for the record, Daniel Patrick Moynihan was one of my 
great political heroes. As you are on your way out the door, I 
have to say when I was talking to Bob Kerrey about running for 
the Senate, he knew that I had a previous career as a writer, 
and he said Senator Moynihan wrote a book every year he was in 
the Senate. I have not been able to quite keep up with the 
example that he set.
    Senator Inhofe. Let me chime in here, too, if I could, Mr. 
Chairman.
    Senator Webb. Senator Inhofe.
    Senator Inhofe. He was born and raised next door to me in 
Tulsa, OK. You probably did not know that.
    Senator Webb. I knew he was born in Oklahoma. I did not 
know that you were in propinquity.
    Ms. Hochul. Well, thank you very much.
    Senator Webb. Thank you very much, Congresswoman.
    I think we will proceed from Ms. Campbell to my left or 
your right. Welcome.
    Let me make a couple of quick points here. First is that 
your full statement will be entered into the record at the end 
of your oral statement. Second, please feel free to introduce 
anyone who has come to share this day with you, family, people 
who are close to you, whatever. And the floor is yours.
    Senator Inhofe, did you want to make any kind of an opening 
statement before we proceed?

          OPENING STATEMENT OF HON. JAMES M. INHOFE, 
                   U.S. SENATOR FROM OKLAHOMA

    Senator Inhofe. Well, yes. It will be very brief.
    First of all, I had a chance to speak to Mr. Bodde, and I 
appreciate that very much. We have Africa and airplanes in 
common. So we had a chance to visit.
    And I apologize to you, Ms. Rosen, because we had it set up 
and you met with staff because we had a vote during the time 
you were in. And I have had a chance to look at both of you and 
all three of you and I am very much impressed.
    I would only say this. There is one thing that I thought 
maybe it is something we can look into. But I noticed, Ms. 
Campbell, I think it is the first time in the 22 years that I 
have been here that a career person makes political 
contributions to candidates, and I have never seen that before. 
And I understand that you have made considerable campaign 
contributions to candidates. They are checking. I do not think 
there is anything illegal about it, but I have just never seen 
it before. And that is something that perhaps you can maybe 
address during your comments.
    That is all.
    Senator Webb. Thank you, Senator Inhofe.
    Ms. Campbell, the floor is yours.

   STATEMENT OF PIPER ANNE WIND CAMPBELL, OF THE DISTRICT OF 
             COLUMBIA, TO BE AMBASSADOR TO MONGOLIA

    Ms. Campbell. Senator Webb, Senator Inhofe, thank you very 
much. It is an honor to appear before you as President Obama's 
nominee to be Ambassador to Mongolia. I am deeply grateful for 
the confidence the President and Secretary Clinton have shown 
in me. If confirmed, I look forward to working closely with 
this committee to build on the already strong ties between the 
United States and Mongolia.
    I want to thank Congresswoman Hochul for introducing me. 
Although the Foreign Service has taken me far from Buffalo, my 
roots there are deep. As the Congresswoman said, she helped 
arrange my internship with Senator Daniel Patrick Moynihan 
whose passion for foreign policy was one of the things that 
shaped my path of service which has taken me from the 
Philippines to Iraq and many places in between.
    The other thing that shaped my path has been the support of 
my family, and I want particularly, publicly, to express my 
love and gratitude to my parents, David and Gay Campbell, who 
are here, along with friends and neighbors from the District 
who I am pleased to have sitting behind me. My siblings and 
their spouses, my nieces, nephews, and cousins are not here 
today but they have actually visited me in every posting that I 
have had overseas except for Basrah, and I had to insist that 
Basrah was off limits.
    Senator Webb. To all your family and friends, welcome. I 
know what a big moment this is.
    Ms. Campbell. This is an exciting year for United States-
Mongolian relations as we mark the 25th anniversary of the 
establishment of bilateral relations. Over that time, our 
partnership has grown stronger so that now this relationship 
really is about opportunities, particularly on the economic 
front where Mongolia's resource-rich economy and significant 
growth potential have propelled it to the top ranks of frontier 
markets. With large reserves of coal, copper, gold, uranium, 
and other minerals, Mongolia has the potential to double its 
GDP over the next decade, making it one of the world's fastest 
growing economies.
    As Mongolia's economy continues to expand, there will be 
more opportunities for United States firms. Already Mongolia is 
charting a growth path for United States exports that puts it 
among the highest of any country in the world. If I am 
confirmed, our Embassy will actively practice what Secretary 
Clinton calls ``jobs diplomacy'': connecting U.S. industry with 
the best possible information and advocating on their behalf. 
Current United States programs in Mongolia, the Millennium 
Challenge Corporation, as well as USAID, Department of 
Agriculture, and the Trade and Investment Framework Agreement, 
all are focused on helping Mongolia to diversify its economy, 
expand its economic growth, and promote trade and investment.
    Any successful market-based economy must operate with 
openness and transparency, as well as good governance and 
accountability, but these attributes are particularly important 
in a situation like Mongolia's where you are seeing such rapid 
growth. And although the physical environments in Iraq and 
Mongolia are about as different as two countries can be, I 
think that my experience working on the oil industry in 
southern Iraq will very much shape what I am able to do in 
Mongolia.
    In the near term, it will be a very important step for the 
Mongolian Government to sign the proposed United States-
Mongolia agreement on transparency in international trade and 
investment. If confirmed, that would be one of my first efforts 
at post, to encourage that.
    Last summer, this body passed a resolution recognizing the 
increasingly prominent role the Government of Mongolia has 
assumed internationally. And Senator Webb, you mentioned that 
yourself. Mongolia has dispatched over 5,600 peacekeepers to 15 
different peacekeeping operations, has troops now in 
Afghanistan, and currently chairs the Community of Democracies.
    I spent much of my career representing the United States in 
international fora and focusing on conflict situations. And, if 
confirmed, I welcome the opportunity to work with Mongolian 
officials to advance our shared interests in these globally 
important areas consistent with Mongolia's Third Neighbor 
Policy--by which it actively engages with the United States and 
others while also maintaining good relations with its 
neighbors, China and Russia.
    Mongolia's decision for democracy in the 1990s was a truly 
remarkable development, and the United States has been a 
consistent and supportive partner on Mongolia's democratic 
path. While the challenges continue, I believe that Mongolia's 
tremendous economic potential and increased participation in 
multilateral fora bring enormous opportunities for further 
strengthening its democracy.
    I know that the rest of my statement has been added in the 
record, and I thank you very much. I look forward to taking any 
questions.
    [The prepared statement of Ms. Campbell follows:]

             Prepared Statement of Piper Anne Wind Campbell

    Mr. Chairman and members of the committee, it is an honor to appear 
before you as President Obama's nominee to be Ambassador to Mongolia.
    I am deeply grateful for the confidence that the President and 
Secretary Clinton have shown in me, and, if confirmed, I look forward 
to working closely with this committee to build on the already strong 
ties between the United States and Mongolia.
    I want to thank Congresswoman Hochul for introducing me. Although 
my 22 years in the Foreign Service have taken me far from Buffalo, NY, 
my roots there are deep. It seemed fitting for Congresswoman Hochul to 
be here today as she helped arrange my internship with the great 
Senator from New York--a former member of this committee--Daniel 
Patrick Moynihan. Senator Moynihan's passion for foreign policy was one 
of the things that shaped my path of service, which has taken me from 
the Philippines to Iraq, and many places in between.
    The other thing that shaped my path has been the support of my 
family. I would like publicly to express my love and gratitude to my 
parents, David and Gay Campbell; my siblings, Todd, April, and Skip; 
and my nieces, nephews, and cousins, who are here. They are an intrepid 
bunch, having visited me at almost every overseas post. Indeed, I am 
convinced they would have visited me in southern Iraq this past year, 
if I hadn't consistently told them that Basrah was off limits.
    This is an exciting year for United States-Mongolian relations, as 
we mark the 25th anniversary of the establishment of bilateral 
relations. Over that time, our partnership has grown stronger. One of 
the most exciting things about working in Mongolia, if I am confirmed, 
will be that so much of this relationship is about opportunities. Let 
me try to explain this better by briefly highlighting some of the key 
areas on which I plan to work, should I be confirmed as the next 
Ambassador to Mongolia.
    Creating opportunities for U.S. businesses in a growing economy: 
Mongolia's resource-rich economy and significant growth potential have 
garnered international attention and propelled it to the top ranks of 
what some call ``the frontier markets.'' With large reserves of coal, 
copper, gold, uranium, and other minerals, Mongolia has the potential 
to double its GDP over the next decade--making it one of the world's 
fastest growing economies. U.S. goods exported to Mongolia increased an 
astonishing 171 percent in 2010 over 2009 levels, and in 2011 they rose 
above the $300 million mark for the first time. Mongolia continues to 
chart a growth path for U.S. exports that ranks among the highest of 
any country in the world.
    As Mongolia's economy continues to expand, there will be more 
opportunities for U.S. firms. If I am confirmed, our Embassy will 
actively practice what Secretary Clinton calls ``jobs diplomacy'': 
connecting U.S. industry, small businesses, and state and local 
governments with the best possible information about opportunities in 
Mongolia and advocating on their behalf. I would like to see 
strengthened business ties not only in the mineral sector but also in 
``downstream'' industries as Mongolia's economy becomes larger and more 
complex and as interest in U.S. consumer goods grows. I think it is 
important to note that current U.S. programs in Mongolia--the 
Millennium Challenge Corporation as well as U.S. Agency for 
International Development and U.S. Department of Agriculture activities 
and our Trade and Investment Framework Agreement--also are helping 
Mongolia to diversify its economy, expand economic growth, and promote 
trade and investment.
    Any successful market-based economy must operate with openness and 
transparency, as well as good governance and accountability--but these 
attributes are particularly important in a situation of rapid growth, 
especially when driven by a single sector. Although the physical 
environments in Iraq and Mongolia are about as different as two 
countries can be, I believe that my experience working on southern 
Iraq's oil sector and dealing with a region experiencing rapid economic 
change provides excellent preparation in better understanding the 
issues Mongolia will be confronting and the opportunities rapid growth 
can provide for Mongolia--as well as for our growing trade and 
investment relationship. Certainly, in the near term, it would be an 
important step in the right direction for the Mongolian Government to 
sign the proposed U.S.-Mongolia agreement on transparency in 
international trade and investment.
    Building already excellent international cooperation to mutual 
advantage: Last summer, this august body passed a resolution 
recognizing the increasingly prominent role the Government of Mongolia 
has assumed internationally. Mongolia has participated in the 
International Monetary Fund, the World Bank, the Asian Development 
Bank, and the European Bank for Reconstruction and Development; it 
currently chairs the Community of Democracies and will host the next 
Ministerial Meeting in Ulaanbaatar; and it has been active in 
international peacekeeping from Afghanistan to Darfur and South Sudan, 
from the Western Sahara to Chad, in Kosovo, and in Iraq. Mongolia has 
dispatched over 5,600 peacekeepers to 14 different peacekeeping 
operations since 2002, and runs a unique Training Center for 
International Peace Support Operations.
    The United States and the Government of Mongolia share a common 
interest in promoting peace and stability. I have spent much of my 
career representing the United States in international fora and 
focusing on conflict situations. If confirmed, I will welcome the 
opportunity to work with Mongolian officials to advance our shared 
interests in these globally important areas. As one concrete example: 
In March of this year, Mongolia's Partnership Plan with NATO was 
approved, which will allow for greater cooperation and assistance to 
make Mongolia's military compatible with those of NATO allies. Mongolia 
already has a history of operating with NATO forces in Afghanistan, a 
history that demonstrates its commitment to global responsibility and 
security.
    Mongolia's ``decision for democracy'' in the 1990s was a truly 
remarkable development: Through its competing political parties, 
transparent and peaceful elections, and respect for human rights, 
Mongolia can serve as a positive role model for other countries in the 
region and beyond. A quarter of a century ago, Mongolia's contacts with 
the outside world were limited. Mongolia's progress over the last 20-
plus years provides an important and timely illustration of the value 
and importance of democratic systems. Mongolia recognizes the value of 
engagement with the United States and others in a ``Third Neighbor 
Policy,'' while also acknowledging the importance of maintaining good 
relations with its two immediate neighbors, Russia and China.
    The United States has been a consistent and supportive partner in 
Mongolia's journey to democracy. While this journey has included a 
number of difficult challenges, I believe that Mongolia's tremendous 
economic potential and increased participation in multilateral fora 
bring enormous opportunities for further strengthening its democracy 
and ensuring that all of Mongolia's citizens have a role to play in 
this journey. As Mongolia looks forward to two important elections--
parliamentary elections in June 2012 and a Presidential election in 
2013--we will continue our robust engagement with Mongolia on advancing 
its democracy, strengthening the rule of law, combating corruption, and 
developing its civil society. If confirmed, I will support and increase 
these efforts.
    U.S.-Mongolian people-to-people engagement: Our current Ambassador 
in Mongolia has unearthed documents that seem to show that the first 
U.S. citizen visited Mongolia 150 years ago. Although I cannot claim 
that U.S.-Mongolian people-to-people engagement flourished without 
interruption from that point, the past decade has seen a tremendous 
growth in U.S. interest in Mongolia (which was ranked last year by 
National Geographic as one of the top 20 places to visit), as well as 
Mongolian interest in the United States. I understand that two-way 
travel by Mongolians and Americans alike keeps the Embassy's consular 
section busy. The visa workload has been growing steadily over the last 
5 years. We have facilitated educational and cultural exchange travel, 
giving qualified Mongolians the opportunity to experience the United 
States and its people. This supports our bilateral relationship and the 
many areas of mutual interest I already described. I believe that U.S. 
support, both governmental and private, of Mongolia's cultural heritage 
sites, media sector, and amazing environment also is linked to 
increased U.S. interest--and to all the new associations our ever-more 
interconnected world engenders. If confirmed, I also would be delighted 
to serve in a country that hosts a vibrant Peace Corps program. Our 
Peace Corps Volunteers are among the best grassroots ambassadors for 
the United States and its values, and in Mongolia they are having a 
major and lasting effect.
    Mr. Chairman and members of the committee, it would be the highest 
honor for me to serve our country as the U.S. Ambassador to Mongolia. I 
joined the Foreign Service 22 years ago, coming in with a certificate 
in Asian studies from Georgetown University and a fascination with the 
region. Secretary Clinton recently predicted that the world's strategic 
and economic center of gravity in the 21st century will be the Asia-
Pacific region. She framed one of the most important tasks of American 
statecraft over the next decade as locking in a substantially increased 
investment--diplomatic, economic, strategic, and otherwise--in this 
region. I welcome the opportunity to be on the front lines of that 
challenge. If confirmed, I will lead a diplomatic mission of 
approximately 200 U.S. and Mongolian employees, representing seven 
agencies. I will do my very best to ensure that all members of that 
community and their families have the leadership, security, and support 
they need to get their jobs done and to engage on behalf of the United 
States to work with, and benefit from, the growth and dynamism so 
apparent in the Asian region.

    Senator Webb. Thank you very much, and your full written 
statement will be entered into the record at this point.
    Ambassador Bodde, I want to start off by saying I apologize 
here. I think I made a mistake in diplomatic protocol. As a 
former Ambassador, is it not true that Foreign Service grade is 
probably the highest at the table? I should have called on you 
first, and I apologize. But welcome. I think you, at least from 
your written testimony, have some pretty important folks in the 
audience today, important to your personal history.

   STATEMENT OF HON. PETER WILLIAM BODDE, OF MARYLAND, TO BE 
     AMBASSADOR TO THE FEDERAL DEMOCRATIC REPUBLIC OF NEPAL

    Ambassador Bodde. Thank you, Senator. No apology needed. I 
am honored to be here with my two colleagues. We joined the 
Foreign Service together and Piper and I serve in Iraq 
together. So it is a great honor.
    Mr. Chairman, Senator Inhofe, it is an honor and a 
privilege to appear before you today as the President's nominee 
to serve as the next United States Ambassador to Nepal. I am 
grateful for the trust placed in me by President Obama and 
Secretary Clinton. If confirmed, I look forward to working with 
the committee and my colleagues in the U.S. Government to 
further the interests of the United States in Nepal and in the 
region.
    I also want to take this opportunity to express my 
appreciation for the special efforts the committee has made to 
schedule these nomination hearings. Out of respect for the 
committee's valuable time, I will keep my remarks here brief 
and will submit an expanded statement for the record.
    Mr. Chairman, I would like to introduce four generations of 
my family this morning: my grandson, Andrew, my daughter, 
Sara----
    Senator Inhofe. Have them stand up.
    Ambassador Bodde [continuing]. My son-in-law, David, who I 
note is an Iraq veteran. And Senator Webb, they are all 
constituents of yours in Woodbridge, VA.
    Senator Webb. We appreciate all of you.
    Ambassador Bodde. I would like to also introduce my son, 
Christopher, who recently started his career at USAID and my 
father, Ambassador William Bodde, Jr. Mr. Chairman, he and I 
literally switched seats today. More than 30 years ago, I sat 
where he is when he appeared before your predecessor, the late 
Senator Paul Tsongas, during my dad's first confirmation 
hearing prior to becoming Ambassador to Fiji. Unfortunately, 
the press of work in Baghdad has precluded my wife, Tanya, from 
being present today. I am very proud of her, and I note that as 
a career Foreign Service employee, she has accompanied me on my 
tours, including Pakistan and in Iraq.
    Senator Webb. Well, Ambassador Bodde, will you please take 
a stand here, make a bow? And I will do my best to be easier on 
your son than Senator Tsongas was on you. [Laughter.]
    Ambassador Bodde. As you may already be aware, should I be 
confirmed, this will be my third time representing the United 
States in Nepal. Among the lessons I have learned during my 
career is that the success of every U.S. mission abroad depends 
on a strong interagency effort and a cohesive country team. It 
also requires clear goals, strict accountability, adequate 
funding, and trained personnel. These same critical concepts 
apply to our bilateral engagement and the delivery of 
significant levels of U.S. assistance at a critical juncture in 
Nepal's development. You have my full assurances that, should I 
be confirmed, I will ensure that these concepts are an 
essential element of all mission programs. While the generosity 
of the American people is great, all of us involved in the 
stewardship of this generosity must be accountable for 
measuring success and failure.
    The primary objective of the U.S. mission in Nepal, of 
course, is to promote and protect the interests of the United 
States and of U.S. citizens who are either in Nepal or doing 
business with Nepal. In addition to that fundamental 
responsibility, we are working with Nepal to promote political 
and economic development, decrease the country's dependence on 
humanitarian assistance, and increase its ability to make 
positive contributions to regional security and the broader 
global community.
    Nepal is one of the poorest countries in the world. It 
faces the daunting challenges of consolidating peace after a 
decade of civil conflict, writing a new constitution that will 
enshrine the values of a new federal democratic republic, 
developing its economy, expanding access to health and 
education, and improving its poor infrastructure.
    Despite these challenges, the Nepali Government has made 
significant strides over the last few years. The 10-year civil 
conflict is over. The Maoists have not only joined mainstream 
politics, but are heading the current government tasked with 
completing the peace process. And the government has made a 
meaningful commitment to raise living standards and improve the 
lives of its people. The United States is an important and 
growing partner in this process. Our assistance programs focus 
on governance, antitrafficking, private sector development, 
basic education and health, disaster risk reduction, and human 
rights training. I am also delighted that Peace Corps 
Volunteers will be returning to the country in September after 
an 8-year hiatus.
    Mr. Chairman, if confirmed, I will take a special interest 
in the promotion of Tibetan and Bhutanese refugee rights. This 
is an issue I dealt with the last time I served in Nepal and it 
is one that deserves particular attention.
    In closing, I want to note that anyone who represents the 
United States abroad has a unique responsibility. More often 
than not, we are the only nation that has the will, the values, 
and the resources to solve problems, help others, and to be a 
positive force for change in our challenged world. Being 
nominated to serve as an ambassador representing our Nation is 
in itself an incredible honor. With the consent of the Senate, 
I look forward to assuming this responsibility while serving as 
the next United States Ambassador to Nepal.
    Thank you for this opportunity to address you. I look 
forward to answering your questions.

             Prepared Statement of Hon. Peter William Bodde

    Mr. Chairman and members of the committee, it is an honor and a 
privilege to appear before you today as the President's nominee to 
serve as the next United States Ambassador to Nepal. I am grateful for 
the trust placed in me by President Obama and Secretary Clinton. If 
confirmed, I look forward to working with this committee and my 
colleagues in the U.S. Government to further the interests of the 
United States in Nepal and in the region. I also want to take this 
opportunity to express my appreciation for the special efforts the 
committee has made to schedule these nomination hearings.
    Mr. Chairman, I would like to introduce four generations of my 
family this morning. My grandson, Andrew; my daughter, Sara, who is one 
of your constituents in Woodbridge; my son, Christopher--who recently 
started his career at USAID--and my father, Ambassador William Bodde. 
Mr. Chairman, he and I literally switched seats today. More than 30 
years ago, I sat where he is when he appeared before your predecessor, 
the late Senator Paul Tsongas, during my dad's first confirmation 
hearing prior to becoming Ambassador to Fiji. Unfortunately, the press 
of work in Baghdad precluded my wife, Tanya, from being present today. 
I am very proud of her and I note that as a career Foreign Service 
employee, she has accompanied me to all of my assignments, including 
Pakistan and now Iraq.
    As you may already be aware, should I be confirmed, this will be my 
third time representing the United States in Nepal. Among the lessons I 
have learned during my career is that the success of every United 
States mission abroad depends on a strong interagency effort and a 
cohesive Country Team. It also requires clear goals, strict 
accountability, adequate funding and trained personnel. These same 
critical concepts apply to our bilateral engagement and the delivery of 
significant levels of U.S. assistance at a critical juncture in Nepal's 
development. You have my full assurances that, should I be confirmed, I 
will provide the necessary leadership to ensure that these concepts are 
an essential element of all mission programs. While the generosity of 
the American people is great, all of us involved in the stewardship of 
this generosity must be accountable for measuring success and failure.
    In my current position as assistant chief of mission for assistance 
transition in Iraq, as well as in my previous positions as Ambassador 
to Malawi and in Islamabad, Frankfurt, Nepal, and Bulgaria, I have had 
the opportunity to regularly brief dozens of your colleagues both in 
the House and Senate. Such regular interaction--whether at post or in 
Washington--is critical to our continued success. Frank exchanges of 
accurate information that build trust are essential for the Congress to 
make difficult resource and policy choices. Should I be confirmed, I 
will make every effort to interact on a regular basis with the members 
of the committee and other Members of the Congress and congressional 
staff. Nepal is one of the poorest countries in the world; it faces the 
daunting challenges of consolidating peace after a decade of civil 
conflict, writing a new constitution that will enshrine the values of a 
new federal democratic republic, developing its economy, expanding 
access to health and education, and improving its poor infrastructure. 
Despite these challenges, the Nepali Government has made significant 
strides over the last few years: the 10-year civil conflict is over, 
the one-time insurgent Maoists have not only joined mainstream politics 
but are heading the current government tasked with completing the peace 
process, and the Government has made a meaningful commitment to raise 
living standards and improve the lives of its people. The United States 
is an important and growing partner in this process.
    The primary objective of the U.S. mission in Nepal, of course, is 
to promote and protect the interests of the United States and of U.S. 
citizens who are either in Nepal or doing business with Nepal. In 
addition to that fundamental responsibility, we are working with Nepal 
to promote political and economic development, decrease the country's 
dependence on humanitarian assistance, and increase its ability to make 
positive contributions to regional security and the broader global 
community. Our USAID program focuses on governance, antitrafficking, 
private sector development, basic education, and disaster risk 
reduction. Nepal was recently chosen as a threshold country by the 
Millennium Challenge Corporation. And in another sign of the progress 
Nepal has made since the insurgency ended in 2006, Peace Corps 
Volunteers will also be returning to the country in September after an 
8-year hiatus. I have seen firsthand the significant impact a single 
Peace Corps Volunteer can make. I want to assure you that, should I be 
confirmed, I will support this inspiring American outreach program.
    If confirmed, I will do my utmost to ensure that Nepal finalizes 
its peace process and establishes a stable democracy. Nepal will soon 
integrate former Maoist combatants into the Nepal Army, one of the 
final steps in Nepal's peace process. Department of Defense programs 
are cultivating a professional force that respects human rights and 
civilian control. In addition, the Constituent Assembly is working to 
complete work on a new constitution by the upcoming May 27 deadline, 
grappling with such issues as how to devolve power to newly created 
federal states, how to ensure inclusiveness for long-marginalized 
ethnic minorities and women, and what form of government to establish. 
If confirmed, my previous experience in helping young or challenged 
democracies--including, especially, Nepal itself--will serve me well. 
Success, however, will require U.S. and international support to 
reinforce Nepal's developing democratic system.
    On the economic front, Nepal faces significant challenges in the 
near term, including energy shortages, poor roads, and a lack of 
education, especially for girls at the secondary level. Another problem 
is the lack of adequate and suitable employment for Nepal's burgeoning 
youth demographic, in which more than 64 percent of the population is 
under the age of 30. For me personally, this means the vast majority of 
the population was not even born when I completed my first tour there 
in 1984! Many villages in the countryside are populated primarily by 
the elderly and children, as many working-age Nepali citizens now go to 
the gulf countries, India, or elsewhere in Asia to earn a living, 
sending back as much as 25 percent of Nepal's GDP in remittances. From 
a longer -term perspective, however, the end of the conflict in Nepal 
and political stability means the country's leaders can refocus 
attention on improving economic opportunities for its citizens--indeed, 
this will be crucial for the peace process to be considered successful. 
Nepal has genuine opportunities for U.S. exporters and investors in 
sectors such as hydropower, agribusiness, tourism, and information 
technology. To that end, I will seek to improve the environment for 
foreign direct investment.
    Nepal also faces ongoing human rights challenges. If confirmed as 
Ambassador, I will continue to promote the rights of refugees, 
including the large Tibetan and Bhutanese refugee communities in Nepal. 
Reducing trafficking-in-persons will be another top priority, working 
closely with the government and courageous NGOs such as Maiti Nepal. 
Finally, the country is also still coming to terms with the gross human 
rights abuses that took place during the conflict, and we are urging 
the country's leaders to establish transitional justice mechanisms that 
are credible are consistent with best practices and address the 
concerns and ensure the rights of the victims.
    Weak health systems and disease, including malaria, tuberculosis, 
and chronic malnutrition, pose a tremendous obstacle to Nepal's 
continued growth. The Nepali Government has been a willing partner in 
addressing the challenges of improving access to health care, but 
government and public sector capacity remain weak. The United States, 
through the President's Global Health Initiative, has played a critical 
role in increasing access to treatment and public awareness and in 
improving health indicators such as maternal and infant mortality. 
Although Nepal is now on track to meet its Millennium Development Goals 
in reducing maternal and under-5 mortality rates, there is still much 
work to be done. If confirmed, I will be proud to shepherd the 
continued growth of these critical programs.
    As Nepal continues to develop domestically, it is increasingly able 
to play a constructive role in advancing important issues throughout 
the region. One example of such contributions is Nepal's continued 
deployment of peacekeeping battalions to U.N. missions in Sudan, Iraq, 
Congo, and other countries. Kathmandu is also host to the South Asian 
Association of Regional Cooperation (SAARC) Secretariat, to which my 
predecessor was appointed the lead U.S. Government representative. As 
an official observer to SAARC, the United States is encouraging the 
development of the organization's leadership in areas of regional 
concern such as trade, environment, and disaster risk reduction.
    In closing, I want to note that anyone who represents the United 
States abroad has a unique responsibility. More often than not, we are 
the only nation that has the will, the values, and the resources to 
solve problems, help others, and to be a positive force for change in 
our challenged world. Being nominated to serve as an Ambassador 
representing our Nation is in itself an incredible honor. With the 
consent of the Senate, I look forward to assuming this responsibility 
while serving as the next U.S. Ambassador to Nepal.

    Senator Webb. Thank you very much, Ambassador. And again, 
welcome to your family and your friends who are here today. 
Your full written statement will be entered into the record at 
this point.
    Ms. Rosen, welcome.

    STATEMENT OF DOROTHEA-MARIA ROSEN, OF CALIFORNIA, TO BE 
        AMBASSADOR TO THE FEDERATED STATES OF MICRONESIA

    Ms. Rosen. Thank you, Mr. Chairman and Senator Inhofe. I am 
honored to appear before you today as President Obama's nominee 
to be the Ambassador to the Federated States of Micronesia. I 
am deeply grateful to President Obama and Secretary Clinton for 
their trust and confidence in nominating me.
    I just wish my parents had lived to see this moment. They 
would have been as thrilled and as proud as I am.
    If confirmed, I look forward to the opportunity to return 
to the Asia-Pacific region. I have fond memories of my service 
in Korea and the Philippines.
    I am an educator, a lawyer, a veteran, a Foreign Service 
officer, and a mother. My three children were born while I was 
serving overseas and grew up as truly global citizens. All have 
graduate degrees and are gainfully employed in California, and 
they make me proud every day.
    Currently I am the Diplomat in Residence for the Midwest 
based out of Chicago. My challenge is to recruit future 
generations of Foreign Service officers and to be a resource 
and foreign policy expert to students in my region. This 
position has a strong public diplomacy component and it 
complements my many years of service as a consular officer and 
a political officer. Several of my positions, including service 
as Deputy Principal Officer in Frankfurt, required a great deal 
of interaction with other U.S. Federal agencies. And Frankfurt, 
with over 40 regional offices and Federal agencies, is often 
cited as an example of how interagency coordination and 
cooperation should work. If confirmed, I will seek to apply my 
interagency experience, which will be critically important in 
the FSM, where so many domestic Federal agencies operate side 
by side with foreign affairs and defense colleagues.
    The FSM consists of over 600 mountainous islands and low-
lying coral atolls spread over a million square miles of 
Pacific Ocean. It is one of the least populated countries in 
the world and one of the most isolated. Today the FSM and the 
United States enjoy a close relationship based on historical, 
moral, and security ties.
    The United Nations entrusted the United States with the 
administration of the Trust Territory of the Pacific Islands in 
1947. In 1986, the FSM and the United States signed the Compact 
of Free Association, and the FSM became independent. This 
compact, which was amended in 2004 to extend economic 
assistance for an additional 20 years, provides the framework 
for much of our bilateral relationship. Under the compact, 
citizens of the FSM can live, study, and work in the United 
States without a visa. Mutual security of our nations is an 
underlying element of the special relationship between the 
United States and the Federated States of Micronesia. The FSM 
has no military of its own, and under the compact, the United 
States has committed to defend Micronesia as it would our own 
territory.
    Citizens of Micronesia serve proudly in the United States 
military and at a far higher per capita rate than United States 
citizens. Many have made the ultimate sacrifice for freedom in 
Iraq and Afghanistan, and many have been seriously wounded. I 
would like to specifically note that President Mori's daughter 
and one of Vice President Alik's sons are currently serving in 
the armed forces. If confirmed, I pledge to ensure that these 
soldiers and their families continue to receive the recognition 
and support they deserve from a grateful nation.
    To help achieve the compact goal of economic self-
sufficiency, the United States provides assistance focused on 
six sectors: health, education, infrastructure, public sector 
capacity-building, sustainable private sector development, and 
the environment. And each year, all of the services, programs, 
and grants--the amount exceeds $130 million.
    If confirmed, I will work with the FSM on compact 
development goals, including improving the standard of living 
of citizens and reducing dependence on public sector employment 
funded by foreign contributions. I will strive to improve the 
business climate and fiscal policies, focus on the goals of 
greater accountability and implement this assistance based on 
well-informed assessments for those on the ground.
    If confirmed, I will coordinate closely with the other 
Departments involved with these efforts, and I will work to 
ensure that assistance is visible, recognized, and complements 
efforts in the region.
    In closing, I am grateful for the honor and opportunity to 
lead the United States mission in Micronesia and work with all 
these colleagues on this effort. It is a time of renewed focus 
on our role in the Pacific, and I am excited and proud to be a 
part of it.
    If confirmed, I look forward to working with this 
committee, the Congress, and others in the government to 
invigorate our relationship with Micronesia. I believe that the 
executive and legislative branches will be important to this 
endeavor.
    I appreciate the opportunity to appear before you and would 
be pleased to answer your questions. Thank you.
    [The prepared statement of Ms. Rosen follows:]

               Prepared Statement of Dorothea-Maria Rosen

    Mr. Chairman and members of the committee, I am honored to appear 
before you today as President Obama's nominee to be the Ambassador to 
the Federated States of Micronesia (FSM). I am deeply grateful to 
President Obama and Secretary Clinton for their trust and confidence in 
nominating me.
    I wish my parents had lived to see this moment; they would have 
been as thrilled and as proud as I am.
    If confirmed, I look forward to the opportunity this assignment 
will provide to return to the Asia-Pacific region. I have fond memories 
of my service in Korea and the Philippines.
    My early background was in education, and I went on to study law. I 
remain interested in education and rule of law issues. Upon admission 
to the New York State Bar, I joined the U.S. Army. As a JAG Corps 
captain I had the privilege of serving in the International Law 
Division at Headquarters U.S. Army Europe in Heidelberg, Germany. While 
in Germany I passed the Foreign Service Exam and have been a member of 
the Foreign Service since 1981. My three children were born while I was 
serving overseas and are truly global citizens.
    Currently, I am the Diplomat in Residence for the Midwest, based 
out of Chicago. My challenge is to recruit future generations of 
Foreign Service officers and to be a resource and foreign policy expert 
to students in my region. This position has a strong public diplomacy 
component which complements the many years of service I have had as a 
consular officer and political officer. Several of my positions, 
including service as Deputy Principal Officer in Frankfurt, required a 
great deal of interaction with other United States Government agencies. 
Frankfurt was often cited as an example of how interagency coordination 
and cooperation should work. We had the advantage of sharing a building 
and seeing each other on a daily basis so we developed excellent 
working relationships. If confirmed, I will seek to apply my 
interagency experience, which will be critically important in the FSM, 
where so many domestic federal agencies operate side by side with 
foreign affairs and defense colleagues.
    The FSM consists of over 600 mountainous islands and low-lying 
coral atolls spread over a million square miles of Pacific Ocean. It is 
one of the least populated countries in the world. The landscapes are 
beautiful and the people are friendly. Today, the FSM and the United 
States enjoy a close and unique relationship.
    The United Nations entrusted the United States with the 
administration of the Trust Territory of the Pacific Islands in 1947. 
In 1986, the FSM and the United States signed the Compact of Free 
Association and the FSM became independent. This compact, which was 
amended in 2004 to extend economic assistance for an additional 20 
years, provides the framework for much of our bilateral relationship. 
Under the compact, citizens of the FSM can live, study, and work in the 
United States without a visa. Mutual security of our nations is an 
underlying element of the special relationship between the United 
States and the Federated States of Micronesia. The FSM has no military 
of its own. Under the compact the United States has committed to defend 
Micronesia as if it were part of our own territory. Citizens of 
Micronesia serve in the U.S. military at a higher per capita rate than 
citizens of the United States. Many have made the ultimate sacrifice 
for freedom in Iraq and Afghanistan and others have been wounded, some 
with life-long injuries. I would like to specifically note that 
President Mori's daughter and one of Vice President Alik's sons are 
serving in the U.S. Armed Forces today. If confirmed, I pledge to 
ensure that these soldiers and their families continue to receive the 
recognition and support they have earned from a grateful nation.
    To help achieve the compact goal of economic self-sufficiency, the 
United States will provide the Government of the FSM over $90 million a 
year in direct economic assistance through FY 2023. This assistance is 
directed toward six sectors: health, education, infrastructure to 
support health and education, public sector capacity building, private 
sector development and the environment. Each year, U.S. assistance to 
the country--including all federal services, programs, and grants--
exceeds $130 million.
    If confirmed, I will work with the FSM to help attain its Compact 
development goals; these include a significant increase in the standard 
of living of the citizens of the FSM and a reduction in their economy's 
dependence on public sector employment funded by foreign contributions. 
To reach those goals I will seek to improve the business climate, 
fiscal policies, and capacity to govern, while reducing dependence on 
foreign assistance. I will also seek to ensure that U.S. assistance 
programs are implemented consistent with well-informed assessments from 
those on the ground. I will continue to work with others who are 
concerned with the economic impact of Compact State migrants on U.S. 
states and territories.
    If confirmed, I will coordinate closely with the Department of the 
Interior, which has primary responsibility for implementing the 
compact's economic provisions. I also look forward to working with the 
Department of Defense's Pacific Command on continued security and 
humanitarian assistance activities in the FSM. I will also continue our 
close cooperation with the United States Coast Guard to implement the 
Shiprider agreement with FSM and other maritime security arrangements. 
These activities strengthen the bonds of friendship that undergird our 
entire relationship with the FSM. I will also work to ensure that U.S. 
assistance is visible and recognized, and complements the efforts of 
other regional donors. If confirmed, my overarching goal will be to 
strengthen the positive relationship our two countries have enjoyed for 
decades and to support the people and government of the FSM as they 
work toward a more prosperous future.
    In closing, I can think of no greater honor or opportunity than to 
lead the U.S. mission in the Federated States of Micronesia and work 
with our valued Micronesian friends and allies on these and other 
important issues. It is a time of renewed focus on our role in the 
Pacific and I am excited to be part of it. If confirmed by the Senate, 
I look forward to working with this committee, the Congress, and others 
in the U.S. Government who seek to invigorate our relationship with 
Micronesia, across a range of interests relating to security, good 
governance, economic and budgetary self-reliance, health, education, 
and environmental protection. I believe that coordination between the 
executive and legislative branches will be important to this endeavor.

    Senator Webb. Thank you very much. Your full written 
statement will be entered into the record at this point.
    I would also like to point out that the hearing record will 
be held open until close of business tomorrow in case other 
members of this committee wish to submit questions in writing 
or if there are follow-on questions from myself or Senator 
Inhofe.
    Senator Inhofe, I am going to yield to you for your 
questions, and then I will pick up after you are done.
    Senator Inhofe. I appreciate that, Mr. Chairman.
    And on the issue that I brought up, Ms. Campbell, maybe for 
the record you could kind of send me a letter because this is 
something I had not seen before. And you might have some ideas 
on it, and I will certainly respect those ideas.
    Let me ask you, Ms. Rosen. You served some time in Ghana. 
Is that correct?
    Ms. Rosen. Yes, sir.
    Senator Inhofe. In Accra? When was that?
    Ms. Rosen. 1989 to 1991, quite some time ago.
    Senator Inhofe. I have spent quite a bit of time there and 
gone all the way through the Rawlings machine and John Kufuor 
and now with the new President. And I see that as a real 
shining star in west Africa with some great opportunities. It 
has changed considerably since that time.
    Ms. Rosen. I understand they have highways. The main street 
actually has high-rise buildings.
    Senator Inhofe. They do. But Bukom is the same. Does that 
mean anything to you? Bukom?
    Ms. Rosen. No. I never made it there.
    Senator Inhofe. That is the impoverished district. They are 
keeping that, I guess, part of their history maybe. I do not 
know.
    But anyway, I just wanted to say, Mr. Chairman, I have had 
the opportunity, of course, to visit with Mr. Bodde at some 
length, and I have looked very carefully at all three.
    And I have to say this, Ms. Campbell, about the job that 
you are taking on. I had occasion to--I have been in aviation 
all my life--fly an airplane around the world. I went right 
over the area that you will be representing, and your work is 
cut out for you. [Laughter.]
    Good luck.
    But I have looked at the credentials of these people, Mr. 
Chairman, and I am in full support of their confirmation. I 
look forward to working with all three of you.
    Thank you, Mr. Chairman.
    Senator Webb. Thank you very much, Senator Inhofe. And I 
share your confidence in the abilities of these nominees to 
fulfill their responsibilities to our country.
    Let me start, Ms. Rosen, with something that you and I had 
a discussion about yesterday, and it relates to something that 
I said in my opening statement, that the citizens of this area 
have the right to reside and work in the United States as 
lawful, nonimmigrants, allowing entry into the United States 
without a visa. And when we were discussing this yesterday--let 
me get the exact numbers--I think what we were talking about 
was approximately 100,000 citizens in this area. Is that 
correct? And 30,000 of which are here. Or is that 100,000 
presently living in the area and an additional 30,000 in the 
United States?
    Ms. Rosen. Yes. The figures I have seen are a little over 
100,000 in Micronesia and then approximately 30,000 in the 
United States.
    Senator Webb. So that would be 130,000--30,000 out of 
130,000 roughly?
    Ms. Rosen. Roughly.
    Senator Webb. Roughly speaking?
    And I also understand that this could serve as something of 
a pass-through. If you are not from Micronesia and you live in 
Micronesia for a certain period of time, you can then--how does 
that work? Can you then come to the United States as a citizen?
    Ms. Rosen. The compact allows Micronesian citizens to come 
without a visa. And they acquire citizenship by birth to a 
Micronesian parent. They can also apply for naturalization, but 
naturalization in Micronesia is quite--it is actually an act of 
Congress. So it does not happen all that often. The President 
can naturalize someone based on a bill from Congress, but there 
are a number of requirements as well. They require knowledge of 
the government and the history and the culture, one of the four 
indigenous languages. They have to have resided there legally 
for 5 years. So it is rather a lengthy and difficult process to 
do. Our colleagues at the Department of the Interior have 
indicated that in the past 10 years that it has not occurred. 
So it does not seem to be a large number.
    Senator Webb. So can you walk us through the mechanics of
Micronesian----
    Ms. Rosen. Naturalization?
    Senator Webb. No. How a Micronesian citizen would come to 
the United States without a visa. Mechanically how does that 
work?
    Ms. Rosen. They need passports because it is an independent 
foreign country. So they would book their flights and go down 
with their passport, and if they are citizens, they do not 
require a visa. So they could travel to the United States. They 
are subject to the ineligibilities. So they would be ineligible 
if they were a felon or public charge, but obviously, DHS does 
not have the opportunity at port of entry to know all those 
things.
    Senator Webb. So basically you come back and forth on a 
Micronesian passport in the same way as, say, we would do in 
Europe, but you can live----
    Ms. Rosen. But they can stay.
    Senator Webb. They can stay.
    Ms. Rosen. They can work. They do not require a work visa. 
They do not require any particular visa in order to stay. They 
can establish a residence in the United States, but it is a 
nonimmigrant status. They do not establish a residency that 
leads to citizenship.
    Senator Webb. So it is basically free flow.
    Ms. Rosen. It is free flow, but again it does not lead to 
citizenship, so they would not acquire U.S. citizenship.
    Senator Webb. But they could remain here permanently under 
the compact.
    Ms. Rosen. Yes. There is no time limit.
    Senator Webb. What is the principal economic future of the
region? How are we looking at that?
    Ms. Rosen. Well, the compact provides funding that is 
phasing down. So each year they receive less direct funding 
from the compact funds. And the funding goes into the trust 
fund, but that is not designed to fully support them in 2023. 
So we are encouraging increased development, hopefully in 
things that bring income. They do have tuna reserves that are 
worth a great deal of money. There is some potential for 
tourism, but it is a very isolated location, so there are 
difficulties with that. But there is a focus on greater 
accountability and focus on the goal of developing sustainable 
economic, viable possibilities.
    Senator Webb. So right now, in terms of volume of trade, 
most of the volume in actual commercial product is the United 
States going into Micronesia. Is that correct?
    Ms. Rosen. The source of income? Yes, in terms of monetary
income.
    Senator Webb. And what are they exporting?
    Ms. Rosen. Tuna.
    Senator Webb. I look forward to hearing some thoughts about 
what----
    Ms. Rosen. What they could export?
    Senator Webb. Yes, as you take your position out there. 
From what I am reading, there is not a lot of commercial 
enterprise in Micronesia. Is that fair to say?
    Ms. Rosen. That is fair to say. I think the farming is 
basically subsistence farming. From my colleagues in 
Agriculture, I did not learn of a great opportunity for raising 
cocoa or coffee beans.
    Senator Webb. I know when I was out there many, many years 
ago, the No. 1 export for a long time was scrap metal left over 
from all the battles in World War II. Hopefully, if we are 
going to have this relationship and if it is going to be such 
an open relationship in terms of the citizens involved, we 
could put some of our minds together and figure out what 
economically might benefit the region in the future.
    Ms. Rosen. We do need to try and create opportunity there 
so there is less of a need to migrate.
    Senator Webb. Ms. Campbell, can you give us your 
experiences in this region to date that relate to the 
ambassadorship?
    Ms. Campbell. Well, both my studies and the beginning of my 
professional focus was on East Asia, primarily on Southeast 
Asia. So I have lived or worked in Japan, the Philippines, 
Cambodia, worked on Indonesia, worked on East Timor. And so I 
feel like that combination of experience in East Asia and then 
my more recent experience in working more in supporting U.S. 
businesses, as I am doing now as the consul general in Basrah, 
that that is a good combination, both of a pretty deep 
understanding of the East Asian region, but also an 
understanding of some of the economic challenges and 
opportunities that are going to face Mongolia over the next 
decade.
    Senator Webb. You have a good bit of experience in the 
Middle East as well. Mongolia has been involved in Iraq and 
Afghanistan. I think the number that we were provided is they 
have gone from 200 to 400 troops, and they also benefit from 
our international military education training programs----
    Ms. Campbell. That is correct.
    Senator Webb [continuing]. And foreign military funds. Can 
you give us an idea of how those two realities interact?
    Ms. Campbell. Well, it was interesting. When I first 
started to speak with people in Iraq about the fact that I had 
been nominated for this position, they said, ``oh, yes, we 
remember the Mongolians. We remember when they came and sacked 
Baghdad.'' [Laughter.]
    And then they said, ``oh, yes, and then they came back 
about 8 years ago as part of the international effort in 
Iraq.'' And so it has been interesting to have that 
conversation.
    What I understand from my colleagues at the Department of 
Defense--and I should also say that one of my first exposures 
to Mongolia was actually when I was deputy chief of mission in 
Cambodia because we were working with the Cambodian military to 
have them go and participate in a military exercise that is 
held each year in Mongolia, which is called Khan Quest. And so 
we encouraged the Cambodians to go and participate, and when 
they came back, the Cambodian military interlocutors were so 
positive about what they had seen on the Mongolian side, 
including a Mongolian peace training institute which I believe 
is unique in East Asia. And so the Cambodians then started to 
try to build a training center for peace support missions 
similar to what they had seen in Mongolia. So that was one of 
the things which piqued my interest in Mongolia.
    So Mongolia has participated strongly--Mongolian officers 
have participated in training in the United States. Ten percent 
of all officers in the Mongolia Army have actually participated 
in training in the United States. You also have, as I said, the 
Mongolian military having participated in 14 different 
peacekeeping operations, primarily in Africa but also in 
Europe, in Iraq, and currently in Afghanistan. And so they are 
starting to develop some very specific niche expertise which I 
think is going to be useful and certainly the assessment of my 
colleagues from the Department of Defense is that their 
military capabilities, as well as their interest in 
participating in these international peacekeeping operations 
and efforts like in Afghanistan, where they are increasingly 
shifting----
    Senator Webb. Do you know the level of our funding for 
these two programs as it goes to Mongolia?
    Ms. Campbell. The combination of--it is approximately $3 
million per year, sir.
    Senator Webb. Combined?
    Ms. Campbell. That is our FMF. Our IMET is small, and I can 
provide you the exact figure. I do not remember it offhand.
    Senator Webb. Does that fund their activities in 
Afghanistan?
    Ms. Campbell. Let me please get a full answer to that and 
provide that to you because I believe that their activities in 
Afghanistan should be covered under NATO support funds as 
opposed to from our direct IMET and FMF contributions.
    [The submitted written information referred to follows:]

    In FY 2012, the Department of State allocated $875,000 IMET to 
Mongolia. IMET funding in FY2011 was $997,000.
    The U.S. Government reimburses Mongolia for its predeployment 
expenses related to Afghanistan (training, medical preparation, 
individual equipment) using Coalition Support Funds (CSF). Mongolia 
received $356,118 from CSF in December 2011 
(FY 2012 funds) as reimbursement for troop rotation costs incurred in 
FY 2010. Expenses incurred during deployment, such as for the care and 
feeding of troops in the field, are borne by the Mongolians themselves.
    U.S. FMF assistance totaled $3 million in FY 2012 and helps 
Mongolia's Ministry of Defense to train and equip units to participate 
in international peacekeeping and coalition operations. This includes 
acquiring equipment, such as radios and medical gear, that will be used 
by Mongolian troops in Darfur, South Sudan, and other future 
deployments.

    Senator Webb. It is an additional fund as compared to their
national defense budget.
    Ms. Campbell. That is correct.
    Senator Webb. That would be correct to say. OK.
    Ambassador Bodde, this is, I think, your third trip back to 
Nepal? Do you have any observations on the differences over the 
three?
    Ambassador Bodde. Well, each trip has been a different 
trip. When I went back the second time, Senator, it was right 
after the first restoration of democracy, and I was there for 3 
years. I think we had four governments in the 3 years I was 
there. I was there for the beginning of the civil strife. 
Obviously, Nepal is a much different place than when I arrived 
there 30 years ago. Sadly, some of the challenges they face, in 
terms of the poverty, the health conditions, while we have made 
tremendous progress, our assistance programs have been of great 
assistance, there is still a lot of work to be done.
    I have to say, having read in preparation for this hearing 
for my new position, should I be confirmed, that I am very 
optimistic about where things stand. What I have been seeing is 
that all of the parties involved now have made a lot of 
progress. Even today we got good news that they have agreed on 
13 states and how it is going to be.
    My concern is that this is only the beginning. They have, 
as you mentioned, up until May 27 to have their new 
constitution drafted, but once that is done, then comes the 
hard work of implementation in terms of the new states, what 
their authorities will be, the whole question of revenues, who 
is going to have the ability to generate things. There is a lot 
of work to be done. So I go back with a lot of experience, 
country experience, knowing the culture, knowing many of the 
political players there, but it will be a much different 
experience than the last two times I was there.
    Senator Webb. More optimistic I assume.
    Ambassador Bodde. Yes, I am more optimistic.
    Senator Webb. Well, I would have to--just as a general 
comment as someone who is privileged to chair the subcommittee 
and someone who spent a good bit of my life in and out of East 
and Southeast Asia including, Ms. Rosen, as we discussed, 
having in and out of Micronesia many, many years ago, I am 
really impressed by the scope of the language skills that the 
three of you combined have. It is an amazing comment, I think, 
about the capabilities of our own Department of State.
    Ms. Campbell, you particularly, you seem to pick small 
countries linguistically, Cambodia, Serbo-Croatian, not that 
small, and now Mongolia. How long is the Cambodian language 
program? Was that a Foreign Service Institute program?
    Ms. Campbell. It was, sir, and I should also say that my 
Cambodian is rusty and was never particularly fluent.
    Senator Webb. I do not know many people who can speak
Cambodian.
    Ms. Campbell. There are so few people who speak Khmer that 
even just the effort and being able to navigate simple 
conversations was, in fact, extremely useful. What I found was 
I had great pronunciation, and so I could work with a teacher 
and I, for example, was able to be the emcee for our Fourth of 
July and people could understand enough of what I was saying, 
could understand me for that. But Cambodian is a unique 
language.
    Serbo-Croatian actually, interestingly, will be more useful 
for Mongolia because the Serbs use the Cyrillic alphabet as do 
the Mongolians. So I have got a leg up in at least being able 
to read Mongolian, even though I do not at this point have the 
ability to decipher it.
    Senator Webb. I know having learned Vietnamese largely as 
an act of will, but I began by buying the Foreign Service 
Institute tapes years ago. One thing that I find is that the 
people who have taken those courses develop this defined 
vocabulary where you can actually sit down with each other and 
speak for hours and nobody around you of that language knows 
quite what you are talking about. [Laughter.]
    And when they break into slang, you are lost. But it is a 
great start.
    Well, I want to echo what Senator Inhofe said. I think 
these are very strong nominees, not just for the process, but 
for continuing to serve our country in this region. And I think 
I am on record about as strongly as I can be about how 
important this region is to our country and how important we 
are to the region in terms of long-term stability that allows 
the economies to grow and governmental systems to evolve. And I 
am glad we were able to get this hearing in and hopefully to 
get all three of you on your way as soon as possible.
    Again, to all friends and family, thank you for coming and 
sharing this day with us. I think there is maybe one more 
hurdle and then we can get you off to do what you are supposed 
to be doing for our country.
    Thank you.
    This hearing is over.
    [Whereupon, at 3:20 p.m., the hearing was adjourned.]
                              ----------                              


       Additional Questions and Answers Submitted for the Record


     Response of Hon. Peter William Bodde to Question Submitted by
                        Senator Richard G. Lugar

    Question. Congress has long expressed an interest in the Tibetan 
population in Nepal, both those in transit to India and those who 
reside there. The Government of China is putting political pressure on 
Nepal regarding Tibetans. Will the U.S. Government continue to urge the 
Nepali Government to allow the transit of all Tibetan refugees and work 
with UNHCR to ensure that Nepali officials, including border personnel, 
are properly briefed on the so-called ``Gentlemen's Agreement'' and 
relevant international laws? Will the U.S. Government continue to press 
for a durable solution to the problem of the long-staying Tibetan 
residents without status and for a resettlement program for Tibetans 
modeled after the successfully implemented resettlement program for 
Bhutanese refugees?

    Answer. My predecessors have placed both protecting and finding a 
durable solution for Tibetan refugees at the top of the 
administration's agenda in Nepal and, if confirmed, it is my firm 
intention to keep it there. I am very concerned both by reports of 
deteriorating conditions for the long-staying population and by the 
drop in the number of new refugees transiting through Nepal to India. 
If confirmed, advocacy on behalf of the Tibetan refugees, including 
continued adherence to the Gentlemen's Agreement, will be one of my 
first and highest priorities.
                                 ______
                                 

    Responses of Hon. Peter William Bodde to Questions Submitted by
                          Senator Marco Rubio

    Question. Nepal is not party to the 2000 U.N. Protocol to Prevent, 
Suppress and Punish Trafficking in Persons, Especially Women and 
Children. If confirmed, how would you engage the Nepalese Government in 
a dialogue to join this important human trafficking treaty?

    Answer. Nepal is just now concluding a more than 5-year long 
struggle to draft a new constitution and conclude their peace process. 
If confirmed, I would use this opportunity to press Nepal to join the 
2000 U.N. Protocol to Prevent, Suppress and Punish Trafficking in 
Persons, Especially Women and Children. We are partnering with NGOs and 
the Government of Nepal to combat trafficking in persons. More needs to 
be done, however, and I believe that as the new government stands up, 
we will have an extremely important opportunity to make progress on 
this issue.

    Question. According to the State Department's 2011 Trafficking in 
Persons Report, Nepal is a Tier 2 country for human trafficking. Nepal 
is mainly a source country for men, women, and children subjected to 
labor and sex trafficking. If confirmed, what would be your approach to 
encourage the Nepalese Government to take significant steps toward 
protecting its own citizens from being trafficked abroad?

    Answer. Embassy Kathmandu, through State's Trafficking in Persons 
Office, and through USAID, currently partners with NGOs on programs to 
combat trafficking in persons in Nepal. These programs, totaling more 
than $8.2 million over 3 years, seek to prevent trafficking, assist and 
protect the victims of trafficking, and help Nepal's Government to 
investigate and prosecute suspected trafficking offenders more 
effectively. If confirmed, I will advocate to ensure that this issue 
remains high on the U.S. Government's assistance agenda. I believe that 
we also fight the scourge of trafficking in persons through our broader 
assistance to Nepal. Our initiatives to address food insecurity and 
other constraints to development also help address the root causes of 
trafficking in persons.
                                 ______
                                 

     Responses of Piper Anne Wind Campbell to Questions Submitted 
                         by Senator Marco Rubio

    Question. According to the State Department's 2011 Trafficking in 
Persons Report, during the reporting period there were an estimated 525 
North Koreans employed in Mongolia as contract laborers despite 
concerns that North Korean workers overseas do not appear to have 
rights and receive only a fraction of the money paid to the North 
Korean Government for their work. If confirmed, what steps would you 
take to ensure that the Mongolian Government no longer allows 
contracted laborers from North Korea who may have been trafficked into 
Mongolia?

    Answer. I am very concerned about the situation you describe. The 
Department of State and the Embassy in Ulaanbaatar have called on the 
Government of Mongolia to address well-documented concerns that North 
Korean workers in Mongolia are not free to leave their employment and 
receive only a fraction of the money paid to the North Korean 
Government for their work. If confirmed, I will again raise these 
concerns with Mongolian officials and urge that the practice cease.

    Question. The Mongolian Supreme Court's interpretation of 
Mongolia's antitrafficking laws confuses judicial officials, resulting 
in trafficking offenders to be prosecuted under the lesser offense of 
``forced prostitution.'' If confirmed, how would you engage the 
Mongolian judicial system to ensure clarity in article 113 of the 
criminal code, which prohibits all forms of trafficking?

    Answer. On January 19, 2012, the Mongolian Parliament passed the 
Law to Combat Trafficking in Persons (LCTP). Subsequently, the criminal 
code was also amended to bring certain articles into conformity with 
the LCTP, including article 113 (The Sale and Purchase of Human 
Beings), which now broadly criminalizes all forms of trafficking in 
persons. Our Embassy contributed significantly to Mongolian efforts to 
pass the LCTP, including by implementing Department of State-funded 
projects with several NGOs that raised awareness about the lack of 
judicial clarity, which the LCTP and the subsequent amendments 
resolved.
    Our next priority is to encourage the Government of Mongolia to 
implement this law so that perpetrators of human trafficking are held 
accountable with jail time and victims are identified and appropriately 
protected. If confirmed, I will continue to urge Mongolia to implement 
its law and to address human trafficking fully and effectively.
                                 ______
                                 

        Response of Dorothea-Maria Rosen to Question Submitted 
                         by Senator Marco Rubio

    Question. Micronesia is a Tier 3 country according to the 2011 
State Department's Trafficking In Persons Report for its failure to 
fully comply with the minimum standards to eliminate trafficking and is 
not making any efforts to do so. The Federated States of Micronesia 
does not have a comprehensive federal antitrafficking law and has never 
identified any human trafficking victims in the country despite being a 
source country for women subjected to sex trafficking.

   If confirmed, what is your strategy to engage the Government 
        of the Federated State of Micronesia to enact a strong 
        antitrafficking policy which will address prosecution, 
        protection, and prevention? What specific steps will need to be 
        enacted to ensure comprehensive trafficking legislation is 
        passed?
   If confirmed, what key policies need to be in place to 
        ensure that Micronesia is not listed as a Tier 3 country for 
        trafficking in place in the next Trafficking In Persons Report?

    Answer. Combating trafficking in persons remains a problem in the 
Federated States of Micronesia (FSM). If confirmed, I will pay special 
attention to and press the FSM to focus on human trafficking issues. On 
March 5, 2012, the FSM Congress passed the Trafficking in Persons Act 
of 2011 along with two protocols of the United Nation's Convention on 
the Rights of the Child. The newly passed legislation allows for the 
prosecution of cases involving human trafficking of FSM nationals 
occurring within the FSM. The law is also intended to address the FSM's 
obligations arising from its accession to the Palermo Protocol and is 
the first step toward its obligations to criminalize human trafficking. 
The FSM Government continues to make positive strides on 
antitrafficking efforts; however much more needs to be done to upgrade 
FSM from its current Tier 3 ranking. If confirmed, I will work closely 
with the FSM Government to ensure that the new legislation is 
implemented quickly and effectively. I will work with the government to 
encourage the collection and maintenance of crime data on forced labor 
and prostitution. I will work with appropriate officials to ensure that 
adequate resources are used for law enforcement training, a critical 
component in helping to identify and assist trafficking victims. In an 
effort to reach out to local communities, I will also work with the 
appropriate NGOs and women's groups to help support and facilitate 
comprehensive and visible antitrafficking awareness campaigns.

 
  NOMINATIONS OF EDWARD ALFORD, MARK ASQUINO, DOUGLAS GRIFFITHS, AND 
                               DAVID LANE

                              ----------                              


                         THURSDAY, MAY 17, 2012

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Edward M. Alford, of Virginia, to be Ambassador to the Republic 
        of The Gambia
Mark L. Asquino, of the District of Columbia, to be Ambassador 
        to the Republic of Equatorial Guinea
Douglas M. Griffiths, of Texas, to be Ambassador to the 
        Republic of Mozambique
David J. Lane, of Florida, to serve as U.S. Representative to 
        the United Nations Agencies for Food and Agriculture, 
        with the rank of Ambassador
                              ----------                              

    The committee met, pursuant to notice, at 2:36 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Christopher 
Coons, presiding.
    Present: Senators Coons and Isakson.

        OPENING STATEMENT OF HON. CHRISTOPHER A. COONS, 
                   U.S. SENATOR FROM DELAWARE

    Senator Coons. I am pleased to chair this hearing of the 
Senate Foreign Relations Committee and would like to welcome my 
good friend, Senator Isakson, as well as Senator Nelson, and 
our distinguished nominees.
    Today we will consider the nominees to be Ambassador to 
Mozambique, to Equatorial Guinea, and to The Gambia, as well as 
the U.S. Representative for the U.N. Agencies for Food and 
Agriculture.
    Turning first to the nomination of David Lane as the 
nominee for the U.N. Agencies for Food and Agriculture in Rome, 
I want to just briefly highlight the crucial role those 
agencies play in Africa and throughout the developing world. 
The World Food Programme provides lifesaving nutrition in 
countries like Somalia, Sudan, Niger, and many other conflict 
and famine zones. The U.N. Food and Agricultural Organization 
is a key complement to our own Government's Feed the Future 
program.
    We will also today consider nominations for Ambassador to 
three African countries that are all important to our national 
interests, including security, trade, investment, health, 
governance, and civil rights.
    Douglas Griffiths is the nominee for Mozambique, a country 
that has recently emerged from a long civil war as a promising 
democracy with impressive economic growth. Like many African 
countries, it is rich in natural resources but suffers from 
high levels of poverty. The next Ambassador will have a number 
of challenges in working with the Mozambican Government to 
consolidate democratic gains, use resources wisely, and 
increase trade with the United States.
    Equatorial Guinea where Mark Asquino is the ambassadorial 
nominee is an important producer of oil and natural gas with a 
GDP of more than $14 billion, but the United States has serious 
concerns about human rights protections, lack of political 
freedoms, and widespread corruption. President Obiang is 
Africa's longest serving and most entrenched political leader, 
and opposition parties regularly complain of oppression issues 
we will take up today.
    Our final nominee, Edward Alford, has been nominated to 
serve as Ambassador to The Gambia, a West African country 
almost entirely enveloped by Senegal which has few natural 
resources and relies on tourism and exporting for its economy. 
U.S. interests in The Gambia include concerns about drug 
trafficking, human rights, and governance. A number of 
Senators, including Senators Durbin and Casey, have repeatedly 
raised concerns about the lack of press freedom and the 
disappearance and death of journalists critical of the 
government. The Gambia is eligible for benefits under AGOA, and 
I encourage the next Ambassador to work closely with the 
government to increase trade and investment with the United 
States.
    With that summary, I now turn it over to Senator Isakson 
for his opening remarks.

           OPENING STATEMENT OF HON. JOHNNY ISAKSON, 
                   U.S. SENATOR FROM GEORGIA

    Senator Isakson. Well, thank you, Mr. Chairman.
    Mr. Alford, Mr. Asquino, Mr. Griffiths, and Mr. Lane, 
congratulations on your nomination. We look forward to your 
testimony today.
    And it is always good to see my dear friend, Bill Nelson, 
who is always out when there is a hometown boy being nominated 
for anything. So, Mr. Lane, you are fortunate that he is on 
your side.
    And we welcome the family members of each of the nominees. 
Thank you for your support of them in their quest and their 
jobs.
    This is an important--all three of the African countries 
are very important, and they are not the places you get when 
you are a big donor to the President. They are places you go 
when you care passionately about your country and about the 
future of the continent of Africa, and I commend each of you on 
your willingness to take those posts on.
    And I think Senator Coons agrees with me that we look 
forward to being your conduit back here in America when you are 
out there on point and think everybody has forgotten about you. 
Please use us as a resource to try and help you in any way we 
can.
    Mr. Lane, let me just say that food security in Africa is 
critically important to me. I have traveled to all four of the 
countries that will be at the G8 this weekend, Benin, Ghana, 
President Mills from Ghana, Tanzania, all coming in to testify 
on the issue of food security, which is so critical.
    You come very highly recognized by two friends of mine, 
Beau Cutter and Helene Gale, and if you can pass that test, you 
ought to be pretty good at anything. But they are obviously 
delivering on the front through the U.N. Food Programme in 
Somalia, Dadaab, Darfur, and other places like that. And food 
security in Africa is a critical issue. In fact, there is a 
looming potential problem in the Sudan right now, which I am 
sure you are aware of as a hot bed. So I will be interested in 
hearing from you about those issues and your experience and 
hopefully the contribution you want to make to the program.
    But I end where I began. Thank you all for your willingness 
to serve, and I look forward to being a supporter of each and 
every one of you.
    Thank you, Mr. Chairman.
    Senator Coons. Thank you, Senator Isakson.
    And I, too, would like to thank your families who will 
support you, have supported you, and whom I hope you will 
introduce when