[Congressional Record Volume 143, Number 110 (Wednesday, July 30, 1997)]
[House]
[Pages H6346-H6361]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS ACT, 1998
The SPEAKER pro tempore. Pursuant to the order of the House of
Thursday, July 24, 1997 and rule XXIII, the Chair declares the House in
the Committee of the Whole House on the State of the Union for the
consideration of the bill, H.R. 2159.
{time} 1712
In the Committee of the Whole
Accordingly the House resolved itself into the Committee of the Whole
House on the State of the Union for the consideration of the bill (H.R.
2159) making appropriations for foreign operations, export financing,
and related programs for the fiscal year ending September 30, 1998, and
for other purposes, with Mr. Thornberry in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the order of the House of Thursday, July
24, 1997, the bill is considered read for the first time.
The gentleman from Alabama [Mr. Callahan] and the gentlewoman from
California [Ms. Pelosi] each will control 30 minutes.
The Chair recognizes the gentleman from Alabama [Mr. Callahan].
Mr. CALLAHAN. Mr. Chairman, I yield myself such time as I may
consume.
(Mr. CALLAHAN asked and was given permission to revise and extend his
remarks.)
Mr. CALLAHAN. Mr. Chairman, it is my privilege today to summarize the
work of the Subcommittee on Foreign Operations as well as the full
Committee on Appropriations in developing the fiscal 1998 Foreign
Operations, Export Financing and Related Agencies appropriation bill.
First, I want to publicly express my appreciation for the cooperation
extended by my colleague the gentlewoman from California [Ms. Pelosi],
San Francisco to be specific, and her staff for their help in crafting
this bill. Like the gentleman from Louisiana [Mr. Livingston] and the
gentleman from Wisconsin [Mr. Obey]] before us, the ranking minority
member and chairman do not agree with every detail of this bill, but we
jointly recommend this bill to the House.
Again, this year the committee recommends a bill that is less than in
previous years. We as well as our counterparts in the Senate fully
recognize that foreign programs are not entitlements and must be
subjected to the same scrutiny as domestic programs.
This year less than 5 percent of the money in this bill goes to the
headline countries, such as Bosnia and Cambodia and Haiti. Another 43
percent supports the Middle East peace process, and that amount will
not increase. But most of the money goes elsewhere to places where
diplomats are seldom seen. What is it used for? It helps children, it
protects victims of disasters and war, it promotes responsible economic
growth in poor countries, it creates jobs at home through trade and
investment, and that is why the $12.267 billion is needed to fund this
appropriations bill.
{time} 1715
Let me move on to some of the specifics in this bill, beginning with
the possible impact of the Congressional Budget Resolution.
At $12.267 billion in discretionary budget authority, this bill is
now $233 million under our 602(b) allocation, it is $4.6 billion less
than the President's request, and $4.5 billion less than the Senate
bill. It is also $87,000 below last year's appropriation bill. Let me
once again reemphasize that this year, once again, in voting for the
final passage of this bill, Members will be cutting foreign aid as we
have done for the last 2 years.
Not every dollar level nor every policy in this bill will find its
way into the final conference report in September. The President has no
objection to the House passage of this bill, but his advisers signal
that he is unlikely to sign a bill at this appropriation level. The
House conferees will do our best to hold the line, but the final
outcome will be different from what we recommend today, I am sure.
Let me move on to some of the policy issues we have addressed this
year, and then to some of the major programs funded through this
measure.
The committee again directs through the report language that Israel
and Egypt receive the traditional amount of economic and support funds
and military assistance. However, leaders of Israel and Egypt have
publicly indicated their intention to gradually reduce the burden of
economic support by American taxpayers. Our efforts are complicated by
the urgent needs of Jordan, Israel's principal peace partner today.
With regard to the South Caucasus and Black Sea-Aegean region, the
committee has worked hard to develop a balanced approach. The bill
language directs the administration to provide humanitarian assistance
to conflictive zones throughout the South Caucasus, including Karabagh
for the first time.
We also provide for democracy training in Azerbaijan, and a cap of
$40 million in ESF for Turkey, half of which is to be in the form of
projects for specific purposes, as directed by section 571. Finally,
the committee has reiterated current law with regard to trade and
export agencies in the region.
Our chairman, the gentleman from Louisiana [Mr. Livingston], and the
gentleman from Illinois [Mr. Porter] and the gentleman from Michigan
[Mr. Knollenberg] have worked hard on the provisions I have just
discussed.
They and the managers oppose all amendments that would disadvantage
the United States' efforts to mediate conflict in the Caucasus and
Aegean regions.
There are several policy regions involving spending in our own
hemisphere. Many of our Members favor tighter control over training at
the School of the Americas. We have included language in the bill this
year which I believe will address most of the concerns. Before taking a
position on any amendment to ban IMET funding for the School of the
Americas, I ask all Members to take time to read the committee's bill
language on page 29.
Guatemala, Haiti, and Panama are three other countries that have
drawn attention from many Members. The committee welcomes and supports
the peace settlement in Guatemala. Several Members had the opportunity
to witness this first hand in April of this year.
[[Page H6347]]
The stagnation in the Government of Haiti makes it difficult for the
committee to recommend types of long-term development assistance that
cannot be implemented by the weak government there. We encourage USAID
to focus on humanitarian assistance, including food aid, as long as
former President Aristide blocks progress in rule of law and
privatization.
Finally, the committee is disturbed by the situation in Panama.
Critical port facilities have been leased to Chinese companies in a
less than transparent manner. These leases are also a potential threat
to United States national security.
As it has for many years, this bill includes language in two places
prohibiting the use of funds to pay for abortions or involuntary
sterilization. The underlying law, the Foreign Assistance Act of 1961,
also explicitly prohibits the use of funds in this bill for abortion. I
repeat, none of the funds in this bill can be used for abortion.
Like a majority of the House, I voted two times earlier this year for
the Mexico City policy legislation. That legislation is in conference
in the Senate as part of the U.N. reform legislation. Our Mexico City
policy champion, the gentleman from New Jersey [Mr. Smith] is a senior
conferee. I wish him luck in working out this issue with the President
and with the Senate.
Our new child survival and disease programs fund is retained, and
incidentally, we received more correspondence from Members of this body
requesting that we continue the funding of the child support program
than any other single issue in our entire bill. We have increased this
funding this year to $650 million, with the increase aimed at the
alarming increase in the incidence of infectious diseases. Again this
year we recommend at least $100 million to UNICEF, and that it be
provided from the child survival fund.
For export and investment assistance programs the committee
recommends a gross total of $753 million, which is partially offset by
collections of $251 million. The subsidy appropriations for the
Eximbank is $632 million, the same as the request. At a later point in
the process the committee will consider increasing this amount if a
further request is received from the bank's new President and the
director of OMB. Although the committee has deferred acting on the
request of $60 million for subsidy appropriations for the OPIC, it
fully supports $32 million needed for its administrative expenses.
As an extension of OPIC's statutory sunset operating statute is
expected to be reported by the Committee on International Relations
within a few days, I will oppose any amendment to kneecap OPIC by
slashing its operating expenses. With bipartisan support for an
expanded OPIC role in moving Africa from aid dependence to global
trading presence, this is no time for us to cripple OPIC.
Other AID development assistance programs as well as disaster
assistance are amply provided for. Our report directs that an
additional $10 million be provided for the microenterprise grants so
many Members have also endorsed. It also directs an additional $20
million for Latin America and the Caribbean, and it recommends a full
request for Africa be funded in the child survival and disease programs
fund and the development assistance fund. In all of these cases the
emphasis is on alleviating poverty through economic growth.
Mr. Chairman, I am going to abbreviate the rest of my remarks, but
let me again emphasize to Members in the House that this is once again
a cut in foreign aid. We recognize it is far below the President's
request, some $4 billion below what President Clinton has requested.
We at the same time want to express our appreciation for the talent
of Secretary Madeleine Albright. She is a remarkable and delightful
diplomat, and we want to do everything we can to provide her the
necessary tools that she needs to continue her quest for world peace,
and to continue the diplomacy that she so professionally has performed
in her tenure as Secretary of State.
Once again, we are facing cuts. We are facing a time in this country
when the American people want us to cut back on government spending,
and they did not send us to Washington to cut everything but foreign
aid. So Members can proudly, as Members of this House, go home and tell
their constituents that they did the responsible thing: gave the
administration an acceptable level of funding, but at the same time,
recognizing the austerity program that we are in, we are respectfully
cutting the President's request by $4 billion.
Mr. Chairman, I include for the Record a letter dated 16 July 1997
from Carol Bellamy, Executive Director, UNICEF,
UNICEF
New York, NY, July 16, 1997.
Hon. Sonny Callahan,
Chairman, Subcommittee on Foreign Operations, Export
Financing, and Related Programs, Capitol Building,
Washington, DC.
Dear Mr. Chairman: As you may be aware, the Secretary-
General has today unveiled before the UN General Assembly an
ambitious UN reform proposal. For your information, I have
today welcomed the proposal and expressed gratitude to the
Secretary-General for taking into consideration UNICEF's
unique identity, mandate and relationship with its partners
in the field. I personally look forward to working with the
Secretary-General, his senior staff, and our sister UN
agencies over the months ahead to work out the details
associated with these reforms. I know that together, and with
your support, we can indeed improve the effectiveness and
efficiency of the United Nations funds and programs.
I want to take this opportunity as well to thank you again
for responding so quickly to UNICEF's concerns about earlier
versions of the UN reform proposals that failed to appreciate
the unique public/private nature of UNICEF, its relationship
with national governments, and its role as the sole UN agency
focussing on the survival, development and protection of the
whole child. Your letters and report language have ensured
that the highest levels of the United Nations, which are
truly committed to effective reform, understand that we can
move forward with reform without damaging UNICEF.
We will be fully engaged in the UN reform process over the
next several months and look forward to keeping you informed
of our progress.
Sincerely,
Carol Bellamy,
Executive Director.
Mr. Chairman, I include for the Record the following tabular
material:
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[GRAPHIC] [TIFF OMITTED] TH30JY97.000
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[GRAPHIC] [TIFF OMITTED] TH30JY97.001
[[Page H6350]]
[GRAPHIC] [TIFF OMITTED] TH30JY97.002
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Mr. CALLAHAN. Mr. Chairman, I reserve the balance of my time.
Ms. PELOSI. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in support of the foreign operations export,
finance, and related programs legislation, and in doing so, commend our
chairman, the gentleman from Alabama [Mr. Callahan], for his
exceptional leadership in forging the bipartisan bill to the floor
today. Although we may not agree on all of the issues in the bill, we
come with a unified message.
Hopefully the amendments that have been introduced on the floor will
not do damage to the bipartisanship that the gentleman from Alabama
[Mr. Callahan] imposed upon us, that he nurtured as we went along. He
indeed is the gentleman from Alabama. I am grateful to him for his
accessibility in terms of hearing our case and putting some of our
priorities into the legislation.
I also want to join him in commending our chairman of the full
committee, the gentleman from Louisiana [Mr. Livingston], for his
participation in the bipartisan spirit to bring this bill to the floor,
and the gentleman from Wisconsin [Mr. Obey], our ranking member of the
full committee, a longtime chair of the Subcommittee on Foreign
Operations, Export Financing and Related Programs of the Committee on
Appropriations for his great wisdom and spirit of bipartisanship.
Before I begin, Mr. Speaker, I want to acknowledge the hard work of
the majority and minority staff, Charlie Flickner, Bill Inglee, John
Shank, Nancy Tippens, Lori Maes, Mark Murray, and Carolyn Bartholomew,
and thank them for their very, very hard work, not only in bringing the
legislation to the floor, but for the hearing process and all that went
into developing this piece of legislation today.
Before I proceed on the substance of the bill, Mr. Chairman, I want
to join our colleagues, the gentleman from New York [Mr. Gilman] and
the gentleman from California [Mr. Lantos], in the resolution that
preceded our bringing the foreign operations bill to the floor.
I, too, want to extend my condolences to the people of Israel for
their suffering because of the tragic terrorist act. It is appropriate
that this resolution preceded our bill, because our bill has made a
very, very strong commitment to peace in the Middle East. These
senseless terrorist acts are not in furtherance of that peace. I wanted
to add my voice of sympathy to those of our colleagues who spoke on the
resolution.
Mr. Chairman, this legislation addresses foreign operations, export
financing, and related programs, as its title describes. As the world's
sole remaining superpower and as the beacon of hope and opportunity for
people around the world, it is within our ability and indeed it is
vital to our national interest to provide the necessary resources to
meet our collective foreign policy goals.
We have and will continue to have disagreements in this body about
the framework of our foreign policy goals and just what constitutes our
national security interest. The fact of the matter is, however, that
the overwhelming majority of funds in this bill go to an agenda on
which we can all agree.
These include alleviating poverty, fighting illness and eradicating
disease worldwide, educating the poor, caring for refugees and
displaced persons, teaching women about their choices, saving the lives
of starving children, facilitating the transition to free markets and
to democratic society, addressing environmental degradation, helping
American companies enhance their export opportunities, providing small
loans to those who need help to start businesses in the microenterprise
arena that the First Lady and the administration has taken such
leadership in, and promoting basic human rights and democratic
freedoms.
These goals, as I say, are those which we can all agree upon. They
are important and they should be funded adequately.
We are all familiar with President Kennedy's inaugural address when
he said, and Americans of a certain age and generation all know what he
said in the inaugural address, ``To those peoples in the huts and
villages of half the globe, struggling to break the bonds of mass
misery, we pledge our best efforts to help them help themselves, for
whatever period is required, not because the Communists may be doing
it, not because we seek their votes, but because it is right. If a free
society cannot help the many who are poor, it cannot save the few who
are richer.''
Many things have changed since that day in 1961, but many things have
not. Our foreign policy is no longer based on containing communism, but
there are many more people in the world struggling to break the bonds
of mass misery today than there were in 1961. We are in fact providing
those people with vital assistance.
Thus, we have an even greater challenge before us today than we had
in 1961, and should not be bound by artificial limits on what we are
spending to meet our basic responsibility as the world's only remaining
superpower to make the world healthier and more secure for all of us.
We as Members of this body have a challenge before us with respect to
demonstrating to the American people that their lives are indeed
affected by what happens in today's world. The fact is that an
overwhelming majority of people in this country support providing
needed humanitarian assistance and helping poor women and children
better their lot in life throughout the world.
{time} 1730
Secretary Albright, and I wish to associate myself with the remarks
of our distinguished chairman, the gentleman from Alabama [Mr.
Callahan], in his praise of our distinguished Secretary of State,
Secretary Albright, has said that 1 percent of our budget may determine
50 percent of the history that is written about our era; and it will
affect the lives of 100 percent of the American people. We have a
challenge before us, and that is to convince the American people that,
as I mentioned before, that their lives are affected by what happens
inside our borders and that we can effectively respond to those needs.
But their lives are also affected by what happens outside our borders.
We on a more practical note also have to demonstrate that the funds
we do provide make a difference. I for one intend to respond to this
challenge by speaking out and working for higher funding level than
what is currently in this bill. With all due respect to my
distinguished chairman, this is one area where we have disagreement and
that is on the funding level.
The total funding level in this bill is simply too low to meet these
challenges that I mentioned above. The total of $12.3 billion is $1
billion below the administration's request level of $13.3 billion, if
we are just counting what is appropriated in this bill. We have not
provided enough to even meet our annual contribution level for the
International Development Association, known as IDA, much less pay the
over $200 million in past due payments. These funds enable the World
Bank lending to the poorest countries in the world. Underfunding of
this account has led to the imposition of procurement restrictions
against American companies, and this funding level means that these
restrictions may continue to be in effect.
The bill provides little or no funding for the new Partnership for
Freedom initiative for the new independent states. Indeed, there is
funding in here for the Partnership for Peace but not for the new
initiative. These new republics are making strides toward democracy and
the establishment of free market economies, with our help and against
overwhelming internal obstacles.
It is now time to refocus our aid programs, having learned what works
and what does not. There should be absolutely no question that we need
to remain engaged with an enlightened and robust aid program in these
newly independent states and more funding is needed to accomplish this.
Again, I want to compliment my distinguished chairman, the gentleman
from Alabama [Mr. Callahan], because of some of the items in the bill
that it does fund adequately. The bill contains funding for many vital
programs such as the child survival account which is a special one for
our chairman, development assistance programs, refugee assistance,
export assistance, anti-terrorism, nonproliferation, demining and the
Peace Corps, to name a few. Given
[[Page H6352]]
these funding levels and the cooperation shown by the gentleman from
Alabama [Mr. Callahan] and the leadership shown by the gentleman from
Alabama [Mr. Callahan] in putting this bill together, I would like to
support the bill and fully intend to. As I said, I hope that the
amendments on the floor do not do violence to our spirit and the peace
that the gentleman from Alabama [Mr. Callahan] has created around this
bill.
The committee has acted responsibly in putting together a bill which
reflects bipartisanship and compromise. While its funding level is too
low in some areas, as I have previously stated, it has many aspects
worthy of support.
In closing Mr. Chairman, I want to again quote President Kennedy. As
I said earlier, many Americans are familiar with President Kennedy's
inaugural address in which he said, ``ask not what your country can do
for you but what you can do for your country.'' But how many Americans
know the line that follows, and that line is, ``my fellow citizens of
the world, ask not what America will do for you but what together we
can do for the freedom of men.''
President Kennedy laid down a challenge to the American people to act
to improve their own country and to act to work with the peoples of
other nations to work for freedom and alleviation of poverty. We must
respond to this challenge by meeting our responsibilities in the spirit
of humanity and generosity and in the national interest of our great
country.
With that, Mr. Chairman, I reserve the balance of my time.
Mr. CALLAHAN. Mr. Chairman, I yield 5 minutes to the gentleman from
Michigan [Mr. Knollenberg], a member of the appropriations
subcommittee.
Mr. KNOLLENBERG. Mr. Chairman, I rise in strong support of H.R. 2159,
the 1998 appropriations bill for foreign operations. As a member of
this subcommittee, I want to commend my friend, the chairman of the
committee, the gentleman from Alabama [Mr. Callahan], who has been, I
think, outstanding in his ability to work with all sides. Shepherding
this bill is no different than any other, of course, but it is
difficult when it is an appropriations bill and he has done it, I
think, with grace, with diligence and with impartiality.
I want to thank also the gentlewoman from California [Ms. Pelosi] for
her work with the chairman and the committee. The entire subcommittee
staff should also be thanked for all the work that they have done to
bring about this bill. Each member of the subcommittee has worked in a
bipartisan way to craft this bill so that it reflects the Nation's
international priorities while maintaining a goal of fiscal
responsibility and a balanced budget.
The bill again holds the line on foreign aid spending. At the same
time, the bill maintains funding for our most important foreign aid
priorities. I want to especially thank the chairman for working with
myself and others to include increased funding for the microenterprise
program. This helpful program provides small loans to the poorest
individuals of the less developed countries in an effort to create
self-reliance. That program has been very successful.
I applaud the bill's continued commitment to the Middle East peace
process. In addition to maintaining the funding levels at the same
level for both Egypt and Israel, the bill requires now a detailed
report of the progress toward compliance with the Oslo peace accords.
The bill contains our strong commitment to democracy building in
Russia while addressing our concerns about Russian exports of nuclear
and ballistic missile technology. With Russia and the United States
already at odds over the Russian sale of nuclear reactors to Iran,
Russia now plans to aid Cuba in revitalizing a dangerous Chernobyl
style nuclear reactor just 90 miles off our coast. This must not be
allowed to happen. This grave situation is addressed in the bill by
stipulating that aid to Russia is contingent upon stopping the
development of any nuclear program or ballistic missile capacity. We
are sending a powerful signal to Russia that its interaction with
dangerous rogue states like Iran is unacceptable.
Finally, I want to highlight the provisions of this bill that deal
with the ongoing conflict in the Caucasus. Many people do not even know
about the history of this small troubled region of the former Soviet
Union. But this conflict will continue to have an impact upon America,
on our interests because of the neighboring countries that surround
that community.
I am glad and proud to have worked with the chairman and with members
of this subcommittee to craft what I consider a productive, positive
proposal that will facilitate peace in the region and reinforce the
U.S. role as an unbiased mediator in the peace process. Whether you
know it or not, each of us has a vested interest in the outcome of the
Caucasus. U.S. interest can best be served through a swift and
meaningful resolution to conflicts plaguing this troubled region.
This proposal also removes obstacles to the delivery of humanitarian
relief to needy people throughout the Caucasus. It clarifies section
907 of the Freedom Support Act and allows democracy building and
electoral reform activities in Azerbaijan. Section 907 should not
preclude programs designed to create a more democratic Azerbaijan
because democratic nations are inherently more peaceful.
The bill contains the $95 million package of assistance to Armenia
meeting the pressing humanitarian and development needs there and
hopefully hasten its progress toward stability, peace and prosperity.
With our support we may finally see this region free of bloodshed and
conflict and rich with prosperity and opportunity.
The subject of foreign aid often sparks heated debate on the floor.
We all have strong opinions about of course how we feel about things
and about a number of programs that are close to us. I asked my
colleagues not to let these heated discussions keep us away from coming
to closure to resolution on the business at hand which is to pass this
bill, a fair bill. We need them to unite behind it.
I want to again thank the chairman, the gentleman from Alabama [Mr.
Callahan] for all of his work and his leadership in bringing the
influence, his influence into this to bring about, I believe, a very,
very outstanding bill.
I ask Members to support the bill and I want to in closing thank the
chairman for yielding this time to me.
Ms. PELOSI. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman
from Virginia [Mr. Moran], distinguished member of the Committee on
Appropriations.
Mr. MORAN of Virginia. Mr. Chairman, first of all, I hope this bill
passes because I doubt that there are any two Members of this body that
are any more well liked and respected than the gentlewoman from
California [Ms. Pelosi] and the gentleman from Alabama [Mr. Callahan].
But I would like to enter into a colloquy with the chairman if I could.
Mr. Chairman, I want to thank you and the gentlewoman from California
[Ms. Pelosi] and the members of the subcommittee for the attention and
the funding that you have given to demining activities in this bill. I
know that you and the gentlewoman from California [Ms. Pelosi] are well
aware of the challenge that land mines pose to humanitarian
development, refugee resettlement and rehabilitation throughout the
developing world. Many of these efforts cannot even begin or must be
suspended or terminated until the land mines are marked or removed.
These areas, mine awareness, education and demining activities, must go
hand in hand with humanitarian relief and development programs.
A number of our private voluntary organizations, nongovernmental
organizations are trying to initiate and implement these sorts of
antiland mine programs. However, we have learned that these demining
funds have not been made available to them. It is my understanding that
private voluntary organizations and nongovernmental organizations may
apply for these demining funds and that these funds may be used for
mine awareness and education programs, mapping and marking and the
training of deminers as well as the removal of mines. Can the chairman
confirm my interpretation?
Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
Mr. MORAN of Virginia. I yield to the gentleman from Alabama.
[[Page H6353]]
Mr. CALLAHAN. Mr. Chairman, the gentleman is correct. It is the
understanding of the committee that the nongovernmental agencies that
you are talking about can apply for these funds for the activities the
gentleman mentioned.
Mr. MORAN of Virginia. Mr. Chairman, I thank the gentleman very much
for this confirmation and his strong leadership in this area. I thank
my friend and the ranking member of the subcommittee, the gentlewoman
from California [Ms. Pelosi], as well. I hope the bill passes.
Mr. CALLAHAN. Mr. Chairman, I yield 4 minutes to the gentleman from
California [Mr. Packard], who is also a member of the appropriations
subcommittee.
Mr. PACKARD. Mr. Chairman, I wanted to take a moment to compliment
the chairman of this subcommittee and the ranking Democrat, the
gentlewoman from California [Ms. Pelosi], for their very fine
leadership in crafting this bill. I am proud to rise in support of the
bill that has been brought to the floor today. I especially rise in the
hopes that all the Members will recognize the strong leadership of the
gentleman from Alabama [Mr. Callahan] and also the gentlewoman from
California [Ms. Pelosi] in crafting this financially prudent and yet
socially and morally responsible bill.
As the gentleman from Alabama [Mr. Callahan] likes to point out,
there are not many people in his district in Alabama who even know much
about foreign operations and fewer that would probably care about it.
Yet he as chairman has taken the time to become extremely familiar with
the issues and expert in management of the bill. And so I certainly
want to compliment him.
There is no greater testament than the example set in creating,
recreating, and increasing funding for the child survival account in
this bill. The administration chose not to include this account in
their budget submission and I cannot imagine them leaving this
important area out of their budget submittal. This administration chose
not to include an account which provides child survival and disease
eradication throughout the world. What is worse, they chose not to
include it. When they chose not to include it, they would have provided
less money for it while increasing funding for Russia.
I am proud to say that the chairman and ranking member of the
committee and members of the subcommittee not only corrected this
situation but increased the funding for child survival and the basic
functioning of our foreign operations funding.
I certainly recommend this bill to all Members of the House. I hope
that it will pass. I hope that we will be able to keep unwanted and
undesirable amendments from cluttering the bill. We would like to send
this bill to the President in a form that he can sign.
I again want to compliment the leadership of this committee. It is a
pleasure for me to serve with them. I am very proud of this bill. I
think that we have done a lot of good things. We have fenced some of
the money, particularly to Russia, and also another one of our
independent states where a serious problem with corruption takes place.
We fenced the money with the requirement that they make improvements on
corruption in these countries before the money would be able to be
released.
{time} 1745
Also, I was pleased to see us fence some of the money as it relates
to going to Russia and tying it to religious freedom in Russia.
All in all, I am very proud of the bill, very proud to sign on to it
and recommend its vote.
Ms. PELOSI. Mr. Chairman, I yield 4 minutes to the gentleman from
Illinois [Mr. Yates], the distinguished gentleman who is the ranking
member of the Interior Subcommittee; more importantly for this bill, he
has been a Member of this House since the inception of the Marshall
plan.
(Mr. YATES asked and was given permission to revise and extend his
remarks.)
Mr. YATES. I thank the gentlewoman very much. She can always
introduce me. I thank her very, very much for that very gracious
introduction.
The gentlewoman from California is correct, when the Secretary of
State testified before the Subcommittee on Foreign Operations, Export
Financing and Related Programs of the Committee on Appropriations
earlier this year, we spoke about foreign aid, and foreign aid stemming
from the time of Thomas Jefferson. And although my tenure on the
committee does not quite go back that far, I did begin my association
at the time of Harry Truman.
At that time the Marshall plan had just been inaugurated. I was lucky
enough as a freshman to become a member of the Marshall Plan Committee.
And during the almost 50 years that I have served in this House, I have
been on the subcommittee on foreign aid. I have seen a major transition
in both the political situation in the world and how foreign assistance
and export programs can address these changes.
I believe that the Committee on Appropriations has been at the
forefront in initiating reform and guiding the new direction of foreign
assistance following the ending of the cold war. This bill continues
that tradition, because this bill is essentially the product of two of
the ablest Members of the House, and I refer of course to the chairman
and the ranking member, the gentleman from Alabama [Mr. Callahan] and
the gentlewoman from California [Ms. Pelosi].
I have worked with every chairman and every ranking member of this
subcommittee for almost the last 50 years, and I would say that the two
that have drafted this bill are essentially the most able that I have
witnessed in all that time. This bill does reflect the touch that they
have given to us.
The ironic truth about foreign aid is that it is much cheaper than
Americans think it is, and it does things that most Americans do not
realize that it does do. Like defense, it helps preserve our national
security. And as stated in USA Today, ``This is no time to be penny-
wise and pound-foolish.'' Our foreign assistance program helps finance
the building blocks of a new international structure that is more
peaceful and more stable than the one we left behind.
I can say that now after working on this committee for so many years.
I have seen how it has helped rebuild Europe under the Marshall plan
and I have seen how it has helped bring underdeveloped countries to a
much more developed state. I believe this bill is a worthy one and I
believe that it deserves our support. Certainly I look forward to
supporting it as it goes through the House.
Mr. CALLAHAN. Mr. Chairman, I yield 5 minutes to the gentleman from
Illinois [Mr. Porter].
Mr. PORTER. Mr. Chairman, I rise today in strong support of the bill.
I want to begin by commending my friend, the chairman of the
subcommittee, the gentleman from Alabama [Mr. Callahan], for the
bipartisan and consensus promoting manner in which he has brought the
bill to the floor of the House. I think he has reflected very well the
concerns of the members of the subcommittee in crafting the bill and he
has done just an outstanding job of bringing us together in support of
it.
I would also like to say that we have had the wise counsel and
support of the gentleman from Louisiana, Mr. Bob Livingston, and I
appreciate especially his flexibility and thoughtfulness in dealing
with me and with my colleague the gentleman from Michigan, Mr. Joe
Knollenberg, who I have worked very closely with on the very difficult
issues of the Caucasus and Turkey.
I also want to commend the gentlewoman from California [Ms. Pelosi]
in her first year as ranking member of the subcommittee. She has done
an excellent job of working to improve the lives of people around the
world, and it is always a delight and a pleasure to work with her.
I believe, Mr. Chairman, that this is a good bill and one which all
the Members of the body should support. I am pleased that we have been
able to move forward in funding initiatives that reflect our commitment
to the values of democracy, freedom, economic opportunity, the rule of
law, and respect for human rights.
An example of this cooperation is involved with United States
involvement and relations with Armenia, Azerbaijan, Nagorno-Karabakh,
and Turkey. In the past, these issues have always been a stumbling
block in this bill, which led to angry floor debate which allowed
Members, including myself, to achieve perhaps moral victories
[[Page H6354]]
but may not have been the most productive manner to advance the ideals
and goals we have for this region.
This year we have taken a different tack by attempting to work out a
balanced and fair approach to the region before the bill reached the
floor in an effort to avoid that ugly floor fight that neither advanced
our cause nor inspired trust among the other countries in the region.
I am pleased with the committee's overall funding level for
development assistance and their support for the United Nations'
development program and the World Conservation Union.
My dedicated colleague and friend, Joe Knollenberg, approached me
earlier this year about bringing together a package of legislative and
report language ideas which could address the concerns that many
Members have about these issues. Joe and I, with the help of our
chairmen, our staff, and the subcommittee staff, took a great step
forward through cooperation and consensus and I am very proud of the
work that we did on this bill. Joe, congratulations on your fine work
on this bill and your leadership on this issue in general.
Many of my colleagues have asked me about the provisions in this
regard and what they will mean for the United States' policy there. We
have included in the bill an exception to section 907 which allows for
the first time for democracy building assistance to go to Azerbaijan.
President Aliyev of Azerbaijan is in town this week to meet with
President Clinton and Members of Congress, and I hope that the members
of the subcommittee were able to speak with him this afternoon about
the provisions of the bill.
As in all the former Soviet republics, the development of democracy
in Azerbaijan has been uneven. We are confident that by making it
possible for the NED and similar institutions to begin working in
Azerbaijan, we are taking an important step towards improving the lives
of the average Azeri citizen.
Moreover, we have provided legislative direction for the State
Department to give assistance to all needy persons in the Caucasus.
This would include refugees in Azerbaijan, needy people in Nagorno-
Karabakh and internally displaced persons in Georgia.
I am hopeful that this provision will remove the artificial barriers
to assistance which our State Department has set up once and for all so
that the people who desperately need our help can get it. Other than
these important exceptions, however, we have left section 907 intact.
With regard to Turkey, Mr. Speaker, this bill showcases a new
approach that we are cautiously optimistic about. One-half of the
economic support funds for Turkey will be directed to projects run by
NGO's, private voluntary organizations and others to promote democracy,
encourage economic development of areas that have been affected by
internal conflicts, and other purposes that we have been encouraging
the Turkish Government to undertake for years.
This new approach has taken a leap of faith by those of us with
strong feelings on both sides of this issue. These have been difficult
times for Turkey, and the dramatic shifts in the situation there have
caused all of us to reexamine our approach to that important ally.
Concerns about the future of democracy and the spread of Islamic
fundamentalism have lead us to look for new ways to support Turkey on
the path that is not only in Turkey's best interest but in our own as
well.
It would be easy to come to the floor, as I have in the past, to talk
about the serious problems that Turkey has, but these problems have not
gone away and in many ways they have worsened in the past year. But I
believe that if we want to truly help the Turkish people, we must bring
about reforms from within the country and promote an atmosphere where
democracy is secure enough to take bold steps, such as ending the armed
conflict in the southeast. I believe that what we are doing in this
bill will quietly and profoundly have that effect.
In addition to creating the climate in which we could make these
steps forward on the caucasus, I want to thank the chairman for
including funding and language concerning important initiatives in
Burma, China, Northern Iraq, Tibet, Cyprus, and other areas which are
of great concern to me. I wish that all Members could have the
privilege of having such a cooperative Chairman.
While I am very proud of the efforts we have made in this bill and
appreciative of Chairman Callahan's work, I must again express my
disappointment that this House continues to cut overall levels of
foreign assistance. I believe that this is the era of American
leadership, and we are squandering a golden opportunity to bring an
ever-expanding circle of countries into our sphere of influence. I hope
that we can begin to realize this opportunity and that the Republican
Party, which for so long led the way in international affairs, can
return to engagement in this vital area of our national policy.
The reduced appropriation for the multilateral financial institutions
from the requested amount is of particular concern to me. These
institutions have received significant reductions in past years,
resulting in vast arrears. The administration has negotiated an
agreement to pay off these arrears and I believe that the subcommittee
should work to honor this agreement.
I am also concerned that the so-called Leahy provision, which is
intended to keep U.S. counter-narcotics assistance out of the hands of
human rights abusers, was stricken from the bill on a point of order
due to the objection of my friend from New York, Mr. Gilman, and my
friend from Illinois, Mr. Hastert. I hope that we can work together to
deal with their concerns about the administration's implementation of
this policy, and resolve this issue prior to the conference on the
House and Senate bills.
I would also like to address an issue--the situation in Cambodia--
that was brewing as we drafted the bill earlier this year but has
exploded in violence and bloodshed in recent weeks. In January, several
of my colleagues and I visited Cambodia. We met with human rights
activists and others who had so much hope for the future of Cambodia.
These individuals had dedicated their lives to bringing a better life
to the people of Cambodia, to cementing the gains of democracy and
freedom in Cambodia, and to securing a stable society for their
children. We also met with Prime Ministers Ranariddh and Hun Sen. The
meeting with Mr. Hun Sen was ominous, looking back on it, for he did
not have the same hopefulness as the people of his country. I am
devastated by what has happened in Cambodia, and I support the effort
by Congressman Rohrabacher to mover our policy to take a strong stand
against the lawless acts of Hun Sen and a strong stand with the people
of Cambodia. I hope that Chairman Callahan will also support this
amendment when it comes to the floor.
Finally, I would like to take this opportunity to express my
condolences to the families of those who lost their lives in the
horrible terrorist attack in Israel today. I am outraged by this act of
cowardice and I am angry at the failure of those who could have
prevented this heinous act. I am hopeful that the House can be a force
to end this pattern of hatred and violence, and I urge all parties to
continue to move forward on the path to peace in spite of the actions
of extremists.
Mr. Chairman, this bill, I think, is in excellent condition. Sure,
there are places where I disagree with it, but I think the chairman has
done an outstanding job of bringing both sides of the aisle together,
people with divergent interests, and crafting a bill that we can all be
proud of, and I urge the support of all Members.
Ms. PELOSI. Mr. Chairman, I yield 2 minutes to the gentleman from
Indiana [Mr. Visclosky], a member of the Committee on Appropriations.
(Mr. VISCLOSKY asked and was given permission to revise and extend
his remarks.)
Mr. VISCLOSKY. Mr. Chairman, I thank the gentlewoman for yielding me
this time.
Mr. Chairman, I would like to commend the work of the chairman, the
gentleman from Alabama [Mr. Callahan], as well as the ranking member,
the gentlewoman from California [Ms. Pelosi]. I recognize the committee
faced a number of very difficult issues, and I believe that they have
done the very best job possible.
While I support the general thrust of the bill, I am very concerned
about the specific issue of the current United States relationship with
several countries located in the Caucasus, specifically Turkey, Greece,
and Armenia.
The committee has decided to provide assistance to all three
countries and has conditioned some of the aid. This conditioned aid is
a reasonable response by the United States to a difficult situation.
However, I am concerned about the very unreasonable attitude Turkey has
displayed with respect to the conditions that we are placing on our
assistance.
[[Page H6355]]
I would like to remind the House that last year this Chamber cut
economic support fund assistance to Turkey on two separate votes. This
year, the gentleman from Florida [Mr. Bilirakis], others and I will not
be offering an amendment to cut United States assistance to Turkey.
That decision, at least for myself, is based only on the firm
understanding that Turkey will act responsibly during the next 12
months.
Mr. Chairman, I want to make it clear that I do support the consensus
policies on the Caucasus and Turkey developed by the committee.
However, it is important for Turkey to understand that the assistance
we are providing this year is not a blank check. The situation in
Turkey must improve or next year I do not believe the House will be as
accommodating as it has been this year.
Mr. CALLAHAN. Mr. Chairman, I yield 3 minutes to the gentleman from
New Jersey [Mr. Frelinghuysen] a member of the subcommittee.
(Mr. FRELINGHUYSEN asked and was given permission to revise and
extend his remarks.)
Mr. FRELINGHUYSEN. Mr. Chairman, I thank the gentleman for yielding
me this time.
Mr. Chairman, I rise in strong support of this bill. First, I want to
thank our chairman, the gentleman from Alabama [Mr. Callahan], and our
ranking member, the gentlewoman from California [Ms. Pelosi], for their
leadership of our subcommittee and our excellent staffs.
As the chairman has stated, the subcommittee has again done more with
less, as have the agencies that carry out U.S. foreign policy
objectives. For less than $12.3 billion, slightly less than last year's
bill, we continue to provide the essential tools to promote and protect
America's leadership and interests around the globe.
With this bill we maintain our strong commitment to Israel and the
Middle East peace process. We provide critical funding for child
survival programs, and we continue America's longstanding support of
development assistance for the poorest of the poor. We provide support
for the new democracies of Eastern Europe and place increased emphasis
on important priorities in our own hemisphere.
Further, we have provided resources to help American companies enter
new markets, to provide global environmental resources, and to combat
the threat of international narcotics and terrorism from reaching our
shores. And these investments are made for less than 1 percent of the
overall budget and within the framework of our balanced budget plan.
Despite this, most Americans remain skeptical about foreign aid. They
either believe that we spend far more on it than we do in reality or
they simply are not convinced of its value. I believe that it is
imperative that we explain to the taxpayers the return on our
investment in these programs.
Earlier this year I invited AID Administrator Atwood to my district
to explain to my constituents the value of our investment in AID
programs. He showed how a small New Jersey company in Morris Plains,
with the help of AID, developed a product to keep polio vaccines safe
for use around the world.
Success stories like that are a direct result of our foreign aid
programs. This new product is helping our efforts to eradicate polio
throughout the world and has created economic growth and opportunity in
New Jersey.
Again, the amount for all these programs, from building democracy and
feeding hungry children to fighting the war against drugs and opening
new markets for America's goods and services, equals less than 1
percent of the budget.
Lastly and most importantly, Mr. Chairman, I believe now is an
especially critical time for the President, President Clinton, to
exercise his leadership in making a stronger case for this investment
to the American people.
{time} 1800
I urge my colleagues to support this bill and reject proposals for
further reductions.
Ms. PELOSI. Mr. Chairman, I am pleased to yield 2 minutes to the
gentlewoman from New York [Mrs. Lowey], a member of the subcommittee.
(Mrs. LOWEY asked and was given permission to revise and extend her
remarks.)
Mrs. LOWEY. Mr. Chairman, I rise in support of H.R. 2159.
I want to thank our distinguished chairman, the gentleman from
Alabama [Mr. Callahan], and the gentlewoman from California [Ms.
Pelosi], our outstanding ranking member, who have worked so very hard
in a bipartisan way to report out a bill that strikes a delicate
balance on a number of very difficult issues.
Mr. Chairman, this bill is far from perfect. The overall funding in
the bill is substantially lower than what I would have liked, and
several specific accounts are also too low. But this bill does
represent a very serious bipartisan compromise. And again, I want to
thank the chairman and our ranking member.
The bill also includes the full $3 billion in aid package for Israel
and the critical $80 million for refugee resettlement assistance. With
the tragic bombings today in Jerusalem, we have seen once again how
very important it is for the United States to express its strong
support for Israel and the Israeli people.
Although the development assistance account is lower than the
administration requested, an issue I would like to see corrected in
conference, it does include a critical $10 million increase for
international microcredit programs, which I think are absolutely
critical to help raise the level of prosperity around the world.
Mr. Chairman, I remain concerned about the item in the bill for
International Development Association, which is unacceptably low. The
$606 million included in the bill is only slightly more than half of
what the administration has requested for IDA, and I would call on the
chairman to work with me and my colleagues to increase this amount in
conference, as well.
Mr. Chairman, the bill does have some compromises which we worked
very hard to support. The bill preserves current law, prohibiting the
U.S. funds for the performance of abortions or to lobby for or against
abortion. It also prohibits the funds from being used to support any
biomedical research that relates to the performance of abortions.
Mr. Chairman, I offer my very strong support for this bipartisan
bill.
In the past, we have spent many hours debating amendment after
amendment on the floor regarding Greece, Turkey, and the Caucasus
region. This year, we have reported out a bill that addresses most of
our concerns in this area. Now there are some provisions I would have
written differently, and I'm sure some of my colleagues feel the same
way, but what is in the bill represents a good balance on this issue.
And I want to thank the chairman and Ms. Pelosi, and also Mr.
Knollenberg and Mr. Porter for all of their hard work on this issue.
Microcredit is a critical tool in the fight to eradicate poverty
worldwide and enjoys wide bipartisan support in the Congress and the
administration.
Providing these small, low interest loans to the millions of low-
income entrepreneurs around the world would be a major step toward the
eradication of poverty. This is especially true among women, who are
very often the heads of households, and benefit tremendously from
microcredit programs. This is a critical time for microcredit. We have
come a long way this year alone, but we must do more. The increase for
microcredit in this bill will allow us to help thousands of people pull
themselves out of poverty.
IDA makes critical investments in the development of the world's
poorest countries. It provides assistance in health care, education,
and other areas of human capital, creating the climate needed for
sustainable growth and helping to turn these nations from aid
recipients to trading partners.
This bill also strikes a balance in the area of international family
planning assistance, one of the most important forms of aid that we
provide to other countries. No one can deny that the need for family
planning services in developing countries is urgent and the aid we
provide is both valuable and worthwhile.
Nearly 600,000 women die each year of causes related to pregnancy and
childbirth--most live in developing countries.
Each year, 250,000 women die from unsafe abortions. Most of these
disabilities and deaths could be prevented.
Only 20 to 35 percent of women in Africa and Asia receive prenatal
care.
Five hundred million married women want contraceptives but cannot
obtain them.
This bill preserves current law prohibiting the use of U.S. funds for
the performance of abortions or to lobby for or against abortion. It
[[Page H6356]]
also prohibits the funds from being used to support any biomedical
research that relates to the performance of abortions as a method of
family planning.
These restrictions represent a compromise in this area and I hope
that we will pass this bill without upsetting this compromise.
Unfortunately, some of my colleagues see this matter differently and
are planning to offer an amendment that, if passed, could hold the
entire foreign aid bill hostage for the third year in a row. I strongly
urge my colleagues to oppose these efforts to disrupt our bipartisan
compromise.
Mr. Chairman, as I have stated, I do have some very serious
reservations about specific provisions in this bill. But on the whole,
it represents a good compromise between Chairman Callahan, Ranking
Member Pelosi, and all of the members of the subcommittee. I urge
passage of this bill.
Ms. PELOSI. Mr. Chairman, I am pleased to yield 2 minutes to my
colleague, the gentleman from California [Mr. Torres], a distinguished
member of the subcommittee.
(Mr. TORRES asked and was given permission to revise and extend his
remarks.)
Mr. TORRES. Mr. Chairman, I thank the chairman, and I thank my
ranking member for that kind introduction.
I rise, of course, to commend both the gentleman from Alabama [Mr.
Callahan], the chairman, and the gentlewoman from California [Ms.
Pelosi], the ranking member, for their diligent work in crafting this
year's foreign assistance package. I also want to commend the majority
and minority staff for their tireless efforts to produce this very fine
bill.
However, I must note that the bill falls short in certain areas.
While I respectively acknowledge the willingness of the gentleman from
Alabama [Mr. Callahan] to work with me and members of the subcommittee
in addressing concerns that we all have about the School of the
Americas, I am not convinced that we should continue to spend one more
dime on this facility.
And that is why I intend to offer an amendment, together with my
colleagues, the gentleman from Illinois [Mr. Yates] and the gentleman
from Pennsylvania [Mr. Foglietta], to prohibit any of the bill's funds
from being used at the school.
I am also deeply troubled that there may be a move to strike from the
bill a critical counternarcotics assistance accountability provision,
specifically referred to as the Leahy amendment. This provision, which
I supported in last year's bill, prohibits U.S. counternarcotics aid
from going to human rights violators in certain foreign countries. It
prevents U.S. aid from going to specific military units where there is
credible evidence they have been involved in violations.
The Colombian armed forces and their paramilitary allies are
implicated in hundreds of murders a year. Colombian military units
responsible for some of the worst human rights atrocities in recent
years were also those that received U.S. assistance. We should be doing
everything possible to ensure that U.S. aid is used for
counternarcotics efforts and not for murdering civilians.
The human right provisions is the very minimum standard we should
utilize before releasing millions of dollars in military aid to combat
narco-trafficking. Rather than striking it from the bill, I believe we
should be expanding the provision to include all forms of
counternarcotics assistance. Regrettably, the rule does not permit this
important provision from a point of order.
Mr. Chairman, I rise today in support of H.R. 2159, the fiscal year
1998 Foreign Operations appropriations bill as reported out of the full
committee. I want to commend Chairman Callahan and the distinguished
ranking member, Ms. Pelosi, for their diligent work in crafting this
year's foreign assistance package. I also want to commend both the
majority and minority staff for their tireless efforts to produce this
bill.
However, I must vote that the bill falls short in several areas.
While I respectfully acknowledge Chairman Callahan's willingness to
work with me and others on the subcommittee in addressing concerns we
all have about the U.S. Army School of the Americas, I am not convinced
that we should continue to spend one more dime on this facility. That
is why I intend to offer an amendment, together with my colleagues Mr.
Yates and Mr. Foglietta, to prohibit any of the bill's funds from being
used at the school.
I am also deeply troubled that there may be a move to strike from the
bill a critical counternarcotics assistance accountability provision,
specifically referred to as the Leahy amendment. This provision, which
I supported in last year's bill, prohibits U.S. counternarcotics aid
from going to human rights violators in foreign countries.
It prevents U.S. aid from going to specific military units where
there is credible evidence they've been involved in violations. The
Colombian Armed Forces and their paramilitary allies are implicated in
hundreds of murders a year. Colombian military units responsible for
some of the worst human rights atrocities in recent years were also
those that received U.S. assistance.
We should be doing everything possible to ensure that U.S. aid is
used for counternarcotics efforts and not for murdering civilians. The
human rights provision is the very minimum standard we should utilize
before releasing millions of dollars in military aid to combat narco
trafficking. Rather than striking it from the bill, I believe we should
be expanding the provision to include all forms of counternarcotics
assistance. Regretfully, the rule does not protect this important
provision from a point of order.
I am, however, pleased that this bill provides full funding for the
fund for special operations, the concessional lending arm of the Inter-
American Development Bank. The FSO extends loans to the poorest
countries in Latin America and the Caribbean for programs designed to
alleviate poverty. FSO programs benefit those most in need, especially
women and children and microentrepreneurs who have little access to
credit through regular financial sources.
The U.S. contribution to the Fund for Special Operations is an
effective investment in the development of our poorest neighbors in the
Western Hemisphere. The fully funded level of $20.83 million for the
FSO is critical in leveraging funds from other donor nations around the
world and I am pleased that this bill provides the administration's
request.
I am also pleased that the bill directs an increase of $20 million
for programs in the Latin America and Caribbean region. U.S. assistance
to Latin America has been scaled back dramatically in recent years.
Despite bill and report language in last year's bill, aid to Latin
America has continued to be slighted. The relatively modest sums
directed toward sustainable development in Latin America are a
worthwhile long-term investment in the economic and political stability
of our closest neighbors.
Further, the United States has made certain commitments to the
region, such as contributions to consolidating peace in Central
American nations, which should be honored.
I also want to note that the bill provides the fourth and final
tranche to complete the capitalization of the North American
Development Bank, or NADBANK. This funding is critical for the Bank to
realize its potential to clean up the border region and address the
domestic needs of displaced workers and businesses.
Again, my thanks to Chairman Callahan for his cooperation in working
with all members of this subcommittee to craft this bill in a
bipartisan manner.
Ms. PELOSI. Mr. Chairman, I am pleased to yield 2\1/2\ minutes to the
distinguished gentleman from New Jersey [Mr. Pallone].
(Mr. PALLONE asked and was given permission to revise and extend his
remarks.)
Mr. PALLONE. Mr. Chairman, I rise in support of the foreign
operations appropriations bill. The bill makes a significant effort to
realize the balanced policy in the Caucasus region. And I am urging my
colleagues in the bipartisan Armenian caucus to support the consensus
position on the Caucasus, which was so painstakingly worked out by the
subcommittee members.
I urge those who will participate in the House-Senate conference to
do everything possible to retain the House position in conference. The
House bill maintains the economic sanctions on Azerbaijan which were
enacted into law under section 907 of the Freedom Support Act in
response to that country's continuing blockade to Armenia and Nagorno
Karabagh. Unlike the Senate bill, the House bill does not allow for
funds to go to Azerbaijan from the Export-Import Bank, the Overseas
Private Investment Corporation, or the Trade and Development Agency.
The House bill maintains the integrity of section 907, while the
exceptions in the Senate bill render the prohibition on aid to
Azerbaijan virtually meaningless.
One of the truly honorable provisions in this bill is the language
making funds available for humanitarian assistance through
nongovernmental organizations in conflict zones throughout the
Transcaucasus, including Nagorno Karabagh.
[[Page H6357]]
And finally, the bill provides a $95 million soft earmark for
Armenia. Given the challenges facing Armenia, with blockades imposed by
neighbors on their east and west, and in light of the strides that
Armenia is making in terms of establishing democracy and a market
economy, I believe this earmark is fully justified.
Mr. Chairman, I would also like to stress our policy with regard to
India. I believe we should remain consistent with the longstanding
American goal of promoting greater cooperation with countries like
India that promote democracy, free markets, and stability.
I understand that we will be asked to consider an amendment to cut
development aid to India. I urge Members not to support this
unjustified proposal. Last year, India held nationwide elections in
which more than 400 million people voted for free and fair elections.
And this year, in the Indian state of Punjab, some 60 percent of the
voters turned out for free elections, which resulted in the election of
a Sikh dominated government. India has taken concrete steps to address
human rights issues with the establishment of a national human rights
commission that has won international praise for its independence and
effectiveness.
Finally, Mr. Chairman, I am extremely concerned about a provision in
the Senate foreign ops bill which would relax current United States
sanctions on Pakistan. Under the Glenn-Symington provision, certain key
United States trade and export promotion programs have been withheld
from Pakistan in the past because of Pakistani involvement in nuclear
proliferation. In recent years, Pakistan has moved forward with an
aggressive program of acquiring nuclear technology and weapons.
I urge the Members not to recede to the Senate on this ill-advised
provision in conference.
Ms. PELOSI. Mr. Chairman, I am pleased to yield 2 minutes to the
gentleman from Maryland [Mr. Hoyer], a distinguished member of the
Committee on Appropriations.
Mr. HOYER. Mr. Chairman, I thank the gentlewoman from California [Ms.
Pelosi] for yielding me the time.
Mr. Speaker, U.N.- and NATO-led forces were involved in the recent
apprehension of two individuals and the killing of a third who had been
indicted by the International War Crimes Tribunal. The recent arrests
and the tribunal's sentencing of Dusan Tadic to 20 years in prison for
his part in the torture and murder of innocent civilians are a major
step forward.
Yet the fact remains that, while the war crimes tribunal has publicly
indicted 76 people to date, 66 indicted suspects remain at large,
despite the fact that the tribunal has been issued international
indictments, despite the fact that the Dayton accords requires the
parties to that agreement to surrender those who are within their
effective jurisdiction, and despite the fact the U.S. Security Council
Resolution 827 requires all states to cooperate in this effort.
This must stop, Mr. Speaker. If countries do not live up to their
international obligations and cooperate with the tribunal, we should
not cooperate with them. I am pleased that the legislation before us
provides for sanction against those countries which harbor war
criminals. The bill permits the President to withhold foreign
assistance from these states and instructs the Secretary of the
Treasury to oppose assistance from the international financial
institutions.
I would have preferred frankly an outright ban on such aid but am
pleased that we are moving in the right direction. I want to thank the
gentleman from Alabama [Mr. Callahan] and the gentlewoman from
California [Ms. Pelosi] for their support and leadership in this
effort.
I am pleased this committee has recommended a $3 million voluntary
contribution to the war crimes tribunal to assist in its challenging
work. In closing, Mr. Speaker, let me just say that I would have
preferred that we had done more to assist the emerging democracy in
Russia and other CIS states. I understand the constraints that the
committee was under. And I am rising in support of this bill and
looking forward to their success in conference.
Mr. CALLAHAN. Mr. Chairman, I yield 2 minutes to the gentleman from
Florida [Mr. Goss], member of the Committee on Rules.
(Mr. GOSS asked and was given permission to revise and extend his
remarks.)
Mr. GOSS. Mr. Chairman, I thank the distinguished chairman for
yielding me the time. I point out that less than 1 percent of the
Federal budget we are talking about here, foreign aid spending, is not
the problem when it comes to our budget ills. But it is clear that
everything is on the table when we talk about the budget.
The reason I am supporting this bill is not budgetary, however. It is
because this bill was crafted by making difficult choices, shifting
limited resources and reflecting new priorities. And I congratulate
both the chairman and ranking member for that. Also of course it keeps
spending down, and Chairman Callahan has done a fabulous job at that.
In fact, Chairman Callahan has delivered a bill that comes in, I
understand, at $4.6 billion below the President's request and below the
spending allocation. That is a pretty good trick in these tight
budgetary times.
But the important point is the committee has prioritized spending to
fund child survival programs and to fund efforts in nonproliferation,
antiterrorism, and counternarcotics. As chairman of the House Permanent
Select Committee on Intelligence, that is a very important area for me.
And it is an area of critical concern involving both the security and
the quality of life for Americans at home and abroad.
And I think it is very important that this bill focuses on that. And
I am pleased it does, and that is one of the reasons I strongly support
it.
But as a southwest Floridian, I am pleased that this bill will choke
off some of the international assistance that might be funneled to
Fidel Castro to complete dangerous nuclear reactors at Juragua. The
foreign operations bill also includes $72 million in funding for
operations in Haiti. But the gentleman from Alabama [Mr. Callahan] has
wisely conditioned that aid on progress on economic reforms and
investigations into political killings since President Preval's
election.
Although I would have preferred language that included all the
killings since the troops returned President Aristide, I am
nevertheless pleased to see that we have some specific markers set out
on accountability in this area.
To date, and to the best of our ability to get an accounting from the
Clinton team, we know that more than $3 billion has been spent for
Haiti and we see little evidence for that $3 billion of good governance
or any other progress we were hoping for in that nation. I urge support
for this legislation.
Ms. PELOSI. Mr. Chairman, I am pleased to yield 1 minute to the
gentlewoman from California [Ms. Woolsey].
Ms. WOOLSEY. Mr. Chairman, I rise in strong support of the bipartisan
consensus that the committee has reached in this bill on the troubled
Caucasus region in Armenia.
Since Azerbaijan began its blockade of Armenia 5 years ago, the
citizens of Armenia have suffered from lack of shelter, lack of heat,
lack of food and lack of crucial medicine. In fact, the world food bank
has described Armenia as a prefamine state. Even worse, Mr. Chairman,
the Armenians in Nagorno Karabagh have been blockaded by Azerbaijan for
8 years.
That is why we must maintain economic sanctions against them. That is
why economic sanctions will send a clear and straightforward message to
the perpetrators of this cruel and senseless blockade. It is a message
that their actions will no longer be tolerated.
Mr. Chairman, I urge my colleagues to join me in congratulating the
committee on a job well done and in supporting this important
consensus.
Ms. PELOSI. Mr. Chairman, I yield such time as he may consume to the
gentleman from Texas [Mr. Bentsen].
(Mr. BENTSEN asked and was given permission to revise and extend his
remarks.)
Mr. BENTSEN. Mr. Chairman, I rise in support of the bill.
Mr. Chairman, I rise to support the fiscal year 1998 foreign
operations appropriations bill.
Especially at this critical juncture of the peace process, and in
light of today's tragic bombing in Jerusalem, the United States must
continue to support Israel and help assure its
[[Page H6358]]
security as it takes the very difficult steps needed to secure peace.
Any cuts in foreign aid to Israel now could damage Israel's security,
its negotiating posture, and the peace process, as well as other United
States interests in the region. As one of the United States' strongest
allies and the only true democracy in the Middle East, Israel is
certainly deserving of this support.
I want to emphasize that this measure is in the United States'
strategic and economic best interest. Israel is the most reliable ally
of the United States in the Middle East and continued foreign aid
funding will maintain a solid partnership with the United States.
Because of the depth of the United States-Israel relationship and the
permanence of Israel's democracy, the United States knows we can depend
on Israel in a crisis. By its continued support of Israel, the United
States honors a historic commitment to a fellow democracy with which we
share unique security, economic, and cultural ties.
I am especially pleased by the growing relationship between Israel
and my State of Texas. Texas and Israel are substantial trading
partners, sharing economic interests in telecommunications, medical
technology, hightech computers, and agriculture. In 1996, Texas exports
to Israel totaled nearly $580 million in goods and services, which
represented an 89 percent increase since 1995. With regard to medical
technology, Israel and Texas have established many joint research
programs. For example, the Texas-Israel Telemedicine Exchange has
brought together the Texas Children's Hospital in Houston and the Rabin
Medical Center in Petach Tikvah in developing a telemedicine framework
for Israel's hospitals and health care clinics. As this partnership
continues to develop, new business opportunities will make the
economies of Texas and Israel stronger and more competitive in the 21st
century.
The United States has a strong national interest in bringing peace,
stability, and economic growth to one of the most strategic and
potentially destabilizing regions of the world. The United States can
best achieve these goals by continuing its commitment to ensuring
Israel's security. I urge my colleagues to continue a proud tradition
of support for Israel and to recognize that our Nation's national
interests will be reinforced by voting for this appropriation.
{time} 1815
Mr. CALLAHAN. Mr. Chairman, I yield 1 minute to the gentleman from
Delaware [Mr. Castle].
(Mr. CASTLE asked and was given permission to revise and extend his
remarks.)
Mr. CASTLE. I thank the distinguished gentleman for yielding me this
time.
Mr. Chairman, I am the chairman of a subcommittee on the Committee on
Banking and Financial Services called the Subcommittee on Domestic and
International Monetary Policy. We deal with the Eximbank as well as the
international financial institutions.
My 1 minute will not allow me to go into all the different aspects of
this, but we are very supportive of this legislation. We are also very
supportive of the concept that the United States of America needs to
continue to be involved with some of these organizations, including the
World Bank, the International Development Association and some of the
various development funds which are out there.
We think that the International Development Association has become a
symbol of the willingness of the United States to meet its
international obligations. We will not be able to effectively advance
our reform agenda unless we stay fully involved and keep our payments
up to date, which we are attempting to do at this point and which this
legislation indeed attempts to do.
These are difficult choices. Few Members really wish to in some
instances subsidize export promotion or be involved in some of these
supports overseas with respect to these areas, but as we go more and
more into international trading and an international economy, I feel
they are necessary.
I hope that all Members would take the time at some point to more
fully understand what we are doing. It is relatively limited compared
to most countries that offer the same level of support. But for today,
I believe the foreign operations appropriations bill is doing just the
right thing.
Mr. Chairman, I rise to comment on the provisions of this bill
regarding the international financial institutions [IFI's] and the
Export-Import Bank of the United States [Eximbank]. Both the IFI's and
Eximbank are within the authorizing jurisdiction of the Subcommittee on
Domestic and International Monetary Policy, which I chair.
For fiscal year 1998, the administration requested the support of the
Banking Committee for authorization of U.S. contributions to the 11th
replenishment of the International Development Association [IDA]; the
7th replenishment of the All Development Fund [ADF]; the European Bank
for Reconstruction and Development [EBRD]; the Inter-American
Development Bank [IDB]; the Enhanced Structural Adjustment Facility of
the International Monetary Fund [IMF]; and the New Arrangements to
Borrow [NAB], a new multilateral line of credit available to the IMF in
the event of a serious threat to the international financial system. In
addition, the committee has been requested to reauthorize the Export-
Import Bank of the United States for 4 additional years.
Specifically, with respect to the international financial
institutions, the administration requested authorization of
appropriations in the amount of $1.6 billion over 2 years for U.S.
contributions to IDA-11; $400 million over 4 years for the U.S.
contribution to ADF-7; $285 million over 8 years for the U.S.
contribution to the second general capital increase of the EBRD; $76.8
million over 3 years for a scheduled capital subscription to the IDB;
$75 million over 10 years for the interest subsidy account of the ESAF
facility of the IMP; and approximately $3.4 billion (as valued in
special drawing rights) for U.S. participation in the NAB.
On May 8, 1997, the Subcommittee on Domestic and International
Monetary Policy considered and favorably reported by voice vote to the
full Banking Committee H.R. 1488, the International Financial
Institution Reform and Authorization Act of 1997. That bill fully
authorizes over 2 years the U.S. contribution to the 11th replenishment
of IDA, the World Bank facility that provides concessional lending to
the world's poorest developing countries. The subcommittee intends to
work closely with the Treasury and other interested parties to ensure
that the World Bank remains on the reform path and that U.S. taxpayer
resources are used effectively. This commitment to ongoing reform is
reflected in the policy provisions of H.R. 1488.
But the subcommittee also recognized that IDA has become a symbol of
the willingness of the United States to meet its international
obligations. I believe the United States cannot effectively advance
reform or our policy priorities if we remain in arrears to IDA and
other multilateral lending institutions. In this regard, I would
strongly support efforts to address past due payments to the
international financial institutions in a manner consistent both with
the overall request, and the assumption of a cap adjustment for
exchanges of monetary assets and for international organization arrears
as provided for in the budget resolution. Let's get these arrears
behind us to ensure that America can effectively lead these
institutions in a way that advances our national interests.
The regional development banks were all authorized at the fiscal year
1998 appropriations request level, not because of a lack of
subcommittee support, but in recognition of existing fiscal
constraints. The ESAF was also authorized at the fiscal year 1998
level, although future subcommittee support for the ESAF will depend on
the results on an ongoing external review of this facility. The
subcommittee also authorized U.S. participation in the NAB. As you
know, U.S. participation in the NAB entails no scoring of budgetary
outlays.
On May 8, 1997, the Subcommittee on Domestic and International
Monetary Policy also considered and favorably reported by voice vote to
the full Banking Committee H.R. 1370, a bill to reauthorize the U.S.
Export-Import Bank through September 30, 2001. That bill was passed by
voice vote, as amended, by the full Banking Committee on July 9 of this
year.
These international issues present Congress with difficult choices.
Few Members wish to subsidize export promotion, but the heavy hand of
our foreign competitors in trade finance makes continued U.S. support
for Eximbank imperative. Likewise, many observers can point to specific
failings by the international financial institutions, and the
bipartisan agreement on the need for reform suggests that a good deal
of the criticism of the IFI's has been at least partially valid. Yet
there is also strong bipartisan agreement that the IFI's continue to
make an important contribution to economic development and to the
stability of the international financial system. On balance, they were
serve U.S. international economic as well as foreign policy interests.
I would urge my colleagues to give them their support.
Mr. CALLAHAN. Mr. Chairman, I yield 30 seconds to the gentleman from
Arizona [Mr. Pastor].
Mr. PASTOR. Mr. Chairman, I thank the gentleman for yielding me this
time. I would like to engage the gentleman from Alabama in a brief
colloquy regarding the sustainable desert
[[Page H6359]]
development program for combating desertification, a program which I
support. Am I correct to understand that the committee's intent is that
the $5 million made available under this bill is to be administered by
the Agency for International Development on a competitive peer-reviewed
basis?
Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
Mr. PASTOR. I yield to the gentleman from Alabama.
Mr. CALLAHAN. The gentleman from Arizona is correct.
Mr. PASTOR. Mr. Chairman, I thank the gentleman for his time and
assistance in this matter.
Ms. PELOSI. Mr. Chairman, I yield 1 minute to the gentleman from Ohio
[Mr. Traficant].
Mr. TRAFICANT. Mr. Chairman, I will take more time when I strike the
last word on an OPIC amendment.
A company from my district agreed to be a model investment company in
Gaza under OPIC, and they experienced a number of unethical and
downright illegal activities that must be brought before the Congress.
The company is Bucheit International and, among other things, they
allowed a private individual over there to cancel checks, to put up as
collateral their account for a private loan. I have never seen such
type of banking irregularities ever.
This was the only company to make an investment of $4.4 million in
Gaza which caused them to default on a $2 million loan. Under the 5-
minute rule I am going to explain it more fully, but I am hoping we do
not conclude business today and that I could put some language in here
that will protect American companies that are being ripped off. We
cannot have the PLO, who sponsors terrorism, also ripping off American
companies.
Ms. PELOSI. Mr. Chairman, I yield myself the balance of my time.
In closing, I want to commend our distinguished chairman for his
tremendous leadership in crafting this legislation and bringing such a
strong bipartisan bill to the floor. I think the strength of our bill
today and the consensus that he built will go a long way to taking us
to passage and to conference, where some of the fights will be tougher
ones and where we will have the battle over priorities and how much
money is the appropriate figure to have in this legislation.
I want to once again thank the majority and the minority staff and,
very important, the distinguished members of the subcommittee, both
Republican and Democratic members of the committee for the cooperation
they gave to our chairman and to me as ranking member.
I believe that this bill is a very important one to the Congress and
to our country. Because of the resources that we are appropriating here
today, the Clinton administration will be able to promote democratic
freedoms, stop proliferation of weapons of mass destruction, promote
U.S. exports through the export finance provisions of this legislation,
and indeed work for our national security by promoting peace throughout
the world.
I come from a different kind of district than the district of the
gentleman from Alabama [Mr. Callahan]. I am sympathetic to him in terms
of having to sell foreign assistance back home. I come from a very
globally oriented district that places a very high value on the
leadership role that the United States plays in the world, and I think
that the commitment that we make here today and hopefully an expanded
one that we will come out of the conference with is one that does
promote the values of our country. I urge my colleagues to support the
legislation the gentleman from Alabama [Mr. Callahan] has brought to
the floor today.
Mr. CALLAHAN. Mr. Chairman, I yield myself the balance of my time.
In closing let me reemphasize that this once again cuts last year's
appropriation level. It is $4.6 billion below the President's request
and it is $233 million under our 602(b) allocation.
Once again, this is a vote on final passage of this bill to cut
foreign aid.
Mr. POMEROY. Mr. Chairman, I want to express my appreciation to the
House Appropriations Committee for its support of overseas programs by
U.S. cooperatives and credit unions. I have supported the work of
cooperatives and credit unions in my state. These people-to-people
assistance programs are the types of foreign aid that the American
people fully support.
In its report (105-176), the Committee stated that:
The Committee continues to support development efforts
carried out by United States cooperatives and credit unions.
These programs promote free markets, create business linkages
with the United States, export American technology, and build
local economies, and help create a friendly climate for new
and expanding United States markets. They enable people to
achieve dignity and lasting economic benefits through member-
owned businesses.
Overseas cooperative development is a unique type of self-help
assistance, carried out in America's tradition of humanitarian
assistance and in America's national interest. Critical support for
these efforts comes from the U.S. Agency for International Development.
Cooperatives provide private sector approach to international
development that combines a humanitarian concern with a business
discipline. Cooperatives give people a stake in the system by bringing
them into the marketplace. They introduce democratic business practices
in many countries with little experience in democracy.
In the U.S., they have enhanced and promoted the economic well-being
of farmers and spread the benefits of free markets through credit
unions and community-based businesses. Cooperatives have used their
domestic experiences to share their business know-how abroad. In turn,
these overseas programs directly benefit America by enhancing stability
in developing countries, building long-term business partners and
increasing international sales and investments by U.S. businesses.
The following are a few examples of overseas U.S. cooperative
development efforts:
In El Salvador, illegal immigration is slowed as cooperatives develop
two-way trade in non-traditional and non-competitive products. In
Bolivia, United States agricultural and electric cooperatives support
alternative crops to coca production, and thus are combating illegal
drug trafficking.
In Africa, cooperatives and credit unions are carrying out micro-
enterprise programs that reverse the flow of capital and bring it back
to rural communities. In Indonesia, cooperatives are helping micro-
entrepreneurs in the production of specialty export crops, integrated
livestock and fishery production and rural enterprise development
including joint ventures with United States companies.
In Romania, United States housing and other cooperatives are playing
a crucial role in strengthening civil society to address decaying
social problems by providing training and technical assistance in
management, accounting, fundraising, marketing and financial analysis
to new and struggling non-governmental organizations.
In Georgia, United States agricultural cooperatives have built a
network of growers with a seed production cooperative and are building
a supply association for inputs to private farmers. The new cooperative
is a private sector alternative to the defunct government wheat seed
and multiplication and supply system.
Through programs like these, cooperatives provide hope for economic
prosperity through grassroots businesses that provide jobs, income,
basic education and democratic experience. By providing private sector
to private sector assistance, rather than government to government
assistance, U.S. cooperatives are better able to link American
communities and cooperative businesses with overseas partners that, in
turn, serve U.S. economic interests.
Mrs. KENNELLY of Connecticut. Mr. Chairman, I rise in support of the
fiscal year 1998 foreign operations appropriations bill and wish to
express my strong support for a provision in the bill which would
permit $95 million in aid to promote important economic reforms in
Armenia.
Armenia, can play an pivotal role in American foreign policy in the
Caucasus region with our continued support. Current economic and
political reforms taking place offer important opportunities for the
emergence of a strong pro-western government that can compete on the
world market, and open trade opportunities for the United States.
Continued economic support combined with an expanded U.S. role in the
Caucasus region as co-Chair of the Organization for Security and
Cooperation in Europe, Minsk Group, will be critical to breaking the
current impasse between Armenia and Azerbaijan over Nagorno-Karabagh.
Further, a lifting of the blockade of Armenia by its neighbors in
conjunction with a peaceful settlement to the Nagorno-Karabagh issue
will only lead to greater stability and growth in the region. I urge
the Administration to remain diligent on these important issues and
applaud the committees decision to earmark foreign assistance to
Armenia.
Mr. KOLBE. Mr. Chairman, I have been a longtime advocate of funding
for research in the field of sustainable development of arid lands in
order to fight desertification, and I applaud the committee's decision
to recommend greater resources be made available for this
[[Page H6360]]
important work. Significant work has been accomplished in this field by
the University of Arizona and its cooperating partners in the
International Arid Lands Consortium. It is vital, however, that the
funds for Middle East Desertification activity be administered by AID
in a competitive, peer-reviewed program that will encourage the best
scientists, researchers, and land managers in this important field to
seek solutions to the complicated problems associated with
desertification.
Resources for important research have become all too scarce, and I
know my colleagues on both sides of the aisle agree that we must ensure
that those funds we do make available are expended in a fashion that
will produce tangible results and inspire taxpayer confidence. Peer-
review is vital to assessing the quality of the science produced by
federal funding, and increasing the number of disciplines involved in
arid lands sciences will help bring about a greater utilization of
sustainable arid land management techniques.
It is for these reasons I ask that Congress require any program that
results from this funding for the Middle East Desertification
activities be administered through a peer-reviewed, competitive
process.
Mr. UNDERWOOD. Mr. Chairman, I am pleased to note that there are
several provisions in the FY 1998 Foreign Appropriations bill aimed at
curbing human rights violations and promoting democratic ideals. A
number of countries affected by these stipulations are Guam's neighbors
in the Asia-Pacific region. Not only are we in close proximity to
nations such as South Korea and China, the people of Guam also enjoy
social and cultural links with them.
I stress the importance of promoting democracy and human rights in
Asia, and I am confident that certain aspects of this bill will
contribute towards greater acceptance of self-determination and
individual liberties. For example, the Committee's recommendation that
the State Department select a special envoy to facilitate the peaceful
resolution of the East Timor dilemma should United Nations efforts fail
is a clear signal of American commitment to the plight of the East
Timorese. I had the pleasure of meeting Bishop Carlos Ximenes Belo, a
co-recipient of the Nobel Prize for his work in East Timor, and was
amazed by his dedication to provide the East Timorese with an
international voice. We must continue our support for leaders such as
Bishop Belo in their peaceful quest for basic human rights.
I am also pleased that an arrangement is provided for an East-Asian
Pacific democracy fund, as proposed in the President's budget request,
which would promote democracy and democratic institutions in China.
Although the details of this fund have yet to be finalized by the State
Department and approved by Congress, it is yet another pledge to
protect democracy. As we cautiously observe China's management of Hong
Kong, we must continue to constructively engage China economically and
politically. Through economic relations, diplomatic maneuverings and
democratic influences, it will not be long before China and its
territories enjoy the same freedoms we experience every day.
The United States is a major player in the global area, and the
provisions we debate in Congress tonight command international
attention. Democracy and human rights do not stem merely from a
nation's automatic self-awareness. Sometimes we must prod and remind
others and ourselves that democratic principles and respect for
individual liberties are necessary components of a strong, stable
nation.
Mr. ORTIZ. Mr. Chairman, I rise today in support of the Overseas
Private Investment Corporation and to express my opposition to the
amendments offered by Mr. Royce and Mr. Paul to H.R. 2159, the fiscal
year 1998 Foreign Operations Appropriations Act. These amendments would
do nothing but hurt American businesses and American workers.
Mr. Chairman, at a time when American businesses are facing increased
competition in the global marketplace, it is inconceivable to me that
we, the very Government charged with helping our businesses, would
obstruct the most important means to this end. To those who support the
elimination of OPIC, I implore them to give up the isolationist belief
that if we ignore foreign trade deficits, they will simply go away.
Nothing could be farther from the truth. We must engage our competitors
in the global marketplace or we will become a second place economic
power.
Mr. Chairman, there is a reason we have trade deficits with some
foreign nations--they actively support their businesses to a much
greater extent than we do. If we cut OPIC, we tie the hands of American
businesses just as they are poised to step into the ring. My colleagues
have to understand this essential fact: the global marketplace is not
going to go away. If we stick our heads in the sand and let foreign
businesses get the upper hand in the global marketplace, then we are
turning our backs on our own people and our own future. Let us make no
mistake, Mr. Chairman, we need OPIC.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the order of the House of Thursday, July 24, 1997, the
bill shall be considered for amendment under the 5-minute rule.
Amendments printed in House Report 105-184 may be offered only by a
Member designated in the report or the order of the House and only at
the appropriate point in the reading of the bill, are considered as
having been read, are debatable for the time specified in the report or
the order of the House, equally divided and controlled by the proponent
and an opponent, are not subject to amendment except as specified in
the report, and are not subject to a demand for division of the
question.
No other amendment shall be in order unless printed in the
Congressional Record.
The Chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, provided that the time for voting on the first
question shall be a minimum of 15 minutes.
The Clerk will read.
The Clerk read as follows:
H.R. 2159
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year
ending September 30, 1998, and for other purposes, namely:
TITLE I--EXPORT AND INVESTMENT ASSISTANCE
export-import bank of the united states
The Export-Import Bank of the United States is authorized
to make such expenditures within the limits of funds and
borrowing authority available to such corporation, and in
accordance with law, and to make such contracts and
commitments without regard to fiscal year limitations, as
provided by section 104 of the Government Corporation Control
Act, as may be necessary in carrying out the program for the
current fiscal year for such corporation: Provided, That none
of the funds available during the current fiscal year may be
used to make expenditures, contracts, or commitments for the
export of nuclear equipment, fuel, or technology to any
country other than a nuclear-weapon State as defined in
Article IX of the Treaty on the Non-Proliferation of Nuclear
Weapons eligible to receive economic or military assistance
under this Act that has detonated a nuclear explosive after
the date of enactment of this Act.
subsidy appropriation
For the cost of direct loans, loan guarantees, insurance,
and tied-aid grants as authorized by section 10 of the
Export-Import Bank Act of 1945, as amended, $632,000,000 to
remain available until September 30, 1999: Provided, That
such costs, including the cost of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act
of 1974: Provided further, That such sums shall remain
available until 2013 for the disbursement of direct loans,
loan guarantees, and insurance obligated in fiscal years 1998
and 1999: Provided further, That funds appropriated by this
paragraph are made available notwithstanding section 2(b)(2)
of the Export-Import Bank Act of 1945, in connection with the
purchase of lease of any product by any East European
country, any Baltic State, or any agency or national thereof.
administrative expenses
For administrative expenses to carry out the direct and
guaranteed loan and insurance programs (to be computed on an
accrual basis), including hire of passenger motor vehicles
and services as authorized by 5 U.S.C. 3109, and not to
exceed $20,000 for official reception and representation
expenses for members of the board of Directors, $48,614,000:
Provided, That necessary expenses (including special services
performed on a contract or fee basis, but not including other
personal services) in connection with the collection of
moneys owed the Export-Import Bank, repossession or sale of
pledged collateral or other assets acquired by the Export-
Import Bank in satisfaction of moneys owed the Export-Import
Bank, or the investigation or appraisal of any property, or
the evaluation of the legal or technical aspects of any
transaction for which an application for a loan, guarantee or
insurance commitment has been made, shall be considered
nonadministrative expenses for the purposes of this heading:
Provided further, That, notwithstanding subsection (b) of
section 117 of the Export Enhancement Act of 1992, subsection
(a) thereof shall remain in effect until October 1, 1998.
overseas private investment corporation noncredit account
The Overseas Private Investment Corporation is authorized
to make, without regard to fiscal year limitations, as
provided by 31 U.S.C. 9104, such expenditures and commitments
within the limits of funds available to
[[Page H6361]]
it and in accordance with law as may be necessary: Provided,
That the amount available for administrative expenses to
carry out the credit and insurance programs (including an
amount for official reception and representation expenses
which shall not exceed $35,000) shall not exceed $32,000,000:
Provided further, That project-specific transaction costs,
including direct and indirect costs incurred in claims
settlements, and other direct costs associated with services
provided to specific investors or potential investors
pursuant to section 234 of the Foreign Assistance Act of
1961, shall not be considered administrative expenses for the
purposes of this heading.
Mr. PORTER. Mr. Chairman, I move to strike the last word to engage
the chairman of the subcommittee in a colloquy.
Mr. Chairman, I am seeking clarification with regard to a provision
we included in the bill regarding Economic Support Funds for Turkey. It
is my understanding that this provision limits the overall level of
assistance to $40 million, with no less than half of the funds to be
spent on democracy building and other activities by nongovernmental
organizations, private voluntary organizations or other
instrumentalities, and these funds will be administered through the
Agency for International Development.
Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
Mr. PORTER. I yield to the gentleman from Alabama.
Mr. CALLAHAN. The gentleman is correct. The Agency for International
Development will be responsible for administering the project elements
of section 571 utilizing NGO's, PVO's and other instrumentalities
consistent with the purposes outlined in this section and in
consultation with this subcommittee.
Mr. PORTER. I would also like to clarify that these two tracks of
assistance are not severable, and if for whatever reason the directed
assistance were not provided and spent in the manner provided in the
bill, then the government of Turkey would not receive the direct
government-to-government assistance.
Mr. CALLAHAN. That is the intention of the committee in including the
provision, and the administration will be apprised that this is the
appropriate interpretation of this provision.
Mr. PORTER. I thank the gentleman for taking the time to clarify this
matter and for his leadership on this issue.
Mr. BILIRAKIS. Mr. Chairman, will the gentleman yield?
Mr. PORTER. I yield to the gentleman from Florida.
Mr. BILIRAKIS. I thank the gentleman for yielding.
Mr. Chairman, I wish to engage the distinguished gentleman from
Illinois, a member of the Committee on Appropriations, in a further
discussion on the issue of Economic Support Funds to Turkey.
Mr. PORTER. I am pleased to engage in a discussion with the gentleman
from Florida.
Mr. BILIRAKIS. As the gentleman knows, I had originally intended to
offer a bipartisan amendment with the gentleman from Indiana [Mr.
Visclosky]. However, based on this discussion and the one preceding it,
I will not offer my amendment.
It is my understanding that the concept of the Economic Support Fund
was first established in the foreign assistance act of 1961 because
Congress recognized that special circumstances, either economic,
political or security conditions, may necessitate the need to give
economic assistance to foreign countries. The ESF is a flexible but
complex aid category and continues play an important role in promoting
U.S. interests overseas.
Last Congress ESF funds were made available to Turkey to support
efforts to reform its economy. This Congress only $20 million in ESF
funds will be made available as a cash transfer to the Turkish
government, a 10 percent reduction from the fiscal year 1997 level.
Mr. PORTER. The gentleman is correct. The Economic Support Fund helps
provide economic assistance for countries that, given special
circumstances, may require U.S. aid. In addition, the ESF funds made
available as a cash transfer to the government of Turkey will be no
more than $20 million for fiscal year 1998.
Mr. BILIRAKIS. If the gentleman will further yield, it is my
understanding that the NGOs and PVOs referred to in the gentleman's
colloquy with the distinguished gentleman from Alabama [Mr. Callahan],
the chairman of the Subcommittee on Foreign Operations, Export
Financing and Related Programs of the Committee on Appropriations,
referred to nongovernmental organizations and private voluntary
organizations. It is also my understanding that at least $20 million of
the assistance available in section 571 will be spent on democracy
building and other economic development activities administered by the
U.S. Agency for International Development. This agency will utilize
NGOs, PVOs and other instrumentalities.
Mr. PORTER. The gentleman is correct. My understanding of the
assistance made available in section 571 is that no less than half the
funds are made available for democracy building and other activities by
nongovernmental organizations.
Mr. BILIRAKIS. I thank the gentleman so very much for his
clarification on this issue.
Mr. TAYLOR of North Carolina. Mr. Chairman, I move to strike the last
word to engage in a colloquy with the gentleman from Alabama, the
chairman of the subcommittee.
Mr. Chairman, I intended to offer an amendment to establish a pilot
program to provide affordable housing in the Russian Federation. This
program would prohibit any funds from being used to support Russian
military housing. It has the support of the gentleman from New York
[Mr. Gilman] the authorizing committee chairman, and also the gentleman
from Indiana [Mr. Hamilton], the ranking member. I understand that the
gentleman will pursue this program with the executive branch. It is my
understanding that he will also pursue this concept in conference.
Therefore, my legislative language is not necessary. Is that the
understanding of the gentleman from Alabama?
Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
Mr. TAYLOR of North Carolina. I yield to the gentleman from Alabama.
Mr. CALLAHAN. I thank the gentleman first of all for withdrawing his
amendment because he knows my feeling on language in this bill, but by
withdrawing it, we will pursue this issue in conference and I will also
discuss this pilot program with the executive branch as well.
Mr. TAYLOR of North Carolina. I thank the gentleman very much.
Mr. CALLAHAN. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker having resumed the
chair, Mr. Thornberry, Chairman of the Committee of the Whole House on
the State of the Union, reported that that Committee, having had under
consideration the bill (H.R. 2159) making appropriations for foreign
operations, export financing, and related programs for the fiscal year
ending September 30, 1998, and for other purposes, had come to no
resolution thereon.
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