[Congressional Record Volume 145, Number 95 (Wednesday, June 30, 1999)]
[Senate]
[Pages S7901-S7905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS ACT, 2000--Continued
Mr. McCONNELL. Mr. President, for the information of all of our
colleagues, Senator Leahy and I have a couple of housekeeping measures
to attend to, which we will do now. Then there will be a vote on the
McConnell-Abraham second-degree amendment. If that amendment is
successful, we will move to final passage. If that amendment is not
successful, it is my understanding Senator Sarbanes wishes to address
the Senate further on the underlying Brownback amendment.
Amendment No. 1159, As Further Modified
Mr. McCONNELL. Mr. President, I send to the desk a modification of
amendment No. 1159.
The PRESIDING OFFICER. Without objection, the amendment is so
modified.
The amendment, as further modified, is as follows:
On page 21, line 22, before the period insert the
following: ``: Provided further, That of the amount
appropriated under this heading, not to exceed $2,000,000
shall be available for grants to nongovernmental
organizations that work with orphans who are transitioning
out of institutions to teach life skills and job skills'':
Provided further, that of the amount available under the
heading `assistance for eastern europe and the baltic states'
for Romania, $4,400,000 shall be provided solely to the
Romanian Department of Child Protection for activities of
such Department to provide emergency aid for the child
victims of the present economic crisis in Romania, including
activities relating to supplemental food support and
maintenance, support for in-home foster case, and
supplemental support for special needs residential care''.
Amendment Nos. 1184 And 1185
Mr. McCONNELL. Mr. President, I send an amendment on behalf of
Senator Byrd and an amendment on behalf of Senator Nickles to the desk.
They have been cleared. I ask unanimous consent they be agreed to.
The PRESIDING OFFICER (Mr. Brownback). Without objection, it is so
ordered.
The amendments (Nos. 1184 and 1185) were agreed to, as follows:
AMENDMENT NO. 1184
(Purpose: To express the sense of the Senate regarding assistance under
the Camp David Accords)
On page 128, between lines 13 and 14, insert the following
new section:
SEC. __. SENSE OF THE SENATE REGARDING ASSISTANCE UNDER THE
CAMP DAVID ACCORDS.
(a) Findings.--The Senate makes the following findings:
(1) Egypt and Israel together negotiated the Camp David
Accords, an historic breakthrough in beginning the process of
bringing peace to the Middle East.
(2) As part of the Camp David Accords, a concept was
reached regarding the ratio of United States foreign
assistance between Egypt and Israel, a formula which has been
followed since the signing of the Accords.
(3) The United States is reducing economic assistance to
Egypt and Israel, with the agreement of those nations.
(4) The United States is committed to maintaining
proportionality between Egypt and Israel in United States
foreign assistance programs.
(5) Egypt has consistently fulfilled an historic role of
peacemaker in the context of the Arab-Israeli disputes.
(6) The recent elections in Israel offer fresh hope of
resolving the remaining issues of dispute in the region.
(b) Sense of the Senate.--It is the sense of the Senate
that the United States should provide Egypt access to an
interest bearing account as part of the United States foreign
assistance program pursuant to the principles of
proportionality which underlie the Camp David Accords.
Mr. BYRD. Mr. President, my views on foreign assistance are well
known. I don't like it. I understand there are circumstances in which
the United States needs to extend a helping hand to other nations
facing political and economic strains that we thankfully do not have to
endure. I simply think that the United States spends too much of its
citizens' hard-earned tax dollars overseas, and that is why I
traditionally vote against the Foreign Operations Appropriations bill.
My reluctance to send U.S. tax dollars overseas leads me to
scrutinize closely those programs that we do fund. One of the largest
recipients of U.S. foreign assistance is the Middle East, and in
particular Israel, and to a lesser extent, Egypt. These nations are our
strongest allies in a troubled region, and I firmly believe that
maintaining a strong relationship with them is in the best strategic
interests of the United States. We cannot forget that it was Egypt and
Israel that negotiated the Camp David Accords, an historic breakthrough
in the efforts to
[[Page S7902]]
bring peace to the Middle East. As part of the Camp David Accords, a
concept was reached regarding the ratio of United States foreign
assistance between Egypt and Israel. This formula has been followed
since the signing of the Accords.
I have believed for many years that the United States is spending too
much on foreign assistance to Egypt and Israel. I have tried in the
past, to no avail, to reduce the level of assistance being sent to
Israel. I am pleased that the United States has finally embarked on a
program of reducing economic assistance to both nations, with the
agreement of those nations. However, maintaining proportionality
between Egypt and Israel as the level of foreign assistance is reduced
is vitally important, and never more so than now, when the recent
elections in Israel offer fresh hope of restarting the peace process.
Unfortunately, the mechanism by which United States foreign
assistance is currently being provided to Egypt and Israel has resulted
in an imbalance to that program in that Israel has the unique advantage
of having immediate access to an interest bearing account while Egypt
has not been accorded the same treatment. This, I believe, is a
procedure which can be interpreted as a departure from the standard of
fairness that is central to United States assistance under the Camp
David Accords.
Mr. President, this is an injustice that should be corrected.
Speaking frankly, it is my opinion that neither Israel nor Egypt should
be earning interest on United States foreign assistance. But, under the
principles of parity that underlie the Camp David Accords, both nations
should receive the same treatment. Egypt and Israel are pivotal allies
in the Middle East, and the United States should accord them equal
treatment in disbursing its foreign assistance.
Amendment No. 1185
(Purpose: Regarding availability of United States assistance for the
Palestian Authority)
Strike section 577, and insert in lieu thereof the
following:
SECTION 577. UNITED STATES ASSISTANCE TO THE PALESTINIAN
AUTHORITY.
(1) GAO certification.--Not more than 30 days prior to the
obligation of funds made available to this Act for assistance
for the Palestinian Authority the Comptroller General of the
United States shall certify that the Palestinian Authority--
(A) has adopted an acceptable accounting system to ensure
that such funds will be used for their intended assistance
purposes; and
(B) has cooperated with the Comptroller General in the
certification process under this paragraph.
(2) GAO audits.--
(A) Authority.--Six months after the date of enactment of
this Act, the Comptroller General of the United States shall
conduct an audit to determine the extent to which the
Palestinian Authority is implementing an acceptable
accounting system in tracking the use of funds made available
by the Act for assistance for the Palestinian Authority.
Unanimous Consent Agreement
Mr. McCONNELL. Mr. President, I ask unanimous consent that when the
Senate completes all action on S. 1234, it not be engrossed and be held
at the desk. I further ask that when the House of Representatives'
companion measure is received in the Senate, the Senate immediately
proceed to its consideration, all after the enacting clause of the
House bill be stricken and the text of S. 1234, as passed, be inserted
in lieu thereof, the House bill, as amended, be read for the third time
and passed, the Senate insist on its amendment, request a conference
with the House on the disagreeing votes of the two Houses thereon, and
the Chair be authorized to appoint conferees on the part of the Senate,
and the foregoing occur without any intervening action or debate.
I further ask unanimous consent that upon passage by the Senate of
the House companion measure, as amended, the passage of S. 1234 be
vitiated, and the bill be indefinitely postponed.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendments Nos. 1186, 1187, And 1188, En Bloc
Mr. LEAHY. Mr. President, I ask unanimous consent that three
amendments that have been cleared on the other side on behalf of the
Senator from Vermont be considered en bloc and agreed to.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Vermont [Mr. Leahy] proposes en bloc
amendments numbered 1186, 1187, and 1188.
The PRESIDING OFFICER. Without objection, the amendments are agreed
to.
The amendments (Nos. 1186, 1187, and 1188) were agreed to, en bloc,
as follows:
amendment No. 1186
At the appropriate place, insert:
authorizations
Sec. . The Secretary of the Treasury may, to fulfill
commitments of the United States, (1) effect the United
States participation in the fifth general capital increase of
the African Development Bank, the first general capital
increase of the Multilateral Investment Guarantee Agency, and
the first general capital increase of the Inter-American
Investment Corporation; (2) contribute on behalf of the
United States to the eighth replenishment of the resources of
the African Development Fund, the twelfth replenishment of
the International Development Association. The following
amounts are authorized to be appropriated without fiscal year
limitation for payment by the Secretary of the Treasury:
$40,847,011 for paid-in capital, and $639,932,485 for
callable capital, of the African Development Bank;
$29,870,087 for paid-in capital, and $139,365,533 for
callable capital, of the Multilateral Investment Guarantee
Agency; $125,180,000 for paid-in capital of the Inter-
American Investment Corporation; $300,000,000 for the African
Development Fund; $2,410,000,000 for the International
Development Association; and $50,000,000 for the
International Bank for Reconstruction and Development's HIPC
Trust Fund.
____
amendment no. 1187
At the appropriate place in the bill insert the following:
working capital fund
Sec. . Section 635 of the Foreign Assistance Act of 1961
(22 U.S.C. 2395) is amended by adding a new subsection (l) as
follows:
``(l) There is hereby established a working capital fund
for the United States Agency for International Development
which shall be available without fiscal year limitation for
the expenses of personal and non-personal services, equipment
and supplies for: (A) International Cooperative
Administrative Support Services; (B) central information
technology, library, audiovisual and administrative support
services; (C) medical and health care of participants and
others; and (D) such other functions which the Administrator
of such agency, with the approval of the Office of Management
and Budget, determines may be provided more advantageously
and economically as central services.
``(2) The capital of the fund shall consist of the fair and
reasonable value of such supplies, equipment and other assets
pertaining to the functions of the fund as the Administrator
determines and any appropriations made available for the
purpose of providing capital, less related liabilities.
``(3) The fund shall be reimbursed or credited with advance
payments for services, equipment or supplies provided from
the fund from applicable appropriations and funds of the
agency, other federal agencies and other sources authorized
by section 607 of this Act at rates that will recover total
expenses of operation, including accrual of annual leave and
depreciations Receipts from the disposal of, or payments for
the loss or damage to, property held in the fund, rebates,
reimbursements, refunds and other credits applicable to the
operation of the fund may be deposited in the fund.
``(4) the agency shall transfer to the Treasury as
miscellaneous receipts as of the close of the fiscal year
such amounts which the Administrator determines to be in
excess of the needs of the fund.
``(5) The fund may be charged with the current value of
supplies and equipment returned to the working capital of the
fund by a post, activity or agency and the proceeds shall be
credited to current applicable appropriations.''.
____
amendment no. 1188
At the appropriate place in the bill, insert the following:
development credit authority program account
For the cost of direct loans and loan guarantees, up to
$7,500,000 to be derived by transfer from funds appropriated
by this Act to carry out Part I of the Foreign Assistance Act
of 1961, as amended, and funds appropriated by this Act under
the heading, ``Assistance for Eastern Europe and the Baltic
States'', to remain available until expanded, as authorized
by section 635 of the Foreign Assistance Act of 1961;
Provided, That such costs, including the cost of modifying
such loans, shall be defined in section 502 of the
Congressional Budget Act of 1974; Provided further, That for
administrative expenses to carry out the direct and
guaranteed loan programs, up to $500,000 of this amount may
be transferred to and merged with the appropriation for
``Operating Expenses of the Agency for International
Development''; Provided further, That the provisions of
section 107A(d) (relating to general provisions applicable to
the Development Credit Authority) of the foreign Assistance
Act of 1961, as contained in section 306 of H.R. 1486 as
reported by the House Committee on International Relations on
May 9, 1997, shall be
[[Page S7903]]
applicable to direct loans and loan guarantees provided under
this heading.
Mr. LEAHY. I ask that the amendments be agreed to.
The PRESIDING OFFICER. They have been agreed to.
Mr. LEAHY. I move to reconsider the vote.
Mr. McCONNELL. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 1119
The PRESIDING OFFICER. The question is on the McConnell amendment.
All those in favor--
Mr. McCONNELL. Mr. President, are the yeas and nays not ordered?
The PRESIDING OFFICER. The yeas and nays have not been ordered.
Mr. McCONNELL. I ask for the yeas and nays on the McConnell
amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be.
The yeas and nays were ordered.
The PRESIDING OFFICER. The question is on agreeing to McConnell
amendment No. 1119. The yeas and nays have been ordered. The clerk will
call the roll.
The legislative clerk called the roll.
Mr. NICKLES. I announce that the Senator from Florida (Mr. Mack) and
the Senator from Ohio (Mr. Voinovich) are necessarily absent.
The PRESIDING OFFICER. (Mr. Allard). Are there any other Senators in
the Chamber desiring to vote?
The result was announced--yeas 53, nasy 45, as follows:
[Rollcall Vote No. 191 Leg.]
YEAS--53
Abraham
Akaka
Baucus
Bayh
Bennett
Biden
Bond
Boxer
Breaux
Bryan
Bunning
Burns
Campbell
Cleland
Collins
Craig
Daschle
DeWine
Durbin
Edwards
Enzi
Feingold
Feinstein
Fitzgerald
Gorton
Graham
Grassley
Gregg
Harkin
Hatch
Hollings
Inouye
Johnson
Kennedy
Kerrey
Kerry
Kohl
Leahy
Levin
McConnell
Mikulski
Moynihan
Reed
Reid
Robb
Rockefeller
Santorum
Sarbanes
Schumer
Specter
Stevens
Torricelli
Wellstone
NAYS--45
Allard
Ashcroft
Bingaman
Brownback
Byrd
Chafee
Cochran
Conrad
Coverdell
Crapo
Dodd
Domenici
Dorgan
Frist
Gramm
Grams
Hagel
Helms
Hutchinson
Hutchison
Inhofe
Jeffords
Kyl
Landrieu
Lautenberg
Lieberman
Lincoln
Lott
Lugar
McCain
Murkowski
Murray
Nickles
Roberts
Roth
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Thomas
Thompson
Thurmond
Warner
Wyden
NOT VOTING--2
Mack
Voinovich
The amendment (No. 1119) was agreed to.
Mr. LEAHY. Mr. President, I move to reconsider the vote.
Mr. SARBANES. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 1118
The PRESIDING OFFICER. The question is on agreeing to the first-
degree amendment, as amended.
The amendment (No. 1118) was agreed to.
Mr. BOND. Mr. President, I move to reconsider the vote.
Mr. COVERDELL. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. McCONNELL. Mr. President, we are ready for final passage.
Mr. LOTT addressed the Chair.
The PRESIDING OFFICER. The majority leader is recognized.
Order Of Procedure
Mr. LOTT. Mr. President, for the information of all Senators, this
will be the last recorded vote for tonight. We will then go to the
Treasury-Postal Service appropriations bill, and, hopefully, good
progress, or all progress, can be completed on that tonight, with the
possibility of stacked votes on or in relation to the Treasury-Postal
Service appropriations bill in the morning.
The next recorded vote, though, will be at 10:30 in the morning on a
cloture motion with regard to Social Security lockbox. Hopefully, there
will be other stacked votes in that sequence. For now, that is the only
one.
The PRESIDING OFFICER. The question is on the third reading of the
bill.
The bill was read the third time.
Mr. DOMENICI. Mr. President, the Senate is now considering S. 1234,
the foreign operations and export financing appropriations bill for
fiscal year 2000.
The Senate bill provides $12.7 billion in budget authority and $4.7
billion in new outlays to operate the programs of the Department of
State, Export and Military Assistance, Bilateral and Multilateral
Economic Assistance, and Related Agencies for Fiscal Year 2000.
When outlays from prior year budget authority and other completed
actions are taken into account, the bill totals $12.7 billion in budget
authority and $13.2 billion in outlays for fiscal year 2000.
The subcommittee is below its Section 302(B) allocation for budget
authority and outlays.
I urge the adoption of the bill.
Mr. President, I ask unanimous consent that a table displaying the
Budget Committee scoring of this bill be printed in the Record.
There being no objection, the table was ordered to be printed in the
Record, as follows:
S. 1234, FOREIGN OPERATIONS APPROPRIATIONS, 2000--SPENDING COMPARISONS--
SENATE-REPORTED BILL
[Fiscal year 2000, in millions of dollars]
------------------------------------------------------------------------
General Man-
purpose Crime datory Total
------------------------------------------------------------------------
Senate-reported bill:
Budget authority............... 12,700 ....... 44 12,744
Outlays........................ 13,139 ....... 44 13,183
Senate 302(b) allocation:
Budget authority............... 12,701 ....... 44 12,745
Outlays........................ 13,150 ....... 44 13,194
1999 level:
Budget authority............... 13,266 ....... 45 13,311
Outlays........................ 12,740 ....... 45 12,785
President's request:
Budget authority............... 14,070 ....... 44 14,114
Outlays........................ 14,104 ....... 44 14,148
House-passed bill:
Budget authority............... ........ ....... 44 ........
Outlays........................ 8,456 ....... 44 ........
SENATE-REPORTED BILL COMPARED TO:
Senate 302(b) allocation:
Budget authority............... (1) ....... ........ (1)
Outlays........................ (11) ....... ........ (11)
1999 level:
Budget authority............... (566) ....... (1) (567)
Outlays........................ 399 ....... (1) 398
President's request:
Budget authority............... (1,370) ....... ........ (1,370)
Outlays........................ (965) ....... ........ (965)
House-passed bill:
Budget authority............... 12,700 ....... ........ 12,700
Outlays........................ 4,683 ....... ........ 4,683
------------------------------------------------------------------------
Note: Details may not add to totals due to rounding. Totals adjusted for
consistency with scorekeeping conventions.
Mrs. FEINSTEIN. Mr. President, I rise to bring to the attention of my
colleagues an issue which I believe is of importance in the FY 2000
Foreign Operations Appropriations bill: U.S. assistance to Egypt.
Before I begin, however, I thank the chairman and ranking member of the
subcommittee for their expert and sound guidance on this bill. They
deserve our commendation for working with such tight 302(b)
allocations.
Egypt is a country that many in the Senate hold in high regard. Egypt
is a dependable and steady ally in the Middle East. This year marks the
twentieth anniversary of peace between Israel and Egypt, a peace which
has served and continues to serve as a benchmark of the end of
hostilities between Arabs and Israelis. Since peace between Egypt and
Israel was established in 1979, Congress has recognized that in
America's relations with these two allies that fair treatment of both
Israel and Egypt in the provision of foreign assistance is a key
feature in preserving peace and stability in the region.
The administration requested as part of its FY 2000 budget that a
portion of Egypt's military assistance held in reserve to pay for the
potential termination of contracts accrue interest. This proposal,
known as an interest bearing account (IBA), would allow interest to
accrue on approximately $470 million in the termination liability
account for Egypt. Israel's military assistance has been treated in
this way for some time, treatment that I and many others here support.
The net impact of granting Egypt this treatment would be about $20
million in interest to Egypt, without any additional cost or outlay by
the U.S. taxpayer.
Like many of my colleagues, I support the administration's request
for an IBA for Egypt, and I feel very strongly that Egypt should have
the
[[Page S7904]]
same terms as Israel. The Department of State has made a commitment to
Egypt on this issue, and I think it is important that this commitment
be kept.
Despite our support for an IBA, the Congressional Budget Office has
told us that the IBA would be scored as a $470 million outlay--despite
the fact that it actually costs nothing--and would thus break the
Senate's tight outlay ceiling for this bill. Although support for an
IBA for Egypt is strong--I am confident that on the merits an Amendment
proposing an IBA would have the support of the vast majority of my
colleagues--the Senate is confined at this time in our actions by
budgetary pressures.
I am hopeful that we might still be able to resolve this scoring
issue and perhaps address the question of an IBA for Egypt in
Conference.
Again, I thank the subcommittee chairman and ranking member for their
work on this bill. I look forward to continuing to work with them on
this issue.
bureau of international narcotics and law enforcement and the state
department
Mr. GRASSLEY. Mr. President, I ask unanimous consent that Senators
Stevens, McConnell, Coverdell, DeWine, and I may enter into a colloquy
on funding for the Bureau of International Narcotics and Law
Enforcement and the State Department.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRASSLEY. I say to Senator Stevens, Senators Coverdell, DeWine,
and I have afforded an amendment No. 1148 to the Foreign Operations
Appropriations bill regarding increased funding for the State
Department's counterdrug efforts.
Mr. STEVENS. I am aware of the amendment.
Mr. GRASSLEY. As the Senator knows, we have been working on this bill
and on others to ensure adequate funding for our Nation's counter
narcotics efforts. And I appreciate the committee's past support in
this regard. I am aware that we face tough budget decisions and we need
to balance many program needs within a balanced budget.
Mr. STEVENS. We have had to make a lot of tough decisions in this
bill while trying to ensure that we meet the needs of many critical
programs. I know that Senator McConnell and Senator Leahy and the
subcommittee have worked shared to be fair, and they have had to make
tough choices.
Mr. GRASSLEY. I appreciate their efforts. Our amendment asks for more
funding for INL, although it is still below the President's request.
Senators Coverdell, DeWine, and I have worked with the committee in the
past on this issue. It is my understanding that the House is working to
provide a higher level.
Mr. STEVENS. I believe that is the case but the House has not yet
made a final decision on appropriation levels for the State
Department's counter narcotics programs.
Mr. GRASSLEY. If there is a difference between the House and Senate
levels, that will mean that the final appropriation levels will be
conferencable, is that correct?
Mr. STEVENS. That is the case.
Mr. GRASSLEY. It is my understanding that if the numbers in House and
Senate bills are different that it is your intention to work during the
conference to ensure that we see a higher level of funding for this
program?
Mr. STEVENS. That is correct. I will work on trying to see a higher
level of funding. But let me point out that there is a difference
between the House and Senate allocation levels and that we will have a
lot of reconciling to do.
Mr. COVERDELL. I ask the distinguished Senator from Alaska if that
effort will preclude increased funding for INL?
Mr. STEVENS. It does not preclude it, and I will work to ensure that
we try to get more funding.
Mr. COVERDELL. I know that Senator Grassley and Senator DeWine share
my concern that we ensure that our international counter drug programs
here and elsewhere receive the support they need to keep drugs off our
streets and out of our homes. We had a press conference today on just
his point. We have been fighting a battle the last few years to raise
the visibility of the need for serious counter drug efforts and the
need to fund those adequately. The State Department program is an
important part of that effort.
Mr. DeWINE. If I might add something to the comments of my
distinguished colleague from Georgia. Last year, the Congress added
significant new money into our international and interdiction efforts.
This was in part a down payment on the Western Hemisphere Drug
Elimination Act, that I introduced in the 105th Congress. It is
important that we ensure that the effort begun then is sustained.
Having seen first hand the positive benefits of this program in this
region. I strongly believe that increased funding for INL should be
strongly considered in conference.
Mr. STEVENS. I share the Senators' concerns for the need for
sustained and adequate funding.
Mr. McCONNELL. I too share this concern. The Foreign Operations bill
is an effort to address that concern and the many other programs that
need attention in our foreign policy.
Mr. GRASSLEY. It is my understanding that every effort will be made
in conference to ensure that there will be increased funding for the
State Department's counter narcotics programs. If that is the case,
then I am prepared to withdraw my amendment and I thank Senator Stevens
and Senator McConnell for their consideration in this matter.
Mr. COVERDELL. I join Senator Grassley in thanking the committee.
Mr. DeWINE. I also thank the committee.
imf gold sale
Mr. ALLARD. Will the distinguished Senator from Kentucky yield for a
question?
Mr. McCONNELL. I will be happy to yield to the Senator from Colorado.
Mr. ALLARD. As the chairman of the Foreign Operations Appropriations
Subcommittee, is the Senator aware of a proposal by the Administration
to support the sale of some ten million ounces of gold by the
International Monetary Fund (IMF) from its gold reserves in order to
provide debt relief for countries under the Heavily Indebted Poor
Countries Initiative (HIPC)?
Mr. McCONNELL. Yes, I am aware of this proposal. Let me say to the
Senator from Colorado that the proposal to have the IMF sell its gold
in order to provide debt relief to the HIPC nations is a matter of
significant concern to me.
Mr. ALLARD. I share the chairman's concern. The sale of IMF gold
would have the effect of depressing gold prices well beyond the twenty
year low to which the price of gold has already plunged. As I think the
Senator from Kentucky well knows, a further drop in the price of gold
will not only hurt American industry but cost thousands of U.S. workers
their jobs. Equally important, falling gold prices will directly impact
36 of the 41 nations that are slated to benefit from the HIPC program.
This is because those 36 nations are in fact gold producers, and their
economies would suffer to such a degree that the damage done to their
economies resulting from depressed gold prices would be greater than
any debt relief they might receive. Does the Senator agree with that
analysis?
Mr. McCONNELL. The Senator from Colorado is exactly right.
Considering the fact that barely 40 percent of the interest to be
derived from the investment of the proceeds from the sale of the IMF
gold would actually be available to the HIPC nations for debt relief,
it seems to me that this amounts to a cruel hoax. Of particular concern
to me is the fact that the sale of the IMF gold would reduce gold
prices to such an extent that the harm done to HIPC nations' economies
will likely exceed any benefit from this debt relief effort. I believe
the issue of debt relief for the HIPC nations is important and must be
dealt with, but such a program must be designed to reduce the economic
burden on these countries not compound them.
Mr. ALLARD. I ask the chairman, is it the case that in order for this
proposed IMF gold sale to go forward, that the Congress must
specifically authorize the U.S. representative to the IMF to cast a
vote in favor of such a sale?
Mr. McCONNELL. The Senator from Colorado is exactly correct. Existing
law 22 U.S.C. 286c specifically requires Congress, by law, to authorize
such action. I would point out to the Senator,
[[Page S7905]]
as I am sure he is already aware, that absent an act of Congress, the
statute makes it clear that neither the President nor any person or
agency acting on behalf of the United States can vote to approve the
sale of IMF gold.
Mr. ALLARD. I thank the chairman for that clarification. Would it be
fair to conclude, I say to my friend from Kentucky, that you are not in
a position to support legislation that would seek to have this Congress
authorize U.S. approval of the sale of IMF gold?
Mr. McCONNELL. The Senator from Colorado is absolutely correct. For
the reasons I have outlined, I believe the proposal to sell IMF gold as
part of the HIPC Initiative is misguided and just plain bad policy. I
could not support legislation authorizing such a sale as part of this
or any bill. And, I will say to the distinguished Senator from
Colorado, that when I take this bill to conference with the House, we
will include a Statement of Manager's language that will reiterate that
the sale of IMF gold cannot go forward unless we in Congress
specifically provide authorization.
Mr. ALLARD. I thank the chairman.
Mr. COVERDELL. Mr. President, I rise today to express my concern
about the proposed reduction of funding for the Peace Corps in this
foreign operations appropriations bill--a reduction that is contrary to
the will of Congress as expressed by the overwhelming, bipartisan
support for the Peace Corps Reauthorization Act, which passed
unanimously this session in both Houses of Congress.
I am mindful of the constraints imposed by the lower allocations to
the appropriators. But Congress has spoken affirmatively on the issue
of increased funding for the Peace Corps. The authorizing committee
and, then, this body, supported the bill by unanimous consent. A few
months earlier, the House passed the measure by a vote of 326-90.
President Clinton immediately signed the bill in May.
Mr. President, as chairman of the authorizing committee for the Peace
Corps, I worked with the committees' ranking Member and former Peace
Corps Volunteer, Senator Dodd, to sponsor the Peace Corps Act. The Act
authorizes a 12 percent increase for Fiscal Year 2000 and is part of a
multiyear plan to enable the Peace Corps to reach its goal of 10,000
Volunteers by 2003. Reaching this mark has been a long-standing goal of
Congress--a goal set into law in 1985.
Despite the consistent endorsement of the growth plan, the
Appropriations Committee has recommended a $50 million reduction in
funding from the authorized amount (and $20 million less than the Peace
Corps current budget of $240 million). This appropriation is ill-
advised. If enacted, it would deny the Peace Corps the opportunity to
reach its goal of 10,000 Volunteers serving abroad. And, even worse, it
would force the Agency to cut the current level of Volunteers by over
1,000 (That is, from 6,700 to 5,700) Volunteers).
I recognize the constraints under which the Peace Corps and all
federal programs must operate. For that reason, I have been a close
observer of the Peace Corps activities, as has Senator Dodd, in
exercising our oversight responsibilities. I remain confident that the
Peace Corps remains the best foreign assistance program of its kind,
and that it has systems in place to continue fielding Volunteers
responsibly and efficiently. Part of the genius of the Peace Corps is
its ability to use a relatively small amount of money to do big things.
Even if the Peace Corps received full funding at $270 million, the
amount would be about 1 percent of our foreign aid budget.
Mr. President, I believe that the Peace Corps is well prepared to
begin implementation of the multi-year plan. I urge the appropriators
to join the Members of Congress from both sides of the aisle and in
both Houses who have overwhelmingly endorsed this worthy goal.
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