[Congressional Record Volume 147, Number 22 (Thursday, February 15, 2001)]
[Senate]
[Pages S1518-S1520]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Mr. Chafee, Mr. Leahy, Mr. Harkin, 
        Mr. Feingold, Mr. Reed, Mr. Jeffords, and Mr. Kerry):
  S. 375. A bill to provide assistance to East Timor to facilitate the 
transition of East Timor to an independent nation, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. KENNEDY. Mr. President, today, along with Senators Chafee, Leahy, 
Harkin, Feingold, Reed, Jeffords, and Kerry, I am introducing 
legislation to help facilitate East Timor's transition to independence. 
Congressman Lantos, Congressman Chris Smith, and others have introduced 
identical legislation in the House of Representatives.
  In August 1999, after almost three decades of unrest under Indonesian 
rule, the people of East Timor voted overwhelmingly in favor of 
independence.
  They did so at great personal risk. Anti-independence militia groups 
killed hundreds, hoping to intimidate and retaliate against those 
supporting independence. The militias also destroyed or severely 
damaged seventy percent of East Timor's infrastructure. Government 
services and public security were severely undermined.
  An international effort, led by Australia and including the United 
States, brought much-needed stability to East Timor.
  Now, under the United Nation's Transitional Authority, stability is 
taking hold again in East Timor, and normal life is slowly returning.
  In coming months, looking to America and other democratic nations as 
an example, East Timor's leaders will hold a constitutional convention 
to decide which form of democratic government to adopt. It is a process 
that reminds us of our own Constitutional Convention and would make our 
Founding Fathers proud.
  Late next year, after choosing a form of democratic government and 
electing leaders, East Timor is expected to declare its independence as 
the UN draws down. A new, democratic nation will take its rightful 
place in the world.
  This is a success story. It is a great success story. But it is far 
from over.
  East Timor remains one of the poorest places in Asia. Only 20 percent 
of its population is literate. The annual per capita gross national 
produce is $340.
  The people of East Timor need and deserve our help. The extraordinary 
physical and moral courage they demonstrated over the years is 
impressive.

[[Page S1519]]

The great faith in the democratic process they showed by voting for 
independence under the barrel of a gun must not go unrewarded.
  This bill is our chance to help them, and help now. Its purpose is to 
put U.S. governmental programs and resources in place now and to enable 
U.S. government agencies to focus on the imminent reality of an 
independent East Timor. If we wait until East Timor declares its 
independence before we do the preliminary work, we will lose crucial 
time and do a disservice to both the United States and to East Timor.

  Specifically, this bill lays the groundwork for establishing a firm 
bilateral and multilateral assistance structure.
  It authorizes $25 million in bilateral assistance, $2 million for a 
Peace Corps presence and $1 million for a scholarship fund for East 
Timorese students to study in the United States.
  It encourages the President, the Overseas Private Investment 
Corporation, the Trade and Development Agency and other agencies to put 
in place now the tools and programs to create an equitable trade and 
investment relationship.
  It requires the State Department to establish an accredited mission 
to East Timor co-incident with independence.
  And it authorizes the provision of excess defense articles and 
international military education and training, after the President 
certifies that these articles and training are in the interests of the 
United States and will help promote human rights in East Timor and the 
professionalization of East Timor's armed services.
  The people of East Timor have chosen democracy. The United States has 
a golden opportunity to help them create their new democratic nation. 
But we must prepare for that day now. We must not miss this rare 
opportunity to help.
  I ask that a copy of the bill appear in the Record, and I urge my 
colleagues to support this bill.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 375

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``East Timor Transition to 
     Independence Act of 2001''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) On August 30, 1999, the East Timorese people voted 
     overwhelmingly in favor of independence from Indonesia. Anti-
     independence militias, with the support of the Indonesian 
     military, attempted to prevent then retaliated against this 
     vote by launching a campaign of terror and violence, 
     displacing 500,000 people and murdering at least 1,000 
     people.
       (2) The violent campaign devastated East Timor's 
     infrastructure, destroyed or severely damaged 60 to 80 
     percent of public and private property, and resulted in the 
     collapse of virtually all vestiges of government, public 
     services and public security.
       (3) The Australian-led International Force for East Timor 
     (INTERFET) entered East Timor in September 1999 and 
     successfully restored order. On October 25, 1999, the United 
     Nations Transitional Administration for East Timor (UNTAET) 
     began to provide overall administration of East Timor, guide 
     the people of East Timor in the establishment of a new 
     democratic government, and maintain security and order.
       (4) UNTAET and the East Timorese leadership currently 
     anticipate that East Timor will become an independent nation 
     as early as late 2001.
       (5) East Timor is one of the poorest places in Asia. A 
     large percentage of the population live below the poverty 
     line, only 20 percent of East Timor's population is literate, 
     most of East Timor's people remain unemployed, the annual per 
     capita Gross National Product is $340, and life expectancy is 
     only 56 years.
       (6) The World Bank and the United Nations have estimated 
     that it will require $300,000,000 in development assistance 
     over the next three years to meet East Timor's basic 
     development needs.

     SEC. 3. SENSE OF CONGRESS RELATING TO SUPPORT FOR EAST TIMOR.

       It is the sense of Congress that the United States should--
       (1) facilitate East Timor's transition to independence, 
     support formation of broad-based democracy in East Timor, 
     help lay the groundwork for East Timor's economic recovery, 
     and strengthen East Timor's security;
       (2) help ensure that the nature and pace of the economic 
     transition in East Timor is consistent with the needs and 
     priorities of the East Timorese people, that East Timor 
     develops a strong and independent economic infrastructure, 
     and that the incomes of the East Timorese people rise 
     accordingly;
       (3) begin to lay the groundwork, prior to East Timor's 
     independence, for an equitable bilateral trade and investment 
     relationship;
       (4)(A) officially open a diplomatic mission to East Timor 
     as soon as possible;
       (B) recognize East Timor, and establish diplomatic 
     relations with East Timor, upon its independence; and
       (C) ensure that a fully functioning, fully staffed, 
     adequately resourced, and securely maintained United States 
     diplomatic mission is accredited to East Timor upon its 
     independence;
       (5) support efforts by the United Nations and East Timor to 
     ensure justice and accountability related to past atrocities 
     in East Timor through--
       (A) United Nations investigations;
       (B) development of East Timor's judicial system, including 
     appropriate technical assistance to East Timor from the 
     Department of Justice, the Federal Bureau of Investigation, 
     and the Drug Enforcement Administration;
       (C) the possible establishment of an international tribunal 
     for East Timor; and
       (D) sharing with the United Nations Transitional 
     Administration for East Timor (UNTAET) and East Timorese 
     investigators any unclassified information relevant to past 
     atrocities in East Timor gathered by the United States 
     Government; and
       (6)(A) as an interim step, support observer status for an 
     official delegation from East Timor to observe and 
     participate, as appropriate, in all deliberations of the 
     Asia-Pacific Economic Cooperation (APEC) group, the 
     Association of Southeast Asian Nations (ASEAN), and other 
     international institutions; and
       (B) after East Timor achieves independence, support full 
     membership for East Timor in these and other international 
     institutions, as appropriate.

     SEC. 4. BILATERAL ASSISTANCE.

       (a) Authority.--The President, acting through the 
     Administrator of the United States Agency for International 
     Development, is authorized to--
       (1) support the development of civil society, including 
     nongovernmental organizations in East Timor;
       (2) promote the development of an independent news media;
       (3) support job creation, including support for small 
     business and microenterprise programs, environmental 
     protection, sustainable development, development of East 
     Timor's health care infrastructure, educational programs, and 
     programs strengthening the role of women in society;
       (4) promote reconciliation, conflict resolution, and 
     prevention of further conflict with respect to East Timor, 
     including establishing accountability for past gross human 
     rights violations;
       (5) support the voluntary and safe repatriation and 
     reintegration of refugees into East Timor; and
       (6) support political party development, voter education, 
     voter registration, and other activities in support of free 
     and fair elections in East Timor.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the President to carry out this section $30,000,000 for each 
     of the fiscal years 2002, 2003, and 2004.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.

     SEC. 5. MULTILATERAL ASSISTANCE.

       The Secretary of the Treasury shall instruct the United 
     States executive director at each international financial 
     institution to which the United States is a member to use the 
     voice, vote, and influence of the United States to support 
     economic and democratic development in East Timor.

     SEC. 6. PEACE CORPS ASSISTANCE.

       (a) Authority.--The Director of the Peace Corps is 
     authorized to--
       (1) provide English language and other technical training 
     for individuals in East Timor as well as other activities 
     which promote education, economic development, and economic 
     self-sufficiency; and
       (2) quickly address immediate assistance needs in East 
     Timor using the Peace Corps Crisis Corps, to the extent 
     practicable.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Peace Corps to carry out this section $2,000,000 for each 
     of the fiscal years 2001, 2002, 2003, and 2004.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.

     SEC. 7. TRADE AND INVESTMENT ASSISTANCE.

       (a) OPIC.--Beginning on the date of the enactment of this 
     Act, the President should initiate negotiations with the 
     United Nations Transitional Administration for East Timor 
     (UNTAET), the National Council of East Timor, and the 
     government of East Timor (after independence for East 
     Timor)--
       (1) to apply to East Timor the existing agreement between 
     the Overseas Private Investment Corporation and Indonesia; or
       (2) to enter into a new agreement authorizing the Overseas 
     Private Investment Corporation to carry out programs with 
     respect to East Timor,

     in order to expand United States investment in East Timor, 
     emphasizing partnerships with local East Timorese 
     enterprises.
       (b) Trade and Development Agency.--
       (1) In general.--The Director of the Trade and Development 
     Agency is authorized to

[[Page S1520]]

     carry out projects in East Timor under section 661 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2421).
       (2) Authorization of appropriations.--
       (A) In general.--There are authorized to be appropriated to 
     the Trade and Development Agency to carry out this subsection 
     $1,000,000 for each of the fiscal years 2001, 2002, 2003, and 
     2004.
       (B) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under subparagraph (A) are 
     authorized to remain available until expended.
       (c) Export-Import Bank.--The Export-Import Bank of the 
     United States shall expand its activities in connection with 
     exports to East Timor.

     SEC. 8. GENERALIZED SYSTEM OF PREFERENCES.

       (a) Sense of Congress.--It is the sense of Congress that 
     the President should encourage the United Nations 
     Transitional Administration for East Timor (UNTAET), in close 
     consultation with the National Council of East Timor, to seek 
     to become eligible for duty-free treatment under title V of 
     the Trade Act of 1974 (19 U.S.C. 2461 et seq.; relating to 
     generalized system of preferences).
       (b) Technical Assistance.--The United States Trade 
     Representative and the Commissioner of the United States 
     Customs Service are authorized to provide technical 
     assistance to UNTAET, the National Council of East Timor, and 
     the government of East Timor (after independence for East 
     Timor) in order to assist East Timor to become eligible for 
     duty-free treatment under title V of the Trade Act of 1974.

     SEC. 9. BILATERAL INVESTMENT TREATY.

       It is the sense of Congress that the President should seek 
     to enter into a bilateral investment treaty with the United 
     Nations Transitional Administration for East Timor (UNTAET), 
     in close consultation with the National Council of East 
     Timor, in order to establish a more stable legal framework 
     for United States investment in East Timor.

     SEC. 10. SCHOLARSHIPS FOR EAST TIMORESE STUDENTS.

       (a) Authority.--The Secretary of State--
       (1) is authorized to carry out an East Timorese scholarship 
     program under the authorities of the United States 
     Information and Educational Exchange Act of 1948, the Mutual 
     Educational and Cultural Exchange Act of 1961, Reorganization 
     Plan Number 2 of 1977, and the National Endowment for 
     Democracy Act; and
       (2) shall make every effort to identify and provide 
     scholarships and other support to East Timorese students 
     interested in pursuing undergraduate and graduate studies at 
     institutions of higher education in the United States.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Department of State, $1,000,000 for 
     the fiscal year 2002 and $1,000,000 for the fiscal year 2003 
     to carry out subsection (a).

     SEC. 11. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FACILITIES IN 
                   EAST TIMOR.

       (a) Development of Detailed Plan.--The Secretary of State 
     shall develop a detailed plan for the official establishment 
     of a United States diplomatic mission to East Timor, with a 
     view to--
       (1) officially open a fully functioning, fully staffed, 
     adequately resourced, and securely maintained diplomatic 
     mission in East Timor as soon as possible;
       (2) recognize East Timor, and establish diplomatic 
     relations with East Timor, upon its independence; and
       (3) ensure that a fully functioning, fully staffed, 
     adequately resourced, and securely maintained diplomatic 
     mission is accredited to East Timor upon its independence.
       (b) Reports.--
       (1) Initial report.--Not later than three months after the 
     date of the enactment of this Act, the Secretary of State 
     shall submit to the Committee on International Relations of 
     the House of Representatives and the Committee on Foreign 
     Relations of the Senate a report that contains the detailed 
     plan described in subsection (a), including a timetable for 
     the official opening of a facility in Dili, East Timor, the 
     personnel requirements for the mission, the estimated costs 
     for establishing the facility, and its security requirements.
       (2) Subsequent reports.--Beginning six months after the 
     submission of the initial report under paragraph (1), and 
     every six months thereafter until January 1, 2004, the 
     Secretary of State shall submit to the committees specified 
     in that paragraph a report on the status of the 
     implementation of the detailed plan described in subsection 
     (a), including any revisions to the plan (including its 
     timetable, costs, or requirements) that have been made during 
     the period covered by the report.
       (3) Form of report.--Each report submitted under this 
     subsection shall be in unclassified form, with a classified 
     annex as necessary.

     SEC. 12. SECURITY ASSISTANCE FOR EAST TIMOR.

       (a) Authorization.--Beginning on the date on which the 
     President transmits to the Congress a certification described 
     in subsection (b), the President is authorized--
       (1) to transfer excess defense articles under section 516 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) to 
     East Timor in accordance with such section; and
       (2) to provide military education and training under 
     chapter 5 of part II of such Act (22 U.S.C. 2347 et seq.) for 
     the armed forces of East Timor in accordance with such 
     chapter.
       (b) Certification.--A certification described in this 
     subsection is a certification that--
       (1) East Timor has established an independent armed forces; 
     and
       (2) the assistance proposed to be provided pursuant to 
     subsection (a)--
       (A) is in the national security interests of the United 
     States; and
       (B) will promote both human rights in East Timor and the 
     professionalization of the armed forces of East Timor.
       (c) Study and Report.--
       (1) Study.--The President shall conduct a study to 
     determine--
       (A) the extent to which East Timor's security needs can be 
     met by the transfer of excess defense articles under section 
     516 of the Foreign Assistance Act of 1961;
       (B) the extent to which international military education 
     and training (IMET) assistance will enhance professionalism 
     of the armed forces of East Timor, provide training in human 
     rights, and promote respect for human rights and humanitarian 
     law; and
       (C) the terms and conditions under which such defense 
     articles or training, as appropriate, should be provided.
       (2) Report.--Not later than 1 month after the date of 
     enactment of this Act, the President shall submit a report to 
     the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate and the Committee on 
     International Relations and the Committee on Appropriations 
     of the House of Representatives setting forth the findings of 
     the study conducted under paragraph (1).

     SEC. 13. AUTHORITY FOR RADIO BROADCASTING.

       The Broadcasting Board of Governors shall further the 
     communication of information and ideas through the increased 
     use of audio broadcasting to East Timor to ensure that radio 
     broadcasting to that country serves as a consistently 
     reliable and authoritative source of accurate, objective, and 
     comprehensive news.

     SEC. 14. REPORTING REQUIREMENT.

       (a) In General.--Not later than three months after the date 
     of the enactment of this Act, and every six months thereafter 
     until January 1, 2004, the Secretary of State, in 
     coordination with the Administrator of the United States 
     Agency for International Development, the Secretary of the 
     Treasury, the United States Trade Representative, the 
     Secretary of Commerce, the Overseas Private Investment 
     Corporation, the Director of the Trade and Development 
     Agency, the President of the Export-Import Bank of the United 
     States, the Secretary of Agriculture, and the Director of the 
     Peace Corps, shall prepare and transmit to the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Foreign Relations of the Senate a report 
     that contains the information described in subsection (b).
       (b) Information.--The report required by subsection (a) 
     shall include--
       (1) developments in East Timor's political and economic 
     situation in the period covered by the report, including an 
     evaluation of any elections occurring in East Timor and the 
     refugee reintegration process in East Timor;
       (2)(A) in the initial report, a 3-year plan for United 
     States foreign assistance to East Timor in accordance with 
     section 4, prepared by the Administrator of the United States 
     Agency for International Development, which outlines the 
     goals for United States foreign assistance to East Timor 
     during the 3-year period; and
       (B) in each subsequent report, a description in detail of 
     the expenditure of United States bilateral foreign assistance 
     during the period covered by each such report;
       (3) a description of the activities undertaken in East 
     Timor by the International Bank for Reconstruction and 
     Development, the Asian Development Bank, and other 
     international financial institutions, and an evaluation of 
     the effectiveness of these activities;
       (4) an assessment of--
       (A) the status of United States trade and investment 
     relations with East Timor, including a detailed analysis of 
     any trade and investment-related activity supported by the 
     Overseas Private Investment Corporation, the Export-Import 
     Bank of the United States, and the Trade and Development 
     Agency during the period of time since the previous report; 
     and
       (B) the status of any negotiations with the United Nations 
     Transitional Administration for East Timor (UNTAET) or East 
     Timor to facilitate the operation of the United States trade 
     agencies in East Timor;
       (5) the nature and extent of United States-East Timor 
     cultural, education, scientific, and academic exchanges, both 
     official and unofficial, and any Peace Corps activities;
       (6) a comprehensive study and report on local agriculture 
     in East Timor, emerging opportunities for producing, 
     processing, and exporting indigenous agricultural products, 
     and recommendations for appropriate technical assistance from 
     the United States; and
       (7) statistical data drawn from other sources on economic 
     growth, health, education, and distribution of resources in 
     East Timor.
                                 ______