[Congressional Record (Bound Edition), Volume 159 (2013), Part 10]
[Senate]
[Page 13772]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      MCC COMPACT FOR EL SALVADOR

  Mr. LEAHY. Mr. President, on September 12 I made a statement in this 
Chamber about the vote earlier that day by the board of directors of 
the Millennium Challenge Corporation to approve a second compact for El 
Salvador.
  As I said then, that vote was expected, and it began the final phase 
of discussions between the United States and El Salvador on a compact 
which, if funded, could result in investments totaling $277 million 
from the United States and $85 million from El Salvador.
  I share the view of the MCC board that the compact, if implemented 
fully, would improve the lives of the Salvadoran people, but I also 
noted that when the MCC was established a decade ago it was not 
intended to be just another foreign aid program. Rather, an MCC compact 
provides a kind of stamp of approval by the United States indicating 
that the government of the compact country has demonstrated a 
commitment to integrity, to good governance and respect for the rule of 
law, and to addressing the needs of its people. I said this should be 
doubly so for a second compact.
  While El Salvador can point to some success in these areas, it 
remains a country of weak democratic institutions where the 
independence of the judiciary has been attacked, corruption is 
widespread, and transnational criminal organizations and money 
laundering have flourished. Nobody knows this better than the 
Salvadoran people.
  I urged the MCC, the Department of State, and the Government of El 
Salvador, prior to a final decision to provide the funds for a second 
compact, to do more to address these problems which is necessary for 
the rule of law and economic growth in that country. Regrettably, 
rather than acknowledge the need to address these problems more 
convincingly, the reaction of top Salvadoran officials was to accuse me 
of being ``misinformed'' about their country and of meddling in their 
affairs. They reacted similarly when U.S. Ambassador Aponte expressed 
some of the same concerns.
  For over 20 years, I have been a friend of El Salvador. I actively 
supported the negotiations that ended the civil war. I worked to help 
El Salvador recover from that war, and I supported the first MCC 
compact which was financed with $461 million from the Appropriations 
subcommittee that I chair. I obtained emergency funding to help that 
country rebuild after devastating floods. And over the past decade I 
have watched as the Salvadoran people were victimized by increasing 
levels of crime and violence, a corrupt police force, and some 
individuals in positions of authority who cared more about enriching 
themselves or protecting their privileges than improving the lives of 
the people. So it is disappointing that Salvadoran officials reacted as 
they did to my remarks last week.
  As I said then, I appreciate that MCC CEO Yohannes, U.S. Ambassador 
Aponte, and other State Department officials have echoed some of the 
concerns I have raised.
  The budget of the Millennium Challenge Corporation, which I have long 
supported, and the funds for a second compact for El Salvador--for 
those who may not be aware or have forgotten--comes from the Congress. 
It should not be taken for granted.
  I hope President Funes and his government will reconsider their 
response to these concerns--for the good of the Salvadoran people and 
if they want a second MCC compact to be funded.

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