[Senate Report 105-255]
[From the U.S. Government Publishing Office]
Calendar No. 482
105th Congress Report
SENATE
2d Session 105-255
_______________________________________________________________________
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATION BILL, 1999
_______
July 21, 1998.--Ordered to be printed
_______________________________________________________________________
Mr. McConnell, from the Committee on Appropriations, submitted the
following
R E P O R T
[To accompany S. 2334]
The Committee on Appropriations reports the bill (S. 2334)
making appropriations for Foreign Operations and related
programs for the fiscal year ending September 30, 1999, and for
other purposes, reports favorably thereon and recommends that
the bill do pass.
Amounts in new budget authority
Fiscal year 1998 appropriations......................... $13,190,698,080
Fiscal year 1999 budget estimate........................ 14,124,044,980
Amount of bill as reported to Senate.................... 12,599,172,980
Bill as recommended to Senate compared to:
1998 appropriations................................. -596,795,100
Budget estimate..................................... -1,529,872,000
Fiscal year 1998 supplemental........................... 17,861,000,000
Amount recommended to Senate............................ 17,861,000,000
C O N T E N T S
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Page
Summary of total budget authority in the bill.................... 3
Introduction..................................................... 3
Title I--Export assistance:
Export-Import Bank of the United States...................... 5
Overseas Private Investment Corporation...................... 6
Trade and Development Agency................................. 6
Title II--Bilateral economic assistance:
Bilateral assistance......................................... 7
Development assistance....................................... 7
International disaster assistance............................ 23
Micro and small enterprise development [MSED]................ 23
Urban and environmental credit program....................... 24
Debt restructuring........................................... 24
Payment to the Foreign Service retirement and disability fund 25
AID operating expenses....................................... 25
Operating expenses of the Office of Inspector General........ 25
Other bilateral economic assistance.......................... 25
Independent agency: Peace Corps.............................. 34
Department of State:
International narcotics control.......................... 35
Migration and refugee assistance......................... 36
Emergency refugee and migration assistance fund.......... 36
Nonproliferation, antiterrorism, demining, and related
programs............................................... 36
Title III--Military assistance:
International military education and training................ 39
Foreign military financing................................... 39
Special defense acquisition fund............................. 40
Peacekeeping operations...................................... 41
Title IV--Multilateral economic assistance:
International Development Association........................ 42
International Bank of Reconstruction and Development......... 42
Inter-American Development Bank.............................. 43
Asian Development Bank....................................... 43
European Bank for Reconstruction and Development............. 44
International Monetary Fund.................................. 44
International Organizations and Programs..................... 44
Title V--General provisions...................................... 46
Title VI--Multilateral Economic Assistance....................... 49
Payments for amounts previously due.......................... 49
Loans to International Monetary Fund......................... 50
Compliance with paragraph 7, rule XVI of the standing rules of
the Senate..................................................... 51
Compliance with paragraph 7(c), rule XXVI of the standing rules
of the Senate.................................................. 51
Compliance with paragraph 12, rule XXVI of the standing rules of
the Senate..................................................... 52
Budget impact statement.......................................... 62
SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY
----------------------------------------------------------------------------------------------------------------
Committee
recommendation
Committee compared with
Item Budget estimate recommendation budget estimate
increase (+) or
decrease (-)
----------------------------------------------------------------------------------------------------------------
Export assistance....................................... $708,940,000 $674,000,000 -$34,940,000
Economic assistance--Bilateral.......................... 8,033,432,000 7,437,652,000 -600,780,000
Military assistance..................................... 3,409,910,000 3,442,910,000 +33,000,000
Economic assistance--Multilateral....................... 1,971,762,980 1,044,610,980 -927,152,000
-------------------------------------------------------
Total, fiscal year 1999........................... 14,124,044,980 12,599,172,980 -1,529,872,000
----------------------------------------------------------------------------------------------------------------
FISCAL YEAR 1998 SUPPLEMENTAL
------------------------------------------------------------------------
Committee
Congressional budget recap Budget estimate recommendation
------------------------------------------------------------------------
U.S. quota........................ $14,500,000,000 $14,500,000,000
Loans to International Monetary
Fund............................. 3,361,000,000 3,361,000,000
-------------------------------------
Total....................... 17,861,000,000 17,861,000,000
------------------------------------------------------------------------
INTRODUCTION
In fiscal year 1998, the Committee provided approximately
$13,200,000,000 for foreign operations and related programs, of
which $359,753,100 was for obligations at multilateral
institutions previously due. In fiscal year 1999 the
administration has requested $14,070,000,000 of which nearly
$500,000,000 is for arrears at these institutions. The request
level not only substantially exceeds last year's level, but
also does not permit the Committee to comply with the Balanced
Budget Act signed by President Clinton in 1997.
Remaining within the foreign operations allocation, the
Committee has provided $12,599,172,980 in funding for foreign
operations activities of an allocation of $12,600,000,000. This
level has allowed the Committee to maintain most accounts near
last year's level.
Within this framework, the Committee continues to view as a
high priority the transition underway in the New Independent
States of the Former Soviet Union. The Committee has maintained
earmarks as a measure of support to secure reforms in several
key countries.
In addition, rising concerns about the global economic slow
down and the potential impact on U.S. market share,
particularly in Asia, convinced the Committee to increase
assistance for export promotion programs over last year's level
(although well below the request level) and to include language
previously passed by the Senate regarding the new arrangements
to borrow and the quota increase for the International Monetary
Fund.
TITLE I
EXPORT ASSISTANCE
Export-Import Bank of the United States
subsidy appropriation
Appropriations, 1998.................................... $683,000,000
Budget estimate, 1999................................... 808,000,000
Committee recommendation................................ 785,000,000
administrative expenses
Appropriations, 1998.................................... $48,614,000
Budget estimate, 1999................................... 51,940,000
Committee recommendation................................ 49,000,000
The Committee recommends $785,000,000 to support direct
loans, loan guarantees, insurance, and tied-aid grants at the
Export-Import Bank of the United States. The Committee has not
provided the requested increase for administrative expenses but
has maintained the account at approximately last year's level
of $49,000,000.
Last year the Committee noted the Export Import Bank, the
Overseas Private Investment Corporation and the Trade
Development Agency had significantly underestimated
requirements for their services, especially in the New
Independent States of the Former Soviet Union. The Committee
requested a report by January 15, 1998, assessing the potential
5-year requirements U.S. export agencies anticipate, and
management, budgetary, and policy adjustments necessary to be
responsive to the rapidly changing export environment. The
administration has failed to produce this report and continues
to operate on an ad hoc basis, an approach the Committee views
with some alarm.
Due to challenges in key markets in Asia, the Committee has
met the expected increase in export promotion needs for fiscal
year 1999. However, without a longer term analysis of market
trends and corresponding agency requirements, the Committee
will not continue with such substantial support.
In addition to these issues, the Committee has been
concerned by recent decisions of the Bank to extend loans to
state-owned collectives and entities in the New Independent
States of the former Soviet Union. Although arguably secured by
sovereign guarantees, the decisions perpetuate the legacy of
communism, a course the Committee believes is inconsistent with
U.S. policy interests in promoting free markets. The Committee
has included language which prohibits any further disbursement
of loans or guarantees to state-owned entities. The Committee
directs the Bank to develop and submit to Congress guidelines
regarding support to enterprises in the New Independent States.
Overseas Private Investment Corporation
subsidy appropriation
direct loans
Appropriations, 1998.................................... $4,000,000
Budget estimate, 1999................................... 4,000,000
Committee recommendation................................ 4,000,000
Subsidy Appropriation
Guaranteed Loans
Appropriations, 1998.................................... $56,000,000
Budget estimate, 1999................................... 46,000,000
Committee Recommendations............................... 46,000,000
administrative expenses
Appropriations, 1998.................................... $32,000,000
Budget estimate, 1999................................... 34,000,000
Committee recommendation................................ 32,000,000
The Committee recommends $50,000,000 for the subsidy cost
of OPIC's direct and guaranteed loans. In addition, the
Committee recommends $32,000,000 for administrative expenses.
Last year the Committee encouraged OPIC to shift emphasis
to sector specific funds in order to support smaller,
innovative American businesses in fast growing areas, including
marine transportation, healthcare equipment and services, and
food processing. The Committee's views were ignored.
In responding to congressional inquiries on the status of
these efforts, OPIC noted it is contributing toward two funds
totaling $420,000,000 in commitments focusing on global climate
and environmental initiatives. Neither fund reflects guidance
offered by Congress in fiscal year 1998. In addition, OPIC has
established a $150,000,000 fund for Africa, again with an
environmental emphasis. Documentation provided on this fund
suggests it is being established consistent with a
congressional mandate. However, the Committee notes the
legislation which would encourage such a fund has not been
enacted.
The Committee is similarly disappointed with the
Corporation's failure to effectively manage the Caucasus
Enterprise Fund established by Congress several years ago. Very
little of the $46,000,000 made available has been invested.
The Committee notes that OPIC has moved quickly to initiate
action in areas of political interest to the administration
while ignoring congressional direction. The Committee has
withheld the release of one-half of OPIC's administrative
expenses pending resolution of these issues.
Trade and Development Agency
Appropriations, 1998.................................... $41,500,000
Budget estimate, 1999................................... 50,000,000
Committee recommendation................................ 43,000,000
The Committee recommends providing $43,000,000 for the
Trade and Development Agency [TDA] for fiscal year 1999.
TITLE II
BILATERAL ECONOMIC ASSISTANCE
Funds Appropriated to the President
AGENCY FOR INTERNATIONAL DEVELOPMENT
Bilateral Assistance
Appropriations, 1998.................................... $2,151,000,000
Budget estimate, 1999................................... 2,123,687,000
Committee recommendation................................ 2,099,000,000
The amounts listed in the above table for fiscal year 1998
appropriations, the fiscal year 1999 administration request,
and the Committee recommendation include funding appropriated
or requested under development assistance, UNICEF, the African
Development Foundation, the Inter-American Foundation,
international disaster assistance, debt restructuring, micro
and small enterprise development, and housing and other credit
guarantee programs. The appropriate statutory authorities for
activities and programs are included in the recommendation with
a minimum of earmarking or designation of levels of assistance
for the consolidated accounts. It is the Committee's intention,
through consolidation of these accounts, to provide the
President flexibility in order to respond to global
development, economic, and humanitarian requirements.
DEVELOPMENT ASSISTANCE
Appropriations, 1998.................................... $1,914,000,000
Budget estimate, 1999................................... 1,878,634,000
Committee recommendation................................ 1,890,000,000
COMBATING INFECTIOUS DISEASE
Last year, after hearings that revealed serious
deficiencies in the world's ability to monitor and combat
infectious disease and the lack of a coherent U.S. response to
this problem, the conferees provided an additional $50,000,000
toward a multiyear initiative to develop a U.S. strategy to
support global efforts against infectious disease. The
Committee applauds AID for the steps it has taken to consult
with relevant agencies, organizations, and other experts in
developing a U.S. strategy. The strategy, which identifies four
priorities--surveillance, antimicrobial resistance,
tuberculosis, and malaria--is being implemented through AID,
the Centers for Disease Control and Prevention, the World
Health Organization, and others. In an increasingly
interdependent world, the threat of deadly epidemics caused by
microbes spread by modern transportation cannot be minimized
anymore than the threat of biological weapons. The Committee
was disappointed that the administration's fiscal year 1999
budget request would sharply cut funding for this new
initiative. The Committee has, therefore, included bill
language requiring that not less than the current level of
funding be made available in fiscal year 1999 to implement
AID's infectious disease strategy.
The Committee is aware that tuberculosis [TB] kills some 3
million people annually and, because of the ease with which it
is transmitted, continues to threaten large numbers of
Americans in both urban and rural communities where the public
health system has deteriorated. The Committee strongly supports
AID's decision to significantly increase funding for TB
prevention and control programs.
The Committee is concerned that the incidence of
tuberculosis along the Texas-Mexico border is three times the
national rate and urges AID to contribute to the binational
surveillance and treatment initiative underway.
The Committee recognizes the important work of the Center
for Health and Population Research and commends the
international consortium of public and private sector sources
which collectively contribute to the center's annual budget.
The Committee encourages a contribution of $1,500,000 to aid in
the establishment of an endowment fund in an effort to offset
any variation in annual funding from the center's donors.
AMERICAN SCHOOLS and HOSPITALS ABROAD
The Committee has provided not less than $15,000,000 for
the important work carried out by institutions funded under the
American Schools and Hospitals Abroad [ASHA] Program.
The Committee believes that several institutions which have
received funding under ASHA have distinguished records and
deserve further support. They include:
--The American University in Beirut which has trained Middle
Eastern leaders for 130 years in a strong liberal arts
tradition encouraging freedom of expression, private
initiative, and tolerance. Its academic quality and
longstanding relationship with regional governments
make the university a primary resource for regional
development.
--The Lebanese American University (formerly Beirut
University College) is the most rapidly growing
institution of higher learning in Lebanon and is an
increasingly important resource for talent in this
region.
--The Hadassah Medical Organization has established an
important record of outreach and service. Hadassah's
programs are designed to train native populations to
improve the health and welfare of their own people
using American ideas and technology.
--The Feinberg Graduate School [FGS] of the Weizmann
Institute of Science in Israel has long served as a
model of American scientific education for postgraduate
students and scholars from around the world. ASHA funds
have been used exclusively to purchase American-made
scientific equipment from American suppliers.
--The Johns Hopkins University's centers in Bologna, Italy,
and Nanjing, China are vital national resources
promoting democracy and international market economics
in central and Eastern Europe and China. The Committee
strongly directs that not less than $500,000 be
provided for the Nanjing center.
LAOS CROP SUBSTITUTION
The Committee is aware that silk production in Laos offers
a profitable alternative to local farmers who would otherwise
grow opium for export, and that the United States Embassy in
Laos is seeking to support a microcredit program to promote
silk production. The Committee provides $2,000,000 for this
purpose.
U.S. TELECOMMUNICATIONS TRAINING INSTITUTE
The Committee has provided $500,000 to the U.S.
Telecommunications Institute [USTTI]. USTTI is a nonprofit
joint venture between the public and private sectors dedicated
to providing tuition free communications and broadcast training
to professionals from around the world.
CYPRUS
The Committee has provided $15,000,000 for Cyprus from
development assistance and economic support fund resources. The
Committee intends that these resources be made available to
maximize leverage in negotiations over Cyprus.
BURMA
The Committee has provided not less than $10,000,000 in
funding to promote democracy in Burma and support humanitarian
activities for displaced Burmese. The Committee believes the
assistance must be provided consistent with U.S. interests in
restoring democracy. Therefore, the Committee requires that at
least $2,000,000 of the funds be administered after written
consultations regarding appropriate guidelines with the
legitimate government elected, but prevented from assuming
office, in 1990.
The Committee has also increased humanitarian aid to
displaced Burmese in camps along Burma's borders. The Committee
directs that in addition to medical relief and related
activities, support be provided for basic education for
children in these camps. The Committee acknowledges the
enormous pressures placed on the Government of Thailand in
addressing refugee crises on both the Burma and Cambodian
borders and expects these resources to ease some of that
burden.
The Committee is concerned by the slow rate of disbursement
of democracy and humanitarian assistance for Burma. Although
there has been little variation on an annual basis in
recipients selected to receive or use resources, the State
Department seems unable to move promptly in issuing requests
for proposals and subsequent grants. Therefore, within 15 days
after the date of enactment of this act the Committee directs
the Department to provide a report on obligation of resources
made available in fiscal years 1997 and 1998, and an assessment
of any changes anticipated in the administration of 1999
resources, other than those funds which are to be made
available after consultations with the government elected in
1990.
CAMBODIA
To date, the international community has invested more than
$3,000,000,000 in peacekeeping and reconstruction support for
Cambodia. Following the coup in 1997, political, economic, and
security conditions in Cambodia have deteriorated. Although
elections are scheduled for July 1998, there continue to be
credible reports of harassment, intimidation, and murder of
political candidates opposing the government of Hun Sen.
Candidates other than those associated with Hun Sen have been
denied the opportunity to campaign, give speeches, hold
meetings, and have had limited access to media. These
conditions raise serious questions whether the outcome of any
election can be deemed fair.
Nonetheless, the administration has maintained that the
political environment is conducive to free and fair elections.
In testimony in June 1998, the Secretary of State indicated the
Department did not support the opposition's call to postpone
the election and affirmed official support for moving forward
in July.
In correspondence in June, the President stated, ``There
has been some recent progress in creating a framework for
parliamentary elections. Political exiles have returned to
Cambodia without incident; international observers are on the
ground and voter registration is proceeding.''
In contrast, in a June assessment, the United Nations
Special Representative in Cambodia documented 49 extra-judicial
killings, in addition to the 41 murders which occurred during
and immediately after the coup. The Representative also
concluded, ``there are still serious problems when it comes to
meeting requirements set by the Secretary General for U.N.
support of elections.'' These problems were identified as voter
intimidation, restricted media access for the opposition, the
lack of a functional Constitutional Council, and a lack of
accountability or investigative action to control political
violence.
The integrity of the registration process also appears to
have been compromised. A local newspaper reported registration
substantially exceeded the eligible voting population in
several randomly selected districts. The discrepancies varied
from a district with 108 percent registration to areas where
more than 180 percent were registered.
With political leadership unwilling to support fundamental
democratic principles, U.S. assistance can have little impact
on producing real economic or political reform necessary to
achieving stability and prosperity. Therefore, the Committee
has conditioned the provision of further assistance on assuring
that the results of the election have produced leadership in
Cambodia dedicated to an open society committed to freedom of
speech, press, and basic civil liberties. The Committee has
excluded humanitarian and demining programs and activities
administered by non-Government organizations from these
restrictions.
The Committee directs the Department of State to report
within 90 days on the Department's plans for strengthening
legitimate democratic political institutions, including support
for opposition leaders. The report should detail democracy
building activities and grassroots organizational programs. The
Department is encouraged to utilize the Democracy and Human
Rights Fund to provide training and resources. Finally, the
report should discuss plans for helping the more than 80,000
displaced Cambodians along the Thai border.
CAMBODIA LOGGING
The Committee has for years expressed concerns about the
illegal export of timber by the Khmer Rouge across the border
into Thailand, with the complicity of Thai border guards. The
Committee has received information that this trade continues in
large volume from the areas of Samlot, north of Pailin, to the
Thai port of Kalapandha, and potentially from Anlong Veng and
O'smach. At the current rate of deforestation it is widely
expected that Cambodia's marketable timber, the country's only
valuable natural resource, will be exhausted in 5 years. In
fiscal year 1997, the Committee required the State Department
to submit a report on the extent to which countries were
facilitating the export of timber from Cambodia. Given that
this trade continues to generate tens of millions of dollars in
revenues for Khmer Rouge forces and other armed groups, the
State Department is requested to submit a report by April 1,
1999, describing the current status of timber exports from
these areas and the involvement of Thai military personnel in
this trade.
indonesia
In the autumn of 1997, the Indonesian economy collapsed. By
March, three International Monetary Fund Agreements had been
signed, but none had been fully implemented. The deteriorating
economic crisis contributed to the April departure of President
Suharto after 33 years in office.
Since April, when estimates of unemployment were reaching
50 million people, the Committee has urged AID to conduct an
indepth, nationwide survey of the consequences of the
Indonesian economic crisis concentrating in hard-hit urban
areas. While a survey was conducted, the information was
anecdotal, it concentrated primarily on the impact of El Nino
on the eastern islands, and the report failed to provide even
rough estimates of food, medical, shelter, fuel, and other
shortages related to declining economic conditions. As
Indonesia approaches the 1-year anniversary of its collapse,
the Committee still has not received a comprehensive evaluation
of needs.
After a Committee hearing, the AID Administrator traveled
to Jakarta and announced a new assistance package. The
Committee believes that most of the announced package was
assistance previously announced or committed, and virtually
none focused on a new strategy for support. AID planned for
expansion of existing contracts and programs rather than new
initiatives responding to new opportunities and problems.
Given the strategic priority attached to Indonesia by the
Departments of State and Defense, and shared by the Congress,
the Committee believes a continuation of the status quo is
unwise. Moreover, it is evident that only political change will
improve Indonesia's uncertain economic climate, a problem which
continues to complicate regional recovery.
The Committee believes the administration must work swiftly
not only to develop a comprehensive new approach to Indonesia
but also new delivery mechanisms. The Committee understands
recovery is up to the Indonesians and that there is no shortage
of indigenous organizations willing to distribute humanitarian
aid, and work with AID and other donors to rebuild the economy,
strengthen political parties and the private sector, and expand
education, social services, and employment opportunities.
To launch a new, credible effort, the Committee has
earmarked $100,000,000 for Indonesia, at least 80 percent of
which must be delivered or administered through private or
nongovernment organizations. Given the current Government's
transitional role, the Committee believes emphasis should be
placed on building long-term local political and economic
institutional capabilities at the community level. This will
require a shift in AID's longstanding preference to work
through ministries and instead, work with local organizations
and community leaders.
The Committee is also concerned by reports of mistreatment
of minorities, especially ethnic Chinese, and urges AID to
support organizations which offer legal protection and related
assistance to these groups.
The Committee requests a report within 30 days of enactment
on AID's strategy for Indonesia, including a detailed
assessment of the new, indigenous organizations the Agency has
identified as potential partners in supporting the transition.
VIETNAM
The Committee supports professional exchanges between
United States and Vietnamese nongovernmental organizations
involved in the integration of people with disabilities.
Emphasis should be given to programs that encourage independent
living, disability rights, technology, and rehabilitation,
including therapeutic recreation. Medical exchanges should
encourage techniques that enable the disabled to integrate into
community life. Educational exchanges should include an
emphasis on inclusion, effective communication, and
identification of educational techniques and related services.
Mitch Mc Connell CONSERVATION FUND
In April 1998, the Government of Ecuador passed landmark
legislation promoting conservation of biodiversity and
sustainable development of the Province of Galapagos. The
legislation laid a foundation for increasing research and
scientific study of the islands, expanding local participation
in conservation activities, preserving unique wildlife
including giant tortoises, iguanas, and other rare species,
controlling resource exploitation, and protecting the 40-mile
boundaries of the Galapagos Marine Reserve. The Committee notes
that the only other marine reserve in the world is the Great
Barrier Reef in Australia.
While the legislation is far reaching in intent, Ecuador
does not have the resources to assure the laws can be fully and
effectively implemented to protect this unique environment.
Therefore, the Committee has earmarked $1,200,000 for
conservation activities administered by the Charles Darwin
Research Station and the National Park Service. The Committee
intends for $500,000 to be provided to support scientific
research, conservation, and related activities for the station
and $200,000 to support the Park Service training, education,
and conservation initiatives. In addition, the Committee has
provided $500,000 to support an endowment for the station to
leverage support from the private sector. The Committee is
concerned by the rapid degradation which has occurred in
Galapagos over the past decade and requests AID work closely
with local organizations to develop a long-term strategy to
preserve this unique archipelago.
GUATEMALA
The Committee notes that in April 1998 the U.N. Human
Rights Commission concluded its consideration of Guatemala. The
Committee is aware of the progress that has been made in
implementing the peace accords, but is concerned about the
failure to adopt agreed upon constitutional reforms. The
Committee also continues to receive reports of disappearances,
assaults, and killings, including the murder of Bishop Juan
Jose Gerardo shortly after he released a report documenting
human rights violations during the war. Many of these are
common crimes, but others bear the indicia of political crimes.
Therefore, like last year, the Committee has prohibited
military assistance to Guatemala except for IMET assistance
that focuses on civilian control of the Armed Forces and human
rights. Also, the Committee directs the Secretary of State to
provide a report no later than 45 days after the date of
enactment of this act evaluating official involvement in or
knowledge of political crimes.
The Committee is aware that approximately $2,500,000 in
prior-year military assistance for Guatemala remains unspent.
As in the past, the Committee strongly recommends that these
funds be used to support the implementation of the peace
accords, including the demobilization of former combatants.
MEXICO
The Committee is aware of an initiative to establish a
formal dialog among a broad cross-section of Mexican society in
an effort to build bridges between polarized groups, especially
in Chiapas and other conflict zones, and to strengthen
democracy. Similar initiatives in Guatemala and El Salvador,
supported by the United States, brought together
representatives from rebel groups, the armed forces, the
business and academic communities, and others, and helped lay a
foundation for reconciliation. The Committee urges the United
States Embassy in Mexico to seriously consider supporting such
an initiative in Mexico.
COLOMBIA
Last year, the Committee recommended that funds be provided
to support the Colombian attorney general's human rights unit,
which investigates abuses by guerrilla groups, paramilitary
organizations, and state security forces. Unfortunately, the
Committee's recommendation was ignored. Widely respected in
Colombia, the prosecutors' efforts are severely hampered by a
lack of resources. This office can play an important role in
carrying out investigations and prosecutions related to the
implementation of the section in this act entitled ``Limitation
on Assistance.'' The Committee directs that funds be made
available to support the attorney general's human rights unit.
SOUTH AFRICA
The Committee is aware of a proposal to establish a
partnership with the Republic of South Africa's Housing Loan
Fund to strengthen community-based lending and development
organizations in some of South Africa's poorest provinces, for
the purpose of providing affordable, sustainable credit to meet
basic housing and safe drinking water needs. The Committee
believes that AID should seriously consider participating in
this effort.
The Committee also requests AID to seriously consider
funding a computer literacy and distance learning project
involving two South African universities and a university in
the Southeastern United States. The program would link three
communities and their university partners in joint planning,
exchanges, instruction, and data interchanges. The U.S.
university should have demonstrated expertise in international
business studies, manufacturing outreach, and distance
education.
RWANDA
The Committee remains concerned that some 90,000
individuals are detained in inhumane and overcrowded
conditions, many facing charges of participating in genocide.
Despite the support of the United States and other nations, the
Rwandan justice system remains incapable of dealing effectively
with this explosive situation. Judges and prosecutors lack
training and defendants lack lawyers. The Committee urges the
administration to lead the multidonor approach to deal
aggressively with this pressing problem.
SUDAN
The Committee is gravely concerned about the complex
emergency in Sudan. The Committee fully supports AID's efforts
to provide emergency humanitarian relief, through Operation
Lifeline Sudan [OLS] and independent non-OLS relief agencies,
and to assist economic development and famine mitigation
activities in areas outside the control of the Government of
Sudan. Given the recent AID report that 2.6 million Sudanese
face food shortages, the Committee strongly supports an
increase in international disaster assistance funding over the
fiscal year 1998 enacted level to meet this humanitarian
challenge. Beyond the emergency relief efforts, the Committee
encourages AID to use development and disaster assistance funds
for capacity building and food production activities, in
addition to famine mitigation, in areas of southern Sudan
outside the control of the Government of Sudan, and to make
funds from these accounts available to nongovernmental
organizations for this purpose.
The Committee also urges AID to support agricultural
development and crop marketing projects in areas of southern
Sudan that are secure, as well as transportation infrastructure
improvement work throughout the region to facilitate food
distribution.
nepal
The Committee recognizes the Government of Nepal and the
Nepalese people for their efforts to host over 90,000 Bhutanese
refugees and the enormous strain this puts on the country's
resources. The Committee believes it would be in the interest
of the Government of Nepal and the Government of Bhutan to
resume discussion to resolve these issues to enable the
refugees to return home. The Committee believes that recent
actions by the Government of Bhutan to resettle northern
Bhutanese in lands formerly belonging to refugees are
regrettable and will not contribute to a peaceful settlement.
patent protections
The Committee is deeply concerned by the absence of any
pharmaceutical patent protection in Jordan and Egypt. Due to
Jordan's lack of patent protection and its ongoing production
and export of counterfeit pharmaceutical products throughout
the Middle East, American pharmaceutical companies lose from
$25,000,000 to $50,000,000 annually. The Committee is also
concerned that current Egyptian law governing product patents
excludes pharmaceuticals, medicines, and foodstuffs. The
Committee directs the administration to work with the Jordanian
and Egyptian Governments to encourage the adoption of effective
intellectual property protections.
PRIVATE VOLUNTARY ORGANIZATIONS
The Committee has again included language in the bill that
is intended to ensure that the level of funding to private and
voluntary organizations is at least maintained. This is
consistent with current law and AID's commitment to enhance
support for PVO's at a time when they are being increasingly
called upon to implement U.S. foreign assistance programs.
CHILD SURVIVAL, BASIC EDUCATION, and RELATED PROGRAMS
The Committee believes that protecting the health and well-
being of children around the world must be a high priority goal
of U.S. foreign assistance. The Committee is alarmed that 12
million children die every year from preventable diseases
including respiratory infections, measles, and diarrhea. The
Committee recognizes the importance of child survival programs
in reducing the incidence of child mortality, disease, and
disability. Therefore, the Committee urges that U.S. bilateral
efforts and contributions to international organizations
reflect a strong resource commitment to these activities.
The Committee believes that basic education programs are
essential to both the well-being of the world's children and to
achieving the long-term goal of broad-based economic
development. These programs should be sustained at a minimum of
$100,000,000. In particular, the Committee believes girls'
education should be addressed because it has multiple benefits,
including improved child survival and overall family health.
The Committee is also very interested in the use of basic
education programs in addressing the educational needs of
children who are in or are leaving situations of hazardous and
exploitative child labor. The Committee defines basic education
to include early childhood, primary and lower secondary
education, and childhood education teacher training programs.
The Committee requests a report by April 1, 1999, on AID's plan
to address child labor issues through basic education programs.
In addition, the Committee requests that the report address how
the agency intends to fully implement this program.
ORPHANS, DISPLACED, and BLIND CHILDREN
The Committee recommends $10,000,000 for the displaced
children and orphans fund. The Committee also continues to
support a program of at least $1,000,000 to assist children who
are blind. Many blind children in developing countries can be
cured of their disability through simple operations and
inexpensive care.
The Committee has provided authority to use up to $25,000
in program funds for displaced and orphaned children and
victims of war, to enable the AID office responsible for the
design and management of these programs to monitor and oversee
their implementation. AID is also encouraged to use other OEU
resources as necessary to further the effectiveness of the
oversight of these programs.
maternal health initiative
The Committee is aware that an estimated 600,000 women die
from pregnancy-related causes annually, and that the
overwhelming majority of these lives could be saved with better
healthcare and nutrition. AID supports a variety of activities
devoted to the needs of pregnant women and mothers, but more
attention and focus is needed. Accordingly, the Committee has
recommended an initiative of not less than $50,000,000 in
fiscal year 1999. The Committee looks forward to consulting
with AID, the National Council for International Health, WHO,
and others in developing an effective strategy to address these
problems.
MaterCare International (USA) is a professional
organization of physicians, obstetrical providers, health care
personnel, and educators dedicated to reducing maternal deaths
and injuries throughout the developing world. MaterCare
International (USA) provides training, emergency care, and
family planning opportunities for persons in Sub-Saharan
Africa. MaterCare International (USA) receives a percentage of
its funds from private funding. To expand its activities, the
Committee encourages AID to provide $3,400,000 to Matercare
International to reduce maternal mortality and improve health
care.
PATRICK J. LEAHY WAR VICTIMS FUND
The Committee notes the significant contribution of the
Leahy War Victims Fund in providing medical and related
assistance to disabled war victims in over a dozen countries.
Recently, world attention has focused increasingly on the
problem of landmines, and the need for additional funds for the
care and rehabilitation, and social and economic reintegration,
of landmine victims. Accordingly, the Committee recommends that
$12,000,000 be made available for such activities from
development assistance, the Office of Transition Initiatives,
and the ``Nonproliferation, antiterrorism, demining, and
related programs'' account, for activities to assist landmine
victims and other war victims suffering from permanent
disabilities.
HIV/AIDS
The Committee is aware that the General Accounting Office
is currently conducting a review of the administration of the
AIDS programs at the Agency for International Development and
UNAIDS. The Committee understands that GAO has raised concerns
about the UNAIDS program by stating that there is: (1) a lack
of guidance to agency field representatives regarding how they
should interact; (2) miscommunication as to the scope of their
mission; and (3) lack of commitment to working together by the
different cosponsor representatives due to concerns about the
role of UNAIDS as the organizational vehicle for the U.N.
response.
While concerned about these preliminary findings, the
Committee notes that the organization is only 2 years old and
is trying to formulate policy and practices. The Committee
urges the UNAIDS Secretariat to provide better practical
information and technical support to the country teams, to
focus and coordinate efforts, and to direct resources to
establish and meet specific targets for improving education,
prevention, and treatment in each country level.
Finally, the Committee notes that in the last 3 fiscal
years, AID has not provided funding to UNAIDS in a timely
manner. According to the United Nations, in 1997 the number of
people infected with HIV increased by 6 million, a 15-percent
increase in a single year. The total number of cumulative
infections now exceeds 40 million people worldwide. The
Committee, therefore, urges AID to expedite the provision of
funding at no less than last year's level and collaborate with
UNAIDS to increase the effectiveness of these programs.
POLIO ERADICATION
The Committee welcomes AID's support in the multilateral
effort to eradicate polio by the year 2000 and once again
expects a commitment of not less than $25,000,000. Funds should
be used to provide for the delivery of vaccines and the
development of the infrastructure necessary to implement the
program. The funding is intended to be in addition to the
resources for the regular immunization programs of AID and to
supplement other related activities. The Committee takes note
of the important support of Rotary International in assuring
the success of this effort.
IODINE DEFICIENCY
The Committee is aware that iodine deficiency is the
leading preventable cause of mental retardation in children.
Kiwanis International has joined with UNICEF to substantially
eliminate iodine deficiency by 2000. The Committee recommends
that AID provide up to $2,000,000 through UNICEF to help meet
this goal.
VITAMIN A
Reports indicate that vitamin A supplements in a capsule
costing 2 cents given two to three times a year reduces child
mortality rates by 23 percent. There are initial indications
that giving vitamin A to pregnant women could also reduce
maternal deaths by a minimum of 40 percent. The Committee
requests AID expand funding for a vitamin A initiative.
UNIVERSITY DEVELOPMENT ASSISTANCE PROGRAMS
The Committee recognizes that U.S. universities have a
significant role to play in U.S. development policies
throughout the globe. Therefore, the Committee encourages AID
and the Department of State to expand the involvement of
colleges and universities in development activities. The
Committee takes note of the important contribution made by a
number of universities in this regard.
--The University of Hawaii has played a key role in Pacific
regional development. The Committee encourages AID to
support the university as it develops a new initiative
to train health, social, and human service
professionals in recipient countries.
--The University of Northern Iowa has effectively managed the
Orava project in Slovakia which has incorporated
democratic concepts and practices into schools and
teacher education programs. The Committee encourages
AID to continue to support and replicate in other
countries this important work.
--The Committee recognizes the important contribution George
Mason University is making to health care in Third
World countries and recommends up to $2,000,000 be made
available to continue and expand these worthy
activities.
--The Committee recognizes the important contribution Utah
State University is making to irrigation programs in
Third World countries and recommends that up to
$2,100,000 be made available to establish a World
Irrigation Training Center at USU.
--The Committee is aware of the expertise at Mississippi
State University in the development of water resources
management plans. The Greater Istanbul Municipality,
Turkey, is experiencing serious shortages of clean
water supplies for its growing population. Discussions
between Mississippi State University and Marmara
University in Istanbul have resulted in a proposed plan
of work to develop a water resources plan for the city.
The Committee has provided $500,000 to begin this
project.
--The Arab-American University of Jenin [AAUJ] is being
established to provide educational opportunities for
young people in the West Bank and Gaza, a matter of
critical need. The Committee directs AID to provide
$1,000,000 in order to establish a College of
Agriculture at the AAUJ.
--The Committee is aware that the University of Vermont [UVM]
has expertise in integrated pest management and insect
pathology, and is involved in joint research and
training programs with universities and agricultural
research institutes in Israel, Taiwan, Turkey, and
Ethiopia. The Committee directs that AID provide
$1,000,000 to build on these initiatives by
establishing an International Integrated Pest
Management Training and Research Center at the
University of Vermont. The center will serve as a focal
point for research and technology transfer on
biological control agents.
Cooperative Association States for Scholarships
The Committee supports the programs known as the
cooperative association States for scholarships [CASS] and
expect AID to continue funding for this program at the same
level provided in fiscal year 1998.
RURAL ELECTRIFICATION
The Committee continues to strongly support the inclusion
of rural electrification in AID's planning as a critical
component of a sound development strategy. The Committee
encourages AID to provide support through the international
program of U.S. electric cooperatives, recognizing their long
and successful record overseas. The Committee also encourages
AID to include the work of this program in its energy and
electric utility assistance efforts in the New Independent
States of the former Soviet Union.
AGRICULTURE DEVELOPMENT AND RESEARCH
Last year, the Committee expressed concern about the
erosion in U.S. support for international agriculture programs.
In real terms, this funding has shrunk from $1,200,000,000 in
fiscal year 1986 to $240,000,000 in fiscal year 1997. While
overall levels for foreign operations also declined during that
period, funding for agriculture has suffered
disproportionately. In fiscal year 1998 AID increased the
amount somewhat, and has done so again in the request for
fiscal year 1999. Because of the enormous population pressures
and demand for food in the developing countries, and the
expertise of U.S. universities in agriculture research and
development, the Committee has provided $305,000,000 for these
activities in fiscal year 1999.
INTERNATIONAL FUND FOR AGRICULTURE DEVELOPMENT
The Committee continues to strongly support the
International Fund for Agriculture Development [IFAD] and
believes that the United States should continue to support and
contribute to IFAD, including its efforts to implement the U.N.
Convention to Combat Desertification. The Committee is aware
that IFAD's next replenishment will be negotiated soon and
believes that the United States should play an active and
constructive role in that process. The administration should
consult Congress prior to making any binding pledge.
DAIRY DEVELOPMENT
The Committee continues to place a high priority on dairy
development and encourages AID to maintain funding for this
program.
FARMER-TO-FARMER
The Committee strongly supports the Farmer-to-Farmer [FTF]
Program in the NIS and elsewhere, and recommends that AID
support these exchanges directly, in addition to the funding
FTF receives from the Agriculture Department. The FTF Program
gives American farmers and agribusiness entrepreneurs the
opportunity to share their expertise with farmers in countries
where agriculture has been stymied from decades of state
control. In the process, FTF participants also make new friends
for the United States and gain valuable experience for
themselves. It is a cost-effective form of technical assistance
because the American participants volunteer their time.
cooperative development projects
The Committee is aware of the decline in funding for the
United States-Israel Cooperative Development Program [CDP] and
Cooperative Development Research Program [CDR]. The Committee
urges the administration to increase funding for CDR/CDP. These
innovative programs have proven successful in bringing Israel's
unique combination of technical expertise and language skills
which benefit developing nations and the emerging democracies
of Eastern Europe and the former Soviet Union.
TROPICAL PLANT AND ANIMAL RESEARCH INITIATIVE
The Committee requests AID to consider joint application
from Israel and the State of Hawaii to collaborate on a
research and development project directed to enhance the
competitiveness of both in the rapidly increasing tropical fish
and plant global market. Such collaboration would have the dual
purpose of curtailing exploitation of wild stocks and
commercializing cultivated stocks to enhance the economic
development activities of the United States and Israel.
INTERNATIONAL FERTILIZER DEVELOPMENT CENTER
The Committee strongly supports the fertilizer-related
research and development being conducted by the International
Fertilizer Development Center [IFDC] and further directs AID to
promptly make at least $3,000,000 available for the core grant
to the IFDC.
MICROENTERPRISE POVERTY PROGRAMS
The Committee believes that microcredit projects are an
efficient and effective way to develop small enterprises, the
key to employment and economic development. The Committee
directs USAID to provide at least $145,000,000 for
microenterprise activities with at least one-half the resources
targeted for a program offering loans of less than $300. These
loans should be made to the poorest 50 percent of those living
below the poverty line, particularly women, or to support the
institutional development of organizations primarily engaged in
making such loans. The Committee also encourages USAID to
invest a significantly increased proportion of microenterprise
resources through its central mechanism for support of United
States and indigenous nongovernmental organizations.
WOMEN in DEVELOPMENT
The Committee encourages AID to provide $15,000,000 for the
Office of Women in Development [WID]. The Committee supports
efforts to better integrate the concerns of women into AID's
programs and policies and encourages AID to undertake the
institutional changes needed to support women in development.
This recommendation for increased funding for WID reflects the
Committee's belief that investing in women is crucial to
reducing hunger and poverty, improving family well-being, and
achieving sustainable economic growth.
PARKS in PERIL
The Committee continues to strongly support the Parks in
Peril Program which matches AID funds with private
contributions to support biodiversity conservation in imperiled
ecosystems in Latin America and the Caribbean.
BIODIVERSITY PROGRAMS
The Committee strongly supports continued funding for
biodiversity conservation and tropical forest protection in
developing countries, which are critical to U.S. economic
prosperity, especially for the U.S. agricultural and
pharmaceutical industries. AID conservation activities should
continue to emphasize the use of nongovernmental organizations.
AID through NGO partnerships should remain active in regions
that are significant for global biodiversity, including in
countries where AID does not have a presence or where AID
missions have been closed, especially where lack of
participation would undermine the success of a regional
strategy.
RENEWABLE ENERGY
The Committee urges AID to continue the unique programs at
its Office of Energy, Environment, and Technology, supporting
its U.S. renewable energy private sector initiatives such as
project preparation, training, multimedia, and related
activities in cooperation with the Committee on Renewable
Energy, Commerce, and Trade.
international executive service corps [iesc]
The Committee recognizes that for almost 35 years the
International Executive Service Corps [IESC] has been promoting
the long-term interests of the United States by providing
strong volunteer services, creating new businesses, and
increasing living standards. IESC is an important vehicle to
promote aggressive business development and technology transfer
that contributes to sound economic growth and sustainable
development. The IESC activity also offers an opportunity for
American firms to participate in this endeavor. The Committee,
therefore, strongly urges that AID provide IESC with funds at a
level comparable with fiscal year 1998 to ensure the continued
availability of IESC services.
collaborative research support projects [crsp's]
As in past years, the Committee supports the collaborative
research support projects [CRSP's]. Over 40 U.S. universities
are involved in the CRSP's and the funding provided by AID is
leveraged, with contributions from the universities and
recipient countries. The Committee expects AID to make its best
efforts to at least maintain funding for the CRSP's in fiscal
year 1999. The CRSP's to receive funding include ABSP, BASIS,
food security initiative, Post-Harvest Collaborative
Agribusiness Support Program, sorghum/millet, bean, cowpea,
peanut, pond dynamics/aquaculture, livestock/small ruminant,
soil management, sustainable and natural resource management,
and integrated pest management.
soils management-crsp
Activities such as the Soils Management Collaborative
Research Support Program [SM-CRSP] plays a major, long-term
role in assuring the productive capacity of the tropical world
to meet global food demands. In addition, the broad systems
approach through the development and use of decision support
systems offers considerable promise for addressing micro issues
such as farm level profitability as well as macro goals such as
terrestrial sequestration of CO2. The Committee
recommends that the agency fund the SM-CRSP at a level that
allows achievement of the goals for all approved projects
within that program.
Opportunities Industrialization Centers, International [OIC]
The Committee recognizes that for more than 25 years, OIC
International has helped developing countries establish
sustainable, community-based, self-help programs. The Committee
further recognizes that, at the request of AID, OIC is making a
concerted effort to increase the amount of private funding it
receives. The Committee directs AID to provide $400,000 for OIC
to cover the costs of operation as it completes its transition
to greater private-sector funding.
OFFICE of PRIVATE and VOLUNTARY COOPERATION
The Committee recommends increased funding for AID's Office
of Private and Voluntary Cooperation in fiscal year 1999. This
office plays a central role in the partnership between AID and
private voluntary organizations in providing humanitarian and
development aid. The Committee also recognizes the important
contribution of private voluntary organizations and
cooperatives in establishing and administering food aid
programs overseas.
palestine broadcasting
The Committee is concerned about the hostile rhetoric
against the United States and Israel which has been
disseminated by media sources controlled by the Palestine
Broadcasting Corp. While the Committee supports the concept of
encouraging a free press in the areas under the jurisdiction of
the Palestinian Authority, it believes that the United States
should not provide funding to an organization whose broadcasts
call for the destruction of the United States and voice support
for acts of terrorism. The Committee believes that the
Palestinian Broadcasting Corp., is an organization which
restricts press freedoms. The Committee believes that
independent journalists in the region who observe a code of
professional journalism similar to the standards adopted by the
Voice of America deserve the assistance of the United States.
Limitation on Assistance
The Committee has included a provision, similar to last
year, which seeks to ensure that U.S. assistance does not go to
units of foreign security forces whose members have been
credibly implicated in human rights abuses, unless the foreign
government is taking effective measures to bring the
individuals responsible to justice. By effective measures, the
Committee intends that the individuals face appropriate and
timely disciplinary action or impartial criminal prosecution in
accordance with local law. The Committee notes that in order to
implement this provision, it is necessary for U.S. Embassies to
know which units are to receive U.S. assistance and to have in
place the necessary agreements and mechanisms to effectively
monitor their use of the assistance. The Committee expects U.S.
Embassies to maintain this information so it is available to
the Congress.
Inter-American Foundation
The Committee commends the Foundation for its thorough
justification of project accomplishments and requirements and
in recognition of this effort has provided a designated level
of funding for the Inter-American Foundation in the
``Development assistance'' account. The Committee is encouraged
by the fact that the Foundation has responded to Committee
guidance and pursued private contributions to assist in the
financial implementation of its programs. The Committee looks
forward to a continuation of this effort in fiscal year 1999
and expects other foundations to follow the Inter-American
Foundation lead.
International Disaster Assistance
Appropriations, 1998.................................... $190,000,000
Budget estimate, 1999................................... 205,000,000
Committee recommendation................................ 200,000,000
The Committee has increased the disaster assistance account
to $200,000,000. With no shortage of natural or man made
disasters the increase is timely and necessary.
Micro and Small Enterprise Development [MSED]
Subsidy Appropriation
Appropriations, 1998.................................... $1,500,000
Budget estimate, 1999................................... 1,500,000
Committee recommendation................................ 1,500,000
Administrative Expenses
Appropriations, 1998.................................... $500,000
Budget estimate, 1999................................... 500,000
Committee recommendation................................ 500,000
The Committee has provided $1,500,000 for the subsidy for
micro and small enterprise development programs and $500,000
for administrative expenses with the view that MSED has
effectively mobilized credit to strengthen the private sector.
Urban and Environmental Credit Program
Subsidy Appropriation
Appropriations, 1998.................................... $3,000,000
Budget estimate, 1999................................... 6,000,000
Committee recommendation................................ 3,000,000
Operating Expenses
Appropriations, 1998.................................... $6,000,000
Budget estimate, 1999................................... 6,053,000
Committee recommendation................................ 4,000,000
The Committee has provided resources to sustain the urban
and environmental credit program formerly known as the housing
guarantee [HG] program. The program supports U.S. private
sector initiatives which provide long-term financing for
housing and urban infrastructure requirements such as sewage
and water facilities.
Debt Restructuring
Appropriations, 1998.................................... $27,000,000
Budget estimate, 1999................................... 72,000,000
Committee recommendation................................ 25,000,000
The Committee has provided $25,000,000 to meet the
administration's debt restructuring requirements as a component
of economic assistance.
Department of the Treasury
international affairs technical assistance
Appropriations, 1998....................................................
Budget estimate, 1999................................... $5,000,000
Committee recommendation................................ 3,000,000
In prior years, the Department of the Treasury has carried
out technical assistance programs supported by transfers from
the Agency for International Development. The Committee is
aware that this worthwhile undertaking has been complicated by
AID's lack of responsiveness. Therefore, the Committee has
provided $3,000,000 to support this request and directs AID to
promptly transfer not less than $2,000,000 to Treasury to
augment these resources.
national advisory council [nac] on international monetary and financial
policies
The Committee believes the new format for the NAC report
embodied in this legislation can produce a report that is more
focused, more timely, and more useful to Congress than previous
NAC reports. The success of the new format relies very much on
the administration's good faith and its capacity for providing
an inclusive and thorough report. The Committee has included a
requirement that the annual report include a discussion of the
administration's efforts in pursuit of major policy initiatives
embodied in existing law. In particular, the Committee expects
the new annual report will discuss the administration's efforts
in the IFI's to reform international trade and investment
policy in borrower countries, to enhance human rights, and to
encourage key policy changes in the IFI's themselves. The
report should include references to other public sources where
data included in previous NAC reports might be obtained. The
Committee believes that much of the information about IFI loans
and IFI operations that was previously mandated for inclusion
in the NAC report should be available from the IFI's
themselves. The Committee expects that the administration will
encourage the IFI's to be more transparent and more forthcoming
with regards the information on their operations and policies
they make available to the public.
Payment to the Foreign Service Retirement and Disability Fund
Appropriations, 1998.................................... $44,208,000
Budget estimate, 1999................................... 44,552,000
Committee recommendation................................ 44,552,000
The Foreign Service retirement and disability fund is a
mandatory expense of the Agency for International Development.
AID Operating Expenses
Appropriations, 1998.................................... $473,000,000
Budget estimate, 1999................................... 483,858,000
Committee recommendation................................ 475,000,000
The Committee recommends an appropriation of $475,000,000
for the operating expenses of the Agency for International
Development to remain available until September 30, 2000.
Operating Expenses of the Office of the Inspector General
Appropriations, 1998.................................... $29,047,000
Budget estimate, 1999................................... 33,000,000
Committee recommendation................................ 30,000,000
The Committee has provided $30,000,000 for the Inspector
General's Office.
Other Bilateral Economic Assistance
Economic Support Fund
Appropriations, 1998.................................... $2,400,000,000
Budget estimate, 1999................................... 2,513,600,000
Committee recommendation................................ 2,305,600,000
The Committee has provided $2,305,600,000 for economic
support fund activities. The Committee has not provided funding
for the Bank for the Economic Cooperation and Development in
the Middle East and North Africa as requested by the
administration.
The Congress is opposed to assuming new responsibilities as
the largest donor for a new multilateral facility when arrears
at existing institutions continue to exceed $500,000,000. At a
time when the Committee finds it difficult to fulfill existing
obligations, new commitments make little fiscal sense.
MIDDLE EAST EARMARKS
Following consultations with the Governments of Israel and
Egypt, the Committee has reduced the level of economic support
fund resources provided for each country. The Committee
understands similar consultations were held with the
administration; however, agreement was not reached prior to the
submission of the fiscal year 1999 budget request.
The Committee welcomed Prime Minister Netanyahu's 1996
pledge to Congress to consult on a plan to phase out economic
support for Israel while at the same time addressing ongoing
and acute security requirements. In fiscal year 1999, the
Committee is making the first reduction in a planned 10-year
schedule and is providing $1,080,000,000 in economic support
funds for Israel. The Committee has provided $775,000,000 for
Egypt. Taking into account resources made available in title
III, these levels reflect a net reduction of $60,000,000 in
Israel's economic assistance program and $40,000,000 in
Egypt's.
In changing emphasis in the Egyptian program, the Committee
acknowledges the Government's efforts to privatize and expand
trade and investment as a means to accelerate economic recovery
and growth. To strengthen this private sector development, the
Committee expects a shift away from large project support. To
further this objective, the Committee has provided $40,000,000
within funds made available to Egypt to establish an Enterprise
Fund. The Committee directs the administration to consult with
the Committee.
MIDDLE EAST REGIONAL COOPERATIVE PROGRAM
The Congress fully supports the Middle East Regional
Cooperation Program [MERC], and its role in fostering
scientific collaboration between Israel and its Arab neighbors.
The MERC Program should remain fully funded at no less than
$7,000,000. The value of multiple lines of communication
between nongovernmental institutions in the region is critical
to the peace process, and should be continued. To that end, it
is vital that the MERC Program's guidelines and criteria
continue to limit the size of funded projects to no more than
$3,000,000 per year for 3 years in order to catalyze as many
collaborations as feasible, thereby assuring the maximum
possible impact.
PALESTINIAN-ISRAELI COOPERATION PROGRAM
The Committee recommends $600,000 for the Palestinian-
Israeli Cooperation Program. The Committee believes that at a
time when many observers fear that the Middle East peace
process is in danger of collapse, joint projects between
Palestinians and Israelis are a constructive use of a small
amount of money. Examples of past projects include meetings of
experts on medical and scientific research, joint publications,
theater productions, and activities for children. Past funding
for these projects has been far below what was needed to meet
the demand.
LATIN AMERICA and the CARIBBEAN
The Committee notes that since 1990, United States economic
assistance to Latin America and the Caribbean has fallen by
two-thirds, although assistance for Haiti has been sustained at
a disproportionately high level. During the same period,
poverty has steadily increased as has the flood of illegal
immigrants into the United States. The Committee believes that
this hemisphere, other than Haiti, should be given higher
priority in the allocation of economic support fund assistance.
War Crimes Tribunal
The Committee recognizes that the mission of the
International War Crimes Tribunal for the Former Yugoslavia has
been constrained by funding shortages. The tribunal has had
limited success, in part because of lack of sufficient staffing
and professional resources, as well as a lack of sufficient
office equipment. The Committee notes that the tribunal
recently dismissed the cases of 14 Bosnian Serbs due to a lack
of resources to support prosecution, rather than a lack of
evidence. The State Department notes that there is a
significant need to secure the services of translators and to
procure new office equipment, not otherwise provided for in
existing funds. The Committee directs that $3,000,000 from the
Democracy and Human Rights Fund be provided to support the
tribunal.
Assistance for Eastern Europe and the Baltic States
Appropriations, 1998.................................... $485,000,000
Budget estimate, 1999................................... 464,500,000
Committee recommendation................................ 432,500,000
The Committee recommends $432,500,000 for Eastern Europe
and the Baltic nations. The Committee noted last year that
fiscal year 1998 marked the final year of the administration's
pledge for economic reconstruction in Bosnia-Herzegovina. This
commitment was intended to restore a foundation for commercial
and industrial growth and rebuild the mechanics of political
institutions, in part to assure a timely and certain departure
for American troops. The Committee notes the President has once
again delayed the departure date for U.S. forces calling into
question the effectiveness of a substantial expenditure of
American foreign assistance. The Committee is concerned that
the goals so clearly defined by the Dayton accords including
refugee resettlement and repatriation, and treatment of war
criminals have been difficult to achieve.
LEGAL INITIATIVES
The Committee supports AID's efforts to provide funds for
legal reform in Central and Eastern Europe. To address the
growth of crime in the region, the State and Justice
Departments have sponsored prosecutor training programs that
have made progress toward building the foundations of modern
judicial systems. The Committee is aware that the current 2-
year program provides onsite training four times a year. At
this rate only 10 people in each country will have been
trained. The Committee notes that distance learning technology
could dramatically increase the number of prosecutors trained
in this program, and urges AID to provide an additional
$250,000 to incorporate multimedia distance learning into the
Central and Eastern Europe prosecutor training program.
The Committee notes that the American Bar Association [ABA]
has done an excellent job in promoting democracy around the
globe through their continued support for the rule of law and
legal infrastructure projects. These initiatives have played a
significant role in fostering legal reforms and democracy by
encouraging respect for the rule of law, building free markets
and free trade, combating corruption and promoting sustainable
development.
To build on this success, the Committee urges AID to
sustain funding for ABA projects at a level consistent with
fiscal year 1998 levels. The Committee takes special note of
the Central and Eastern European Law Initiative [CEELI].
Through a variety of program components, CEELI is making legal
expertise available to assist countries in the process of
restructuring their legal systems. CEELI has focused its work
in a number of critical priority areas, including
constitutional reform, judicial restructuring, commercial and
criminal law procedure, and legal education reform. CEELI has
also helped develop and institutionalize self-sustaining
indigenous nongovernmental organizations in more than 22
countries. The Committee notes that more than 5,000 U.S.
attorneys, judges, and law professors from the United States
have participated in CEELI, all as volunteers.
assistance for the new independent States of the Former Soviet Union
Appropriations, 1998.................................... $770,000,000
Budget estimate, 1999................................... 925,000,000
Committee recommendation................................ 740,000,000
The Committee recommends $740,000,000 for the New
Independent States [NIS] of the former Soviet Union. As in
prior years, the bill makes applicable the provisions of
section 498B(j) of the Foreign Assistance Act to funds
appropriated under this heading, as well as making applicable
the other provisions of chapter 11 of part I of that act to
funds appropriated by the bill for the NIS.
The Committee believes that strengthening free market
democracies throughout the NIS enhances U.S. interests through
increased stability, security, and prosperity. Accordingly, the
Committee has continued with past practices of earmarking
support for Ukraine, Armenia, and Georgia. The Committee notes
that, notwithstanding the level of funds provided for these
three countries, more unearmarked funds are available for the
NIS in fiscal year 1999 than in 1998, which is consistent with
the administration's request for flexibility.
INDEPENDENT MEDIA
The Committee continues to support assistance for
independent broadcast and print media throughout the former
Soviet Union. The sustainability and political independence of
media are necessary components of genuine economic and
political reform. The Committee feels it is a priority to work
toward legal environments in which media can better encourage
civil society and respect for the rule of law. Effective
support for free media also includes specialized training in
commercial management with emphasis on financial skills, basic
and advanced journalism training, and the development of the
institutions and associations that constitute an independent
media infrastructure. New initiatives include expanded support
for high quality public interest programming, legal literacy
for media professionals, and effective use of regional and
national media for disseminating health care information.
The Committee is encouraged by results achieved thus far,
and recommends that AID provide funding necessary to build on
this success and expand programs to include Russian far east.
Carelift International
The Committee supports the work of Carelift International
and recognizes the great success it has had in providing used
medical equipment to Russia and the New Independent States. The
Committee also notes that Carelift International has a proven
record of success in training medical providers overseas on the
proper use and maintenance of American medical and dental
equipment. The Committee directs USAID to make at least
$3,000,000 available to allow Carelift International to
continue and expand its operations.
Research, Training, Exchanges, and Partnerships
The Committee recommends the current level of funding for
the Russian, Eurasian, and East European Research and Training
Program (title VIII) from the two appropriation accounts for
the NIS and central Europe. The Committee also supports funding
for other graduate fellowship and training programs in both
regions such as the Central and Eastern European Graduate
Fellowship Program. Student exchange programs, in general, are
to be distributed in a balanced manner among high school,
college, and graduate/postgraduate categories.
PHYSICIANS EXCHANGES
The Committee is aware that the American College of
Physicians has initiated a program aimed at improving
professional medical education in the former Soviet republics.
This cooperative endeavor, known as the Eurasian Medical
Education Program, sends volunteer American physicians who have
expertise in disease areas that are the major contributors to
premature death in Russia, such as cardiovascular disease,
diabetes and tuberculosis. The Committee commends AID for
providing the funds for three pilot centers in Russia, and
requests AID to consult with the Committee concerning fiscal
year 1999 funding to sustain and expand the program.
Violence Against Women
The Committee has closely followed efforts by AID, the
Department of State, and the Department of Justice to implement
a Committee initiative against domestic violence in Russia. The
Committee appreciates the efforts that have been made, but
believes that supporting the women's crisis centers in Russia
that are directly engaged in responding to this problem should
be a priority use of the funds. In addition, more attention
should be given to strengthening police and prosecutorial
efforts to deter abuses in a broader number of communities
where women's crisis centers exist. American police trainers
should be carefully screened to ensure that they have the
necessary expertise. The Committee recommends that funding for
this initiative at least be maintained at the current level.
The Committee again requests the Department of State to submit
a report by April 1, 1999, describing the actions taken,
results to date, and future plans in this effort.
Russian Orphanages
The Committee is aware of the growing lack of orphanages in
many areas of Russia. The Committee is also made aware of
concerns that orphanages lack the necessary medical facilities
to care for orphans. The Committee supports $3,000,000 for
improving orphanage facilities.
Sustainable Agriculture
The Committee again urges AID to provide funds to support
sustainable agriculture programs through replicating the United
States extension model at Russian agricultural colleges, as
recommended in the fiscal year 1998 conference report. The
Committee believes that this is a sound investment which should
be continued.
Pushchino project
The Russian-United States technical, education, and
economic development consortium has made significant progress
implementing a project entitled, ``Uniting Science and
Education and the Transfer of Technology to Support Sustainable
Economic Development and Environmental Protection of South
Central European Russia.'' The so-called Pushchino project has
carried out activities which promote economic development,
restore the environment and train entrepreneurs,
agriculturalists, and environmental professionals. The results
have been mutually beneficial particularly in the testing and
development of technologies with practical applications
including the control of wheat and barley root disease and
remediation of environmental pollutants. The Committee urges
continued funding for this collaboration between research
institutions, universities, and private firms.
Russian Far East
The Russian far east is recognized as vital to the overall
development of Russia's market economy. Its rich natural
resource base and proximity to the rapidly expanding Pacific
rim economies have won it the attention of increasing numbers
of industries and companies. However, attempts to coordinate
trade promotional efforts have been sporadic and often ill
conceived.
Meanwhile U.S. competitors in the region have been
effective in integrating public and private sector activities.
Partly in response to this situation, the United States and
Russian governments agreed during the December 1994 meeting of
the Gore-Chernomyrdin Commission in Moscow, to establish the
United States west coast-Russian far east ad hoc working group.
The working group is charged with developing a framework to
increase trade and investment opportunities between the Russian
far east and the United States west coast.
The role this working group can play to increase
opportunities between the two regions is significant. The
Committee recommends that authority and funding for this group
and the subsequent initiatives approved by this bilateral body
be given priority.
The Russian Far East presents a unique set of investment
conditions which are oftentimes overlooked in broad United
States foreign assistance initiatives in Russia. The
Partnership for Freedom Program will designate certain areas in
Russia to receive priority consideration for United States
investment. The Committee directs the State Department to
designate the Russian Far East as a region to receive this
priority treatment.
United States Russia Investment Fund
The Committee continues to be concerned about the record of
the United States Russia Investment Fund [TUSRIF] with regard
to investment in small- and medium-sized businesses in Russia,
particularly in the Russian Far East. The Committee directs
TUSRIF to increase investment in small- and medium-sized
business projects in the Russian Far East.
RUSSIA and IRAN
The Committee has once again conditioned assistance to
Russia on Moscow's termination of financial and technical
support for the Iran nuclear program. The Committee has
included this provision in legislation for the last 3 years.
However, the administration has opposed any restrictions
arguing that the conditions would undermine reformers who offer
the best hope for curtailing this dangerous program.
There is little evidence reformers have had a restraining
effect on this program. In fact, the Committee is deeply
concerned by reports of substantial expansion in the number of
Russian scientists involved in training, technology transfer,
and supervision of nuclear testing.
Iran's campaign to acquire a nuclear capability is a
serious threat to U.S. security interests and its suspension
should be of the highest priority in the United States dialog
with Russia.
ukraine
The Committee has provided $210,000,000 to continue
economic, legal, and political reforms in Ukraine. The
Committee believes absent a significant and sustained effort in
each of these areas, Ukraine will face a serious economic
crisis, made all the more likely due to the currency and market
weakness across Asia.
While the Committee recognizes very recent efforts to
advance economic reforms, given the inconsistent pattern of
performance, the Committee has reduced overall funding and has
structured a continuation of support on acceleration of
improvements. The Committee expects the Government to continue
with an aggressive program to rationalize and improve tax
collection, reduce government spending and exercise fiscal
responsibility. To assure these initiatives remain on track,
the Committee has provided the administration with authority to
withhold 50 percent of the funds for 120 days when the
Secretary is required to report on the status of reforms.
Nuclear safety
The Committee has, once again, excluded nuclear safety
initiatives from any restrictions. In addition to continuing
funding for existing programs to prevent accidents and improve
control and management, the Committee has provided $1,000,000
to establish a personnel security system at each existing
nuclear facility. In reviewing safety problems, the Committee
learned that neither the Department of Energy nor the
Department of Defense has provided any support to control
access to civilian nuclear facilities in the Ukraine. Onsite
visits to Chornobyl determined that there were virtually no
procedures, plans or practices to control access to the core
facility or respond to an unauthorized breach of perimeter
security. The Committee was advised that the plant manager at
Chornobyl and those at other facilities have requested U.S.
assistance in developing and implementing security plans,
however, U.S. officials refused to provide any support until
directed by the Committee to do so. The $1,000,000 earmark is
intended to augment the initial $100,000 provided. The
Committee directs that 60 days after the date of enactment of
this act, that the Departments of Energy and State provide a
report on the status of implementation of this initiative and
additional resources which may be necessary to provide a
minimum security regime at all reactors. The report shall also
include an assessment of personnel and related safety
procedures at civilian nuclear facilities in each New
Independent State.
Free market democracy fund
The Committee has provided $700,000 to establish and
support a small grants fund to be administered by the United
States Ambassador to Ukraine in consultation with the
Department of State's Coordinator for the NIS. The Committee
has been made aware of a number of commercial, educational,
health, humanitarian, political, and related activities in
which prompt availability of small grants would have an
immediate and clear impact on economic development and support
for free market, democratic reforms. The Committee has
established this pilot program with the understanding that the
Department of State will consult on guidelines for its
implementation and report on a quarterly basis on the use of
the resources.
Agriculture
The Committee is disappointed by the lack of emphasis the
AID mission has placed on supporting innovative approaches to
agricultural development. AID continues to concentrate on
reforming ministries rather than taking the initiative at the
county and community level. As the Committee has repeatedly
stated, growth in the agriculture sector is essential to
Ukraine's economic recovery. The Committee directs AID to
report within 60 days on prospects for developing a small farm
business initiative with grants of less than $5,000,000 to be
provided outside Kiev to generate local reforms and
agricultural growth and income.
GEORGIA
The Committee continues to be impressed by the Georgian
Government's determined commitment to address critical issues
of legal, economic, and political reforms. The Committee
commends the Government for moving quickly to develop and
implement a clear, effective plan of action for the use of
resources provided by the Congress in fiscal year 1998,
demonstrating the political will to produce crucial changes.
The Committee intends that the $95,000,000 made available in
fiscal year 1999 be available to support small business
development, management training, credit and investment
programs, energy and infrastructure initiatives, and judicial
reforms.
The Committee continues to be concerned by instability in
Abkhazia and Russian influence over internal Georgian events.
The Committee has provided funds to continue support for
training and improvements of border security personnel to
assure a prompt and complete withdrawal of Russian troops from
Georgian territory.
ARMENIA
The Committee has provided $90,000,000 for Armenia. Given
Armenia's high level of dependence on nuclear energy, the
Committee has designated $4,000,000 for nuclear reactor safety
improvements. Additionally, with the view that higher education
is an essential building block in the transition to active free
market economies, the Committee has provided $10,000,000 as an
endowment for the American University of Armenia.
AZERBAIJAN
The Committee has included a provision which restates
section 907 of the FREEDOM Support Act. However, for funds
appropriated in this bill, the Committee has continued the
exemption to permit the administration to provide support for
demilitarization and related programs. In addition, the
administration may provide support to strengthen political
institutions. Open, elected governments responsible to citizens
interests are essential to long-term stability.
Like last year the Committee has also included a provision
exempting humanitarian activities and financing and assistance
from OPIC, the Trade and Development Agency, the Export-Import
Bank, and activities carried out by the Foreign Commercial
Service from section 907 of the FREEDOM Support Act.
East-West Pipeline Report
Given the completion of the World Bank's feasibility study
regarding the Baku-Ceyhan oil pipeline, the Committee urges
financial institutions such as TDA, Exim, and OPIC to
aggressively pursue funding for the Baku-Ceyhan pipeline.
The Committee believes that a pipeline crossing Turkey is
in the best interests of the United States. An east-west
pipeline would bring Caspian energy resources to international
markets, support stability and democracy while providing a
secure energy transport system.
The Committee requests the Secretary of Commerce in
consultation with the Secretary of Energy and the Secretary of
State to provide a report by March 1, 1999, describing the
details and status of the U.S. Government's initiatives to
facilitate the commercial viability of the Baku-Ceyhan
pipeline.
MONGOLIA
The Committee has provided $10,000,000 from funds made
available under the headings ``New Independent States'' and
``Development assistance.'' Resources have been provided to
continue to support efforts by the Mongolian Government to
accelerate legal, political, and economic reforms while
addressing acute health, educational, and humanitarian needs.
The Committee encourages AID and the coordinator to assume a
minimum of a 5-year commitment in support for Mongolia's
transition and to develop a strategy accordingly.
NUCLEAR CITIES
The Committee is aware that in March 1998 the United
States-Russian Commission on Economic and Technical Cooperation
created the nuclear cities initiative, to focus attention on
the economic problems facing Russian nuclear weapons complexes.
The initiative has the potential to significantly reduce the
danger of nuclear proliferation from the brain drain of
knowledgeable scientists, the potential theft of fissile
material created by economic desperation, and sales of nuclear
technology to countries of proliferation concern. The Committee
is concerned that since the nuclear cities initiative was not
created until after the President submitted his fiscal year
1999 budget request, this vital undertaking may not be
adequately funded. The Committee, therefore, strongly
recommends that sufficient funds be made available from the NIS
account to support the implementation of the nuclear cities
initiative, including the promotion of economic development and
private sector investment in Russia's closed nuclear weapons
complexes.
Independent Agencies
african development foundation
Funding for this account has been included under the
``Development assistance'' account.
inter-american foundation
Funding for this account has been included under the
``Development assistance'' account.
peace corps
Appropriations, 1998.................................... $222,000,000
Budget estimate, 1999................................... 270,335,000
Committee recommendation................................ 221,000,000
The Committee recommends an appropriation of $221,000,000
for the Peace Corps for fiscal year 1999. The Committee is
concerned that the Corps is making new commitments to send
volunteers abroad without adequate consideration of budget
pressures which will not allow any increase in program levels
for the foreseeable future. Moreover, according to volunteers,
these commitments are being made without careful consideration
as to the availability of worthwhile volunteer activities,
safety issues or other problems associated with significant and
rapid program expansion. For example, the Committee was advised
that a Russian Government decision to require monthly renewal
of visas meant volunteers would have to travel great distances
far too frequently, seriously compromising the quality of their
contribution as well as imposing enormous personal
inconvenience. This Russian mandate resulted in the need for
the Corps to redirect the assignments for an entire class of
volunteers under short time constraints. The Committee urges
the Peace Corps to exercise restraint in making political
pledges which either resources or conditions do not allow the
agency to sustain.
Department of State
international narcotics control
Appropriations, 1998.................................... $230,000,000
Budget estimate, 1999................................... 275,000,000
Committee recommendation................................ 222,000,000
The Committee recommends $222,000,000 for the International
Narcotics and Law Enforcement Account [INL].
mexico
The Committee is aware that significant amounts of United
States military equipment and training are being provided to
the Mexican security forces to support counternarcotics
activities. Additional equipment is leased or licensed for
export including lethal equipment and helicopters. The
Committee is concerned that Mexican security forces trained or
equipped by the United States have been involved in
counterinsurgency operations that have resulted in human rights
violations. The Committee expects the administration to make
every effort to prevent the misuse of U.S. training and
equipment. The Committee requests the State Department, after
consultation with the Defense Department, to submit a report to
the Committee by April 1, 1999, describing the measures taken.
Baltics
The Committee strongly supports programs in international
criminal justice for Estonia, Latvia, and Lithuania. The Baltic
nations have an excellent record in cooperating with U.S. law
enforcement agencies. Specifically, Lithuania has worked with
the United States to stem the counterfeiting of United States
currency.
The Committee recommends continued support for law
enforcement education programs and training designed to counter
the influence of organized crime and corruption, enhance border
control and intellectual property rights and stem financial
crimes and the smuggling of aliens, narcotics, and illegal
goods. The Committee believes that these programs bring a
direct benefit to the United States by reducing worldwide
organized crime and trafficking.
HERBICIDE USE
The Committee is aware of concerns about the health and
environmental impacts of aerial fumigation of chemical
herbicides in support of counternarcotics programs in tropical
ecosystems. The Committee believes that prior to the use of
tebuthiuron or any other herbicide currently under
consideration, the State Department should ensure that a
thorough, independent investigation is conducted in a country
where its use is contemplated and that the results are made
publicly available. The Committee notes that the manufacturer
of tebuthiuron has advised against its use for coca
eradication.
BIOLOGICAL CONTROL OF ILLICIT DRUG CROPS
The development of plant pathogens which are capable of
destroying illicit drug crops including opium poppy, cocaine,
and marijuana offer a potential weapon in the fight against
illicit drugs. Montana State University has field tested some
of these pathogens which have proved to be effective. This kind
of research warrants continued financial support, and the
Committee recommends funding for this activity.
migration and refugee assistance
Appropriations, 1998.................................... $650,000,000
Budget estimate, 1999................................... 650,000,000
Committee recommendation................................ 650,000,000
The Committee recommends $650,000,000 for the Migration and
Refugee Assistance Program, of which $70,000,000 is earmarked
for refugees from the former Soviet Union and Eastern Europe
and other refugees resettling in Israel.
Child Refugees
The Committee supports continued funding at last year's
level under the ``Migration and refugee'' account for programs
initiated through the United Nations High Commissioner for
Refugees fund for unaccompanied and vulnerable refugee
children.
emergency refugee and migration assistance fund
Appropriations, 1998.................................... $50,000,000
Budget estimate, 1999................................... 20,000,000
Committee recommendation................................ 20,000,000
The Committee recommends $20,000,000 for the emergency
refugee and migration assistance fund.
nonproliferation, antiterrorism, demining, and related programs
Appropriations, 1998.................................... $133,000,000
Budget estimate, 1999................................... 215,900,000
Committee recommendation................................ 170,000,000
The Committee recommends $170,000,000 for a consolidated
account which includes the nonproliferation and disarmament
fund, antiterrorism activities, demining programs, and funding
for the International Atomic Energy Agency and the Korean
Peninsula Energy Development Organization.
----------------------------------------------------------------------------------------------------------------
Committee
1998 enacted 1999 request recommendation
----------------------------------------------------------------------------------------------------------------
Antiterrorism.................................................. $19,000,000 $21,000,000 $21,000,000
Nonproliferation and disarmament fund.......................... 15,000,000 15,000,000 15,000,000
Demining....................................................... 20,000,000 50,000,000 35,000,000
International Atomic Energy Agency............................. 36,000,000 40,000,000 40,000,000
Korean Peninsula Energy Development Organization............... 30,000,000 35,000,000 35,000,000
Nonproliferation and disarmament............................... 15,000,000 15,000,000 15,000,000
Export assistance.............................................. 3,000,000 5,000,000 4,000,000
Science centers................................................ (18,000,000) 21,000,000 20,000,000
CTBT Prepcom................................................... \1\ 7,573,000 28,900,000 ..............
----------------------------------------------------------------------------------------------------------------
\1\ Fiscal year 1998 funding in ACDA and ``International conference and contingencies'' accounts. Up to
$13,000,000 authorized pursuant to Public Law 105-119.
NONPROLIFERATION AND DISARMAMENT
The Committee supports the activities carried out by this
fund for controlling the spread of nuclear weapons and
material, particularly efforts made to limit nuclear smuggling.
DEMINING
The Committee has provided $35,000,000 for the Department
of State's humanitarian demining programs, which may be made
available through governments, nongovernmental organizations,
and private contractors, for the removal of landmines and other
unexploded ordnance [UXO], and related activities. The
Committee intends that these programs will emphasize the
training of indigenous civilian deminers, mine awareness and
education, mapping and marking, surveys of mine incidents, and
outreach to mine-affected areas to monitor the needs of mine
and UXO victims. The Committee commends the United States
Embassy in Laos for its efforts to support the creation of a
United States NGO to train Laotians to defuse the Vietnam war-
era UXO that litters that country.
Comprehensive Test Ban Treaty Preparatory Commission [ctbt prepcom]
The Comprehensive Test Ban Treaty has not been ratified by
the U.S. Senate. In addition, funding for the CTBT PrepCom was
requested to acquire technical equipment by the Arms Control
and Disarmament Agency which officials acknowledge will not
provide new or unique data which would enhance the present
ability of the United States to detect seismic events around
the globe. Given these concerns, combined with pressure to fund
existing vital programs in the ``Nonproliferation,
antiterrorism, demining, and related programs'' account, the
Committee did not recommend funding for the Commission's
activities. The Committee has provided authority in related
appropriations legislation to use ACDA resources to fund more
limited activities. The Committee directs ACDA to provide a
report to the Committee, 90 days after the date of enactment,
which describes how the proposed monitoring stations could be
reconfigured to provide unique and useful information to the
United States.
sri lanka
The Committee again urges the administration to expand its
support for antiterrorism programs in Sri Lanka, where Tamil
guerrillas have mercilessly targeted innocent civilians. The
Committee remains concerned about reports that civilians are
being killed and maimed from landmines used by Sri Lankan
Government forces as well as Tamil guerrillas.
TITLE III
MILITARY ASSISTANCE
Funds Appropriated to the President
International Military Education and Training
Appropriations, 1998.................................... $50,000,000
Budget estimate, 1999................................... 50,000,000
Committee recommendation................................ 50,000,000
The Committee recommends $50,000,000 for the International
Military Education and Training [IMET] Program.
The Committee has not continued the prior limitations on
the international military education and training program for
Indonesia. However, the Committee expects the Defense Security
Assistance Agency to consult with the Committee regarding any
plans to provide IMET to Indonesia, given past human rights
concerns and the continued influence of the Armed Forces in
Indonesian political and economic affairs. Any participants
should be carefully vetted and courses should emphasize
civilian control of the armed services.
Foreign Military Financing
total program level
Appropriations, 1998.................................... $3,356,550,000
Budget estimate, 1999................................... 3,295,910,000
Committee recommendation................................ 3,342,910,000
grant level
Appropriations, 1998.................................... $3,296,550,000
Budget estimate, 1999................................... 3,275,910,000
Committee recommendation................................ 3,322,910,000
(limitation on administrative expenses)
Appropriations, 1998.................................... $23,250,000
Budget estimate, 1999................................... 29,910,000
Committee recommendation................................ 29,910,000
subsidy appropriations--direct loans
Appropriations, 1998.................................... $60,000,000
Budget estimate, 1999................................... 20,000,000
Committee recommendation................................ 20,000,000
(estimated loan program)
Appropriations, 1998.................................... $657,000,000
Budget estimate, 1999................................... 167,000,000
Committee recommendation................................ 167,000,000
The Committee has eliminated funding for the Enhanced
Peacekeeping Initiative. The administration was unable to
identify a unique or credible function for the use of these
resources nor potential recipients other than those already
substantially supported by the Africa crisis response
initiative. Justification material suggest the resources are to
be made available for U.N. standby arrangements, activities
with little congressional support.
BALTIC STATES and NATO EXPANSION
The Committee has provided $15,300,000 in FMF grant
assistance to accelerate the Baltic States integration into
NATO. The Committee regrets that budget constraints prevent
matching last year's levels but remains supportive of this
initiative. This assistance supports these democracies as they
enhance their military capacities and adopt NATO standards. The
Committee believes that FMF should be allocated among the three
nations on a proportional basis.
The Committee has not continued the prior limitations on
the international military education and training program for
Indonesia. However, the Committee expects the Defense Security
Assistance Agency to consult with the Committee regarding any
plans to provide IMET to Indonesia, given past human rights
concerns and the continued influence of the Armed Forces in
Indonesian political and economic affairs. Any participants
should be carefully vetted and courses should emphasize
civilian control of the armed services.
LANDMINES
The Committee again includes language permitting demining
equipment to be made available on a grant basis to foreign
countries. The Committee strongly supports continued use of FMF
funds for activities to assist in locating and destroying
unexploded landmines and unexploded ordnance that maim and kill
innocent people around the world.
EGYPTIAN COMMAND AND CONTROL SYSTEMS
The Committee understands that the Government of Egypt is
considering the acquisition of a tactical command and control
system for its army and is also in the process of acquiring a
forward area air defense system. In order to maximize United
States-Egyptian military cooperation during combined exercises
and operations in wartime, the Committee strongly recommends
that the Government of Egypt purchase systems manufactured by a
United States company that are currently fielded and in use by
the United States Army.
Special Defense Acquisition Fund
The Committee recommends no new obligational authority for
the special defense acquisition fund [SDAF] for fiscal year
1999. The language included in the fiscal year 1993 bill, which
requires that all receipts into the fund be returned to the
Treasury, remains in effect and will reduce the deficit by
approximately $19,000,000 in fiscal year 1999.
Peacekeeping Operations
Appropriations, 1998.................................... $77,500,000
Budget estimate, 1999................................... 83,000,000
Committee recommendation................................ 69,000,000
The Committee recommends an appropriation of $69,000,000.
The Committee has reduced funding for the ``African Regional
Peacekeeping'' account in view of the substantial United States
unilateral commitment to the African Crisis Response
Initiative. The Committee also intends no more than $5,000,000
be made available for Haiti.
TITLE IV
MULTILATERAL ECONOMIC ASSISTANCE
International Financial Institutions Summary
Appropriations, 1998.................................... $1,458,949,080
Budget estimate, 1999................................... 1,148,762,980
Committee recommendation................................ 874,610,980
The Committee recommends the total level of paid-in capital
funding shown above to provide for contributions to the
International Bank for Reconstruction and Development soft loan
window, the International Development Association, the Inter-
American Development Bank, the Asian Development Bank, and the
European Bank for Reconstruction and Development. Treatment of
arrears for multilateral institutions can be found in title VI.
International Bank for Reconstruction and Development
International Development Association [IDA]
Appropriations, 1998.................................... $1,034,503,100
Budget estimate, 1999................................... 800,000,000
Committee recommendation................................ 800,000,000
The Committee recommends an appropriation of $800,000,000
for IDA and expects the Secretary of the Treasury to work to
make IDA resources available for Indonesia.
The Committee is concerned that World Bank lending and
procurement procedures fail to prohibit or even address illegal
software use within projects funded by the bank. This Committee
cannot condone the use of World Bank funds to support projects
in which U.S. software programs are stolen in violation of
copyright law and trade-related treaty obligations. Therefore,
the Committee urges the World Bank and other multilateral
development banks to adopt, without further delay, lending and
procurement guidelines that prohibit illegal software use by
recipients (including contractors and any project
subcontractors) of any bank loan proceeds or other funds. The
Committee further directs the Treasury Department to assume
leadership on this issue by promoting adoption of the
recommended guidelines within each of the multilateral
development banks.
The Committee has provided funding for IDA subject to an
audit to be prepared by the General Accounting Office. The
Committee is concerned by recent reports of corruption at IDA
and its associated institution, the International Bank for
Reconstruction and Development. The Committee recognizes
efforts have been made through audits and investigations to
resolve this problem, however, much of this activity has been
conducted in secret. The Committee believes that efforts to
improve ethical conduct and strengthen standards of integrity
succeed best if they are established and promoted as important
and publicly upheld priorities of the institution's leadership.
The Committee has also requested a report from GAO
addressing personnel policies, in particular, concerns about
the lack of protection for individuals who volunteer
information about financial or personnel improprieties. The
Bank maintains rules which permit individuals accused of wrong
doing to confront their accuser which the Committee believes
may have a chilling affect on the inclination of employees to
be forthcoming.
The Committee is aware that in response to concerns raised
by the Committee as well as past and present World Bank female
employees about serious deficiencies in the Bank's internal
grievance procedures, Bank management sought the assistance of
an independent legal expert to review the procedures and make
recommendations for reform. That review has been completed and
Bank management has indicated that it will release the report
publicly and implement an open process that encourages
recommendations from Bank employees and interested members of
the public for reform of the grievance procedures. The
Committee welcomes these steps and expects to be kept informed
as it progresses. In an institution that is immune from the
court process it is imperative that employees have confidence
in grievances procedures that afford appropriate
confidentiality, due process, and adequate remedies.
The Committee remains concerned about the maintenance of
integrity and transparency in procurement financed by the
multilateral lending banks. The elimination of fraud and
manipulation, including the use of third-party procurement
monitoring, can result in cost savings and quality improvements
for goods and services purchased. The implementation of such
techniques may also enhance U.S. competitiveness in procurement
awards. Accordingly, the Committee requests that the
institutions receiving contributions under this section provide
a report outlining their individual program to combat fraud and
manipulation, including whether the use of third-party
procurement monitoring is employed.
Inter-American Development Bank
Interregional paid-in capital
Appropriations, 1998.................................... $25,610,667
Budget estimate, 1999................................... 25,610,667
Committee recommendation................................ 25,610,667
limitation on callable capital
Appropriations, 1998.................................... $1,503,718,910
Budget estimate, 1999................................... 1,503,718,910
Committee recommendation................................ 1,503,718,910
Asian Development Bank
PAID-IN CAPITAL
Appropriations, 1998.................................... $13,221,596
Budget estimate, 1999................................... 13,221,596
Committee recommendation................................ 13,221,596
LIMITATION ON CALLABLE CAPITAL
Appropriations, 1998.................................... $647,858,204
Budget estimate, 1999................................... 647,858,204
Committee recommendation................................ 647,858,204
Given the enormous importance the Committee attaches to
resolving the economic crisis affecting most Asian nations,
especially Korea, Thailand, and Indonesia, the Committee has
fully funded the Asian Development Bank.
European Bank for Reconstruction and Development
paid-in capital
Appropriations, 1998.................................... $35,778,717
Budget estimate, 1999................................... 35,778,717
Committee recommendation................................ 35,778,717
limitation on callable capital
Appropriations, 1998.................................... $123,237,803
Budget estimate, 1999................................... 123,237,803
Committee recommendation................................ 123,237,803
The European Bank for Reconstruction and Development
continues to play an important role in central and Eastern
Europe and the former Soviet Union. The Committee notes that
this institution intends to be self-sufficient in the near term
and welcomes this development.
International Monetary Fund
Enhanced Structural Facility
Appropriations, 1998....................................................
Budget estimate, 1999................................... $7,000,000
Committee recommendation................................................
The Committee believes that other institutions,
particularly the International Development Association, along
with regular International Monetary Fund [IMF] programs can
provide support for programs intended to be funded under this
facility.
International Organizations and Programs
Appropriations, 1998.................................... $192,000,000
Budget estimate, 1999................................... 314,000,000
Committee recommendation................................ 170,000,000
The Committee has provided $170,000,000 for the
``International organizations and programs'' account. This
amount does not include funding for the Korea Peninsula
Economic Development Organization [KEDO] and the International
Atomic Energy Agency [IAEA] which are provided for in the
nonproliferation, antiterrorism, demining, and related programs
section of the bill. It also does not include funds for UNICEF,
made available under the heading ``Development Assistance.''
The Committee has included language earmarking $5,000,000
for a U.S. contribution to the World Food Program, which has a
central role in responding to famines and food emergencies
around the world.
u.n. fund for victims of torture
The Committee is aware that the use of torture is common
for victims in scores of countries today. The U.N. Fund for
Victims of Torture provides financial support to treatment
programs based in the United States and abroad. The Committee
recommends an increase for the U.S. contribution to the
voluntary fund in fiscal year 1999 and continues to urge the
Department of State to encourage other governments to increase
their own contributions. The Committee hopes that by increasing
U.S. support for efforts to assist torture victims other
governments will be encouraged to do likewise.
U.N. Climate Stabilization Fund
The Committee is opposed to efforts by the administration
to use scarce foreign assistance resources to fund activities
to induce or compel compliance with agreements and treaties not
yet ratified nor in force. In particular, the Committee
strongly objects to representations in budget justification
materials describing the need to provide assistance to support
the Kyoto protocol, portions of which are characterized as
legally binding. Therefore, the Committee has reduced funding
for fiscal year 1999 for the Climate Stabilization Fund and has
withheld the availability of funds until the administration
provides an assessment of the disposition of fiscal years 1998
and 1999 funding, a detailed description of activities and
programs, and the number of personnel assigned or detailed to
these programs.
TITLE V
GENERAL PROVISIONS
Sec. 501.--Obligation of funds.
Sec. 502.--Restricts transfer of development assistance.
Sec. 503.--Limits residential expenses.
Sec. 504.--Limits AID entertainment expenses.
Sec. 505.--Limits other agency entertainment expenses.
Sec. 506.--Prohibition on financing of nuclear goods.
Sec. 507.--Restricts funding for Cuba, Iraq, Libya, North
Korea, Iran, Sudan, and Syria.
Sec. 508.--Restricts aid to countries which undergo a coup.
Sec. 509.--Requires notification of any transfer of funds
to an account to which it was not appropriated.
Sec. 510.--Deobligation/reobligation authority.
Sec. 511.--Restricts the availability of funds to current
fiscal year.
Sec. 512.--Limits assistance to countries in default.
Sec. 513.--Restricts Export-Import Bank and OPIC from
funding exports or activities which harm U.S. producers
engaging in similar businesses.
Sec. 514.--Restricts funding for surplus commodities.
Sec. 515.--Requires notification of spending changes.
Sec. 516.--Restricts funds for international organizations
and programs.
Sec. 517.--Economic support fund assistance for Israel.
Sec. 518.--Prohibits funding for abortions and involuntary
sterilization.
Sec. 519.--Prohibition on funds for foreign organizations
that perform abortion.
Sec. 520.--North Korean narcotics report.
Sec. 521.--Special notification for India, Colombia,
Dominican Republic, Haiti, Liberia, Pakistan, Serbia, Sudan, or
Democratic Republic of the Congo.
Sec. 522.--Definition of program, project and activity.
Sec. 523.--Child survival and AIDS programs.
Sec. 524.--Prohibits indirect funding to Cuba, Iraq, Libya,
Iran, Syria, North Korea, or People's Republic of China.
Sec. 525.--Technical change to AECA
Sec. 526.--Notification of excess defense equipment.
Sec. 527.--Waives authorization requirement.
Sec. 528.--Prohibits bilateral assistance to terrorist
nations.
Sec. 529.--Allows for commercial leasing of defense
articles.
Sec. 530.--Allows U.S. insurance companies to bid for
insurance contracts.
Sec. 531.--Restricts stingers for Persian Gulf nations.
Sec. 532.--Provides for debt-for-development programs.
Sec. 533.--Requires separate accounts for local currencies
and cash transfers.
Sec. 534.--Compensation for U.S. executive directors to
international financial institutions.
Sec. 535.--Compliance with U.N. sanctions against Iraq.
Sec. 536.--Competitive pricing for sales of defense
articles.
Sec. 537.--Authorities for Peace Corps, IFAD, Inter-
American Foundation an African Development Foundation.
Sec. 538.--Restricts impacts on U.S. jobs.
Sec. 539.--Restricts Kosovo related sanctions against
Serbia and Montenegro.
Sec. 540.--Provides special authorities.
Sec. 541.--Sense of the Congress regarding the Arab League
boycott of Israel.
Sec. 542.--Allows economic support funds to be used for
counternarcotic programs in Latin America and Caribbean.
Sec. 543.--Requires notification for funding of
nongovernmental organizations and Public Law 480 programs in
countries subject to restrictions.
Sec. 544.--Requires notification of reprogramming of
earmarked funds.
Sec. 545.--Defines ceilings and earmarks.
Sec. 546.--Prohibits funds for publicity or propaganda.
Sec. 547.--Purchase of American goods.
Sec. 548.--Prohibits payments to the United Nations.
Sec. 549.--Requires expenditure of consulting services be
matter of public record.
Sec. 550.--Requires private voluntary organizations to be
able to provide documents.
Sec. 551.--Prohibits assistance to foreign governments that
export lethal military equipment to countries supporting
international terrorism.
Sec. 552.--Withholds assistance for parking fines owed by
foreign countries.
Sec. 553.--Limits assistance for the PLO.
Sec. 554.--Allows drawdown for United Nations War Crimes
Tribunal.
Sec. 555.--Provides demining equipment to foreign
countries.
Sec. 556.--Restrictions concerning Palestinian authority.
Sec. 557.--Prohibits payment of certain expenses for IMET
and foreign military financing.
Sec. 558.--Provides for special debt relief to the poorest.
Sec. 559.--Provisions relative to loans eligible for sale,
reduction, or cancellation.
Sec. 560.--Limits assistance for Haiti.
Sec. 561.--Requires report detailing recipient nation's
support for the United States at the United Nations.
Sec. 562.--Burma labor report.
Sec. 563.--Allows Haiti police and Coast Guard to purchase
defense articles and services.
Sec. 564.--Limitations on assistance to security forces.
Sec. 565.--Limitations on international financial
institution support for Cambodia.
Sec. 566.--Limitations on transfer of military equipment to
East Timor.
Sec. 567.--Restrictions on U.N. voluntary contributions.
Sec. 568.--Limitations on aid to countries offering
sanctuary to war criminals.
Sec. 569.--Excess Defense Article for Europe.
Sec. 570.--Stockpiling.
Sec. 571.--Religious discrimination in Russia.
Sec. 572.--Report on costs of greenhouse gas agency
expenditures.
Sec. 573.--Violations of Libya sanctions.
Sec. 574.--Aid to the Democratic Republic of Congo.
Sec. 575.--Export financing transfer authorities.
Sec. 576.--New Independent States.
Sec. 577.--Publication of certain notifications.
Sec. 578.--Report on arms exports.
Sec. 579.--National Advisory Council.
Sec. 580.--Limitations on Palestinian authority aid.
TITLE VI--MULTILATERAL ECONOMIC ASSISTANCE
funds appropriated to the president
fiscal year 1998 supplemental
payments for amounts previously due
Appropriations, 1998.................................... $360,012,100
Budget estimate, 1999................................... 509,000,000
Committee recommendation................................ 310,652,000
INTERNATIONAL BANK for RECONSTRUCTION and DEVELOPMENT
Global Environment Facility
Appropriations, 1998.................................... $47,500,000
Budget estimate, 1999................................... 300,000,000
Committee recommendation................................ 47,500,000
INTER-AMERICAN DEVELOPMENT BANK
Fund for Special Operations
Appropriations, 1998.................................... $20,835,000
Budget estimate, 1999................................... 21,152,000
Committee recommendation................................ 21,152,000
enterprise for the americas
Multilateral Investment Fund
Appropriations, 1998.................................... $30,000,000
Budget estimate, 1999................................... 50,000,000
Committee recommendation................................ 50,000,000
ASIAN DEVELOPMENT FUND
Appropriations, 1998.................................... $40,000,000
Budget estimate, 1999................................... 187,000,000
Committee recommendation................................ 187,000,000
AFRICA DEVELOPMENT FUND
Appropriations, 1998.................................... $45,000,000
Budget estimate, 1999................................... 88,300,000
Committee recommendation................................ 5,000,000
The Committee has completed arrears payments for the Inter-
American Development Bank Fund for Special Operations, the
Asian Development Fund, and the African Development Fund,
consistent with special treatment provided by the Committee on
the Budget.
The Committee has provided the requested level for the
Enterprise for the Americas Multilateral Investment Fund. The
Committee did not increase the amount made available to reduce
MIF arrears payments due to ongoing, serious concerns about the
Inter-American Bank's management of MIF resources. The
Committee expects prompt action to improve the quality and
amount of attention the Bank dedicates to MIF projects.
The Committee has provided last year's level of funding for
payments of arrears to the International Bank for
Reconstruction and Development's Global Environment Facility.
loans to INTERNATIONAL MONETARY FUND
New Arrangements to Borrow
Appropriations, 1998....................................................
Budget estimate, supplemental, 1998..................... $3,361,000,000
Committee recommendation................................ 3,361,000,000
Quota Increase
Appropriations, 1998....................................................
Budget estimate, supplemental, 1998..................... $14,500,000,000
Committee recommendation................................ 14,500,000,000
The Committee has included funding for the new arrangements
to borrow and the quota increase for the International Monetary
Fund, consistent with the fiscal year 1998 supplemental
request. The Committee has also included language as passed by
the Senate regarding IMF reforms designed to improve management
of and timely access to decisionmaking and information relevant
to the Fund's lending practices. In view of the impact the
Asian crisis has had on the IMF's liquidity and usable
resources and the real prospect of additional imminent
requirements, the Committee views the replenishment of IMF
resources as a high priority.
COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE
SENATE
Rule XVI, paragraph 7 requires that every report on a
general appropriation bill filed by the Committee must identify
each recommended amendment, with particularity, which proposes
an item of appropriation which is not made to carry out the
provisions of an existing law, a treaty stipulation, or an act
or resolution previously passed by the Senate during that
session.
Items providing funding for fiscal year 1999 which lack
authorization are as follows:
Export-Import Bank...................................... $785,000,000
Trade and Development Agency............................ 43,000,000
Development assistance, including Inter-American
Foundation, African Development Foundation.......... 1,885,000,000
International disaster assistance....................... 200,000,000
Debt restructuring...................................... 25,000,000
Treasury technical assistance........................... 3,000,000
Micro and Small Enterprise Development Program.......... 2,000,000
Urban and Environmental Credit Program.................. 7,000,000
AID operating expenses.................................. 475,000,000
AID operating expenses, Office of Inspector General..... 30,000,000
Economic support fund................................... 2,305,600,000
Assistance for Eastern Europe and the Baltics........... 432,600,000
Assistance for the New Independent States of the former
Soviet Union........................................ 740,000,000
Peace Corps............................................. 221,000,000
International narcotics control......................... 222,000,000
Migration and refugee assistance........................ 650,000,000
Nonproliferation, antiterrorism, demining, and related
programs............................................ 170,000,000
International military education and training........... 50,000,000
Foreign Military Financing Program...................... 3,322,910,000
Peacekeeping operations................................. 69,000,000
International organizations and programs................ 170,000,000
COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE
SENATE
Pursuant to paragraph 7(c) of rule XXVI, the Committee
ordered reported, S. 2334, an original Foreign Operations
appropriations bill, 1999, subject to amendment and subject to
appropriate scorekeeping, by a recorded vote of 26-1, a quorum
being present. The vote was as follows:
Yeas Nays
Chairman Stevens Mr. Faircloth
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mrs. Hutchison
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Boxer
COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE
SENATE
Paragraph 12 of rule XXVI requires that Committee report on
a bill or joint resolution repealing or amending any statute or
part of any statute include ``(a) the text of the statute or
part thereof which is proposed to be repealed; and (b) a
comparative print of that part of the bill or joint resolution
making the amendment and of the statute or part thereof
proposed to be amended, showing by stricken-through type and
italics, parallel columns, or other appropriate typographical
devices the omissions and insertions which would be made by the
bill or joint resolution if enacted in the form recommended by
the committee.''
In compliance with this rule, the following changes in
existing law proposed to be made by the bill are shown as
follows: existing law to be omitted is enclosed in black
brackets, new matter is printed in italic, and existing law in
which no change is proposed is shown in roman.
Foreign Assistance Act of 1961
PART I
Chapter 1--Policy; Development Assistance Authorizations
* * * * * * *
Sec. 108. Private Sector Revolving Fund.--(a) * * *
* * * * * * *
(i) (1) To carry out the purposes of subsection (a), in
addition to the other authorities set forth in this section,
the agency primarily responsible for administering this part is
authorized to issue guarantees on such terms and conditions as
it shall determine assuring against losses incurred in
connection with loans made to projects that meet the criteria
set forth in subsection (c). The full faith and credit of the
United States is hereby pledged for the full payment and
performance of such guarantees.
(2) Loans guaranteed under this subsection shall be on such
terms and conditions as the agency may prescribe, except for
the following:
(A) The agency shall issue guarantees only when it is
necessary to alleviate a credit market imperfection.
(B) Loans guaranteed shall provide for complete
amortization within a period not to exceed ten years
or, if the principal purpose of the guaranteed loan is
to finance the construction or purchase of a physical
asset with a useful life of less than ten years, within
a period not to exceed such useful life.
[(C) No loan guaranteed to any one borrower may
exceed 50 percent of the cost of the activity to be
financed, or $3,000,000, whichever is less, as
determined by the agency.]
(C) No guarantee of any loan may guarantee more than
50 percent of the principal amount of any such loan,
except guarantees of loans in support of
microenterprise activites may guarantee up to 70
percent of the principal amount of any such loan.
* * * * * * *
Sec. 123. Private and Voluntary Organizations and
Cooperatives in Overseas Development.--(a) * * *
[(g) After December 31, 1984, funds made available to carry
out section 103(a), 104(b), 104(c), 105, 106, 491, or 496 of
this Act may not be made available for programs of any United
States private and voluntary organization which does not obtain
at least 20 percent of its total annual financial support for
its international activities from sources other than the United
States Government, except that this restriction does not apply
with respect to programs which, as of that date, are receiving
financial support from the agency primarily responsible for
administering this part. The Administrator of the agency
primarily responsible for administering this part may, on a
case-by-case basis, waive the restriction established by this
subsection, after taking into account the effectiveness of the
overseas development activities of the organization, its level
of volunteer support, its financial viability and stability,
and the degree of its dependence for its financial support on
the agency primarily responsible for administering this part.]
* * * * * * *
Chapter 2--Other Programs
* * * * * * *
Title III--Housing and Other Credit Guaranty Programs
* * * * * * *
Sec. 222. Authorization.--(a) To carry out the policy of
section 221, the President is authorized to issue guaranties to
eligible investors (as defined in section 238(c)) assuring
against losses incurred in connection with loans made for
projects meeting the criteria set forth in section 221. [The
total principal amount of guaranties issued under this title or
heretofore issued under prior housing guaranty authorities,
which are outstanding at any one time, shall not exceed
$2,558,000,000. The authority of this section shall continue
through September 30, 1992.] The President may issue
regulations from time to time with regard to the terms and
conditions upon which such guaranties shall be issued and the
eligibility of lenders.
* * * * * * *
Sec. 223. General Provisions.--(a) * * *
* * * * * * *
(j) Guaranties shall be issued under section 222 only for
housing projects which are coordinated with and complementary
to any development assistance being furnished under chapter 1
of this part and which are specifically designed to demonstrate
the feasibility and suitability of particular kinds of housing
or of financial or other institutional arrangements. Of the
aggregate face value of housing guaranties hereafter issued
under this title, not less than 90 per centum shall be issued
for housing suitable for families with income below the median
income (below the median urban income for housing in urban
areas) in the country in which the housing is located. [The
face value of guaranties issued with respect to housing in any
country shall not exceed $25,000,000 in any fiscal year, and
the average face value of guaranties issued in any fiscal year
shall not exceed $15,000,000. Of the total amount of housing
guaranties authorized to be issued under section 222 through
September 30, 1982, not less than a face amount of $25,000,000
shall be issued for projects in Israel and not less than a face
amount of $25,000,000 shall be issued for projects in Egypt.]
* * * * * * *
Chapter 3--International Organizations and Programs
* * * * * * *
Sec. 307. Withholding of United States Proportionate Share
for Certain Programs of International Organizations.--(a)
Notwithstanding any other provision of law, none of the funds
authorized to be appropriated by this chapter shall be
available for the United States proportionate share for
programs for Burma, Iraq, North Korea, Syria, Libya, Iran,
Cuba, or the Palestine Liberation Organization or for projects
whose purpose is to provide benefits to the Palestine
Liberation Organization or entities associated with it, or at
the discretion of the President, Communist countries listed in
section 620(f) of this Act.
* * * * * * *
PART II
* * * * * * *
Chapter 2--Military Assistance
* * * * * * *
Sec. 514. Stockpiling of Defense Articles for Foreign
Countries.--(a) No defense article in the inventory of the
Department of Defense which is set aside, reserved, or in any
way earmarked or intended for future use by any foreign country
may be made available to or for use by any foreign country
unless such transfer is authorized under this Act or the Arms
Export Control Act, or any subsequent corresponding
legislation, and the value of such transfer is charged against
funds authorized under such legislation or against the
limitations specified in such legislation, as appropriate, for
the fiscal period in which such defense article is transferred.
For purposes of this subsection, ``value'' means the
acquisition cost plus crating, packing, handling, and
transportation costs incurred in carrying out this section.
(b)(1) The value of defense articles to be set aside,
earmarked, reserved, or intended for use as war reserve stocks
for allied or other foreign countries (other than for purposes
of the North Atlantic Treaty Organization or in the
implementation of agreements with Israel) in stockpiles located
in foreign countries may not exceed in any fiscal year an
amount that is specified in security assistance authorizing
legislation for that fiscal year.
(2) (A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997 [and],
$60,000,000 for fiscal year 1998 and $340,000,000 for fiscal
year 1999.
(B) Of the amount specified in subparagraph (A) for each of
the fiscal years 1996 and 1997, not more than $40,000,000 may
be made available for stockpiles in the Republic of Korea and
not more than $10,000,000 may be made available for stockpiles
in Thailand. Of the amount specified in subparagraph (A) for
fiscal year 1998, not more than $40,000,000 may be made
available for stockpiles in the Republic of Korea and not more
than $20,000,000 may be made available for stockpiles in
Thailand. Of the amount specified in subparagraph (A) for
fiscal year 1999, not more than $320,000,000 may be made
available for stockpiles in the Republic of Korea and not more
than $20,000,000 may be made available for stockpiles in
Thailand.
* * * * * * *
SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.
(a) Authorization.--* * *
* * * * * * *
(f) Advance Notification to Congress for Transfer of
Certain Excess Defense Articles.--
(1) In general.--The President may not transfer
excess defense articles that are significant military
equipment (as defined in section 47(9) of the Arms
Export Control Act) or excess defense articles valued
(in terms of original acquisition cost) at $7,000,000
or more, under this section or under the Arms Export
Control Act (22 U.S.C. 2751 et seq.) until 30 days
after the date on which the President has provided
notice of the proposed transfer to the congressional
committees specified in section 634A(a) in accordance
with procedures applicable to reprogramming
notifications under that section.
(2) Contents.--Such notification shall include--
(A) a statement outlining the purposes for
which the article is being provided to the
country, including whether such article has
been previously provided to such country;
(B) an assessment of the impact of the
transfer on the military readiness of the
United States;
(C) an assessment of the impact of the
transfer on the national technology and
industrial base and, particularly, the impact
on opportunities of entities in the national
technology and industrial base to sell new or
used equipment to the countries to which such
articles are to be transferred; and
(D) a statement describing the current value
of such article and the value of such article
at acquisition.
(3) Publication.--Each notice required by this
subsection shall be published in the Federal Register
as soon as practicable after it has been provided to
the congressional committees specified in section
634A(a). In any case in which the President concludes
that such publication would be harmful to the national
security of the United States, only a statement that a
notice has been provided pursuant to this subsection to
such committees shall be published.
* * * * * * *
Chapter 4--Economic Support Fund
Sec. 531. Authority.--(a) * * *
* * * * * * *
[(d) To the maximum extent feasible, funds made available
pursuant to this chapter for commodity import programs or other
program assistance shall be used to generate local currencies,
not less than 50 percent of which shall be available to support
activities consistent with the objectives of sections 103
through 106 of this Act, and administered by the agency
primarily responsible for administering part I of this Act.]
* * * * * * *
PART III
Chapter 1--General Provisions
* * * * * * *
[Sec. 609. Special Account.--(a) In cases where any
commodity is to be furnished on a grant basis under chapter 4
of part I under arrangements which will result in the accrual
of proceeds to the recipient country from the sale thereof, the
President shall require the recipient country to establish a
Special Account, and
[(1) deposit in the Special Account, under terms and
conditions as may be agreed upon, currency of the
recipient country in amounts equal to such proceeds;
[(2) make available to the United States Government
such portion of the Special Account as may be
determined by the President to be necessary for the
requirements of the United States Government: Provided,
That such portion shall not be less than 10 per centum
in the case of any country to which such minimum
requirement has been applicable under any Act repealed
by this Act; and
[(3) utilize the remainder of the Special Account for
programs agreed to by the United States Government to
carry out the purposes for which new funds authorized
by this Act would themselves be available: Provided,
That whenever funds from such Special Account are used
by a country to make loans, all funds received in
repayment of such loans prior to termination of
assistance to such country shall be reused only for
such purposes as shall have been agreed to between the
country and the United States Government.
[(b) Any unencumbered balances of funds which remain in the
Account upon termination of assistance to such country under
this Act shall be disposed of for such purposes as may, subject
to approval by Act of the Congress, be agreed to between such
country and the United States Government.]
* * * * * * *
Sec. 534. Administration of Justice.--(a) * * *
* * * * * * *
[(c) Not more than $20,000,000 of the funds made available
to carry out this chapter for any fiscal year shall be
available to carry out this section, in addition to amounts
otherwise available for such purposes.]
* * * * * * *
(e) Personnel of the Department of Defense and members of
the United States Armed Forces may not participate in the
provision of training under this section. [Of the funds made
available to carry out this section, not more than $10,000,000
may be made available in fiscal year 1991 to carry out the
provisions of subsection (b)(3) of this section. The authority
of this section shall expire on September 30, 1991.]
* * * * * * *
Arms Export Control Act
Chapter 6--LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR
COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES
Sec. 61. Leasing Authority.--(a) The President may lease
defense articles in the stocks of the Department of Defense to
an eligible foreign country or international organization if--
(1) he determines that there are compelling foreign
policy and national security reasons for providing such
articles on a lease basis rather than on a sales basis
under this Act;
(2) he determines that the articles are not for the
time needed for public use;
(3) the President first considers the effects of the
lease of the articles on the national technology and
industrial base, particularly the extent, if any, to
which the lease reduces the opportunities of entities
in the national technology and industrial base to sell
new equipment to the country or countries to which the
articles are leased; and
(4) the country or international organization has
agreed to pay in United States dollars all costs
incurred by the United States Government in leasing
such articles, including reimbursement for depreciation
of such articles while leased, the costs of restoration
or replacement if the articles are damaged while
leased, and, if the articles are lost or destroyed
while leased--
(A) in the event the United States intends to
replace the articles lost or destroyed, the
replacement cost (less any depreciation in the
value) of the articles; or
(B) in the event the United States does not
intend to replace the articles lost or
destroyed, an amount not less than the actual
value (less any depreciation in the value)
specified in the lease agreement.
The requirement of paragraph (4) shall not apply to leases
entered into for purposes of cooperative research or
development, military exercises, or communications or
electronics interface projects. The President may waive the
requirement of paragraph (4) for reimbursement of depreciation
for any defense article which has passed three-quarters of its
normal service life if the President determines that to do so
is important to the national security interest of the United
States.
The President may waive the requirement of paragraph (4)
with respect to a lease which is made in exchange with the
lessee for a lease on substantially reciprocal terms of defense
articles for the Department of Defense, except that this waiver
authority--
(A) may be exercised only if the President submits to
the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate, in accordance with the
regular notification procedures of those Committees, a
detailed notification for each lease with respect to
which the authority is exercised; and
(B) may be exercised only during the fiscal year
[1998] the current fiscal year and only with respect to
one country, unless the Congress hereafter provides
otherwise.
The preceding sentence does not constitute authorization of
appropriations for payments by the United States for leased
articles.
(b) Each lease agreement under this section shall be for a
fixed duration of not to exceed five years and shall provide
that, at any time during the duration of the lease, the
President may terminate the lease and require the immediate
return of the leased articles.
(c) Defense articles in the stocks of the Department of
Defense may be leased or loaned to a foreign country or
international organization only under the authority of this
chapter or chapter 2 of part II of the Foreign Assistance Act
of 1961, and may not be leased to a foreign country or
international organization under the authority of section 2667
of title 10, United States Code.
* * * * * * *
Foreign Assistance and Related Programs Appropriations Act, 1985
(Public Law 98-473)
TITLE I--MULTILATERAL ECONOMIC ASSISTANCE
Funds Appropriated to the President
International Financial Institutions
* * * * * * *
contribution to the international development association
For payment to the International Development Association by
the Secretary of the Treasury, $750,000,000, for the first
installment of the United States contribution to the seventh
replenishment, to remain available until expended, and
$150,000,000 for the United States contribution to the sixth
replenishment, to remain available until expended: Provided,
That no such payment may be made while the United States
Executive Director to the International Bank for Reconstruction
and Development is compensated by the Bank at a rate in excess
of the rate provided for an individual occupying a position at
level IV of the Executive Schedule under section 5315 of title
5, United States Code, or while the alternate United States
Executive Director to the Bank is compensated by the Bank at a
rate in excess of the rate provided for an individual occupying
a position of level V of the Executive Schedule under section
5316 of title 5, United States Code: Provided further, That
there is hereby enacted into law the amendment made by section
901 of S. 2582, as reported by the Committee on Foreign
Relations for loans shall remain available of obligation until
September 30, 1986: Provided further, That of the funds
appropriated under this paragraph, $2,000,000 shall be
transferred to and made available for ``Science and technology,
Development Assistance'', which sum shall be made available
only for cooperative projects among the United States, Israel
and developing countries.
* * * * * * *
[Private and Voluntary Organizations: None of the funds
appropriated or otherwise made available in this Act for
development assistance may be made available after January 1,
1986, to any United States private and voluntary organization,
except any cooperative development organization, which obtains
less than 25 percent of its total annual funding for
international activities from sources other than the United
States Government, notwithstanding section 123(g) of the
Foreign Assistance Act of 1961.]
* * * * * * *
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1989 (Public Law 100-461)
TITLE I--MULTILATERAL ECONOMIC ASSISTANCE
Funds Appropriated to the President
International Financial Institutions
* * * * * * *
SUB-SAHARAN AFRICA, DEVELOPMENT ASSISTANCE
For necessary expenses to carry out the provisions of
sections 103 through 106 and section 121 of the Foreign
Assistance Act of 1961, $500,000,000, for assistance only for
Sub-Saharan Africa, which shall be in addition to any amounts
otherwise made available for such purposes: Provided, That any
of the funds which are appropriated under this heading may be
used for assistance for Sub-Saharan Africa to carry out any
economic development assistance activities under the Foreign
Assistance Act of 1961: Provided further, That assistance made
available under this heading shall be used to help the poor
majority in Sub-Saharan Africa through a process of long-term
development and economic growth that is equitable,
participatory, environmentally sustainable, and self-reliant:
Provided further, That these objectives may, in part, be
achieved through the integration of women in the development
process, appropriate consultation with private voluntary
organizations, African and other organizations with a local
perspective on the development process, and inclusion of the
perspectives and participation of those affected by the
provision of assistance: Provided further, That assistance made
available under this heading shall be provided in accordance
with the policies contained in section 102 of the Foreign
Assistance Act of 1961: Provided further, That assistance made
available under this heading should be provided, when
consistent with the objectives of such assistance, through
African, United States and other private and voluntary
organizations which have demonstrated effectiveness in the
promotion of local grassroots activities on behalf of long-term
development in Sub-Saharan Africa: Provided further, That
assistance made available under this heading should be used to
help overcome shorter-term constraints to long term
development; to promote reform of sectoral economic policies to
support the critical sector priorities of agricultural
production and natural resources, health, voluntary family
planning services, education, and income generating
opportunities; to bring about appropriate sectoral
restructuring of the Sub-Saharan African economies; to support
reform in public administration and finances and to establish a
favorable environment for individual enterprise and self-
sustaining development: Provided further, That assisted policy
reforms should take into account the need to protect vulnerable
groups: Provided further, That assistance made available under
this heading shall be used to increase agricultural production
in ways which protect and restore the natural resource base,
especially food production; to maintain and improve basic
transportation and communication networks; to maintain and
restore the renewable natural resource base in ways which
increase agricultural production; to improve health conditions
with special emphasis on meeting the health needs of mothers
and children, including the establishment of self-sustaining
primary health care systems that give priority to preventive
care; to provide increased access to voluntary family planning
services; to improve basic literacy and mathematics especially
to those outside the formal educational system and to improve
primary education; and to develop income-generating
opportunities for the unemployed and underemployed in urban and
rural areas: Provided further, That the Administrator of the
Agency for International Development should target the
equivalent of 10 percent of the funds appropriated under this
heading for each of the following: (1) maintaining and
restoring the renewable natural resource base in ways which
increase agricultural production, including components of
agriculture activities which are consistent with this
objective, (2) health activities, and (3) voluntary family
planning[: Provided further, That local currencies generated by
the sale of imports or foreign exchange by the government of a
country in Sub-Saharan Africa from funds appropriated under
this heading shall be deposited in a special account
established by that government: Provided further, That these
local currencies shall be available only for use, in accordance
with an agreement with the United States, for development
activities which are consistent with the policy directions of
section 102 of the Foreign Assistance Act of 1961 and for
necessary administrative requirements of the United States
Government]: Provided further, That in order to carry out the
purposes of this heading, section 604(a) of the Foreign
Assistance Act of 1961, and similar provisions of law, shall
not apply with respect to the implementation of assistance
activities consistent with the purposes of this heading:
Provided further, That the funds made available under this
heading shall be provided only on a grant basis.
* * * * * * *
Public Law 104-164
SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.
Notwithstanding section 516(e) of the Foreign Assistance
Act of 1961, as added by this Act, during each of the fiscal
years [1996 and 1997] 1998 and 1999, funds available to the
Department of Defense may be expended for crating, packing,
handling, and transportation of excess defense articles
transferred under the authority of section 516 of such Act to
countries that are eligible to participate in the Partnership
for Peace and that are eligible for assistance under the
Support for East European Democracy [SEED] Act of 1989.
GOVERNMENT PERFORMANCE AND RESULTS ACT [GPRA]
According to the General Accounting Office, USAID's annual
performance plan partially meets the Result Act requirements.
In general, while the plan includes objective and quantitative
development goals and indicators, the plan does not provide
enough information to link USAID's strategies and performance
with intended development results. GAO suggests that the plan
could be improved to better meet the purposes of the Results
Act if it (1) included indicators that more directly measured
the effectiveness of USAID programs; and (2) provided a more
explicit description of the strategies and external factors
associated with meeting its six development goals.
While the Committee believes the act establishes important
objectives, it recognizes it is difficult to quantify or
measure on a consistent basis the impact of development
programs, especially those involving long-term commitments of
resources. For example, while it may be possible to partially
evaluate maternal health care programs by recording a reduction
in delivery-related mortalities, other information such as
maternal longevity, which may directly result from improved
care, may not be statistics that are either immediately
available or possible to include in a survey of effectiveness.
A statistical approach in evaluation of development programs
may produce unwanted results; the Committee wishes to avoid
outcomes such as registering the number of program participants
rather than meeting more important objectives such as outreach
or quality.
To avoid further confusion, which has been evident in AID's
management of GPRA requirements, the Committee directs the AID
Assistant Administrator for Management to consult with the
General Accounting Office and jointly provide recommendations
to the Committee on how to evaluate the use of resources and
program effectiveness. The Committee discourages a quantitative
approach or analysis for a solution to meeting GPRA
expectations.
BUDGETARY IMPACT OF BILL
PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
AMENDED
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Budget authority Outlays
---------------------------------------------------
Committee Amount of Committee Amount of
allocation bill allocation bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
to its subcommittees of amounts for 1999: Subcommittee on
Foreign Operations, Export Financing, and Related Programs:
Defense discretionary................................... ...........
Nondefense discretionary................................ 12,600 12,554 12,575 \1\ 12,595
Violent crime reduction fund............................ ........... ........... ........... ...........
Mandatory............................................... 45 45 45 45
Projections of outlays associated with the recommendation:
1999.................................................... ........... ........... ........... \2\ 4,945
2000.................................................... ........... ........... ........... 3,123
2001.................................................... ........... ........... ........... 2,317
2002.................................................... ........... ........... ........... 908
2003 and future year.................................... ........... ........... ........... 1,337
Financial assistance to State and local governments for 1998
in bill.................................................... NA ........... NA ...........
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.
\2\ Excludes outlays from prior-year budget authority.
NA: Not applicable.
Note.--Consistent with the supplemental funding recommended in the bill for arrearages and for the International
Monetary Fund, and in accordance with section 314(b) of the Congressional Budget Act of 1974, as amended, the
Committee anticipates that the Budget Committee will file revised section 302(a) allocations for the Committee
on Appropriations reflecting an upward adjustment of $18,172,000,000 in budget authority for fiscal year 1998
and $25,000,000 in outlays for fiscal year 1999.
COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1998 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
YEAR 1999
--------------------------------------------------------------------------------------------------------------------------------------------------------
Senate Committee recommendation
Committee compared with (+ or -)
Item 1998 appropriation Budget estimate recommendation ---------------------------------------
1998 appropriation Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
TITLE I--EXPORT AND INVESTMENT ASSISTANCE
EXPORT-IMPORT BANK OF THE UNITED STATES
Limitation on Program Activity:
Subsidy appropriation........................... $683,000,000 $808,000,000 $785,000,000 +$102,000,000 -$23,000,000
(Direct loan authorization)..................... (1,330,000,000) (1,325,000,000) (1,325,000,000) (-5,000,000) ..................
(Guaranteed loan authorization)................. (11,300,000,000) (15,401,000,000) (15,401,000,000) (+4,101,000,000) ..................
Administrative expenses......................... 48,614,000 51,940,000 49,000,000 +386,000 -2,940,000
Negative subsidy................................ -51,000,000 -25,000,000 -25,000,000 +26,000,000 ..................
---------------------------------------------------------------------------------------------------
Total, Export-Import Bank of the United States 680,614,000 834,940,000 809,000,000 +128,386,000 -25,940,000
===================================================================================================
INTERNATIONAL ASSISTANCE PROGRAMS
OVERSEAS PRIVATE INVESTMENT CORPORATION
Noncredit account:
Administrative expenses......................... 32,000,000 34,000,000 32,000,000 .................. -2,000,000
Insurance fees and other offsetting collections. -251,000,000 -260,000,000 -260,000,000 -9,000,000 ..................
Direct loans:
Loan subsidy.................................... 4,000,000 4,000,000 4,000,000 .................. ..................
(Loan authorization)............................ (133,000,000) (200,000,000) (200,000,000) (+67,000,000) ..................
Guaranteed loans:
Loan subsidy.................................... 56,000,000 46,000,000 46,000,000 -10,000,000 ..................
(Loan authorization)............................ (1,800,000,000) (2,600,000,000) (2,600,000,000) (+800,000,000) ..................
---------------------------------------------------------------------------------------------------
Total, Overseas Private Investment Corporation -159,000,000 -176,000,000 -178,000,000 -19,000,000 -2,000,000
===================================================================================================
TRADE AND DEVELOPMENT AGENCY
Trade and Development Agency........................ 41,500,000 50,000,000 43,000,000 +1,500,000 -7,000,000
===================================================================================================
Total, title I, Export and investment
assistance................................... 563,114,000 708,940,000 674,000,000 +110,886,000 -34,940,000
(Loan authorizations)..................... (14,563,000,000) (19,526,000,000) (19,526,000,000) (+4,963,000,000) ..................
===================================================================================================
TITLE II--BILATERAL ECONOMIC ASSISTANCE
INTERNATIONAL ASSISTANCE PROGRAMS
Agency for International Development
Child survival and disease programs fund............ 650,000,000 502,836,000 .................. -650,000,000 -502,836,000
Development assistance.............................. 1,210,000,000 1,265,798,000 1,890,000,000 +680,000,000 +624,202,000
International disaster assistance................... 190,000,000 205,000,000 200,000,000 +10,000,000 -5,000,000
Micro and Small Enterprise Development program
account:
Subsidy appropriations.......................... 1,500,000 1,500,000 1,500,000 .................. ..................
(Direct loan authorization)..................... (1,000,000) (1,000,000) (1,000,000) .................. ..................
(Guaranteed loan authorization)................. (48,000,000) (48,000,000) (48,000,000) .................. ..................
Administrative expenses......................... 500,000 500,000 500,000 .................. ..................
Urban and environmental credit program account:
Subsidy appropriations.......................... 3,000,000 6,000,000 3,000,000 .................. -3,000,000
(Guaranteed loan authorization)................. (46,000,000) (68,000,000) (68,000,000) (+22,000,000) ..................
Administrative expenses......................... 6,000,000 6,053,000 4,000,000 -2,000,000 -2,053,000
Development credit authority program account (by
transfer).......................................... .................. (15,000,000) .................. .................. (-15,000,000)
---------------------------------------------------------------------------------------------------
Subtotal, development assistance.............. 2,061,000,000 1,987,687,000 2,099,000,000 +38,000,000 +111,313,000
===================================================================================================
Payment to the Foreign Service Retirement and
Disability Fund.................................... 44,208,000 44,552,000 44,552,000 +344,000 ..................
Operating expenses of the Agency for International
Development........................................ 473,000,000 483,858,000 475,000,000 +2,000,000 -8,858,000
Operating expenses of the Agency for International
Development Office of Inspector General............ 29,047,000 33,000,000 30,000,000 +953,000 -3,000,000
---------------------------------------------------------------------------------------------------
Total, Agency for International Development... 2,607,255,000 2,549,097,000 2,648,552,000 +41,297,000 +99,455,000
===================================================================================================
Other Bilateral Economic Assistance
Economic support fund:
Camp David countries............................ 2,015,000,000 2,015,000,000 1,855,000,000 -160,000,000 -160,000,000
Other........................................... 385,000,000 498,600,000 450,600,000 +65,600,000 -48,000,000
---------------------------------------------------------------------------------------------------
Subtotal, Economic support fund............... 2,400,000,000 2,513,600,000 2,305,600,000 -94,400,000 -208,000,000
===================================================================================================
International fund for Ireland...................... 19,600,000 .................. .................. -19,600,000 ..................
Assistance for Eastern Europe and the Baltic States. 485,000,000 464,500,000 432,500,000 -52,500,000 -32,000,000
Assistance for the New Independent States of the
former Soviet Union................................ 770,000,000 925,000,000 740,000,000 -30,000,000 -185,000,000
===================================================================================================
Department of the Treasury
Debt restructuring.................................. 27,000,000 72,000,000 25,000,000 -2,000,000 -47,000,000
International affairs technical assistance.......... .................. 5,000,000 3,000,000 +3,000,000 -2,000,000
United States community adjustment and investment
program............................................ .................. 37,000,000 .................. .................. -37,000,000
---------------------------------------------------------------------------------------------------
Subtotal, Department of the Treasury.......... 27,000,000 114,000,000 28,000,000 +1,000,000 -86,000,000
---------------------------------------------------------------------------------------------------
Total, Other Bilateral Economic Assistance.... 3,701,600,000 4,017,100,000 3,506,100,000 -195,500,000 -511,000,000
===================================================================================================
INDEPENDENT AGENCIES
Inter-American Foundation
Appropriations...................................... .................. 22,000,000 .................. .................. -22,000,000
(By transfer)................................... (22,000,000) .................. (18,000,000) (-4,000,000) (+18,000,000)
African Development Foundation
Appropriations...................................... .................. 14,000,000 .................. .................. -14,000,000
(By transfer)................................... (14,000,000) .................. .................. (-14,000,000) ..................
Peace Corps
Appropriations...................................... 222,000,000 270,335,000 221,000,000 -1,000,000 -49,335,000
Department of State
International narcotics control..................... 215,000,000 275,000,000 222,000,000 +7,000,000 -53,000,000
Narcotics Interdiction.............................. 15,000,000 .................. .................. -15,000,000 ..................
Migration and refugee assistance.................... 650,000,000 650,000,000 650,000,000 .................. ..................
Refugee resettlement assistance..................... 5,000,000 .................. .................. -5,000,000 ..................
United States Emergency Refugee and Migration
Assistance Fund.................................... 50,000,000 20,000,000 20,000,000 -30,000,000 ..................
Nonproliferation, anti-terrorism, demining and
related programs................................... 133,000,000 215,900,000 170,000,000 +37,000,000 -45,900,000
---------------------------------------------------------------------------------------------------
Total, Department of State.................... 1,068,000,000 1,160,900,000 1,062,000,000 -6,000,000 -98,900,000
===================================================================================================
Total, title II, Bilateral economic assistance 7,598,855,000 8,033,432,000 7,437,652,000 -161,203,000 -595,780,000
(By transfer)............................. (36,000,000) (15,000,000) (18,000,000) (-18,000,000) (+3,000,000)
(Loan authorizations)..................... (95,000,000) (117,000,000) (117,000,000) (+22,000,000) ..................
===================================================================================================
TITLE III--MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
International Military Education and Training....... 50,000,000 50,000,000 50,000,000 .................. ..................
Foreign Military Financing Program:
Grants:
Camp David countries........................ 3,100,000,000 3,100,000,000 3,160,000,000 +60,000,000 +60,000,000
Other....................................... 196,550,000 175,910,000 162,910,000 -33,640,000 -13,000,000
---------------------------------------------------------------------------------------------------
Subtotal, grants.......................... 3,296,550,000 3,275,910,000 3,322,910,000 +26,360,000 +47,000,000
(Limitation on administrative expenses)......... (23,250,000) (29,910,000) (29,910,000) (+6,660,000) ..................
===================================================================================================
Direct concessional loans:
Subsidy appropriation....................... 60,000,000 20,000,000 20,000,000 -40,000,000 ..................
(Loan authorization)........................ (657,000,000) (167,000,000) (167,000,000) (-490,000,000) ..................
FMF program level............................... (3,953,550,000) (3,442,910,000) (3,489,910,000) (-463,640,000) (+47,000,000)
---------------------------------------------------------------------------------------------------
Total, Foreign military assistance............ 3,356,550,000 3,295,910,000 3,342,910,000 -13,640,000 +47,000,000
===================================================================================================
Special Defense Acquisition Fund: Offsetting
collections........................................ -106,000,000 -19,000,000 -19,000,000 +87,000,000 ..................
Peacekeeping operations............................. 77,500,000 83,000,000 69,000,000 -8,500,000 -14,000,000
===================================================================================================
Total, title III, Military assistance......... 3,378,050,000 3,409,910,000 3,442,910,000 +64,860,000 +33,000,000
(Limitation on administrative expenses)... (23,250,000) (29,910,000) (29,910,000) (+6,660,000) ..................
(Loan authorization)...................... (657,000,000) (167,000,000) (167,000,000) (-490,000,000) ..................
===================================================================================================
TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
International Financial Institutions
World Bank Group
Contribution to the International Bank for
Reconstruction and Development: Contribution to the
Global Environment Facility........................ .................. 107,500,000 .................. .................. -107,500,000
Contribution to the International Development
Association........................................ 1,034,503,100 800,000,000 800,000,000 -234,503,100 ..................
---------------------------------------------------------------------------------------------------
Total, World Bank Group....................... 1,034,503,100 907,500,000 800,000,000 -234,503,100 -107,500,000
===================================================================================================
Contribution to the Inter-American Development Bank:
Paid-in capital................................. 25,610,667 25,610,667 25,610,667 .................. ..................
(Limitation on callable capital subscriptions).. (1,503,718,910) (1,503,718,910) (1,503,718,910) .................. ..................
---------------------------------------------------------------------------------------------------
Total, contribution to the Inter-American
Development Bank............................. 25,610,667 25,610,667 25,610,667 .................. ..................
===================================================================================================
Contribution to the Asian Development Bank:
Paid-in capital................................. 13,221,596 13,221,596 13,221,596 .................. ..................
(Limitation on callable capital subscriptions).. (647,858,204) (647,858,204) (647,858,204) .................. ..................
Contribution to the Asian Development fund...... .................. 95,000,000 .................. .................. -95,000,000
---------------------------------------------------------------------------------------------------
Total, contribution to the Asian Development
Bank......................................... 13,221,596 108,221,596 13,221,596 .................. -95,000,000
===================================================================================================
Contribution to the African Development Fund........ .................. 66,700,000 .................. .................. -66,700,000
Contribution to the European Bank for Reconstruction
and Development:
Paid-in capital................................. 35,778,717 35,778,717 35,778,717 .................. ..................
(Limitation on callable capital subscriptions).. (123,237,803) (123,237,803) (123,237,803) .................. ..................
North American Development Bank:
Paid-in capital................................. 56,500,000 .................. .................. -56,500,000 ..................
(Limitation on callable capital subscriptions).. (318,750,000) .................. .................. (-318,750,000) ..................
International Monetary Fund
Contribution to the enhanced structural adjustment
facility........................................... .................. 7,000,000 .................. .................. -7,000,000
===================================================================================================
Total, International Financial Institutions... 1,165,614,080 1,150,810,980 874,610,980 -291,003,100 -276,200,000
(Limitation on callable capital subscript) (2,593,564,917) (2,274,814,917) (2,274,814,917) (-318,750,000) ..................
===================================================================================================
International Organizations and Programs
International organizations and programs............ 192,000,000 314,000,000 170,000,000 -22,000,000 -144,000,000
(By transfer)................................... (2,500,000) (2,500,000) (2,500,000) .................. ..................
===================================================================================================
Total, title IV, Multilateral economic
assistance................................... 1,357,614,080 1,464,810,980 1,044,610,980 -313,003,100 -420,200,000
(By transfer)............................. (2,500,000) (2,500,000) (2,500,000) .................. ..................
(Limitation on callable capital subscript) (2,593,564,917) (2,274,814,917) (2,274,814,917) (-318,750,000) ..................
===================================================================================================
TITLE VI--MULTILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
PAYMENTS FOR AMOUNTS PREVIOUSLY DUE
Contribution to the International Bank for
Reconstruction and Development:
Contribution to the Global Environment Facility. 47,500,000 192,500,000 .................. -47,500,000 -192,500,000
Fiscal year 1998 supplemental............... .................. .................. 47,500,000 +47,500,000 +47,500,000
Contribution to the Inter-American Development Bank:
Fund for special operations..................... 20,835,000 21,152,000 .................. -20,835,000 -21,152,000
Fiscal year 1998 supplemental............... .................. .................. 21,152,000 +21,152,000 +21,152,000
Contribution to the Enterprise for the Americas
Multilateral Investment Fund................... 30,000,000 50,000,000 .................. -30,000,000 -50,000,000
Fiscal year 1998 supplemental............... .................. .................. 50,000,000 +50,000,000 +50,000,000
---------------------------------------------------------------------------------------------------
Total, contribution to the Inter-American
Development Bank........................ 50,835,000 71,152,000 71,152,000 +20,317,000 ..................
===================================================================================================
Contribution to the Asian Development fund.......... 150,000,000 155,000,000 .................. -150,000,000 -155,000,000
Fiscal year 1998 supplemental................... .................. .................. 187,000,000 +187,000,000 +187,000,000
Contribution to the African Development Fund........ 45,000,000 88,300,000 .................. -45,000,000 -88,300,000
Fiscal year 1998 supplemental................... .................. .................. 5,000,000 +5,000,000 +5,000,000
INTERNATIONAL MONETARY PROGRAMS
United States Quota (Fiscal year 1998 supplemental). .................. .................. 14,500,000,000 +14,500,000,000 +14,500,000,000
Loans to International Monetary fund (Fiscal year
1998 supplemental)................................. .................. .................. 3,361,000,000 +3,361,000,000 +3,361,000,000
---------------------------------------------------------------------------------------------------
Total, International Monetary programs........ .................. .................. 17,861,000,000 +17,861,000,000 +17,861,000,000
===================================================================================================
Total, title VI, Multilateral economic
assistance................................... 293,335,000 506,952,000 18,171,652,000 +17,878,317,000 +17,664,700,000
(Fiscal year 1999 appropriations)......... (293,335,000) (506,952,000) .................. (-293,335,000) (-506,952,000)
(Fiscal year 1998 appropriations)......... .................. .................. (18,171,652,000) (+18,171,652,000) (+18,171,652,000)
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Grand total................................... 13,190,968,080 14,124,044,980 30,770,824,980 +17,579,856,900 +16,646,780,000
(Fiscal year 1999 appropriations)..... (13,190,968,080) (14,124,044,980) (12,599,172,980) (-591,795,100) (-1,524,872,000)
(Fiscal year 1998 appropriations)..... .................. .................. (18,171,652,000) (+18,171,652,000) (+18,171,652,000)
(By transfer)............................. (38,500,000) (17,500,000) (20,500,000) (-18,000,000) (+3,000,000)
(Limitation on administrative expenses)... (23,250,000) (29,910,000) (29,910,000) (+6,660,000) ..................
(Limitation on callable capital subscript) (2,593,564,917) (2,274,814,917) (2,274,814,917) (-318,750,000) ..................
(Loan authorizations)..................... (15,315,000,000) (19,810,000,000) (19,810,000,000) (+4,495,000,000) ..................
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