[House Report 106-254]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-254

======================================================================



 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                       APPROPRIATIONS BILL, 2000

                                _______
                                

 July 23, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


   Mr. Callahan, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2606]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Foreign Operations, Export Financing, and 
Related Programs, and for sundry independent agencies and 
corporations for the fiscal year ending September 30, 2000, and 
for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                               Page

                                                            Bill Report
Summary of the Bill........................................           2
Committee Recommendations..................................           4
Title I--Export and Investment Assistance:
        Export-Import Bank of the United States............     2
                                                                      5
        Overseas Private Investment Corporation............     4
                                                                      5
        Trade and Development Agency.......................     6
                                                                      6
Title II--Bilateral Economic Assistance:
        Child Survival and Disease Programs Fund...........     7
                                                                      7
        Development Assistance.............................     8
                                                                     15
        International Disaster Assistance..................    13
                                                                     27
        Micro and Small Enterprise Development Program.....    13
                                                                     28
        Urban and Environmental Credit Program.............    14
                                                                     29
        Development Credit Authority.......................
                                                                     29
        Payment to the Foreign Service Retirement and 
            Disability Fund................................    14
                                                                     30
        AID Operating Expenses.............................    14
                                                                     30
        Operating Expenses of the Agency for International 
            Development, Office of the Inspector General...    14
                                                                     33
        Central America and the Caribbean Emergency 
            Disaster Recovery Fund.........................
                                                                     34
        Development Fund for Africa........................
                                                                     34
        Economic Support Fund..............................    15
                                                                     34
        International Fund for Ireland.....................    15
                                                                     41
        Assistance for Eastern Europe and the Baltic States    16
                                                                     41
        Assistance for the Independent States of the Former 
            Soviet Union...................................    18
                                                                     45
Independent Agencies:
        Inter-American Foundation..........................
                                                                     52
        African Development Foundation.....................
                                                                     52
        Peace Corps........................................    21
                                                                     52
Department of State:
        International Narcotics Control and Law Enforcement    22
                                                                     52
        Migration and Refugee Assistance...................    22
                                                                     55
        Emergency Refugee and Migration Assistance Fund....    23
                                                                     56
        Nonproliferation, Anti-terrorism, Demining and 
            Related Programs...............................    23
                                                                     57
Department of the Treasury:
        Debt restructuring.................................    25
                                                                     58
        International affairs technical assistance.........    26
                                                                     59
        United States community adjustment and investment 
            program........................................
                                                                     59
Title III--Military Assistance:
        International Military Education and Training......    27
                                                                     60
        Foreign Military Financing Program.................    28
                                                                     62
        Peacekeeping Operations............................    31
                                                                     65
Title IV--Multilateral Economic Assistance:
        Global Environment Facility........................    31
                                                                     66
        International Development Association (IDA)........    32
                                                                     66
        Multilateral Investment Guarantee Agency...........
                                                                     67
        Inter-American Development Bank (IDB)..............    32
                                                                     69
        Inter-American Investment Corporation..............
                                                                     70
        IDB Multilateral Investment Fund...................
                                                                     70
        Multilateral Investment Fund.......................
                                                                     70
        Asian Development Bank (ADB).......................    33
                                                                     70
        Asian Development Fund (ADF).......................    33
                                                                     70
        African Development Bank...........................
                                                                     70
        African Development Fund (AFDF)....................    33
                                                                     71
        European Bank for Reconstruction and Development 
            (EBRD).........................................    33
                                                                     71
Department of State:
        International Organizations and Programs...........    34
                                                                     72
Title V--General Provisions................................    35
                                                                     73
House of Representatives Report Requirements...............
                                                                     77

                          Summary of the Bill

    The Committee has recommended foreign assistance and export 
financing funding at a level that is $1,947,420,000 below the 
Administration's fiscal year 2000 request in discretionary 
budget authority. The resulting total of $12,624,278,000 in 
discretionary appropriations is needed to meet the essential 
requirements of the United States and its President in 
conducting foreign policy and meeting urgent humanitarian needs 
abroad.
    The section 302(b) allocation for foreign operations, 
export financing, and related programs is $12,625,000,000 in 
discretionary budget authority and $13,168,000,000 in outlays. 
The Committee recommendation of $12,624,278,000 in 
discretionary budget authority is slightly below the section 
302(b) allocation, and consumes almost all of the allocation 
for outlays. On a comparative basis the Committee 
recommendation is $20,662,278,000 below the 1999 level 
including funding for the International Monetary Fund, 
emergency funding, and arrears for international financial 
institutions, and $202,674,000 below the 1999 level excluding 
these items.

                         looking to the future

    Earlier this fiscal year, the House of Representatives, at 
the recommendation of the Committee, agreed to emergency 
supplementals of $2,046,937,000, primarily to meet 
unanticipated and urgent needs resulting from hurricanes in the 
Caribbean area and the war in Kosovo. When that amount is added 
to the $31,313,456,000 provided for foreign operations and 
export financing in the Omnibus Appropriations Act for 1999 
(P.L. 105-277), the 1999 level for the Foreign Operations, 
Export Financing, and Related Programs appropriations bills is 
a record, exceeding $33,360,000,000. Compared to 1999, the 
President's 2000 request would cut this bill more than 53 
percent from last year. The Committee 302(b) allocation 
requires some additional reductions.
    In looking to the future, the Committee is aware of no 
credible argument for sustaining the exceptional 1999 level for 
foreign operations and export financing. The one-time 
$17,900,000,000 appropriation for the International Monetary 
Fund and the General Arrangements to Borrow will not recur. The 
$2,000,000,0000 emergency supplemental for Hurricanes Mitch and 
Georges and for the Kosovo air campaign will not recur. The 
Committee's task is to live within its allocation for this bill 
as part of the effort to preserve Social Security and uphold 
budgetary discipline. In the event that a higher allocation 
becomes available later in the year, the amount available for 
foreign operations will be limited. At the end of the 
appropriations process, the total for this bill will probably 
be less than half of what was enacted in fiscal year 1999.
    Funds for child survival and disease eradication, 
especially the struggle to limit the spread of drug-resistant 
infectious diseases such as tuberculosis, is this year's 
priority. The bill also continues to support export-related 
American jobs and the fight against the scourge of illegal 
narcotics traffic.
    The Committee agrees with President Clinton that the 
European Union should be primarily responsible for the 
financial and technical assistance needed to reconstruct Kosovo 
and promote the integration of the Balkan states into Europe. 
The Committee recommendation does include the full request of 
$393,000,000 for ``Assistance for Eastern Europe and the Baltic 
States''. Ample funds to provide for the return of the Kosovar 
refugees and displaced persons and short-term financial 
assistance for front line states was provided in the recent 
emergency supplemental. In fact, the funding level for these 
activities was significantly above the request at the time 
Congress passed that measure.

                       committee recommendations

    For export and investment assistance programs the Committee 
has recommended a gross total of $913,500,000, which is 
partially offset by collections and a negative subsidy totaling 
$318,000,000. The subsidy appropriation for the Export-Import 
Bank is $759,000,000 and the Trade and Development Agency is 
funded at $44,000,000. The Committee has provided $20,500,000 
for subsidy appropriations requested on behalf of the Overseas 
Private Investment Corporation.
    The Committee has recommended $928,548,000 of the 
$1,394,498,000 requested for the international financial 
institutions. The overall reduction is $522,716,000 below the 
fiscal year 1999 enacted level and $465,950,000 below the 
request.
    For development and humanitarian assistance, the Committee 
has recommended a total of $2,119,500,000 of which $680,000,000 
is for child survival and disease prevention programs. Another 
$1,430,000,000 is for longer-term development assistance. The 
Committee has also included $200,880,000 for disasters 
worldwide. The Committee has included $33,000,000 for debt 
restructuring for poor countries and a new tropical forestry 
debt relief program.
    The Committee has continued its highly effective Child 
Survival and Disease Programs Fund. It is designed to ensure 
that there will not be reductions in these vital programs as 
the overall bilateral assistance program is constrained. The 
emphasis is on programs that directly affect younger children, 
including basic education, and on accelerating efforts to 
eradicate diseases that threaten younger children and 
caregivers alike. The account does not include population 
assistance, which will be funded through the development 
assistance account. It does provide for a grant to UNICEF at a 
level of $110,000,000.
    The Committee has included a total of $725,000,000 in 
assistance to the Independent States of the Former Soviet 
Union, and $393,000,000 for Eastern Europe and the Baltic 
States.
    The Committee has recommended a total of $670,000,000 for 
refugee programs.
    For economic assistance under the Economic Support Fund, 
the Committee has recommended a total of $2,227,000,000.
    The Committee has recommended $181,630,000 for a 
Nonproliferation, anti-terrorism and demining account which 
includes funding for the Non-proliferation and Disarmament 
Fund, anti-terrorism assistance, demining activities, United 
States participation in the Korean Energy Development 
Organization (KEDO), and the U.S. voluntary contribution to the 
International Atomic Energy Agency (IAEA).
    For Foreign Military Financing, the Committee has 
recommended a grant program of $3,470,000,000.
    The recommendation for international financial institutions 
does not include authorization for gold sales by the 
International Monetary Fund.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                Export-Import Bank of the United States


                         subsidy appropriation




Fiscal year 1999 level................................     $765,000,000
    Emergency supplemental funding (by transfer)......      (10,000,000)
Fiscal year 2000 request..............................      839,000,000
Committee recommendation..............................      759,000,000


                        administrative expenses




Fiscal year 1999 level................................      $50,000,000
Fiscal year 2000 request..............................       57,000,000
Committee recommendation..............................       55,000,000


    The Committee is recommending a subsidy appropriation for 
the Export-Import Bank of $759,000,000 and an appropriation of 
$55,000,000 for administrative expenses. Taken together, the 
recommended appropriation for the Eximbank is virtually the 
same as the fiscal year 1999 level and $82,000,000 less than 
the request.
    The Committee has continued prior year language limiting 
the export of nuclear technology or fuel to certain countries. 
The Committee has also included language making possible 
Export-Import Bank activity in Eastern Europe and the Baltic 
States.
    The Committee provided no additional funds for a tied-aid 
``war chest''. The estimated $275,000,000 remaining ``war 
chest'' balance for tied-aid purposes may be used to support 
loans. If more funds are needed for the war chest, the 
Committee will promptly consider any additional requests from 
the President.
    The Committee continues to be concerned about the effect of 
certain Eximbank decisions on U.S. foreign policy objectives, 
in particular support for private sector development and 
investment specifically in the IS/FSU. The Committee urges the 
Eximbank to take whatever steps are necessary to assure that 
the Bank's policies and activities are not contradictory to 
overall U.S. foreign policy.

                  export-import bank and human rights

    The Committee believes that the Export-Import Bank should 
develop an effective mechanism to review the human right 
implications and consequences of its projects. The Bank is to 
report to the Committee within 120 days of the enactment of 
this act on the current process and on proposed mechanisms to 
provide greater transparency and better oversight of the human 
rights consequences of its projects.

                Overseas Private Investment Corporation


                        administrative expenses




Fiscal year 1999 level................................       $32,500,000
Fiscal year 2000 request..............................        35,000,000
Committee recommendation..............................        35,000,000


                         subsidy appropriation




Fiscal year 1999 level................................       $50,000,000
Fiscal year 2000 request..............................        24,000,000
Committee recommendation..............................        20,500,000


    The Committee is recommending a subsidy appropriation of 
$20,500,000 for the OPIC direct and guaranteed loan credit 
programs, and it has recommended $35,000,000 for administrative 
expenses.
    The recommendation includes new language that would make it 
possible for OPIC to begin activation of its proposed equity 
funds for maritime transportation projects and for the 
Caribbean, Central America, and sub-Saharan Africa.
    The Committee has continued prior year language required by 
the Federal Credit Reform Act and addressing representation 
expenses and availability of funds.
    The Committee's concerns about the management and exposure 
of OPIC-guaranteed emerging market investment funds have been 
partially met by the information on the investment funds 
provided by OPIC this year. In order to promote future 
accountability, the Committee directs OPIC to provide on a 
quarterly basis, commencing December 6, 1999, a written report 
including the following information for each investment fund: 
the identity, selection process, and professional background of 
current and past managers; the fees and compensation currently 
provided to senior management; the amount of OPIC guarantees 
and actual investments made at the end of the previous month; 
and any additional observations that OPIC may want to include.
    The President of OPIC is requested to report to the 
Committee within 60 days of enactment of this Act on the status 
of claims filed prior to June 1, 1999, relating to 
expropriations or contract abrogations of OPIC-insured 
projects.
    The Committee urges OPIC to promptly dispose of legitimate 
claims brought with regard to OPIC-insured projects. The 
Committee understands OPIC's desire to explore all possible 
settlement arrangements with foreign parties. However, OPIC 
must be aware that private parties with legitimate claims face 
financial obligations that cannot be deferred indefinitely.

                        opic and the environment

    The Committee is concerned that OPIC has not adopted a 
standard consistent with the ``Pelosi Amendment'' that applies 
to international financial institutions. The Committee believes 
that OPIC should not present any environmentally sensitive 
project for Board of Directors approval prior to the completion 
of OPIC's public information disclosure and comment period, and 
that the minimum length of this discourse period should be no 
less than 120 days. The Committee believes also that the size 
of OPIC's environmental review staff is insufficient and needs 
to be significantly increased. OPIC should make it a priority 
to hire a minimum of three additional staff members to review 
environmentally sensitive projects.

                  Funds Appropriated to the President


                      Trade and Development Agency





Fiscal year 1999 level................................       $44,000,000
Fiscal year 2000 request..............................        48,000,000
Committee recommendation..............................        44,000,000


    The Committee is recommending funding for the Trade and 
Development Agency at the current level of $44,000,000. This 
reduction from the request is made because of limited budgetary 
resources.
    The Committee believes that this export agency has made 
significant contributions to non-traditional American exports 
in the service sectors such as consulting engineering. It is 
continuing to move away from its previous status as an all-
grant agency. The Committee commends TDA for its leadership in 
promoting United States trade and investment in the Caspian Sea 
region and in Turkey.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE


                  Funds Appropriated to the President


                  Agency for International Development

    The Committee, in order to give the President more 
flexibility, recommends funding two accounts for development 
assistance programs currently administered by the Agency for 
International Development. As in fiscal year 1999 and as 
requested in the President's budget, the bill provides for an 
overall development assistance account and an account for child 
survival, children's basic education, and disease prevention 
and treatment activities.
    There are two structural changes from the budget request. 
Funding for the United Nations Children's Fund (UNICEF) is 
included in ``Child Survival and Disease Programs Fund'' in 
fiscal year 1999 and in the Committee recommendation for fiscal 
year 2000. The President's request proposes to fund the 
voluntary contribution for UNICEF in ``International 
Organizations and Programs''.
    Funding for development assistance in sub-Saharan Africa is 
included in both the ``Child Survival and Disease Programs 
Fund'' and the global ``Development Assistance'' account in 
fiscal year 1999 and in the Committee recommendation for fiscal 
year 2000. The request proposes to carve out a separate 
``Development Fund for Africa'' account to include activities 
currently funded under the overall development assistance 
account, but not activities in Africa currently funded under 
the ``Child Survival and Disease Programs Fund''.

                Child Survival and Disease Programs Fund





Fiscal year 1999 level................................      $650,000,000
    Emergency supplemental funding....................        50,000,000
Fiscal year 2000 request (under fiscal year 1999             656,000,000
 account structure)...................................
Committee recommendation..............................       680,000,000


    The Committee recommends $680,000,000 for the ``Child 
Survival and Disease Programs Fund'', an amount that is 
$44,000,000 above the request and $20,000,000 below the amount 
enacted for 1999. If emergency supplemental funding is excluded 
from the calculation, the recommended level is $30,000,000 
above the 1999 level.
    The Child Survival and Disease Programs Fund is a recent 
Congressional initiative. As the Committee's highest priority 
this year,

a full explanation of the justification for the recommended 
exceptional increase is presented below.
    The Committee's recommendation is higher than the 1999 
level primarily because it expands the third installment of its 
Infectious Diseases Initiative (IDI) from $50,000,000 to 
$75,000,000 and increases the amount recommended for the 
Displaced Children and Orphans Fund. The IDI is expanded to 
respond to the dramatic increase in, and resurgence of, 
tuberculosis affecting both children and adults. This year, the 
Committee received dramatic testimony about the urgent need to 
limit the incidence of tuberculosis, especially drug-resistant 
strains. A surge in interest in, and need for, the Displaced 
Children and Orphans Fund has resulted in some enhancements in 
this bill. These are the forces driving the Committee's higher 
recommendation for this account.
    Within the United States, there have been confirmed reports 
of yellow fever and malaria, diseases that infected millions 
earlier in our history. Of those deaths attributable to malaria 
throughout the world, 85 percent of the victims are children. 
In addition, measles continues to cause the deaths of millions 
of children throughout the world. Finally, experts are 
recognizing that acute respiratory infections(ARI) are, after 
malnutrition, the biggest killers of children on the planet, and in 
some areas, measles, which is easily avoided through effective 
vaccines, continues to be a major threat.
    The Committee believes the Infectious Disease Initiative is 
not only good for the children of the developing world, but it 
will help prevent the spread of these diseases to our shores. 
To the extent this initiative to control communicable diseases 
in developing countries is successful, American children will 
enjoy healthier and better lives.
    Beyond the Infectious Disease Initiative, the Child 
Survival and Disease Programs Fund includes bilateral programs 
intended to reduce infant mortality and improve the health and 
nutrition of children, especially in the poorest nations. The 
overall bill incorporates at least $145,000,000 for global HIV/
AIDS programs, some of which may be included in the 
tuberculosis projects of the separate Infectious Disease 
Initiative, as tuberculosis is a major cause of death for 
individuals with HIV/AIDS. The Fund also includes $110,000,000 
for the annual United States contribution to the United Nations 
Children's Fund (UNICEF), as well as $98,000,000 for children's 
basic education.
    Unless modifications are subsequently justified and agreed 
to by the Committees on Appropriations, appropriations in this 
bill for the Child Survival and Disease Programs Fund should be 
allocated as follows:

Communicable Diseases (including tuberculosis and polio)    $100,000,000
HIV/AIDS................................................     127,000,000
Displaced children and orphans..........................      30,000,000
Children's basic education..............................      98,000,000
Other health and child survival activities..............     215,000,000
Grant to UNICEF.........................................     110,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in this account.............................     680,000,000
Child survival and disease programs in former Soviet 
    bloc, ESF and disaster assistance (approximate).....      65,000,000
Basic education in other accounts.......................      12,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in all accounts.............................     757,000,000

    Up to 5 percent of the Funds in this account may be used 
for activities in the Independent States of the Former Soviet 
Union or for Eastern and Central Europe that seek to directly 
reduce the incidence of infectious diseases, especially 
tuberculosis, and improve the status of infants and young 
children, especially orphans. All other activities related to 
child survival and maternal health are to be funded from the 
headings ``Assistance to the Independent States of the Former 
Soviet Union'' and ``Assistance for Eastern Europe and the 
Baltic States''.
    Of the funds provided in this account, $110,000,000 is 
provided as a contribution in grant form to the United Nations 
Children's Fund. However, this does not preclude the Agency for 
International Development from providing additional funding for 
specific UNICEF projects as may be appropriate.
    The Committee intends that child survival funds in this 
account be used for traditional child survival programs. A 
significant proportion of these funds should be used for 
activities whose primary purpose is to reduce child morbidity 
and mortality, including neo-natal health and maternal health 
projects. The Committee is open to discussion about use of the 
Fund for specific environmental health interventions, 
especially in urban areas where air and water pollutants 
directly affect child morbidity and mortality.
    In order to provide the Agency for International 
Development with administrative flexibility, the Committee 
recommendation does not specify the amount of funds within the 
Infectious Diseases Initiative that should be focused on 
diseases that primarily affect children. However, the Committee 
intends the funds for this initiative should be used 
innovatively for research, treatment, and prevention activities 
to reduce childhood diseases, and expanded to include 
immunizable diseases, respiratory infections and diarrhea.
    Based on information sought out by the Committee, there is 
reason to question the apparent decision by AID management to 
drastically reduce the role of those community-supported 
private voluntary organizations that have traditionally 
provided at least 25 percent of the costs of child survival 
programs undertaken in cooperation with AID. The Committee 
strongly recommends that AID central bureaus and field missions 
seek to expand use of such PVOs in cooperative agreements, 
grants, and contracts. A brief written update to the Committee 
on progress in greater use of PVOs in child survival is 
requested no later than March 15, 2000.

          Preserving the Integrity of the Child Survival Fund

    In order to preserve the integrity of the Child Survival 
and Disease Programs Fund, the Committee directs AID to 
separate the administration and coordination of activities in 
this account from those of other global activities. The 
Committee urges AID to establish a new Center for Child 
Survival and Disease Programs to be headed by a professionally 
qualified individual, who shall be directly accountable for 
implementation of the Fund. The fiscal year 2001 budget 
justification and 2000 notifications of changes should not 
combine programs, projects, and activities funded from this 
account with programs, projects, and activities funded from 
other funding sources, except with the prior agreement of the 
Committee. The Committee requests the Administrator of AID to 
make the necessary administrative directives to establish the 
new Center no later than December 1, 1999.
    The Committee is again including bill language that 
prohibits the use of certain funds in this account for 
nonproject assistance, or cash grants, to governments. The 
provision of cash grants as general budget support for 
governments is no longer an appropriate development tool, given 
current funding constraints. To the extent that cash grants are 
necessary for countries in transition or for specific foreign 
policy goals, funds are available through the ``Economic 
Support Fund''.

   Child survival: Displaced children and orphans and blind children

    The Committee recommends $30,000,000 for displaced children 
and orphans and blind children in fiscal year 2000. The 
recommended increase above the 1999 directives of $22,000,000 
responds to evidence that the situation for many such children 
is deteriorating from Eastern Europe to Southern Africa.
    Care for displaced children and orphans is limited, and 
basic medical supplies are scarce at most institutions around 
the world. In some cultures, orphans are considered outcasts, 
especially those with disabilities of any type. Some children 
can become healthy with proper medical attention, and returned 
to their families, or placed with domestic or foreign families 
through adoption.
    Older children permanently placed in orphanages are often 
dismissed from state care and thrown out on the streets to 
survive without skills. Most teenage orphans find that their 
only chance for survival is to participate in criminal acts, 
including prostitution and selling drugs. United States 
assistance in establishing a limited number of vocational-
technical institutions on a pilot basis may encourage 
developing countries to replicate them with their own 
resources.
    According to the World Health Organization there are 1.5 
million blind children around the world and another 7 million 
blind children suffering from extremely low levels of vision. 
The Committee recognizes the work being done by Helen Keller 
International and other organizations to assist blind children 
around the world. Blindness can be prevented and/or treated 
through simple and inexpensive methods and many blind children 
in developing countries can be cured of their disability 
through simple operations and low cost care. The Committee 
recommends that the AID program for children's blindness be 
continued at the current level of $1,000,000.
    The $30,000,000 intended for displaced children, orphans, 
and blind children should be allocated to the existing 
centrally-managed Displaced Children and Orphans Fund, the 
separate PVC-managed blind children's project, and field-
managed support for orphans and for children affected by the 
HIV/AIDS epidemic. Funds should be made available to activities 
in Russia, Ukraine, and other Independent States as well as in 
Eastern Europe. AID is directed to use award or acquire 
services and commodities on a competitive basis, to the extent 
possible.

               children affected by the HIV/AIDS epidemic

    AIDS is devastating the family structure in many countries, 
leaving millions of children orphaned and more vulnerable to 
HIV infections, poor health, too little schooling, and even 
sexual exploitation. It is estimated that by the year 2010, 40 
million children in Africa alone will be orphaned as a result 
of HIV/AIDS. The Committee strongly supports efforts to assist 
these vulnerable children, and urges that the $10,000,000 
emergency program initiated as a result of a directive in the 
fiscal year 1999 Act's Statement of Managers be continued and 
expanded in 2000. This program should be funded out of the 
$30,000,000 designated for displaced children and orphans and 
blind children. In addition to programs elsewhere, funds should 
be made available to activities in Russia, Ukraine, and other 
Independent States as well as in Eastern Europe. AID is 
directed to use award or acquire services and commodities on a 
competitive basis, to the extent possible.

    child survival: vitamin a, vitamin c, iodine and micronutrient 
                               deficiency

    The Committee supports continuation of programs for vitamin 
A and C deficiency, iodine deficiency and other micro-nutrient 
deficiencies and supports continuing these programs at least at 
the 1999 level of $25,000,000.
    The Committee notes that iodine deficiency disorder is the 
leading preventable cause of mental retardation in children. It 
is the Committee's understanding that Kiwanis International has 
joined forces with UNICEF to eliminate iodine deficiency 
throughout the world by the end of the year 2000. Private 
funding raised by Kiwanis International is already saving more 
than 5,000,000 children from mental retardation in 55 
countries. The Committee directs the Secretary of State, in 
order to help meet the goals of the year 2000, to provide 
$2,000,000 through UNICEF in support of the Kiwanis effort to 
eliminate iodine deficiency disorder.

                     Infectious diseases initiative

    The Committee commends the Agency for International 
Development for its responsive implementation of its Infectious 
Diseases Initiative. The recently completed BASICS program has 
produced remarkable results, as well as identification of 
nations that are not yet willing to effectively cooperate with 
international donors in the area of child survival.
    While the Committee notes AID's effort to address malaria 
as part of its overall communicable disease program, it remains 
concerned that several developing nations which receive AID 
support continue to employ DDT as a method of controlling 
malaria. In view of current negotiations for an international 
convention to eliminate Persistent Organic Pollutants (POPs), 
which specifically target DDT, the Committee encourages AID to 
emphasize effective and affordable alternatives to DDT for 
malaria control.

                   Infectious diseases: tuberculosis

    The Committee recognizes that tuberculosis (TB) is the 
major infectious killer of adults in the world, killing between 
two and three million each year. This disease could result in 
the deaths of up to 30,000,000 people in the next decade. TB 
kills more women than any cause of maternal mortality and is 
the major killer of persons with AIDS. Many of these will be 
parents, whose orphans will be a burden on already stressed 
societies. In addition, the Committee notes the threat to the 
United States from this disease due to international travel and 
immigration. An estimated 15 million Americans are currently 
infected with the TB bacteria. Therefore the Committee finds it 
necessary to recommend that $30,000,000 be provided to programs 
and activities involving tuberculosis in fiscal year 2000 
including programs funded through ESF or regional accounts.
    In that regard, the Agency for International Development is 
collaborating with the Gorgas Memorial Institute to promote 
regional TB control initiatives designed to address the global 
TB epidemic--training, operational improvement, and new 
approaches to disease control. The Committee supports expansion 
of this initiative, including the establishment of regional TB 
control activities in Latin America and Southeast Asia. As much 
as $2,000,000 may be justified for these activities during 
fiscal year 2000.
    In last year's report, the Committee requested AID to 
assist Texas and Mexico combat a particularly threatening 
outbreak of tuberculosis along their border. The Agency's 
response to date has been grossly inadequate. The Texas 
Department of Health has developed a comprehensive binational, 
multiagency approach that is designed to protect Americans from 
the spread of TB. The Committee directs AID to fully cooperate 
with Texas, and other interested border states, and to fund a 
substantial percentage, not to exceed $10,000,000, of the 
United States share of this effort among states on both sides 
of the border. The Committee directs that AID provide it with a 
brief written report on its participation in the binational 
effort every 3 months during fiscal year 2000, beginning 
January 15, 2000.

              Communicable diseases: eradication of polio

    The Committee recommendation includes $25,000,000 for the 
final phases of the program initiated by the Committee in 
fiscal year 1996 to eradicate polio. Funds should be used to 
provide for the delivery of vaccines, and the development of 
the infrastructure necessary to implement the program and to 
help support routine immunization. This funding is meant to be 
in addition to the resources for the regular immunization 
program of the Agency for International Development and is 
intended to supplement other related activities, and is not 
included in the Infectious Diseases Initiative. The Committee 
has been informed by Rotary International and other 
collaborators in this effort that polio could be eradicated 
during the year 2000.

  Communicable diseases: collaborative research by university medical 
                                schools

    The Committee is aware of and supports the renewed 
engagement of many United States university medical schools and 
medical research facilities in the global campaign against 
infectious diseases, especially those which affect children. As 
many contributed greatly to domestic public health progress in 
earlier decades, the Committee welcomes their interest in the 
new global campaign.
    The Agency for International Development and multilateral 
health or child survival agencies benefiting from this bill are 
urged to give every consideration to detailed proposals 
submitted by, among others:
          The International Health Learning Center at Loma 
        Linda University;
          The University of Notre Dame;
          The Tulane University School of Public Health's 
        Department of Tropical Medicine;
          The University of Miami Medical School;
          The Gorgas Memorial Institute;
          George Mason University; and
          The University of Medicine and Dentistry of New 
        Jersey's International Center for Public Health.
  The Committee also strongly supports research at such 
institutions, funded by AID and UNAIDS, to develop microbicides 
that could be of use in the developing world. The Committee 
requests that AID periodically brief the Committee regarding 
the status of proposals received from these institutions.

                      hiv/aids prevention and care

    For several years, the Committee has provided encouragement 
and funding to limit impact of global HIV/AIDS epidemic in the 
developing world. For fiscal year 2000, the Committee urges AID 
to allocate $145,000,000 for global HIV/AIDS programs. This 
overall funding level represents an increase of approximately 
15 percent over fiscal year 1999, nearly the same rate at which 
HIV is spreading globally. It is essential to maintain support 
for UNAIDS, at least at its current level.
    The Committee anticipates that at least $18,000,000 will be 
funded from regional accounts and $127,000,000 from the Child 
Survival and Disease Programs Fund. With the prior concurrence 
of the Committee, certain HIV/AIDS-related activities in the 
Displaced Children and Orphans Fund and the tuberculosis 
component of the Infectious Disease Initiative may also be 
counted toward the above targets.
    Improved surveillance techniques indicate that the global 
HIV pandemic is spreading much faster than scientists once 
predicted. More than 33 million people currently live with HIV 
and AIDS. The major recent increases in HIV infections are in 
Africa, Asia, and Eastern Europe, especially among young 
people. Five young persons become newly infected with HIV every 
minute. Testing of women seeking prenatal care is showing 
alarming data in many nations--infection rates of 25 percent in 
South Africa, over 30 percent in Zambia, and 50 percent in some 
areas of Zimbabwe. AIDS has lowered average life expectancy by 
as much as 18 years in some African countries.
    The Committee encourages AID to better articulate the 
linkages between prevention and care through all its programs. 
It also encourages AID to continue to develop innovations in 
behavioral change and care models, such as workplace-based HIV 
prevention education, which can help prevent the spread of HIV 
in high-risk occupations, and help stem employers' loss of 
skilled workers and productivity.
    Community-based, non-governmental organizations that have 
``on the ground'' prevention and care programs are important 
and merit support. The Committee is concerned about reports 
that innovative projects on care and building linkages between 
community groups appear to be stalled. It urges AID to fully 
implement its overall strategy on use of community-based 
volunteer organizations in its HIV/AIDS activities.

            hiv/aids: international health center in africa

    The Committee recommends that the Agency for International 
Development and the Center for Disease Control give priority 
attention to utilizing a fully accredited American medical 
school faculty to coordinate the sharing of the considerable 
United States research and treatment modalities with the 
countries of sub-Saharan Africa. Projects in the areas of 
medical training and education, research, and technical 
assistance in field services could be particularly beneficial 
to those African countries devastated by HIV/AIDS. The 
Committeee requests AID and CDC to report no later than March 
1, 2000, on the feasibility of selecting on a competitive 
basis, a qualified university medical school with a 
demonstrated history and mission of serving underserved 
populations and with existing expertise in and focus on African 
and African-American health issues.

              basic education for children and child labor

    The Committee is keenly aware that a child's education 
provides an enduring opportunity for a healthier, more 
productive life. The highest poverty rates are found in nations 
with the lowest education and literacy levels. There is ample 
evidence in research and practice that investment in basic 
education, particularly in girls' education, provides the 
critical link to improved family health, enhanced status of 
women, reduced child labor, and greater political 
participation. Education also builds the capacity countries 
require to benefit fully from trade and development 
opportunities. The Committee recommends that the Secretary of 
State establish a target funding level for children's basic 
education of $110,000,000, of which $98,000,000 would be 
derived from the Child Survival and Disease Programs Fund and 
the remainder from the Economic Support Fund and regional 
accounts.
    Studies made available to the Committee have demonstrated 
that in developing countries the greatest progress has been 
made in reducing exploitative child labor where free and 
compulsory schooling is widely available. For the second year, 
the Committee urges AID to commit at least $5,000,000 to 
programs designed to expand universal access to free and 
compulsory basic education for children who are trapped in 
exploitative child labor. The Committee does not include funds 
for similar activities under the heading ``Economic Support 
Fund''.

                         Development Assistance


                     (Including transfer of funds)




Fiscal year 1999 level................................    $1,225,000,000
Fiscal year 2000 request..............................       780,440,000
Committee recommendation..............................     1,201,000,000


    The Committee recommends $1,201,000,000 for a general 
account for development assistance. The amount recommended is 
$421,560,000 above the administration request and 24,000,000 
below the fiscal year 1999 level.
    Funding in this account includes worldwide activities for 
agriculture, rural development, population, adult literacy and 
adult basic education, environment, energy, science and 
technology and other programs related to longer-term 
development.
    The Committee recommends the continuation of bill language 
to prohibit the use of funds for any activities in 
contravention of the Convention on International Trade in 
Endangered Species (CITES) in order to address concerns that 
AID funded activities in Zimbabwe are contributing to trade in 
elephant ivory.
    Bill language is also recommended to allow for the transfer 
of $2,500,000 from this account to ``International 
Organizations and Programs'' in order to provide for a grant to 
the International Fund for Agricultural Development (IFAD) as 
part of the U.S. contribution for the fourth replenishment.

                    Development Assistance in Africa

    While the Committee does not recommend a separate account 
for the Development Fund for Africa, the Committee recognizes 
the significant development needs in Africa and directs that 
funding allocations from within the unified Development 
Assistance account for sub-Saharan Africa in fiscal year 2000 
be at least equal to the allocation provided in 1999. Further, 
the Committee expects that a significant portion of the 
resources provided in the Child Survival and Disease Programs 
Fund, especially funds for HIV and other infectious diseases, 
will directly assist Africa. The Committee notes also that 
authorities available for the Development Fund for Africa apply 
in providing assistance to Africa through the Development 
Assistance account.
    The following numbers are an estimate of the development 
and humanitarian funds provided in the fiscal year 2000 bill 
for sub-Saharan Africa.

Assistance for sub-Saharan Africa

Development Assistance..................................    $460,000,000
Child Survival and Disease Prevention...................     275,000,000
African Development Foundation..........................      14,400,000
International Disaster Assistance.......................      90,000,000
Peace Corps.............................................      54,500,000
Refugee and Migration programs..........................     135,000,000
Debt forgiveness for Africa (1).........................     160,000,000
UNICEF (2)..............................................      54,000,000
African Development Fund................................     100,000,000
International Development Association (3)...............     283,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................   1,625,900,000

\1\ $160,000,000 is the total amount of U.S. debt forgiven. The 
appropriation contained in this bill to cover the costs of debt 
forgiveness is $18,000,000.
\2\ UNICEF dedicated approximately 49 percent of its resources to sub-
Saharan Africa in 1999. UNICEF expects this percentage to continue.
\3\ The IDA-12 replenishment targeted 50 percent of all IDA credits to 
sub-Saharan Africa countries.

    In addition, the Committee expects significant funding for 
sub-Saharan Africa from the security related accounts in the 
bill, including the Economic Support Fund, Foreign Military 
Financing program, International Narcotics Control program and 
the Peacekeeping Operations account.

                     African Development Foundation

    Within the Development Assistance account, the Committee 
recommends funding for the African Development Foundation at 
the budget request level of $14,400,000, which is an increase 
of $3,400,000 above the fiscal year 1999 level. The Committee 
has included bill language allowing ADF grantees to hold funds 
in interest bearing accounts provided that any interest earned 
be used for the same purposes as the grant. Also, the Committee 
has provided ADF with authority to make project grants in 
excess of $250,000 provided that the Committee be notified in 
advance. The Committee expects the ADF will only exercise this 
authority in rare instances.
    Since its inception, the ADF has provided more than 1,300 
grants in 26 African countries to build local capacity and 
emphasizing self-help. These ADF grants have helped increase 
income and expand services for Africa's poor. The Committee 
supports the efforts of the ADF staff and Board to garner 
outside funding and encourages the Foundation to continue to 
explore other sources of funding. In this regard, the Committee 
recognizes the efforts of the ADF to develop creative co-
financing arrangements with African governments and other 
development agencies.

                       inter-american foundation

    The Committee recommends $5,000,000 for the Inter-American 
Foundation from within the ``Development Assistance'' account. 
Because of significant program and management deficiencies at 
the IAF, the Committee recommends fiscal year 2000 funding at 
$15,000,000 below the 1999 level and $17,300,000 below the 
budget request. The Committee believes the grassroots 
development objectives of the Foundation, established in 1969, 
have now been adequately integrated into the programs of AID 
and through the work of nongovernmental organizations 
throughout the hemisphere.
    The Committee is aware that several organizations, while 
receiving grants from the IAF, have engaged in activities 
counter to the national interests of the United States. The 
Committee is alarmed that in 1997, two IAF grantees were 
involved in the armed kidnapping of American citizens in 
Ecuador. At the time these organizations were receiving the IAF 
funds, the U.S. embassy in Ecuador issued a public statement 
calling the grantees' actions ``a repugnant, illegal action'' 
and a ``terrorist threat''. Further, according to an 
independent audit conducted for the IAF, a Foundation grantee 
in Argentina in 1998 used U.S. taxpayer funds to ``cover 
expenses for demonstrations resulting in the blockade of roads 
and the takeover of the Cathedral of Cordoba''. The Committee 
is appalled by these actions and by the fact that U.S. 
taxpayer's funds have been used to further these acts. The 
Committee believes that the Board of Directors of the 
Foundation bears ultimate responsibility for the overall 
direction of the Foundation and faults the Board for its poor 
oversight of day-to-day IAF operations which have allowed 
grantees to abuse U.S. taxpayer's dollars.

                restrictions on use of population funds

    The Committee has continued prior year language in the bill 
that requires that none of the funds appropriated in this bill, 
or any unobligated balances, be made available to any 
organization or program which, as determined by the President, 
supports and participates in the management of a program of 
coercive abortion or involuntary sterilization. The bill 
language also states that funds cannot be used to pay for the 
performance of abortions as a method of family planning or to 
motivate or coerce any person to practice abortions. Further, 
the language indicates that in order to reduce reliance on 
abortions in developing countries, population funds shall be 
available only to voluntary family planning projects which 
offer, either directly or through referral, information about 
access to a broad range of family planning methods and 
services. An additional provision in the bill requires that in 
awarding grants for natural family planning under section 104 
of the Foreign Assistance Act, no applicant shall be 
discriminated against because of such applicant's religious or 
conscientious commitment to offer only natural family planning.
    The Committee has also continued prior year language that 
states that nothing in the Development Assistance account 
portion of the bill is to alter any existing statutory 
prohibitions against abortion which are included under section 
104 of the Foreign Assistance Act. Further, the Committee has 
continued prior year language which states that project service 
providers or referral agents cannot implement or be subject to 
quotas or other numerical targets, of total number of births, 
number of family planning acceptors, or acceptors of a 
particular method of family planning. This provision is 
identical to language in the fiscal year 1999 act.

         global issues: role of central offices and mechanisms

    The Committee supports the role of AID's central offices in 
providing AID missions with policy and technical guidance and, 
increasingly, innovative central mechanisms. Such innovative 
central contract mechanisms provide opportunities for United 
States companies and other non-governmental groups to 
contribute their expertise to international development with 
less delay and expense than is involved in mission-awarded or 
traditional implementing mechanisms.
    The role of central offices and mechanisms is critical in 
areas of interest to the Committee such as Women in 
Development, energy, biodiversity, agriculture, and education 
and training. The Committee strongly encourages AID to adequately 
fund the central offices and mechanisms, to provide a competitive 
basis for implementation of AID and Congressional directives and to 
provide direct support to field programs. Within 30 days of 
enactment of this Act, AID is requested to provide a brief 
written report to the Committees on Appropriations on its 
proposed allocation of funds to the central offices in the 
Global Bureau. The report should identify any potential 
negative impacts that could result from full compliance with 
Executive branch and Congressional earmarks or directives.

  global issues: environmental policy and natural resources management

    The Committee supports the Global Environment Center's 
programs to build capacity in developing countries to both 
promote economic growth and manage natural resources in such a 
way that prevents precipitous depletion and preserves those 
resources for future generations. The Committee recommends that 
adequate funding be made available for programs that build 
capacity to assess long term costs and benefits of sound 
environmental management as well as calculate and mitigate the 
environmental and health risks of industrial pollution. The 
objective is to put into place laws and regulations that 
promote both economic development and sound environmental 
management.
    The Committee notes the Global Environment Center's 
contribution to international environmental negotiations, and 
urges that Economic Support Funds, rather than Development 
Assistance funds, be made available to the Center for this 
purpose.

                         global issues: energy

    The Committee urges that the Office of Energy, Environment, 
and Technology be funded at an adequate level, no less than its 
fiscal year 1999 budget. AID energy projects should be 
developed and carried out in collaboration with US industry, 
taking into account future energy resource development and 
United States energy security requirements. They should be 
located in countries with the greatest potential for success, 
without regard for the presence or absence of an AID field 
mission. Included in these efforts should be host country 
institutional capacity building, legal or regulatory reform, 
project design, innovative project financing, trade and reverse 
trade missions, training, and technology transfer and 
collaboration.
    The Energy Office provides leadership for power sector 
restructuring, privatization, and regional power cooperation to 
alleviate power shortages and reduce energy prices. The Office 
also promotes United States industrial leadership in utility 
management and innovative technologies to reduce pollutants 
from fossil fuels, recognizing that growing economies will 
require additional capacity for power generation from a wide 
range of sources.
    The Committee recommends that the Office continue its work 
with multilateral development banks to build their capacity to 
provide financial assistance for energy efficiency and 
renewable energy projects. As in prior reports, the Committee 
strongly supports projects, however financed, that promote 
power sector efficiency, energy efficiency and renewable 
energy, recognizing US industrial leadership in these areas.
    The Committee does not include funds for an Environmental 
Diplomacy Initiative that would be funded through the Economic 
Support Fund account, as it duplicates activities currently 
carried out by AID.

                      global issues: biodiversity

    The Committee applauds the accomplishments of AID in 
integrating biodiversity and forest management in its economic 
and social development programs. However, the recent declines 
of AID funding in these areas risk undermining many of these 
programs' effectiveness and raises serious questions of the 
agency's long-term commitment to protecting the environment. 
The Committee supports AID's fiscal year 1999 program level of 
approximately $68 million, which is an increase in funding 
above recent years and directs AID to continue high levels of 
funding for fiscal year 2000, including substantial funding for 
the Office of Environment and Natural Resources. The Committee 
also urges AID to pursue conservation and tropical forest 
management in all geographic regions where globally outstanding 
habitat and species are threatened, including border regions 
and in so-called AID ``non-presence'' countries.

                       global issues: agriculture

    The Committee remains strongly supportive of agricultural 
development. The Committee recognizes that AID has again 
included agricultural development as one of its key goals for 
its development programs. However, the Committee is concerned 
that agriculture programs have received only slight increases 
in the past two years. The Committee believes that agriculture 
development is vital to AID's overall efforts. By helping 
families grow more food that is more nutritious, hunger, 
malnutrition, and disease among women and children becomes less 
prevalent. By increasing incomes of rural families, the engine 
of economic development in these countries is being started.
    The Committee strongly believes in the value of 
partnerships between U.S. agribusiness and the emerging private 
sector agribusiness in developing countries. Projects to 
promote these partnerships leverage AID's development resources 
by increasing the private sector's investment of resources in 
developing countries, which leads to increased economic growth 
and stronger trade and investment ties between the U.S. and 
developing nations. Further, the Committee recommends that AID 
emphasize the private agriculture sector in its projects, 
including private farmers and household producers, credit 
programs, and private sector supply and market services.

                  global issues: women in development

    The Committee recommends at least $15,000,000 for AID's 
Women in Development programs, including funds transferred to 
central offices from overseas missions. Although AID is to be 
commended for previously devoting considerable attention to the 
needs of women and girls, additional attention is needed. While 
some positive steps have been taken, the Committee urges AID to 
improve expertise among its collaborators and contractors via 
AID procurement procedures, and revising its Women in 
Development Policy paper. The Committee urges that special 
attention be given to addressing women's needs and engaging 
women and girls fully in the reconstruction process following 
natural and man-made disasters as they play major roles in 
operating shelters and rebuilding their communities.

                    latin america and the caribbean

    The Committee is pleased the Agency for International 
Development responded to report language from previous years 
urging that greater emphasis be provided for programs in the 
Latin America and the Caribbean region. The Committee 
reiterates its intention that the allocation of funds for this 
region through this account and through the ``Economic Support 
Fund'' should be at least at the 1999 level, excluding 
emergency supplemental funding. The Committee believes that the 
promotion of free enterprise and private sector-led growth is 
key to the economic and social development in Latin America. 
The Committee supports the efforts of Jacksonville University 
and its Center for American Free Enterprise (CAFE) in its plan 
to strengthen the private sector in Latin America through 
education, conferences, field programs and scholarships. The 
Committee encourages AID to collaborate with Jacksonville 
University's CAFE to develop and implement this worthy 
initiative and recommends up to $2,000,000 for this purpose. 
The Committee is also aware of the investment by the George 
Mason School of Nursing to promote health care in developing 
countries, particularly in Nicaragua. The Committee encourages 
AID to collaborate with George Mason University as it seeks to 
continue and expand its health programs abroad.

               latin america and the caribbean: Guatemala

    Since the signing of the peace accords in 1996, U.S. 
assistance has contributed significantly to Guatemala's move 
toward consolidating democratic institutions and strengthening 
peace and reconciliation. Key areas of U.S. support have 
included programs to strengthen Guatemala's extremely weak 
judicial system and the provision of declassified U.S. 
documents to the Historical Clarification Commission. If the 
progress of the past two years is to be maintained, it is 
essential that the recommendations of the Clarification 
Committee be put into effect. Particular attention should be 
paid to those recommendations relating to the creation of a 
follow-up body to ensure implementation measures to rid the 
armed forces of human rights violators and reparations for 
victims of rights violations.
    The Committee notes the defeat in a May 1999 referendum of 
constitutional reforms that would have put the Guatemala peace 
accords on a strong legal foundation. In light of this setback, 
the Committee encourages the Guatemalan authorities and other 
supporters of the peace process to redouble efforts to 
implement the peace accords and to reinvigorate the peace 
process.
    The Committee urges the Administration to speak out 
strongly in defense of human rights workers and call for a full 
investigation and expeditious resolution of the murder of 
Bishop Juan Gerardi in April 1998 and threats against those 
involved in the case. The Committee also encourages U.S. 
attention to other outstanding human rights cases, including 
the murder of Myrna Mack and the Xamen massacre.

            Latin america and the caribbean: parks in peril

    The Committee notes its strong support for the existing AID 
Parks in Peril program, a partnership with the private sector 
to promote biodiversity conservation in imperiled ecosystems 
throughout Latin America and the Caribbean. The Committee 
believes that protection of rare ecosystems is important from 
an environmental standpoint, but also serves the long-term 
economic interests of these nations and the interests of the 
United States. The Committee notes that AID/Parks in Peril has 
worked at 36 sites in 15 different countries, helping to better 
protect more than 24 million acres. The program has made 
significant progress at turning ``paper parks''--those created 
by governments, but not adequately maintained--into genuine 
protected areas. The Committee notes that 17 Parks in Peril 
sites have been ``consolidated'' from the program; therefore, 
central AID funding is being phased out to those sites. The 
program is now shifting its successful methodology to new 
locations. Since its inception, Parks in Peril has received 
$32.6 million from central AID funds, formally matched by more 
than $11.4 million from The Nature Conservancy, foreign 
partners, and foreign governments, and has indirectly leveraged 
more than $180 million from non-AID sources. The Committee 
welcomes efforts to extend the influence of the Parks in Peril 
program more broadly, through an initiative known as ``PiP 
2000''.

          Latin America and the Caribbean: Corps of Engineers

    The Committee is pleased that AID is utilizing the U.S. 
Corps of Engineers for its Hurricane Mitch relief and 
reconstruction programs in Central America. The Committee 
encourages AID to continue its relationship with the Corps for 
planning, engineering and design, environmental, and technical 
activities, particularly those in Latin America where the Corps 
has existing field offices in Honduras, El Salvador, Panama, 
Colombia, Bolivia, and Peru. A partnership between the Corps 
and AID which takes advantage of these capabilities can 
significantly contribute to the strategic interests of the 
United States. The Committee believes that using the Corps to 
support such AID and State Department activities as child 
survival (water and sanitation); development assistance; 
disaster assistance; transitional initiatives; and narcotics 
control and interdiction will have long-term benefits to these 
developing nations.

                      Africa: eritrea and ethiopia

    The Committee is concerned by the continuing military 
conflict between Eritrea and Ethiopia and is disappointed that 
these nations continue to opt for war, rather than peacefully 
resolving their territorial dispute. The two nations--among the 
poorest in the world--have spent significant resources on this 
two year old conflict. These resources could have been directed 
toward development and economic growth. The Committee does not 
support continued high levels of assistance, especially 
nonproject assistance, to nations whose governments choose to 
dedicate scarce national resources to waging war instead of 
funding programs beneficial to their citizens. Further, the 
Committee is concerned that this conflict has undercut regional 
initiatives in the Horn of Africa which are mutually beneficial 
to the U.S. and countries in the region. The Committee expects 
that the Executive Branch will not engage in programs directly 
with either government, especially those involving nonproject 
assistance or debt relief, until it can be demonstrated that 
these governments have ceased offensive military action and 
have discontinued their weapons build up.

                  Africa: Assistance to Southern Sudan

    The Committee has previously expressed its concern for the 
need to increase assistance to the people of Southern Sudan. 
The Committee continues its strong support for Operation 
Lifeline Sudan (OLS), a multilateral effort to provide 
desperately needed food and humanitarian relief to southern 
Sudan, funded in part by AID's Office of Foreign Disaster 
Assistance (OFDA). However, without the consent of the 
government of Sudan, OLS is unable to provide desperately 
needed humanitarian aid to many opposition-controlled regions 
of Sudan. The Committee has urged AID to significantly increase 
resources to non-governmental organizations working in areas 
underserved by OLS and commends the Administration for doing so 
in recent years. The Committee urges that this continue.
    In addition, the Committee urges OFDA to maximize the 
resources programmed for capacity building activities in 
Southern Sudan. The Committee recommends that at least 
$4,000,000 of disaster assistance funds for Southern Sudan be 
used to improve primary education; conduct small-scale 
agriculture and infrastructure projects; improve local 
administration and governance; and carry out other locally 
determined priorities in opposition-controlled areas of Sudan.
    The Committee also supports AID's Sudan Transitional 
Assistance for Rehabilitation (STAR) program, begun in 1998, 
which is dedicating $9,000,000 over three years to assist in 
the establishment of functioning local government and in small-
scale municipal projects. The existing STAR program has 
supported training for leaders in the National Democratic 
Alliance in the role of local government administration and in 
human rights. The committee directs AID and the Department of 
State to substantially increase funding for the STAR program 
and to make resources available for capacity building, 
democracy promotion, civil administration, judiciary and 
infrastructure support in opposition-controlled areas of 
Southern Sudan.

                         Africa: horn of africa

    The Committee remains concerned about the fragile food 
security situation in the Horn of Africa. The Committee 
supports the efforts of The International Research Institute 
for Climate Prediction (IRI) to provide assistance to AID's 
Office of Foreign Disaster Assistance in predicting likely 
effects of weather patterns on Africa--especially the Greater 
Horn of Africa region. To further this important work, the 
Committee recommends that AID commit $500,000 for the 
implementation of a modeling effort focused on climate impacts 
on water, including both water supply and water-borne diseases, 
and agriculture, in collaboration with the Nairobi Drought 
Monitoring Center. The Committee believes these efforts can 
help achieve greater food security and stability in the region.

                             Africa: Gabon

    While the United States does not provide development or 
economic aid directly to Gabon, the Committee recognizes the 
constructive role the government of Gabon can play as a 
promoter of economic and political stability in Central Africa. 
The Committee urges the Department of State to continue to 
foster its relationship with the government of Gabon in support 
of U.S. foreign policy goals throughout Africa.

                            Africa: Liberia

    The Committee remains concerned by reports of the 
government of Liberia's provision of lethal military equipment 
to the rebels in Sierra Leone. This action has led to the 
further destabilization of the region, hindered humanitarian 
relief delivery, and has complicated international efforts to 
end the civil war in Sierra Leone. The Committee urges the 
administration to make every effort to encourage the Liberian 
government to end its military support for Sierra Leone rebels. 
The Committee has once again included bill language requiring 
that all assistance to Liberia be subject to the Committee's 
special notification requirements (section 520).

                             Asia: Overview

    The Committee notes that Asia (beyond the Middle East) is a 
region of paramount strategic and economic importance to the 
United States and is concerned that recent events, including 
the Asian financial crisis and open conflict between and within 
nations, have contributed to regional instability. While Asia 
represents the greatest potential for growth in U.S. exports 
and investment opportunities, systemic economic weaknesses 
throughout the region continue to threaten these interests. The 
Committee is concerned that, while the economy of the region 
has begun to recover, Asia still contains the largest 
concentration of poor people in the world, as well as the 
greatest land mass at risk of environmental degradation through 
poorly managed growth.
    The Committee believes that programs to support sound 
economic growth and promote U.S. trade and investment in Asia 
should continue to be a high priority for AID and urges the 
Agency to make available from funds allocated for Asia (outside 
of the Middle East), $60,000,000 for this purpose.

                         sringeri area in india

    The Committee intends for $250,000 from Development 
Assistance funds allocated to India in fiscal year 2000 to be 
provided for health care projects and activities in the 
Sringeri area within the state of Karnataka. The Committee 
supports funding for these programs through the Sharada 
Dhanvantari Charitable Hospital.

                  private and voluntary organizations

    The Committee has continued prior year language that 
requires that private voluntary organizations obtain not less 
than 20 percent of their total funding from sources other than 
the United States Government. Special consideration should be 
extended to those PVOs that obtain private donations for more 
than half oftheir total funding. In addition, the Committee has 
continued language from the 1999 Act stating that support for private 
voluntary organizations should be made available at a level at least 
equivalent to that provided in fiscal year 1995.
    The Committee continues its strong support for adequate 
funding for the Office of Private and Voluntary Cooperation 
(PVC) at $48,000,000, with $8,000,000 for cooperatives as 
contained in the congressional presentation. This funding level 
will help leverage private and non-AID resources by PVOs and 
cooperatives. The PVC office supports PVO microenterprise, 
child survival, vitamin A and micronutrient grants; strengthens 
cooperative development efforts; and administers the PL 480-
funded Farmer-to-Farmer program. The Committee directs AID to 
provide a brief written report no later than February 1, 2000, 
on the progress of Opportunities Industrialization Centers, 
International to complete its transition to full private sector 
funding.

                     Use of private sector monitors

    The Committee supports the use of private sector 
organizations to help developing countries resist fraud and 
corruption in U.S. aid programs. The Committee notes that some 
governments that are recipients of U.S. assistance have begun 
to capitalize on the use of independent private sector 
organizations to monitor the use of these funds and to improve 
their institutional capacity to curb corrupt practices. These 
efforts not only ensure the better use of U.S. assistance, but 
ultimately reinforce democracy and good government as well. The 
Committee urges AID to support efforts of governments to engage 
private sector monitors to ensure strict accountability of U.S. 
economic and development assistance.

                       Human rights and democracy

    The Committee is concerned that AID give adequate weight to 
the human rights and governance practices of recipient 
countries, including as reported in the Department of State's 
annual Country Reports on Human Rights Practices. Although the 
Committee believes that need and U.S. foreign policy goals 
should be the primary criteria for determining whether or not a 
country should receive assistance, the Committee also believes 
that the assistance will have a far greater chance of truly 
helping the citizens of those countries which respect the rule 
of law and the rights of their people. To this end, AID should 
continue to give weight to the record of human rights and 
democratic development of proposed recipient countries in the 
distribution of assistance provided under this act.

                            microenterprise

    The Committee recommends that microenterprise funding, 
including the use of local currencies, be provided at least at 
the program level provided in 1999. The Committee believes that 
AID should make its best effort to reach a program level of 
$152,000,000. Microenterprise has proven its effectiveness in 
promoting economic growth in many of the poorest countries and 
allowing poor people to help themselves out of poverty. Of 
these funds, the Committee expects AID will devote at least 
fifty percent to poverty lending programs. For purposes of 
implementing this program, poverty lending programs are defined 
as loans of under $300 made to the poorest fifty percent of 
those living below the poverty line, or the institutional 
development of organizations primarily engaged in making such 
loans.

              american schools and hospitals abroad (asha)

    The Committee recommends, and expects AID to provide, 
$15,000,000 from the funds provided in this Act for the 
American Schools and Hospitals Abroad (ASHA) program in fiscal 
year 2000. The Committee directs that none of these funds be 
reserved for programming in any future fiscal year. All funds 
are to be allocated and obligated in fiscal year 2000. The 
Committee further expects that support will be continued for 
traditional recipients of funding in countries such as Lebanon, 
Israel, and Egypt. In addition, funds should be made available 
for other deserving institutions as part of a competitive 
process, including the Alexander Muss School in Israel.

                        cass scholarship program

    The Committee continues to support the work of the 
Cooperative Association of States for Scholarships (CASS) and 
supports funding for CASS at the fiscal year 1999 level as 
contained in its cooperative agreement with AID. The Committee 
notes that the CASS program made an important contribution, 
from its existing resources, following Hurricanes in Latin 
America and the Caribbean. The CASS program recruited and 
trained 60 Honduran and Nicaraguan adults in the construction 
of homes and medical clinics using prefabricated materials. 
Similarly, following Hurricane Georges, 60 Haitian health 
workers were trained in maternal and child health and 
infectious disease control at three U.S. community colleges.

                Collaborative research support programs

    The Committee supports the continuation of the 
collaborative research support programs (CRSPs) and recommends 
funding of $34,000,000 for fiscal year 2000. The CRSPs are 
widely regarded within the agriculture industry as one of the 
best investments in international development. The Committee 
notes that agricultural research and development has led to 
greater economic development, increased income, and a more 
available food supply for the world's poor. The CRSPs have a 
significant domestic benefit as well: every dollar invested in 
agricultural research by the United States is estimated to be 
worth four dollars of expanded markets for U.S. goods and 
services overseas.

              international fertilizer development center

    The Committee continues its strong support for fertilizer-
related research and development being conducted by the 
International Fertilizer Development Center (IFDC), and directs 
AID to make $2,000,000 available for its core grant to IFDC and 
$2,000,000 for mission funded programs, and report to the 
Committee on progress toward incorporating the IFDC in the 
global network of international agricultural research 
institutions.

                           dairy development

    The Committee continues to support dairy development, and 
recommends AID funding for this program at $8,000,000, 
consistent with fiscal year 1999 and 1998 recommendations. The 
Committee is disappointed that AID has not provided recommended 
funding in past years. AID should implement projects under this 
program that help U.S. dairy producers and companies to prepare 
for more competitive international markets as U.S. subsidies 
decline. The programs should be designed to assist the American 
dairy industry to enter new markets, while at the same time 
providing technical assistance to potential U.S. dairy partners 
overseas. The Committee notes that the dairy program has 
successfully increased family nutrition and often represents 
the largest cash income for small producers. This program links 
processors and producers through cooperatives and farmer 
organizations since daily collection systems and quality 
controls are critical to safe and healthy milk products.

                 international executive service corps

    The Committee supports the work of the International 
Executive Service Corps (IESC), which utilizes volunteers to 
help developing countries in the areas of business development. 
For fiscal year 2000 the Committee urges AID to provide IESC 
with the level allocated for fiscal year 1999 in order to 
ensure the continued availability of IESC services.

                international center for economic growth

    The Committee believes that economic reform continues to be 
a critical issue in the developing world and encourages AID to 
consider a proposal by the International Center for Economic 
Growth to promote global economic stability and support 
economic reform in developing countries.

                     business education in vietnam

    The Committee recognizes the ongoing collaboration of Boise 
State University and the National Economic University's 
Business School in Vietnam in establishing a Vietnamese 
business school. The Committee urges AID to consider making 
funds available for this program, which is designed to teach 
market-oriented economic principles to Vietnamese. The 
Committee understands that the school expects to be self-
supporting in two years.

                    U.S./Israel Cooperative Programs

    The Committee expresses its disappointment over the decline 
in funding for the US/Israel Cooperative Development Program 
(CDP) and Cooperative Research Program (CDR). These are 
important programs but program levels have been declining since 
1995. The Committee urges the Administration to consider 
restoring funding for CDR/CDP to the previous level, with the 
same split in funding between the two accounts.

             development of credit unions and cooperatives

    The Committee continues to support central funding, at 
least at the fiscal year 1999 level, from the Office of Private 
and Voluntary Cooperation to enable United States cooperatives 
and credit unions to share their self-help business approaches 
with developing and market transition countries. The Committee 
notes that in Central America, U.S. cooperatives have helped 
create a network of grassroots cooperatives in countries hard-
hit by Hurricanes Georges and Mitch. The Committee encourages 
AID to fully utilize the expertise of U.S. and indigenous 
cooperatives in this region, especially in the expansion of 
cash crops such as coffee and sesame. Further, the Committee 
recognizes that some countries in Africa are rethinking 
cooperatives and reorganizing them on a more commercial basis. 
The Committee urges AID's Africa Bureau to fully utilize 
cooperative models in its country strategies in the areas of 
rural electrification, increasing access to telephones, 
agricultural marketing, credit unions and urban development.

                       torture treatment centers

    The Committee recommends $7,500,000 for AID to support 
foreign treatment centers for victims of torture, as authorized 
by the Torture Victims Relief Act. In implementing this 
recommendation, the Committee believes that AID should give 
serious consideration to the 126 treatment programs in 54 
countries listed in the 1998 directory published by the 
International Rehabilitation Council for Torture Victims in 
Copenhagen, Denmark. The Committee requests that AID report in 
writing no later than February 1, 2000, on its implementation 
of the torture treatment program.

                   community-owned telecommunications

    The Committee supports programs undertaken to foster 
community-owned telecommunications systems in the developing 
world and encourages AID to continue funding such programs as 
they are consistent with the overall goal of economic growth 
led by private sector development.

                   international disaster assistance




Fiscal year 1999 level................................      $200,000,000
    Emergency supplemental funding....................       188,000,000
Fiscal year 2000 request..............................       220,000,000
Committee recommendation..............................       200,880,000


    The Committee has recommended $200,880,000 for the 
International Disaster Assistance account, $187,120,000 below 
the amount enacted for 1999 level and $19,120,000 below the 
request. If emergency supplemental funding is excluded from the 
calculation, the recommended level is $880,000 above the 1999 
level. The Committee notes that the overall amount enacted for 
fiscal year 1999 funding level was in response to urgent needs 
associated with the natural and man-made disasters in Central 
America and the Balkans. The Committee also notes that 
appropriations for this account have varied widely over the 
past ten fiscal years, from a low of $25,000,000 to the fiscal 
year 1999 level of $388,000,000.
    Last year, the Committee noted that Office of Transition 
Initiatives (OTI) activities are consuming an ever-increasing 
part of the International Disaster Assistance account. AID 
allocated to the Office of Transition Initiatives $30,000,000 
in 1998 and $55,000,000 in fiscal year 1999 from within the 
International Disaster Assistance account. The Committee 
recognizes that transition activities have merit, but has 
become increasingly concerned that scarce disaster aid may be 
siphoned off for longer-term OTI programs. Therefore, the 
Committee has placed a ceiling of $35,000,000 on disaster 
assistance funds which can be dedicated to OTI programs. This 
will help ensure necessary transition activities as well as 
true disaster aid are adequately funded.
    The Committee has included bill language requiring that any 
additional funds made available from this account for OTI 
activities be subject to the Committee's regular notification 
procedures. The Committee notes that section 515 of this act 
provides authority to waive the notification process if failure 
to do so would pose a substantial risk to human health or 
welfare. Also, the Committee requests that AID report on a 
semi-annual basis the expenditure and specific use of funds by 
OTI.
    The Committee notes that section 492(b) of the Foreign 
Assistance Act provides the President with the authority to 
obligate up to $50,000,000 from other development assistance 
accounts in order to provide disaster assistance, if necessary.
    The Committee is aware that the Office of Foreign Disaster 
Assistance at AID currently contracts with two domestic search 
and rescue (SAR) teams to urgently respond to overseas 
disasters. The Committee supports the work of these SAR teams, 
both of which are located on the East Coast. To better respond 
to disasters in Asia and the Pacific Rim, the Committee 
encourages OFDA to contract with two SAR teams on the West 
Coast. The Committee believes this could reduce the amount of 
time required to respond to disasters by up to six hours.

             Micro and Small Enterprise Development Program


                         subsidy appropriation




Fiscal year 1999 enacted..............................        $1,500,000
Fiscal year 2000 request..............................         1,500,000
Committee recommendation..............................         1,500,000


             estimated level of direct and guaranteed loans




Fiscal year 1999 enacted..............................     ($40,000,000)
Fiscal year 2000 request..............................      (30,000,000)
Committee recommendation..............................      (30,000,000)


                        administrative expenses




Fiscal year 1999 enacted..............................          $500,000
Fiscal year 2000 budget request.......................           500,000
Committee recommendation..............................           500,000


    The Committee is recommending $1,500,000 in a subsidy 
appropriation for the micro and small enterprise program. This 
level is the same as the 1999 enacted level and the budget 
estimate. The proposed level of funding will provide up to 
$50,000,000 in direct loan and loan guarantee authority. In 
addition, the Committee is recommending $500,000 in 
administrative expenses, the same as the 1999 enacted level and 
the budget request.

             Urban and Environmental Credit Program Account


                         subsidy appropriation




Fiscal year 1999 level................................        $1,500,000
Fiscal year 2000 request..............................         3,000,000
Committee recommendation..............................  ................


                           operating expenses




Fiscal year 1999 level................................        $5,000,000
Fiscal year 2000 request..............................         5,000,000
Committee recommendation..............................         5,000,000


    The Committee is not recommending a subsidy appropriation 
for the urban and environmental (UE) program account for fiscal 
year 2000. This is $3,000,000 below the budget request and 
$1,500,000 below the fiscal year 1999 enacted level. An 
appropriation of $5,000,000 is recommended for operating 
expenses to maintain the current portfolio. The $5,000,000 
recommendation will allow AID to administer its existing UE 
program in fiscal year 2000 with a staff of 25, including 15 in 
Washington and 10 overseas. This staff is responsible for a UE 
credit portfolio of more than $2,200,000,000.
    Due to budget constraints, the Committee is once again 
recommending termination of this program so that scarce 
development resources can be dedicated to the least developed 
countries. The Committee notes that the program currently has 
an undisbursed pipeline of more than $116,000,000 for active 
programs in India, Indonesia, Morocco, South Africa, Zimbabwe, 
and the Czech Republic.

                      Development Credit Authority

    The Committee is not recommending funding for the 
Development Credit Authority (DCA), a new AID proposal to 
extend sovereign and non-sovereign loans and loan guarantees in 
developing nations. The budget request proposes up to 
$15,000,000 from the Development Assistance, Independent States 
and SEED accounts for this purpose. The Committee is aware that 
AID has made a considerable effort, with the assistance of the 
Office of Management and Budget, to ensure that the DCA program 
is better managed than existing AID credit programs. However, 
the Committee considers extending new loans in developing 
nations unwise given the inability of many nations to service 
existing debt. The Committee notes that bilateral and 
multilateral lending programs in the 1970s and 1980s have 
spawned a proliferation of debt cancellation and reduction 
schemes in the 1990s. The Committee considers DCA inconsistent 
with the President's budget request which focuses significant 
attention on reducing or canceling existing U.S. bilateral and 
multilateral debt, including debt reduction through the Paris 
Club, the World Bank's Highly Indebted Poor Countries (HIPC) 
program, the President's ``Africa Initiative'' debt forgiveness 
plan, and debt relief for certain countries with tropical 
forests.

     Payment to the Foreign Service Retirement and Disability Fund





Fiscal year 1999 level................................       $44,552,000
Fiscal year 2000 request..............................        43,837,000
Committee recommendation..............................        43,837,000


    The Committee has provided the budget request for the 
mandatory payment to the Foreign Service Retirement and 
Disability Fund.

     Operating Expenses of the Agency for International Development





Fiscal year 1999 level................................      $479,950,000
Fiscal year 2000 request..............................       507,739,000
Committee recommendation..............................       479,950,000


    The Committee has recommended funding for Agency for 
International Development operating expenses at a level of 
$479,950,000 which is $27,789,000 below the Administration's 
request and the same as the amount provided for fiscal year 
1999. The Committee recommendation is a result of overall 
budget constraints as well as Committee concerns about 
management problems at the agency. The Committee recommendation 
discontinues prior year language limiting funding for 
publications. The Committee is aware that AID procedure now 
prohibits funding for publications above $25,000 without the 
approval of the Administrator. The Committee has not included 
in the bill any provision regarding voluntary separation 
incentives for AID employees as contained in the budget 
request. The Committee recognizes that its recommended funding 
level for Operating Expenses may cause the agency to consider 
modifying its employment levels. Therefore, the Committee may 
reconsider the AID request for separation incentives later in 
the process and after the relevant authorizing committees have 
had an opportunity to consider the proposal.
    Over the years, the Committee has granted AID significant 
flexibility in the allocation of its operating budget. However, 
because of AID's lack of consultation with the Committee 
regarding operating expenses in Africa, the Committee has 
included a new general provision in the bill (section 579) 
requiring AID to notify the Committee in advance of opening any 
new mission overseas or of any capital construction of missions 
or purchase or long-term lease of offices.

                     Committee oversight challenges

    The Committee is concerned about continued and significant 
weaknesses in AID's ability to provide reliable information to 
Congress regarding the exact use of funds under Agency control. 
Many of these deficiencies are not new as the Committee has 
highlighted these in past years. However, these deficiencies 
have affected the Committee's ability to conduct responsible 
oversight of agency programs.
    At the core of these weaknesses are AID's poor financial 
accounting and management systems and the failure of AID's New 
Management System. The Committee notes that according to AID's 
Inspector General, ``USAID's core financial system, performance 
measurement system, managerial cost accounting system, and 
budget system have widespread deficiencies. These systems do 
not meet federal standards.'' Specifically, the Committee notes 
that AID has been unable to produce timely and reliable 
information regarding the agency's fund obligation rate and the 
amount of funds in various agency program ``pipelines''. 
Further, the Committee has experienced significant problems 
with the agency's congressional presentation documents, its 
notification process and with the reliability of information 
contained in AID's annual statistical annex. Finally, the 
Committee has had difficulty obtaining detailed information, 
known as ``coding'', regarding the obligation of funds by 
specific activity.
    The Committee is aware that AID has abandoned its 
$104,000,000 New Management System and that efforts are now 
underway to purchase a commercial off-the-shelf integrated 
financial management system. The Committee requests that AID 
continue to report on a quarterly basis on the status of its 
computer systems, including the cumulative costs associated 
with design and implementation of the system. Any costs for 
computer systems above those originally projected for fiscal 
year 2000 should be subject to prior review by the Committees 
on Appropriations. In addition, the Committee insists that the 
agency's fiscal year 2001 budget justification will clearly 
identify the amounts requested for the AID computer operations.
    The Committee finds it difficult to understand AID's 
failure to meet its requirements under various financial 
management laws. AID is currently not in compliance with the 
Federal Financial Management Improvement Act (FFMIA), due in 
part to the failure of the New Management System. In addition, 
the Committee last year expressed its concern about AID's 
failure to fully comply with the Chief Financial Officers Act. 
To date, AID is still not in substantial compliance with that 
Act.
    The Committee requests that the Director of the Office of 
Management and Budget provide a report to the Committee within 
six months of enactment of this bill detailing his efforts to 
secure AID's compliance with relevant federal financial 
management statutes. The Committee expects AID management to 
implement the recommendations of the Inspector General in this 
regard and to be regularly consulted about agency efforts to 
meet these requirements. Finally, the Committee is aware that 
AID has been slow to ensure its mission critical systems are 
Y2K compliant. The Committee expects AID to keep it informed of 
agency progress in meeting Y2K requirements.
    The Committee will continue to work with senior AID 
officials to reform the budget justification and notification 
processes to ensure they meet the needs of both Congress and 
the agency. But much of the responsibility for improving agency 
processes and ensuring compliance with federal law regarding 
financial management lies exclusively with senior agency 
management. Our common goal is to reduce unnecessary paperwork 
while providing more useful information to decision-makers.

                         aid budget submission

    The Committee notes that the Congressional Notification 
process has failed to provide the Congress with the minimum 
information it requires to carry out its legislative and 
oversight responsibilities, and has caused an undue reporting 
burden on the Agency. The Agency is therefore required to 
submit a proposed annual budget to Committees of jurisdiction. 
The Committee is aware that annual budgets which describe 
proposed funding levels for each Bureau, Central Office, and 
Field Mission by objective and funding source already exist, 
and expects that this requirement will not constitute an undue 
burden on the Agency. It is essential that the Committee have 
at its disposal a concise budget justification document that 
presents an overall presentation of the Agency's programs and 
activities.
    The Committee therefore recommends a new general provision, 
section 581, that would require the Agency to submit an annual 
budget that contains detailed data about past, current, and 
requested financial and personnel resources for each Bureau, 
Central Office, and Field Mission. The Committee expects a 
draft budget format to be submitted for approval by the 
Committees on Appropriations no later than October 31, 1999, or 
30 days after the enactment of the act.

                         AID overseas security

    The Committee is concerned by AID's lack of strategic 
planning for its overseas physical security needs. In response 
to the bombings of the U.S. embassies in Kenya and Tanzania in 
1998, AID has determined that it must relocate its missions in 
a number of countries and provide significant physical security 
upgrades to other sites at a total estimated cost of 
$350,000,000. However, AID submitted a fiscal year 2000 budget 
request which contained no funding for additional overseas 
physical security needs. More recently, the Committee was 
informed that AID requires nearly $63,000,000 in fiscal year 
2000 for which no source of funding has yet been identified. 
The Committee directs the Administrator of AID to prepare a 
written report detailing the agency's long-term overseas 
physical security requirements and the costs associated with 
these security needs, including the number of engineers and 
other technically qualified AID employees assigned to the 
security mission. The Committee expects new AID missions 
overseas will be located consistent with U.S. government 
regulations regarding collocation of facilities.

                               aid travel

    The Committee is concerned about the practice of AID 
employee and other AID-sponsored travel to wealthy countries 
for various conferences, workshops and seminars. The Committee 
recognizes the legitimate role of periodic travel by senior 
agency officials to attend donor conferences and consultations 
outside the developing world, however, the Committee does not 
see the justification for extensive AID funded travel to OECD 
and other wealthy countries by agency employees and third party 
individuals. The Committee requests that AID provide a written 
report no later than December 1, 1999, detailing all fiscal 
year 1999 AID expenditures for travel to countries which are 
not direct recipients of AID bilateral development, 
humanitarian or economic assistance. This report should include 
the purpose of the travel, the amount of funds spent and the 
bureau or mission accountable for the expenditure, and the 
dates and travel destinations.

                        AID Operations in Africa

    The Committee is concerned about AID's failure to consult 
about agency plans in several African nations which will have 
significant impact on the agency's operating budget and on the 
allocation of program funds in fiscal year 2000 and beyond. The 
Committee is concerned that AID has not fully considered the 
long-term budgetary and policy implications of these decisions 
on other programs on the continent.
    The Committee finds unacceptable AID's failure to notify it 
prior to extending its program in South Africa by five years. 
While the Committee has been supportive of U.S. assistance 
programs in South Africa, it recognizes that continued 
significant levels of assistance for South Africa will be 
provided at the expense of AID programs in less developed 
African nations. AID estimates that the additional operating 
costs due to this extension will total more than $4,500,000. 
The Committee is also concerned that AID is committed to 
construction of a new mission facility in Pretoria without 
Congressional consultation. The Committee is also concerned 
about recent AID actions in Nigeria. The Committee is aware 
that AID has taken several steps to establish a new mission in 
Nigeria, including expanding AID's presence in Lagos and 
opening a new facility in Abuja, without consulting the 
Committee. AID estimates that this decision will cost up to 
$2,500,000. These decisions will place a new, unanticipated 
burden on the agency's operating budget in upcoming years.
    AID is requested to report in writing to the Committee no 
later than February 1, 2000, on its five year strategic plan 
for management of its operating resources for Sub-Saharan 
Africa, including operating expense needs, staffing needs, the 
status of existing and proposed missions, the role of regional 
missions, and the close-out or graduation of programs.

Operating Expenses of the Agency for International Development, Office 
                        of the Inspector General





Fiscal year 1999 level................................       $30,750,000
Fiscal year 2000 request..............................        25,261,000
Committee recommendation..............................        25,000,000


    The Committee has recommended $25,000,000 for the Office of 
the Inspector General of AID for fiscal year 2000, $261,000 
below the budget request and $5,750,000 below the fiscal year 
1999 level. The reduction in the Inspector General's budget 
request below fiscal year 1999 is due largely to the transfer 
of responsibility for security matters from the Inspector 
General to the AID Administrator. The Committee again requests 
that the Inspector General consult with the Committee no less 
than four times per year on its activities with regard to the 
Government performance and results Act.

  Central American and the Caribbean Emergency Disaster Recovery Fund





Fiscal year 1999 Emergency supplemental funding.......      $621,000,000
Fiscal year 2000 request..............................  ................
Committee recommendation..............................  ................


    The Committee provided $621,000,000 in fiscal year 1999 
emergency supplemental funding to assist Central American and 
Caribbean nations struck by Hurricanes Mitch and Georges and to 
aid earthquake recovery efforts in Colombia. The administration 
did not request fiscal year 2000 funding.

                      Development Fund for Africa





Fiscal year 1999 level................................  ................
Fiscal year 2000 request..............................       512,560,000
Committee recommendation..............................  ................


    The administration requested $512,560,000 for the 
Development Fund for Africa. The Committee provided no funds 
under this account heading. However, as stated earlier in this 
report, the Committee recognizes that development needs in sub-
Saharan Africa are great and expects AID to provide a 
significant percentage of all development funds, including 
Development Assistance and Child Survival and Disease Programs 
Fund resources, to the region.

                  Other Bilateral Economic Assistance


                         Economic Support Fund





Fiscal year 1999 level................................    $2,367,000,000
    Rescission........................................        -5,000,000
    Emergency supplemental funding....................       211,500,000
Fiscal year 2000 request..............................     2,539,000,000
Committee recommendation..............................     2,227,000,000


    The Committee recommends a total of $2,227,000,000 for the 
Economic Support Fund, an amount that is $312,000,000 below the 
request and $346,500,000 below the amount enacted for 1999. If 
emergency supplemental funding is excluded from the 
calculation, the recommended level is $135,000,000 below the 
1999 level and rescission.
    The Committee recommendation assumes a reduction of 
$160,000,000 in economic support for the Camp David countries, 
and an increase of $50,000,000 for Jordan. Thus the total 
increase for non-Camp David countries is $25,000,000, or a 
total of $532,000,000. Support for non-Camp David countries and 
activities in this account has risen from $344,600,000 in 
fiscal year 1996 to $532,000,000 in fiscal year 2000, an 
increase of $187,400,000 or over 50 percent. However, the 
Committee notes that funds for the Middle East continue to make 
up the largest portion of this account.

                                 israel

    The Committee is continuing the initiative begun last year 
for a phased reduction in economic assistance for Israel that 
will result in the eventual elimination of ``Economic Support 
Fund'' assistance. This proposal was originally made by the 
Government of Israel in response to new economic realities in 
the Middle East.
    The Committee is also convinced that the emerging security 
threats in the Middle East are significant and warrant 
increasing military assistance to Israel by $60,000,000 in 
fiscal year 2000. However, with respect to this recommended 
increase in military assistance, the Committee must be very 
clear that it cannot commit future Congresses to the future 
appropriation of funds. Therefore, future increases in military 
assistance will require the annual review of the Congress and 
will necessarily be based upon an assessment of the security 
situation at the time.
    The Committee therefore recommends that not to exceed 
$960,000,000 in economic support shall be provided for Israel, 
which is $120,000,000 less than the fiscal year 1999 level, but 
$30,000,000 more that the amount requested by the President. 
The Committee also requires in bill language that these funds 
be provided to Israel as a cash grant within thirty days of the 
signing of this act or by October 31, 1999, whichever is later.
    The Committee has retained an overall limit on Middle East 
spending (section 571) at a level of $5,318,150,000. The 
Committee intends to continue the phased reduction in the 
Middle East cap next year, a reduction that will correspond to 
the phased reductions in aid to Israel and Egypt. The Committee 
believes this will provide the Administration with increased 
flexibility in the allocation of funds in the foreign 
operations budget for priority activities in other areas of the 
world.

                                 egypt

    As part of the Committee's ongoing review of Middle East 
aid levels, and as a result of budget constraints affecting the 
international affairs budget, the Committee has engaged in 
extensive discussions with the Government of Egypt and the 
Administration regarding appropriate future aid levels for 
Egypt. As a key friend and ally in the region, Egypt's critical 
role in the Middle East and essential contribution to the peace 
process cannot be overstated. It is the Committee's view 
therefore that changes in aid to Egypt must be implemented in 
close consultation with the Government of Egypt and in a manner 
which does not inadvertently undermine the guiding principles 
of the Camp David Accords.
    The Committee therefore recommends that not to exceed 
$735,000,000 in Economic Support Funds be provided for Egypt on 
a grant basis, which is $40,000,000 less than the fiscal year 
1999 level but $20,000,000 more than the amount requested by 
the Administration. A cash transfer may be provided with the 
understanding that Egypt will continue to implement significant 
economic reforms. The Committee also strongly recommends that 
not less than $200,000,000 of the funds allocated for Egypt be 
available for Commodity Import Program assistance. The 
Committee would support the use of local currency generated by 
the Commodity Import Program to assist in the relocation of the 
American University in Cairo.

                           camp david accords

    The Committee emphasizes once again that the recommended 
levels of assistance for Israel and Egypt are based in great 
measure upon their continued participation in the Camp David 
accords and the Egyptian-Israeli peace process.

                          non-military exports

    The Committee strongly urges the President to ensure, in 
providing cash transfer assistance to Egypt and Israel, that 
the level of such assistance does not cause an adverse impact 
on the total level of non-military exports from the United 
States to each such country.

                       economic boycott of israel

    The Committee has once again included language in the bill 
addressing the Arab League boycott of Israel under section 539 
of this Act.

                      christian community in egypt

    The Committee appreciates the strong friendship that has 
developed between the United States and Egypt and appreciates 
the leadership of President Mubarak in this critical region. It 
is the Committee's view that the United States should make 
every effort to enhance this important relationship. 
Nevertheless, it is very concerned by continuing reports of 
discrimination, harassment and violence against Christians in 
Egypt. It encourages the government of Egypt to take all steps 
possible to promote equal rights and religious tolerance for 
the Christian community, and to provide greater protection to 
vulnerable communities subject to attacks and exploitation by 
militant factions.

                                 jordan

    The Committee expresses its continued strong support for 
and appreciation of Jordan's constructive and critical role in 
the peace process and encourages the Administration, in close 
consultation and cooperation with the Congress, to continue its 
efforts to assist Jordan in both the economic and security 
areas. The Committee therefore recommends full funding for the 
Administration's request for Jordan, including $100,000,000 for 
fiscal year 2000 as requested in the President's transmission 
of February 19, 1999. Of this amount, $50,000,000 is provided 
through ``Economic Support Fund'' and $50,000,000 is provided 
through ``Foreign Military Financing Program''.
    This recommendation is not part of the ongoing support of 
$150,000,000 for Jordan recommended in this account, and 
$75,000,000 in base funds recommended in ``Foreign Military 
Financing Program''. Given the special nature of the 
$100,000,000 proposed by the President as part of a short-term, 
limited commitment to Jordan, it is not included in the Middle 
East funding cap contained in section 571.
    The Committee also encourages Jordan to continue its 
ongoing economic reform program, which the Committee strongly 
supports.

                      middle east desertification

    The Committee expresses strong support for the initiation 
of a Middle East and Mediterranean desert development program 
to significantly increase efforts to expand regional 
cooperation in combating growing desertification in the Middle 
East and southern Mediterranean region. The Committee believes 
that such a program would be environmentally viable and 
mutually beneficial to nations in this region. Therefore, the 
Committee directs that up to $5,000,000 be made available for 
this activity from the Economic Support Fund, development 
assistance or any other appropriate funds made available by 
this Act.

                israeli-palestinian cooperation program

    The Committee strongly supports efforts to promote better 
understanding and mutual respect between Israelis and 
Palestinians living in the West Bank and Gaza. The Committee 
also remains convinced that the United States should encourage 
a broad range of educational, cultural and humanitarian 
activities which bring Palestinians and Israelis together. The 
Committee believes these activities can be successfully carried 
out by Israeli and/or Palestinian private voluntary 
organizations. Therefore, despite tight budgetary constraints 
on the overall account, the Committee urges the Agency for 
International Development to continue to provide necessary 
assistance for this program.

                             seeds of peace

    The Committee recognizes the importance of youth training 
in conflict resolution as a tool for creating a climate of 
peace in regions of conflict. The Committee commends the work 
of Seeds of Peace for its commitment to helping future leaders 
of the Middle East and other regions to overcome prejudice, 
fear, and other obstacles to peace, and urges the 
Administration to support the important work of this 
organization.

                           west bank and gaza

    The Committee supports assistance to the West Bank and 
Gaza. The Committee continues to believe that support by the 
United States for the economic and social development of 
Palestinians is an important contribution to the peace process. 
However, the Committee is not convinced that the President's 
requested increase of $25,000,000 for fiscal year 2000 for the 
West Bank and Gaza is warranted at the present time. Therefore, 
the Committee believes strongly that funding for the West Bank 
and Gaza in fiscal year 2000 should not exceed the amount 
allocated for fiscal year 1999.

                            lebanon funding

    The Committee believes support for the people of Lebanon 
continues to be in the United States national interest. The 
Committee supports increased funding for Lebanon from both the 
development assistance and Economic Support Fund accounts for 
fiscal year 2000. The Committee is aware of the vital work 
being done at the local level by existing AID programs in 
Lebanon. It is also aware of the long-term benefits derived 
from ongoing support for American institutions of learning in 
Lebanon such as the American University of Beirut, the Lebanese 
American University, and International College. The Committee 
urges the Administration to provide an increase for 
scholarships and other direct support to these institutions 
through appropriate funding mechanisms.

                    support for democracy in lebanon

    Since 1976, Syrian military, security and intelligence 
forces have occupied Lebanon, and Syrian military forces in 
Lebanon currently number upwards of 30,000 troops.
    Syrian control has meant that Lebanon has become a haven 
for terrorists. The most notorious of these terrorist groups is 
Hizballah, the group that killed U.S. Marines and held American 
hostages in the 1980's. The Syrians not only support, train and 
protect these terrorists, but also help finance them with drugs 
grown in Lebanon and sold in the West. Lebanon has become a 
major producer, refiner and shipper of hashish, heroin and 
other drugs since Syria began its occupation.
    The Committee supports the withdrawal of all Syrian 
military, paramilitary, intelligence and proxy forces from 
Lebanon so that Lebanon may regain its freedom and reconstitute 
its formerly democratic government.

                            iraq opposition

    The Committee supports the President's request of 
$10,000,000 for support to Iraq opposition groups, and has 
included bill language in section 580 that authorizes such 
assistance pursuant to the provisions of the Iraq Liberation 
Act (Public Law 105-338).

                                 china

    The Committee is recommending continuation of a general 
provision (section 526) which authorizes the use of funds from 
the Economic Support Fund to provide general support and grants 
for nongovernmental organizations located outside China that 
have as their primary purpose fostering democracy in that 
country. Funds were appropriated, and obligated, for this 
purpose in fiscal year 1999. In fiscal year 2000, the Committee 
expects the State Department to make available up to $900,000 
for the democracy project being administered by the Robert F. 
Kennedy Memorial Foundation, and up to $1,000,000 for other 
projects related to China. The Committee would also support 
rule of law programs for law students.
    Due to the fact the majority of the projects funded in 
fiscal year 1999 are new, it is important that there be 
adequate oversight over the use of the funds. Therefore, the 
Committee expects that funds for similar purposes for fiscal 
year 2000 will not be obligated until it receives a report 
providing details of how funds appropriated for fiscal year 
1999 are being used, including details on the goals for each 
program, any grantee or subgrantee that has received funding 
and the amount received by each, any foreign organization that 
has received funding directly or indirectly, and the specific 
activities for which the funds were used. The report may be 
submitted in classified form, if necessary.

                                 tibet

    The Committee recommends that $250,000 be made available 
through an NGO, such as the National Endowment for Democracy, 
for the purpose of providing training and education of Tibetans 
in democracy activities, and monitoring the human rights 
situation in Tibet.

                                cambodia

    The Committee has included bill language (section 573) 
similar to that from the 1999 act that prohibits funding for 
the Government of Cambodia. However, the Committee does not 
restrict funding through nongovernmental organizations (NGO's) 
and would support increased emphasis on microcredit activities 
and democracy programs.

                                 cyprus

    The Committee recommends that every effort be made to 
provide $15,000,000 in Economic Support Funds for educational 
and other bicommunal projects in Cyprus, and to examine the 
feasibility of an institution of higher learning that could 
serve both communities on that island. These funds provide a 
basis for mutual cooperation and preparation for these two 
communities to live together harmoniously by increasing inter-
communal contacts. In this connection, the Committee is 
concerned by reports that the leader of the Turkish Cypriot 
community has attempted to restrict contacts with the Greek 
Cypriot community.

                    latin america and the caribbean

    With the exception of the Administration's request for 
Haiti, the Committee expects the Administration to fund 
programs for Latin America at least at the fiscal year 1999 
level, excluding emergency supplemental funds. (Haiti is 
addressed separately below.) It remains the Committee's strong 
belief that given the importance of the region and the long 
history of United States support, it is essential that aid 
levels not be reduced further. In that regard, the Committee 
fully supports the budget request of $3,000,000 for theCuba 
democracy program and its goal of promoting a peaceful transition to 
democracy in that country.
    The Committee continues to be concerned about the 
resolution of the cases involving the terrorist bombings of the 
Israeli Embassy and the AMIA Jewish Community Center in Buenos 
Aires, Argentina. While the Committee is pleased by the 
developments last year that resulted in the announcement by 
Argentine officials that linked Iran to the unresolved bombings 
and led to a downgrading of Argentina's relationship with that 
country, the Committee urges the Secretary of State to work 
with the government of Argentina to ensure that progress is 
made in these cases, and to offer technical law enforcement 
assistance where appropriate to bring to justice the 
perpetrators of these terrorist acts.

                                 haiti

    The Commmittee is disappointed at the results of United 
States attempts to improve the lives of the poor majority in 
Haiti. Democratic reforms have stalled for two years and 
violence has escalated in Haiti. The Committee continues to be 
fully supportive of humanitarian assistance to the people of 
Haiti, and commends the private organizations through which 
such aid is distributed.
    Section 559 of the recommended bill would lift current 
statutory restrictions on assistance to the government of Haiti 
in section 561 of the 1999 Act (as contained in P.L. 105-277). 
This new approach may facilitate efforts by the Executive 
branch to reverse the negative trends in Haiti. The Committee 
continues to insist that assistance to the Government of Haiti 
be implemented in a manner that significantly advances market-
based economic reforms, particularly the privatization of 
parastatal companies, and respect for the rule of law.
    The Committee directs that no assistance shall be provided 
to any national or local government office or any dependent or 
associated entity in Haiti under audit or investigation for 
corruption or misuse of donor funds. Any such suspension shall 
not be removed until an independent audit report accounts for 
the funds involved and any audit findings are fully 
implemented. The Committee supports urgent, proactive measures 
to reverse the corruption, politicization and a high rate of 
attrition that plague the Haitian National Police, including 
full accounting of the attrition of hundreds of U.S.-trained 
members from the unit. The Committee expects the Administration 
to abide by its written commitments to fully consult the 
relevant committees of Congress on the provision of aid to the 
Government of Haiti.
    Evidence presented to the Committee by the International 
Justice Mission in Haiti suggests that arbitrary and illegal 
detention of numerous individuals for personal or political 
reasons is becoming increasingly common. Consequently, the 
Committee strongly recommends that the Department of State and 
Justice link future assistance to the Government of Haiti to a 
full audit of persons detained in Haitian prisons and jails and 
the removal from office of individuals who routinely refuse to 
obey court orders to release prisoners. The Committee 
recommends that the Office of Overseas Prosecutional 
Development and Training (OPDAT) of the Department of Justice 
be utilized for such an audit.
    The Committee recommends up to $10,000,000 as a grant to an 
economic development fund for Haiti. The Committee intends, 
that, to the extent possible, credits from the Fund be made to 
small to medium-sized businesses (i.e., enterprises with total 
revenues of less than $20,000,000). The fund should be 
implemented expeditiously to restore jobs lost during the 
embargo to help deter unlawful Haitian immigration into the 
United States.
    The bill does not include a dollar ceiling on the level of 
assistance in 2000, but the Committee notes that the actual 
dollar amount made available for Haiti or any other Latin 
American or Caribbean nation is limited by section 556.

                              tuna treaty

    The Committee continues to support the payment of 
$14,000,000 in economic assistance as provided under the South 
Pacific Tuna Treaty, and as requested by the President.

                       international crisis group

    The past decade has seen an explosion in the number of 
complex crises around the world. One organization that has set 
a high standard for providing policy-makers with an independent 
source of information, analysis and ideas on internal and 
regional conflicts is the International Crisis Group (ICG). By 
placing its expert analysts on the ground for long periods, ICG 
is well positioned to identify problems, produce objective 
assessments and prescribe coherent and effective policy 
responses. Its comprehensive and perceptive reporting from 
Bosnia, Serbia, Macedonia, Albania, Burundi, Democratic 
Republic of Congo, Algeria, Sierra Leone and Cambodia over the 
past three years are examples of its value. The Committee urges 
the State Department and AID to consider increasing support for 
ICG because of the great benefit its work has for the U.S. 
government in assessing its role in crisis situations.

                         availability of funds

    The Committee has continued language that funds in this 
account are to remain available for obligation for two years.

                     International Fund for Ireland





Fiscal year 1999 level................................      $19,600,000
Fiscal year 2000 request..............................      (19,600,000)
Committee recommendation..............................       19,600,000


    The Committee recommends $19,600,000 for the International 
Fund for Ireland in support of the Anglo-Irish Accord. Funding 
of this amount was requested for this activity through the 
Economic Support Fund, but the Committee recommendation would 
continue a separate account for assistance to Ireland. The 
amount is the same as the 1999 enacted level.
    The Committee strongly urges the International Fund for 
Ireland to take every step possible to ensure that all 
recipients of Fund support are promoting equality of 
opportunity and non-discrimination in employment. The Committee 
further urges the Fund to focus on those projects that hold the 
greatest potential for job creation and equal opportunity for 
the Irish people.

          Assistance for Eastern Europe and the Baltic States





Fiscal year 1999 level................................      $430,000,000
    Emergency supplemental funding....................       120,000,000
Fiscal year 2000 request..............................       393,000,000
Committee recommendation..............................       393,000,000


    The Committee recommends $393,000,000 for Assistance for 
Eastern Europe and the Baltic States, an amount that is 
$157,000,000 less than the amount enacted for 1999 and the same 
as the budget request. If emergency supplemental funding is 
excluded from the calculation, the recommended level is 
$37,000,000 less than the 1999 level
    While the Committee is recommending the full budget request 
for this account, it anticipates that the increased funding of 
$44,000,000 for expenses of the Organization for Cooperation 
and Security in Europe (OSCE) for activities in the Balkans 
that is included in the request for ``Peacekeeping Operations'' 
will be provided through ``Assistance for Eastern Europe and 
the Baltic States''. This will necessitate a decrease in 
funding for Bosnia, and the elimination of funding for the 
proposal to initiate a new foundation for central Europe. The 
Committee has taken this reduction in anticipation of first 
reviewing the pilot project for the Baltic American Partnership 
Fund which has only recently begun operations. The Committee 
intends that funding for democracy programs though the National 
Endowment for Democracy continue at least at the fiscal year 
1999 level.

                         bosnia and herzegovina

    The Committee has recommended the same bill language as in 
the 1999 act that prohibits the use of funds for the 
construction or repair of housing or residences, unless 
directly related to the efforts of United States troops to 
promote peace in Bosnia and Herzegovina; requires the written 
approval of the Administrator of AID for loans and projects 
under the Economic Reconstruction Program; and authorizes the 
President to withhold funds for economic revitalization for 
Bosnia if he determines that Bosnia is not in compliance with 
the Dayton Accord regarding the presence of foreign forces and 
has not terminated intelligence cooperation with Iranian 
officials. All funds are now subject to the provisions of 
section 532 of this Act.
    The Committee is very disappointed the Federation of Bosnia 
and Herzegovina has failed to take the steps necessary to 
achieve economic self-sufficiency. The economy has expanded 
primarily as a result of donor assistance, and the Committee 
supports the phaseout of significant United States assistance 
for Bosnia if the Federation continues to resist movement 
toward transparent and open markets. As the Special 
Representative to the President and the Secretary of State for 
the Implementation of the Dayton Peace Accords noted at the 
Donors' Conference for Bosnia and Herzegovina on May 20, 1999: 
``It is especially distressing that officials in the Federation 
* * * have had to be dragged every inch of the way into getting 
the foundations of a market economy into place. Privatization 
has been delayed for far too long. Bank privatization and 
restructuring are still not underway. The enterprise law has 
still not passed, and critical institutions such as the 
securities commission and share registry have not been 
adequately funded by the Federation.''
    Therefore the Committee recommends that any increased 
funding needs that are necessary for programs and activities in 
this account be derived from reductions in the President's 
request of $175,000,000 for Bosnia.

                                 serbia

    The Committee intends that none of the funds provided under 
this heading, or in this Act, may be made available for 
reconstruction or development activities for the Republic of 
Serbia, outside of Kosova. The Committee would support a 
substantial increase in democratization activities in Serbia 
and Montenegro, excluding Kosovo, including increased 
assistance as authorized under the Support for East European 
Democracy Act of 1989.The Committee is recommending a new 
general provision, section 537, that would prohibit funds from being 
made available for assistance for the Republic of Serbia. Such 
assistance is not appropriate at the present time.

                               montenegro

    The Committee strongly supports assistance for the Republic 
of Montenegro, and urges the Administration to make every 
effort to assist the Government of the Republic. Such 
assistance should include balance of payments support, as well 
as ongoing and new initiatives to help make the economy of 
Montenegro less dependent on trade with Serbia. The Committee 
would support at least $35,000,000 for Montenegro for fiscal 
year 2000. Additional funds should be derived by reducing the 
request for Bosnia and Herzegovina.

                          treatment of orphans

    The Committee is very concerned by the condition of 
orphaned children in the Federation of Bosnia and Herzegovina. 
While Bosnian families have been reluctant to adopt many of 
these children, American families have shown an interest in 
adopting Bosnian children. Unfortunately, legislative barriers 
within the Federation have prevented foreign adoptions, and the 
Committee is very disturbed that little action has been taken 
to modify these provisions. The Committee strongly encourages 
the Government of the Federation of Bosnia and Herzegovina to 
enact legislation that will expedite the adoption of Bosnia 
children by foreign families, and directs the Secretary of 
State to report no later than December 1, 1999, on the steps 
that have been taken both by Bosnia and by the Department to 
encourage passage of such legislation.

                           legal initiatives

    The Committee encourages the Agency for International 
Development to continue to provide financial support for the 
Central and Eastern European Law Initiative (CEELI), a project 
of the American Bar Association. CEELI has received grants to 
help Central and East Europe and the NIS create new legal 
frameworks based on the rule of law rather than through Party 
doctrine or caprice.
    Through a variety of program components, CEELI is making 
available legal expertise to assist countries that are in the 
process of modifying or restructuring their laws or legal 
systems. CEELI emphasizes long-term engagement country-by-
country and supports projects that facilitate extensive 
consultations with policy-makers, legal scholars, judges, and 
attorneys. CEELI has focused work in several critical priority 
areas: constitutional reform; judicial restructuring; bar 
reform; commercial law; criminal law and procedure; and legal 
education reform, and has helped develop and/or 
institutionalize self-sustaining indigenous non-governmental 
organizations (NGO's). The Committee encourages support for 
this type of private sector involvement.

                         cross border programs

    The Committee strongly supports efforts to enhance cross 
border educational and exchange activities between Poland, 
Hungary, and the Czech Republic and the relevant countries of 
the NIS regarding the expansion of the North Atlantic Treaty 
Organization (NATO) and related issues. It is vital that such 
activities take place in order to reduce the level of 
misunderstanding and distrust about NATO expansion among 
opinion-leaders in the NIS. The Committee directs that the 
Administration report by February 1, 2000, on its plans in this 
area.

  training and exchanges in the former soviet union and central europe

    The Committee continues to support training, exchanges, and 
partnerships between the United States and the nations of 
Eurasia, Central Europe, and the southern tier of Europe. These 
programs are in the interest of the United States and important 
to sustaining democracies. The Committee recommends that the 
Administration provide funding for the Russian, Eurasian and 
East European Research and Training Program (title VIII) at 
least at the level provided in fiscal year 1999. Funding for 
this program should come from this account and from the account 
for the Independent States of the Former Soviet Union. The 
Committee supports funding for partnership programs in all 
regions of the NIS and Central and Southern Europe.
    The Committee recommends the East Central European 
Scholarship Program (ECESP) be continued at least at the same 
level as fiscal year 1999 to allow the program to continue to 
address the needs of the countries in the southern tier of 
Central Europe. The Agency for International Development should 
also review the proposal of the University of Northern Iowa to 
establish an Office of Education for Democracy, based on its 
success with the Orava Project in Slovakia.

                     Participant training programs

    The Committee notes with concern the decrease in recent 
years in the number of individuals enrolled in AID's 
participant training programs. These programs benefit both the 
United States and other nations by promoting democratic and 
free-market principles. The Entrepreneurial Management and 
Executive Development (EMED) program in particular, which 
trains entrepreneurs in Eastern Europe, has helped create 
business relationships between U.S. and foreign firms. The 
Committee urges AID to give priority to participant training 
programs in all its programs, particularly those for 
entrepreneurs and women in Eastern Europe and the NIS.

                  Democracy Programs in Central Europe

    In the report accompanying last year's bill, the Committee 
expressed concern about the operations of the AID office that 
administers funding for democracy activities in central Europe. 
In response, AID engaged the National Academy of Public 
Administration in an assessment of that office and its 
activities. The report, entitled ``Enhancing the Capabilities 
of AID and its Nongovernmental Partners'', was issued in June 
of 1999. The Committee is pleased that AID commissioned the 
study, but is concerned the recommendations may not be 
considered and implemented in a timely fashion. Therefore the 
agency is requested to report by December 1, 1999, on whether 
and to what extent it is prepared to accept and implement each 
of the recommendations made by the Academy study team. In 
addition, the Committee requests that the study be made 
available on the AID internet site to allow for the widest 
possible distribution of the information and recommendations 
contained in the report.
    The Committee notes the work of the Citizens Democracy 
Corps (CDC), which utilizes expert business volunteers in 
developing and emerging nations working in a variety of 
enterprises, institutions, and local governments. CDC's 
programs effectively promote the U.S. foreign policy priority 
of supporting democratic reform and open market economies 
through broad-based economic growth and job creation. The 
Committee urges AID to support such activities in its Europe/
Independent States Bureau and in other regions, to the greatest 
extent possible.

    Assistance for the Independent States of the Former Soviet Union





Fiscal year 1999 level................................      $801,000,000
    Emergency supplemental funding....................        46,000,000
Fiscal year 2000 request..............................     1,032,000,000
Committee recommendation..............................       725,000,000


    The Committee recommends $725,000,000 for the Southern 
Caucasus states, Russia, Ukraine and the Central Asian 
republics of the former Soviet Union. This is $307,000,000 less 
than the request and $122,000,000 less than the amount enacted 
1999 level. If emergency supplemental funding is excluded from 
the calculation, the recommended level is $76,000,000 below the 
1999 level. The recommendation also renames the heading 
``Assistance for the Independent States of the Former Soviet 
Union'', dropping the word ``New'' after nine years.
    The Committee has included in subsection (a) prior year 
language providing the funds under this heading 
``notwithstanding any other provision of law'' and applying the 
provisions of section 498B(j) of the Foreign Assistance Act. A 
general provision (section 517) also includes long-standing 
language on territorial integrity, human rights, and non-use of 
funds for enhancing military capacities, and providing all 
funds subject to separate notification.

                    justification for recommendation

    Because of the overall budget situation and specific 
negative developments in several nations, the Committee is 
unable to recommend the 29 percent increase in this account 
requested by the President. To the contrary, negative 
congressional reaction to events in the region suggests that 
scarce foreign assistance funds can be better used elsewhere. 
The justification for the recommended reduction of $76,000,000 
includes: the lack of progress in resolving conflicts in the 
Southern Caucasus region, the reluctance of the Russian 
Federation to effectively limit nuclear and missile technology 
transfers to Iran, and recent provocative military deployments 
by the defense forces of the Russian Federation.

          Caucasus conflicts: Armenia, Azerbaijan, and Georgia

    Foreign assistance, other than humanitarian aid to victims 
of war and disaster, should serve the national interests of the 
United States. The primary national interest of the United 
States in the Southern Caucasus is peace. The Committee 
recommendation continues support for the people of Armenia, 
Azerbaijan, and Georgia. It does not include a separate 
Southern Caucasus reconstruction fund, as in past years. When 
the conflicts over Abkhazia and Nagorno-Karabagh are settled 
and regional transport and communications links restored, the 
Committee is willing to consider exceptional support for the 
region.
    The Committee reiterates language included in its last two 
reports:

          The extent and timing of United States and 
        multilateral assistance, other than humanitarian 
        assistance, to the government of any country in the 
        Caucasus region should be proportional to its 
        willingness to cooperate with the Minsk Group and other 
        efforts to resolve regional conflicts.

    In furtherance of a peaceful resolution to the Nagrono-
Karabagh conflict, and in support of the confidence building 
measures discussed at the April 1999 NATO Summit, the Committee 
strongly supports confidence-building measures among the 
parties to the conflict. Such measures could include 
strengthening compliance with the cease-fire, studying post-
conflict regional development such as transportation routes and 
infrastructure, establishing a youth exchange program and other 
collaborative initiatives to foster greater understanding among 
the parties and reduce hostilities.
    The Committee is concerned that the important position of 
Special Negotiator for Nagorno-Karabagh and NIS Regional 
Conflicts within the U.S. State Department is currently vacant. 
Given the lack of progress in settling the conflicts in 
Nagorno-Karabagh and Abkhazia, the Committee urges the 
Secretary of State to move forthwith to appoint a permanent 
Special Negotiator to facilitate direct negotiations and any 
other contacts that will bring peace to the long-suffering 
people of the South Caucasus. The Secretary is further urged to 
remain engaged in the regional peace process.
    The Committee has provided, for the third time, authority 
for the President to provide humanitarian assistance to the 
region, notwithstandingthe restrictions of Section 907 of the 
FREEDOM Support Act. This exemption allows for direct assistance by 
American NGOs to refugees and displaced persons throughout the region, 
including those in Nagorno-Karabagh. A clarification of existing law is 
added to remove doubts about the Committee's support for child survival 
and certain health activities in Azerbaijan.
    The Committee also reiterates the statement contained in 
prior year reports on this bill that its actions regarding 
Armenia and Azerbaijan are not meant to express a view on the 
political status of Nagorno-Karabagh.
    The Committee renews its directive from last year that 
$20,000,000 in humanitarian assistance be provided to victims 
of Nagorno-Karabagh conflict residing in Nagorno-Karabagh 
during the period January 1, 1998 through September 30, 2000. 
This funding is provided solely for the purpose of assisting 
the victims of Nagorno-Karabagh conflict residing in Nagorno-
Karabagh and is not to be utilized to provide assistance for 
the Governments of Armenia or Azerbaijan, which receive 
humanitarian assistance from other streams of funding. The 
Committee urges the Agency for International Development to 
issue its remaining requests for application for proposals for 
activities in Nagorno-Karabagh not later than December 1, 1999. 
It further directs the Agency to provide the Committee a 
detailed report not later than March 30, 2000 on the 
implementation or proposed use of all funds allocated for 
Nagorno-Karabagh.

                                Georgia

    If a settlement of the conflict in Abkhazia is achieved 
during fiscal year 1999, part of the funds requested for the 
Extended Threat Reduction program would be available for that 
region of Georgia. The Committee directs that a significant 
part of the assistance for Georgia continue to be provided for 
technical security assistance for border and export control.

                               Azerbaijan

    The Committee recommends renewing the one-year waiver of 
section 907 for activities in support of democracy in 
Azerbaijan and for activities in support of American business 
in Azerbaijan by the Trade and Development Agency, the Export-
Import Bank, OPIC, and the U.S. Foreign Commercial and 
Agricultural Service. It also includes humanitarian assistance 
and child survival activities and programs to combat infectious 
diseases in the waiver.

                                Moldova

    The Committee commends Moldova for its commitment to 
democracy and reform under difficult circumstances. It notes 
the commitment of the Government of Moldova to the Allied 
efforts in Kosovo, and the resulting damage to the Moldovan 
economy. The Committee strongly recommends that an adequate 
level of resources from this bill be provided for Moldova. 
Funding from this or any other account in the bill may be used 
to implement any agreement reached between Moldova and the 
Russian Federation to remove hazardous munitions from the 
territory of Moldova.

                                ukraine

    During the past two years, as an incentive for Ukraine to 
support necessary reform efforts and end harassment of American 
investors, the Foreign Assistance Appropriations Act included 
language that withheld one-half of Ukraine's assistance. The 
withheld funds could be released only after the Secretary of 
State had certified certain actions by the Government of 
Ukraine. Strenuous efforts by senior Administration officials 
to resolve the cases of primary concern to the Committee were 
unsuccessful, but the certifications were made nevertheless.
    This year the Committee recommendation does not link U.S. 
assistance to Ukraine to specific conditions in the face of the 
continuing dismal political and economic situation in Ukraine. 
It continues to support humanitarian help for the suffering and 
neglected people of Ukraine, partnerships and other forms of 
cooperation with non-governmental organizations in Ukraine, 
cross-border programs between Poland and Ukraine, and technical 
assistance to reform-minded local and regional governments.
    The Committee directs the Coordinator to consult closely 
with the Committee before undertaking any programs of 
assistance to the central Government of Ukraine. It further 
directs the Administrator of AID to expand the current practice 
of providing the Committee with data regarding the utilization 
of operating expenses in Ukraine. He should also provide the 
Committee adequate documentation concerning proposed 
modifications of ``strategic objectives'' and the ``R4'' 
process (other than data regarding the FY 2001 budget).
    The Committee is aware that one of the most important 
elements of private sector development is agriculture and rural 
industry based on agriculture. The Committee supports 
continuing efforts to help emerging small, private farms and 
independent private suppliers and marketing operations in the 
independent states. The Committee is also aware of the value of 
partnerships with American agribusiness, where appropriate. The 
Committee recognizes the effectiveness of many ongoing projects 
in the agriculture and rural industry sectors and encourages 
the Coordinator of U.S. Assistance to the Independent States 
and AID to sustain support for those programs that demonstrate 
successful results and begin new projects in areas that are 
receptive to them. The survival of viable smaller private 
enterprises where few or none have existed before will be a 
benchmark for AID's decade-long involvement in Ukraine and the 
entire region.
    The Committee has reviewed evidence that private sector 
development is expedited by the introduction of community-owned 
telecommunications systems. Universal access to information 
gives small-scale producers information about market conditions 
that allow their businesses or farms to succeed. It provides 
social empowerment to rural and remote areas that are often 
overlooked in favor of urban areas. Such community-based 
initiatives help create jobs and increase production as they 
expose communities to democratic processes. Therefore, the 
Committee strongly advises AID to emphasize community-based 
telecommunications projects in its regional initiatives.

          Reinforcement of Successful Partnerships in Ukraine

    The Committee applauds the shift away from support for the 
central government in Kiev toward partnerships and support for 
local and regional governments that are more open to genuine 
reform. Several successful models of community partnerships 
have come to the Committee's attention. The expanding linkages 
between Ukraine cities and municipal officials in partner 
communities in the United States appear to offer a unique 
opportunity to advance meaningful reform in Ukraine. 
Partnerships based on industry study tours and U.S. and Ukraine 
community linkages are also worthy of support. The Committee 
urges AID to provide full funding in 2000 for successful 
community partnerships, such as those administered by the 
Center for Economic Initiatives and the U.S.-Ukraine Foundation 
for ongoing programs in Ukraine cities and regions.

                        russia and proliferation

    The Committee continues with modifications language from 
last year's bill dealing with Russian nuclear and ballistic 
missile cooperation with Iran. The Committee remains extremely 
disturbed by reports, which indicate that Russian entities are 
extensively engaged with Iran in cooperative projects that 
significantly enhance Iran's ballistic missile capabilities. 
The ballistic missile cooperation, combined with Russian 
nuclear cooperation with Iran, represent a significant step in 
Iran's efforts to obtain a comprehensive, highly sophisticated 
weapons of mass destruction capability. The Committee does not 
intend that the limitation on assistance to the ``Government of 
the Russian Federation'' limit assistance for regional and 
municipal governments or partnerships between United States 
hospitals, judicial training institutions, universities, and 
counterpart institutions in Russia.

                       expanded threat reduction

    The request included $241,000,000 for an Expanded Threat 
Reduction program. The Committee finds merit in many of the 
activities proposed, but is not convinced that the proposed 
rapid expansion of several projects is feasible or justified. 
The Committee will continue to review the justification for the 
Expanded Threat Reduction program in light of rapidly changing 
events in Russia, but does not recommend a specific amount at 
this time.
    In order to clarify the intended result of activities 
authorized under Title V of the FREEDOM Support Act 
[Nonproliferation and Disarmament Programs and Activities], the 
Committee directs the Coordinator to include in each 
congressional notification a specific citation of the section 
of title V that authorizes the activity being notified.
    The Committee requests the Coordinator to seriously 
consider undertaking a renewed effort to collaborate with 
partnerships between the United States private sector and 
Russian nuclear institutes (other than those designated as 
involved with nuclear activities in Iran) in development of 
proto-businesses. Other programs funded under this heading 
engage individual scientists possessing special competence in 
weapons of mass destruction in alternative civil research and 
development, but the Committee suggests that another attempt be 
made to help nuclear institutes move away from weapons 
development toward market-based civilian products. Any such 
project would be funded primarily by the American private 
sector and would consider pilot proposals incorporating 
completed, privately-financed feasibility studies.
    The U.S. Civilian Research and Development Foundation 
(CRDF) has effectively implemented United States/Independent 
States of the FSU collaborations in science and technology. 
Hundreds of American and thousands of Russian, Ukrainian, 
Armenian, and other IS/FSU researchers have been supported over 
the past three and a half years in work on projects selected 
via merit review. It expects that the CRDF will play a major 
role in the Expanded Threat Reduction program. The Committee 
commends the efforts of the President's Coordinator to obtain 
regular and substantial funding for the work of the CRDF from 
several agencies, including some funded in other appropriations 
Acts. The Committee strongly urges the Administration to 
continue and broaden these efforts, so that the objectives of 
the CRDF can be fully achieved. It recommends that the 
Coordinator continue to play a key role in allocating funds for 
the CDRF and other elements of the Expanded Threat Reduction 
program.
    The Committee supports the recently created joint United 
States-Russia program to develop an advanced reactor to consume 
large quantities of excess weapons plutonium. This program 
promises to help fill a substantial gap in the Russian capacity 
to destroy their weapons plutonium in a timely manner. To this 
end, the Committee recognizes the importance of securing the 
financial support of Europe and Japan. It encourages the 
Department of State to use every opportunity to elicit the 
support of these nations for the cooperative implementation of 
this critical security program.

                         violence against women

    The Committee continues to be very concerned about the 
increasing incidence of violence against women in Russia, 
Ukraine, and Central Asia and the indifference of many law 
enforcement officials to such crimes. Funds should be made 
available to improve the response of Russia's and Central 
Asia's law enforcement and judicial system to women victims of 
violence.

                      religious freedom in russia

    The Committee continues to be concerned about the dire 
consequences to several religious groups resulting from 
regional enforcement of the new religious freedom statute in 
the Russian Federation.
    The recommended bill again includes language addressing 
this matter that is identical with language in the 1999 Act.
    The Committee does not intend that the limitation on 
assistance to the ``Government of the Russian Federation'' 
limit assistance for regional and municipal governments or 
partnerships between United States hospitals and universities 
and counterpart institutions in Russia.

             continued development of an independent media

    The Committee is very concerned about new pressures facing 
independent broadcast and print media in the former Soviet 
Union. Much of the pressure is linked to the effects of the 
Russian economic crisis since August 1998. Continuing American 
support, where feasible, for the creation of a fair and 
transparent legal environment for journalists and media 
outlets, including anti-corruption measures and attention to 
the treatment of the media by regional and local authorities is 
important in all of the independent states.
    The Committee recommends that the Coordinator continue 
support that is limited to genuinely independent media 
operating throughout the region, with a focus on those that 
have the best chance of becoming financially self-sustaining 
once the economic crisis is over. The Committee recognizes that 
in some regressive states and regions the lack of a transparent 
legal environment may render such assistance impracticable. The 
Committee also supports a transparent and open competition for 
the award of contracts or agreements to provide media 
assistance in the region.

          health, child survival, and environmental pollution

    Iodine Deficiency Disorder (IDD) is the leading cause of 
mental retardation in children. Since the 1991 breakup of the 
Soviet Union, problems with IDD in the new states appear to be 
getting worse. For instance, 73 percent of infants born in 
Gori, and 54 percent of children born in Tblisi, Georgia were 
found to have very high levels of iodine deficiency. In Eastern 
Europe it is estimated that more than 16 percent of children 
born in Bulgaria and Romania suffer from IDD. The Committee 
recommends up to $1,250,000 of the IS/FSU and Central Europe 
regional accounts be provided on a matching basis to work with 
Kiwanis International and UNICEF in their effort to virtually 
eliminate iodine deficiency in the former Soviet bloc.
    The Committee is aware of and commends the Birth Defects 
Monitoring Program recently instituted in Ukraine to detect the 
incidence of birth defects related to the Chernobyl accident. 
The Committee recommends that $1,000,000 be provided for this 
purpose in fiscal year 2000.
    The Committee is encouraged by the focus of AID's new 
``Assistance to Russian Orphans (ARO) program,'' and by the 
speed by which it has launched the initiative. AID's three-
year, $6,000,000 program will promote community-based, family-
centered services that offer alternatives to warehousing 
children in institutions, and that create sustainable, long-
term approaches to respond to the needs of orphans in Russia. 
The Committee supports the AID approach because it seeks to: 
address the orphan problem at its roots; prevent abandonment 
and institutionalization; promote community rehabilitation; and 
promote networking and the sharing of lessons learned. While 
commending U.S. non-governmental organizations working to 
improve conditions in Russian orphanages, the Committee urges 
AID to stay the course on its ARO program.
    Up to 5 percent of the Funds in the Child Survival and 
Disease Programs account may be used in the Independent States, 
but only for activities that seek to directly reduce the 
incidence of infectious diseases, especially tuberculosis, and 
improve the status of infants and young children, especially 
orphans. All other activities related to child survival and 
maternal health are to be funded under the heading ``Assistance 
to the Independent States of the Former Soviet Union.''

                          Independent Agencies


                       Inter-American Foundation





Fiscal year 1999 level................................     ($20,000,000)
Fiscal year 2000 request..............................       22,300,000
Committee recommendation..............................       (5,000,000)


    The Committee provides funding for the Inter-American 
Foundation under the ``Development Assistance'' account. This 
is the mechanism used in 1999, instead of a separate account as 
requested by the President. The request is $22,300,000.

                     African Development Foundation





Fiscal year 1999 level................................     ($11,000,000)
Fiscal year 2000 request..............................       14,400,000
Committee recommendation..............................      (14,400,000)


    The Committee recommends funding for the African 
Development Foundation at a level of $14,400,000, provided 
through the ``Development Assistance'' account. This is the 
mechanism used in 1999, instead of a separate account as 
requested by the President. This is an increase of $3,400,000 
above the fiscal year 1999 level.

                              Peace Corps





Fiscal year 1999 level................................      $240,000,000
    Emergency supplemental funding (by transfer)......         1,769,000
Fiscal year 2000 request..............................       270,000,000
Committee recommendation..............................       240,000,000


    The Committee recommends a total of $240,000,000 for the 
Peace Corps, an amount that is $30,000,000 less than the 
request and $1,769,000 below the amount enacted for 1999. If 
the emergency supplemental funding is excluded from the 
calculation, the recommended level is the same as the 1999 
level. Prior year language addressing purchase of motor 
vehicles, abortion, and availability of funds has been 
continued in the bill.
    The Committee supports the work of the Peace Corps and of 
its volunteers who currently work in 80 countries, and regrets 
that its restricted allocation precludes the provision of 
additional funds at this time. Should there be an increase in 
the allocation for foreign operations in subsequent stages of 
the appropriations process, the Committee is prepared to 
approve a further increase in Peace Corps funding for fiscal 
year 2000.

                          Department of State


                    International Narcotics Control





Fiscal year 1999 level................................      $261,000,000
    Emergency supplemental funding....................       255,600,000
Fiscal year 2000 request..............................       295,000,000
Committee recommendation..............................       285,000,000


    The Committee recommends $285,000,000 for ``International 
Narcotics Control''. This is $10,000,000 below the budget 
request and an increase of $24,000,000 above the fiscal year 
1999 level, excluding emergency supplemental funding. The 
Committee notes that it has fully funded the 2000 budget 
request of $265,000,000 for anti-narcotics activities, but has 
included bill language limiting anti-crime programs at the 
fiscal year 1999 level of $20,000,000. Further, the Committee 
notes that the INL account received considerable additional 
resources as part of the omnibus appropriations act last year. 
The Committee continues to support a strong U.S. 
counternarcotics assistance program in order to protect U.S. 
communities from the ravages of drugs, and believes INL has 
considerable resources to meet these challenges.
    The Committee has included bill language requiring that all 
funds in this account for anti-crime activities be notified in 
advance to the Committees on Appropriations, including those 
which make use of ``notwithstanding'' authority. The Committee 
notes that section 520 of the bill applies to the use of 
narcotics control funds for Colombia.

            latin america law enforcement training facility

    The Committee continues to support establishment of a 
regional law enforcement training center for Latin America, 
modeled on the International Law Enforcement Academy (ILEA) in 
Hungary. Funds were included in the 1999 act to establish such 
a center. The Committee believes that, given the proximity of 
the United States to Latin America, it is appropriate for such 
a center to be located in the United States. An existing 
facility, the deBremmond Training Center in Roswell, New 
Mexico, is available for such a center. The Committee again 
urges the Department of State to establish the training center 
at this site if it has the capacity to handle the training 
needs projected by the Bureau of International Narcotics and 
Law Enforcement Affairs.

                                Colombia

    The Committee commends the efforts of the Colombian 
Government to advance a peace process to resolve the conflict 
in Colombia. While progress to peace will be lengthy and 
difficult, a negotiated settlement is the only long-term 
solution to this complex conflict. The Committee urges all 
sides in the Colombian conflict to make renewed efforts to 
achieve a peaceful, negotiated settlement, and encourages the 
U.S. State Department to continue to support these difficult 
efforts.
    The Committee is concerned about reports that all parties 
in Colombia's conflict continue to engage in serious violations 
of basic human rights and urges all parties to adhere to 
recognized standards of international humanitarian law. The 
Committee believes that the Government of Colombia must move 
decisively to carry out arrest warrants for paramilitary 
leaders and to ensure that any links between official security 
forces and paramilitary activities are ended. Recent actions by 
the Colombian Government to establish accountability for 
individuals implicated in paramilitary activities constitute an 
important step forward.
    The Committee continues to urge the Colombian government to 
take stronger steps to protect human rights monitors, who work 
under constant threat. The Committee recommends that the 
Administration provide funding for the Human Rights Unit of the 
Colombian Attorney General's Office, as well as to provide 
funding for human rights education and activities and 
humanitarian aid for the displaced, particularly through 
nongovernmental channels.
    The Committee is deeply concerned at the murder of three 
U.S. indigenous-rights activists committed by members of the 
Revolutionary Armed Forces of Colombia (FARC) guerrilla group. 
The Committee urges the FARC to turn over to Colombian 
authorities the individuals for whom the Colombian government 
has issued arrest warrants. The Committee also urges the FARC 
to liberate, or to provide information about, the three U.S. 
missionaries it kidnapped from Panama in 1993. The Committee 
also notes that the National Liberation Army (ELN) guerrilla 
forces' recent kidnappings of innocent civilians are outrageous 
violations that only weaken efforts for peace.
    The Committee expects the State Department to comply with 
relevant provisions of law, including provisions contained in 
section 564 of the foreign operations bill for fiscal year 2000 
regarding funds made available to foreign government security 
forces and respect for human rights.
    The Committee continues to support the counternarcotics 
efforts of the Colombian National Police (CNP). During the past 
two years, the Committee has provided significant funding in 
this account to bolster the CNP in its efforts. The Committee 
understands that the CNP continues to suffer from lack of 
airborne logistical support for its counternarcotics operations 
and, therefore, recommends up to $13,500,000 for the purchase, 
refurbishment, and delivery of one DHC-5 Buffalo transport 
aircraft and for training of air crews and support personnel. 
The Committee urges the Department of State to act rapidly on 
this recommendation as a U.S. company is currently available to 
expeditiously refurbish and deliver this Buffalo aircraft to 
the CNP.

                                  Peru

    The Committee is concerned about U.S. counternarcotics 
assistance support for the Peruvian National Intelligence 
Service or SIN and believes that counternarcotics assistance 
would be better spent channeled through civilian law 
enforcement agencies. In the early 1990's, SIN's antinarcotics 
unit was directly implicated in death squad activity and has 
been recently tied to the systematic harassment and 
intimidation of journalists, civil society leaders and 
opposition politicians. The Committee believes that SIN is not 
a reliable partner in the drug war. It is neither transparent 
nor accountable to civilian authorities. The Committee is very 
concerned that investigations into allegations of corruption by 
SIN agents are routinely blocked and that SIN withholds 
intelligence from U.S. officials. In addition, the Committee is 
troubled by reports that SIN is responsible for significant 
setbacks to democratic practices in Peru and is involved in 
activities that are inconsistent with human rights, the rule of 
law and the development of democracy.

                                Bolivia

    The Committee is pleased with the extraordinary success of 
the Bolivian government's program, known as the ``Dignity 
plan'', to eradicate illegal coca leaf production and 
completely end the country's illegal drug trade by 2002. This 
effort represents one of the most ambitious elements of our 
hemisphere's war on drugs and should be seen as a model for 
other nations to follow. The Committee notes that during 1998, 
Bolivian authorities eliminated nearly 29,000 acres of illegal 
coca and in the first half of 1999, more than 18,000 acres have 
been removed from production. The Bolivian government has put 
forward a comprehensive fiscal year 2000 budget and program to 
continue to eradicate and interdict illegal coca, provide 
alternative development for Bolivia's agricultural sector and 
bolster drug prevention programs. The Committee expects the 
State Department to provide Bolivia with the highest level of 
funding possible in order to assist Bolivia meet its ambitious 
goals under its ``Dignity plan''.
    The Committee encourages up to $5,000,000 from the 
International Narcotics Control account for cocoa programs for 
small farmers in Bolivia as part of an alternative development 
program. This program should include applied research in 
integrated disease and pest control efforts. Additional uses 
for these funds should include micro-finance for small cocoa 
farmers and their community owned agribusinesses and the 
formation of marketing and processing cooperatives. Further, 
the program should engage in a public-private partnership with 
organizations that are closely tied to the U.S. chocolate, 
sugar, dairy and related industries.

                     due process of law in ecuador

    The Committee requests the Secretary of State to submit a 
report to the Committees on Appropriations not later than 
February 1, 2000, which shall evaluate the Ecuadoran judicial 
process including arrests, prosecution, full trial process, and 
sentencing and confirmation process with respect to United 
States citizens prosecuted in that country since January 1, 
1996. The evaluation shall determine whether actions in these 
stages have been in compliance with the Ecuadoran Constitution 
and legal code and shall evaluate the impact of U.S. foreign 
assistance to Ecuador on the effectiveness and lawfulness of 
the Ecuadoran judicial system.

                    Migration and Refugee Assistance





Fiscal year 1999 level................................      $640,000,000
    Emergency supplemental funding....................       266,000,000
Fiscal year 2000 request..............................       660,000,000
Committee recommendation..............................       640,000,000


    The Committee recommends $640,000,000 for ``Migration and 
Refugee Assistance'', an amount that is $20,000,000 below the 
request and $266,000,000 below the amount enacted for 1999. If 
emergency supplemental funding for the Balkans is excluded from 
the calculation, the recommended level is the same as the 1999 
level. A limitation of $13,800,000 is recommended for 
administrative expenses as requested.

                            Tibetan refugees

    The Committee supports continued funding to assist Tibetan 
refugees, and expects that $2,000,000 will be provided for this 
purpose. The Committee requests that the Department of State 
coordinate with the Agency for International Development in 
determining the funding responsibility for long-term assistance 
for Tibetan refugees, including assistance to refugees residing 
in India.

                         Resettlement in Israel

    The Committee supports $60,000,000 for the resettlement of 
Russian, Eastern European and other refugees resettling in 
Israel, consistent with House Report No. 105-401. The Committee 
notes that in light of the unsettled conditions in Russia and 
the increased number of immigrants arriving in Israel, there is 
justification for future funding for this program at the 
current level.

                         EDUCATIONAL MATERIALS

    The Committee supports recent Department of State efforts 
to remove anti-Semitic content in textbooks and curricula used 
in schools administered by the United Nations Relief and Works 
Agency for Palestine Refugees in the Near East (UNRWA). The 
Committee is aware of a joint initiative of UNRWA and the 
Department of State to appoint a senior-level expert to the 
UNRWA Education Department to review the current curricula, 
develop supplemental materials, and coordinate teacher training 
in human rights and conflict resolution skills. The Committee 
concurs with this initiative and directs that the appointment 
of the senior-level expert be made quickly. The Secretary of 
State is directed to submit a report to the Committee, not 
later than February 1, 2000, on the status of the initiative to 
redress anti-Semitic content in UNRWA schools.

           unaccompanied children and women in war torn areas

    The Committee supports continued funding for programs 
initiated through the United Nations High Commissioner for 
Refugees for unaccompanied and vulnerable refugee children. 
Funding has been used for the past two years by UNHCR to assist 
refugee children who are orphaned, separated from their 
parents, or have other unique needs as a result of armed 
conflict or other causes of forced migration. The Committee 
supports funding at last year's level to support the 
initiatives being taken by UNHCR to meet the needs of these 
children. The Committee is gravely concerned about refugee and 
displaced women from war torn areas who are survivors of 
assault and rape. For this reason, the Committee believes 
sufficient funds should be provided to this account to be used 
for psychological services to provide assistance to women 
around the world who have been victimized by the systematic use 
of rape as a weapon in times of conflict.

     United States Emergency Refugee and Migration Assistance Fund





Fiscal year 1999 level................................       $30,000,000
    Emergency supplemental funding....................       165,000,000
Fiscal year 2000 request..............................        30,000,000
Committee recommendation..............................        30,000,000


    The Committee recommends $30,000,000 for the Emergency 
Refugee and Migration Assistance Fund, which is the same as the 
1999 enacted level and the 2000 budget request. The Committee 
notes that it provided $165,000,000 in emergency supplemental 
funding for the ERMA Fund in fiscal year 1999 to meet the 
urgent needs of refugees from the conflict in the Balkans. The 
Committee requests that the Department of State, as part of its 
fiscal year 2001 budget request, provide a detailed accounting 
of the expenditure of 1999 emergency supplemental funds.

    Nonproliferation, Anti-terrorism, Demining and Related Programs





Fiscal year 1999 level................................      $198,000,000
    Emergency supplemental funding....................       $20,000,000
Fiscal year 2000 request..............................       231,000,000
Committee recommendation..............................       181,630,000


    The Committee recommends a total appropriation of 
$181,630,000 for ``Nonproliferation, Anti-terrorism, Demining 
and Related Programs'', an amount that is $49,370,000 below the 
request and $36,370,000 below the amount enacted for 1999. If 
emergency supplemental funding is excluded from the 
calculation, the recommended level is $16,370,000 below the 
1999 level.
    The Commmittee recommendation assumes a freeze for the 
Nonproliferation and Disarmament Fund (NDF), Korean Peninsula 
Energy Development Organization (KEDO), export control 
assistance, and demining. Funding for the International Atomic 
Energy Agency (IAEA) and anti-terrorism assistance is provided 
at the budget request. The Committee has not included 
$10,000,000 for a new counter-terrorism program since it 
appears to be similar to the anti-terrorism program and other 
programs already funded by the Department of State and other 
agencies.
    The Committee supports the provision of $20,000,000 for the 
Comprehensive Test Ban Treaty (CTBT) Preparatory Commission, as 
requested. However, $4,370,000 is assumed to have been prepaid 
using excess funds that were available under this heading in 
fiscal year 1999. Thus total new budget authority of 
$15,630,000 is recommended in this bill. To the extent the 
estimate for fiscal year 2000 is revised during the course of 
the year, funds should be made available for future year costs 
of the CTBT Preparatory Commission. The Committee has included 
bill language from 1999 that imposes the requirement for notice 
prior to the obligation of funds for the CTBT Preparatory 
Commission.
    The following is a chart that indicates fiscal year 1999 
funding for the programs covered by this account, as well as 
the President's request for fiscal year 2000 and the Committee 
recommendation:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     President's      Committee
                             Program                                   1999           request     recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation and Disarmament Fund...........................          15,000          15,000          15,000
Export control asst.............................................           5,000          15,000           5,000
IAEA contribution...............................................          40,000          43,000          43,000
CTBT Preparatory Commission.....................................          28,900          20,000          20,000
    Prepaid in fiscal year 1999.................................  ..............  ..............          -4,370
KEDO............................................................          35,000          55,000          35,000
Anti-terrorism asst.............................................          41,000          33,000          33,000
    Emergency supplemental......................................         -20,000  ..............  ..............
Demining........................................................          35,000          40,000          35,000
Counter-terrorism...............................................  ..............          10,000  ..............
                                                                 -----------------------------------------------
      New budget authority......................................         198,000         231,000         181,630
----------------------------------------------------------------------------------------------------------------

                 nonproliferation and disarmament fund

    The Committee supports the Administration's request and 
recommends $15,000,000 for the Nonproliferation and Disarmament 
Fund. The Committee strongly supports the core nonproliferation 
activities of the NDF which are designed to provide the 
Secretary of State with a flexible funding source to respond to 
urgent, unanticipated nonproliferation activities of immediate 
concern to the United States. Longer term programmatic 
activities should be funded separately and therefore subject to 
the normal conditions for legislative oversight and review.

                          kedo burden sharing

    The Committee is recommending $35,000,000 for KEDO, rather 
than $55,000,000 as requested by the Administration. The 
Committee continues to strongly believe it is essential that 
other nations share the financial burden in responding to the 
North Korean nuclear threat. The United States stations 
approximately 37,000 uniformed Americans in South Korea and 
spends over $2,500,000,000 per year to ensure stability and 
peace on the Korean peninsula. The Committee fully expects 
other nations to do their share and help fund the heavy fuel 
oil component of the Agreed Framework. This matter is also 
addressed in section 576 of this Act.

                       Department of the Treasury


                           Debt Restructuring





Fiscal year 1999 level................................       $33,000,000
    Emergency supplemental funding....................        41,000,000
Fiscal year 2000 request..............................       120,000,000
Committee recommendation..............................        33,000,000


    The Committee recommends $33,000,000 for debt restructuring 
for fiscal year 2000. This is $41,000,000 below the amount 
enacted in 1999, and $87,000,000 below the request. If 
emergency supplemental funding is excluded from the 
calculation, the recommended level is the same as the 1999 
level. The Committee supports the request for bilateral debt 
relief and provides full funding for that purpose. It also 
assumes $13,000,000 will be used to implement the Tropical 
Forest Conservation Act of 1998.
    No funding is provided for the $50,000,000 proposed United 
States contribution to the Highly Indebted Poor Countries 
(HIPC) Initiative Trust Fund. Already, over the past four 
decades, the United States has provided billions of dollars to 
the multilateral institutions on a grant basis. The Committee 
urges each of the other
international financial institutions to follow the example of 
the World Bank Group and pay down unsustainable debt from its 
own resources. The Committee is unconvinced by the logic of 
asking the American taxpayer to repay debt owed to multilateral 
development banks whose own capital has been provided as a 
grant, without any expectation of dividends or equity 
appreciation.
    It is the Committee's intention that $18,000,000 be 
available for sub-Saharan Africa concessional debt relief 
totaling an estimated $160,000,000 in face value.
    The Committee requests quarterly reports on obligations 
made from this account, and on the purposes for which the funds 
are obligated. At the beginning of the fiscal year, the 
Administration should provide a report to the Committee 
pursuant to the regular notification procedures of the 
Committees on Appropriations on the intended use of the funds 
provided in this account. Such report should specify the 
countries which would receive debt restructuring during fiscal 
year 2000. The Committee understands that credit ratings can 
fluctuate during the year, thus resulting in a change in the 
budget cost necessary to restructure debt. However, the 
allocation of funds suggested in the preceding paragraph is 
based on information provided to the Committee prior to markup. 
If the cost of debt relief for the poorest countries is 
recalculated upward, it will necessitate a decrease in the 
funds allocated for concessional debt relief.
    In addition, at least 30 days prior to the obligation of 
any funds for concessional debt relief for sub-Saharan Africa, 
the Committee directs that the Secretary of the Treasury submit 
a detailed financial plan regarding such debt relief, including 
the criteria used to determine countries that will be eligible 
for such debt restructuring.
    The Committee notes that section 502 of the recommended 
bill prohibits the use of any AID funds for the purpose of 
direct repayment of a foreign country's obligations to an 
international financial institution. The Debt Restructuring 
account is the sole source of funds for debt relief or debt 
forgiveness in this bill.

               International Affairs Technical Assistance





Fiscal year 1999 level...............................         $3,000,000
Fiscal year 2000 request.............................          8,500,000
Committee recommendation.............................          1,500,000


    The Committee recommends $1,500,000 under this heading for 
international technical assistance by the Department of 
Treasury, an amount that is $7,000,000 less than the request 
and $1,500,000 below last year's level. The Committee notes 
that the activities that were requested through this account 
are available, as in past years, by transfer from numerous 
accounts administered by the Agency for International 
Development.

       United States Community Adjustment and Investment Program





Fiscal year 1999 level...............................        $10,000,000
Fiscal year 2000 request.............................         17,000,000
Committee recommendation.............................  .................


    The Committee is not recommending a new domestic program 
for community investment and adjustment within the United 
States.However, should there be an increase in the allocation 
for foreign operations in subsequent stages of the appropriations 
process, the Committee is prepared to approve an appropriation for the 
United States Community Adjustment and Investment Program.

                     TITLE III--MILITARY ASSISTANCE


                  Funds Appropriated to the President


             International Military Education and Training





Fiscal year 1999 level................................       $50,000,000
Fiscal year 2000 request..............................        52,000,000
Committee recommendation..............................        50,000,000


    The Committee recommends $50,000,000 for the International 
Military Education and Training program which represents a 
freeze at the fiscal year 1999 level but is $2,000,000 below 
the request. Due to overall budget constraints, the Committee 
is not in a position to recommend the budget request of 
$52,000,000. The Committee recommendation reflects its 
continued support for the IMET program, particularly those new 
programs initiated in the NIS and Central Europe since 1991.

                        Indonesia and guatemala

    The Committee includes prior year bill language limiting 
Indonesia and Guatemala to expanded IMET only, and requiring a 
notification for the obligation of funds for Guatemala.
    The Committee emphasizes, as it did in last year's report, 
that it remains the Committee's belief that at the present time 
all military training for Indonesia should be limited only to 
expanded IMET.

                               East Timor

    The Committee is seriously concerned about the high 
incidence of paramilitary violence in East Timor in the period 
leading up to the United Nations sponsored referendum. There 
are disturbing reports linking elements of the Indonesian 
military with paramilitary forces in East Timor, and the 
Committee urges the Secretaries of State and Defense to work 
with the Indonesian Government to help prevent further violence 
in East Timor. The Committee believes there should not be a 
normalization of U.S.-Indonesia military-to-military relations 
if violence continues and Indonesia does not abide by its 
responsibilities under the May 5th Agreement to help ensure the 
environment exists for a free and fair vote on the referendum 
called for under that agreement.

                             Expanded IMET

    The Committee strongly supports the continuation of 
Expanded IMET (E-IMET) programs. In that regard, the Committee 
notes that part of the success of the E-IMET programs is 
dependent on appropriate equipment critical to the learning 
process. For example, equipment that enhances simultaneous 
translation capacity or remote or distance learning 
teleconferencing could greatly advance the reach and efficiency 
of E-IMET programs. Yet, there is no consideration within the 
program budget for such needs. Consequently, the Committee 
requests that the Administration make available within the E-
IMET program funds as needed to support equipment and other 
infrastructure requirements of E-IMET programs.

                  report on foreign military training

    The Committee has modified a general provision (sec. 575) 
requiring a detailed report on foreign military training. The 
bill language requires the Secretary of Defense and the 
Secretary of State to jointly provide to the Congress by 
January 31, 2000, a report on all overseas military training 
provided to foreign military personnel under programs 
administered by the Department of Defense and the Department of 
State during fiscal years 1999 and 2000, including those 
proposed for fiscal year 2000. This report shall include, for 
each such military training activity, the foreign policy 
justification and purpose for the training activity, the cost 
of the training activity, the number of foreign students 
trained and their units of operation, and the location of the 
training. The report does not cover training associated with 
military sales or training for personnel from countries 
belonging to the North Atlantic Treaty Organization. In 
addition, this report shall also include, with respect to 
United States personnel, the operational benefits to United 
States forces derived from each such training activity and the 
United States military units involved in each such training 
activity. This report may include a classified annex if deemed 
necessary and appropriate. However, the Committee emphasizes 
strongly that it expects this report to be unclassified and 
believes that the classified annex should be used only when 
necessary to protect intelligence sources or methods.

                         School of the Americas

    While funds in this act are not the primary funding source 
for the School of the Americas, the Committee continues to 
carefully review the activities of the School of the Americas 
to make certain that grant IMET funds used to support students 
at the School are being appropriately utilized to support 
United States national security objectives and to improve the 
professionalism of Latin American militaries. As a result, the 
Committee includes prior year bill language which makes clear 
the Committee's intent that the School not engage in any 
inappropriate training activities. To support this objective, 
the Committee withholds the obligation of IMET funds to support 
training at the School of the Americas until the Secretary of 
Defense certifies that the instruction and training provided by 
the School of the Americas is fully consistent with training 
and doctrine, particularly with respect to the observance of 
human rights, provided by the Department of Defense to United 
States military students at Department of Defense institutions 
whose primary purpose is to train United States military 
personnel. It is not the intent of the Committee that ``fully 
consistent'' be interpreted as identical to U.S. training. The 
Committee's concern is specifically with respect to human 
rights training, in which case the Committee believes training 
by the School of the Americas should be fully consistent with 
the United States government's statutory and executive order 
obligations and limitations in this area. In addition, the bill 
requires that the Secretary of Defense submit to the Committees 
on Appropriations by January 15, 2000, a report detailing the 
training activities of the School of the Americas and a general 
assessment regarding the performance of its graduates during 
1997 and 1998.

                           imet availability

    The Committee has retained language from 1999 which 
provides that of the funds made available for IMET, $1,000,000 
may remain available until expended.

                   Foreign Military Financing Program


                                 grants




Fiscal year 1999 level................................    $3,330,000,000
    Emergency supplemental funding....................        50,000,000
Fiscal year 2000 request..............................     3,780,000,000
Committee recommendation..............................     3,470,000,000


                         subsidy appropriation




Fiscal year 1999 level................................       $20,000,000
Fiscal year 2000 request..............................  ................
Committee recommendation..............................  ................


                                 loans




Fiscal year 1999 level................................    ($167,000,000)
Fiscal year 2000 request..............................  (...............
                                                               ........)
Committee recommendation..............................  (...............
                                                               ........)


    The Committee recommends $3,470,000,000 in Foreign Military 
Financing grants, and no subsidy appropriation for loans. This 
program level is $90,000,000 more than the fiscal year 1999 
level but $310,000,000 below the President's request. If 
emergency supplemental funding is excluded from the 
calculation, the recommended level is $140,000,000 above the 
1999 level.
    The funding level assumes an increase above last year's 
level of $60,000,000 for Israel and $80,000,000 for Jordan, as 
requested by the President. The Committee has not included 
funding for Israel associated with implementation of the Wye 
River accord.

                                 israel

    The Committee recommends a total Foreign Military Financing 
Program of not to exceed $1,920,000,000 in grants for Israel. 
The Committee expects the Administration to provide Israel the 
full amount included by the Committee in the bill. These funds 
are to be disbursed within thirty days of enactment of this act 
or by October 31, 1999, whichever is later.
    It is the Committee's view that while Israel's economy has 
improved significantly in recent years, the security situation 
in the Middle East, particularly with respect to weapons of 
mass destruction, has worsened. The Committee is extremely 
concerned that Israel's technological military edge could erode 
as a result of the unrestrained sales of advanced military 
equipment, including nuclear and ballistic missile technology, 
to Israel's potential adversaries by nations such as Russia, 
China and North Korea.
    Therefore, the Committee is convinced the United States 
must make every effort to carry out its long-standing policy of 
ensuring that Israel's technological edge is maintained. As a 
result, the Committee has provided an increase of $60,000,000 
above the fiscal year 1999 level, as requested by the 
President. The Committee also believes that a sustained 
military improvement program will be required over the next ten 
years, at an annual rate of approximately $60,000,000, to 
assist Israel in responding to these emerging security 
challenges. However, with respect to this recommended increase 
in military assistance, the Committee must be very clear that 
it cannot commit future Congresses to the future appropriation 
of funds. Therefore, future increases in military assistance 
will require the annual review of the Congress and will 
necessarily be based upon an assessment of the security 
situation at the time.
    The Committee also recommends that to the extent that the 
Government of Israel requests that FMF grant funds for Israel 
be used for such purposes, and as agreed by Israel and the 
United States, funds may be made available for advanced weapons 
systems of which not less than $505,000,000 shall be available 
for the procurement in Israel of defense articles and defense 
services, including research and development. This represents a 
$15,000,000 increase over prior year levels and reflects a 
recognition by the Committee of Israel's need for similar 
annual increases over the next decade in order to provide 
Israel with increased flexibility in meeting the emerging 
security challenges in the Middle East.

                                 egypt

    The Committee recommends a total Foreign Military Financing 
Program for Egypt of not to exceed $1,300,000,000 in Foreign 
Military Financing grants. The Committee fully appreciates 
Egypt's strategic location, its immediate proximity to Libya 
and Sudan both of which actively support international 
terrorism, its critical contribution during the Gulf War in 
resisting Iraqi aggression, and its essential role in the 
Middle East peace process. The Committee is convinced that 
continued military cooperation between Egypt and the United 
States remains in the national security interests of both 
countries.

                                 jordan

    The Committee strongly supports the Administration's 
efforts to improve Jordanian security and therefore recommends 
full funding of the President's request of $125,000,000 for 
Jordan. Under the able leadership of the late King Hussein and 
the new King Abdullah, Jordan plays a critical role in 
supporting peace and security in the Middle East. The Committee 
is well aware that Jordan's security requirements are 
extensive, particularly in the areas of ground force 
modernization and border security.

                                Tunisia

    The Committee notes the strong relationship which exists 
between Tunisia and the United States. Given Tunisia's 
important role in North Africa, the Committee urges the 
Administration to review the military assistance program for 
Tunisia to determine if it can be made more effective, 
particularly in the areas of excess defense articles, IMET and 
FMF funds.

                     partnership for peace nations

    The Committee continues to strongly support the Partnership 
for Peace (PFP) program. The Committee believes the fiscal year 
2000 request will continue to enhance security and stability in 
Europe by promoting the standardization and interoperability, 
as well as the continued downsizing, of the armed forces of 
participating nations, particularly the new members of the 
North Atlantic Treaty Organization (NATO). The fiscal year 2000 
request of $66,000,000 is the minimum necessary to continue 
this vital program in Europe, and the Committee strongly 
supports the provision of at least this level of funding for 
the European portion of PFP.

                   partnership for peace notification

    The Committee continues prior year language which requires 
that no FMF grant assistance shall be available for any non-
NATO country participating in the Partnership for Peace Program 
except through the regular notification procedures of the 
Committees on Appropriations.

                        administrative expenses

    The Committee has recommended a limitation on 
administrative expenses of $30,495,000. This is $805,000 less 
than the level requested by the Departments of State and 
Defense in the budget justification documents, but $495,000 
more than the level transmitted in the President's budget 
submission. The Committee expects the Office of Management and 
Budget and the Department of Defense to submit a unitary 
request for this activity in fiscal year 2001.

                  foreign military financing surcharge

    As requested in the President's budget, the Committee has 
included a limitation on Foreign Military Financing operating 
costs of $330,000,000. This limitation may be waived pursuant 
to the regular notification procedures of the Committees on 
Appropriations. This is $10,000,000 less than the fiscal year 
1999 level.

                          fmf expenditure rate

    The Committee continues prior year language that requires 
that Foreign Military Financing funds be expended at the 
minimum rate necessary to make timely payments for defense 
articles and services.

                         procurement agreements

    The Committee has continued prior year language requiring 
recipients of Foreign Military Financing to sign agreements 
with the United States prior to using FMF funds to finance the 
procurement of any item not sold by the United States under the 
Arms Export Control Act.
    The Committee does not support the use of FMF grant funds 
to augment or replace the funds a country has committed from 
its national resources for procurement of equipment and 
services, particularly if such country is currently in arrears 
in scheduled payments through the Foreign Military Sales (FMS) 
program. Any funds that cannot be obligated and/or expended due 
to this restriction should be made available for support of the 
Partnership for Peace Program (PFP) in Europe.

                              prohibitions

    The Committee has included bill language prohibiting 
military assistance to Sudan and Liberia. The Administration 
did not request military assistance for these countries for 
fiscal year 2000. Although the Committee notes the continued 
implementation of the Guatemalan peace agreement, the Committee 
believes it is premature to remove the prohibition on military 
assistance for Guatemala in fiscal year 2000.
    The Committee recommends that existing special authorities 
be exercised to make $2,500,000 in Foreign Military Financing 
pipeline funding for Guatemala available for programs to 
implement the Peace Accords and build democracy in that 
country.

                         peacekeeping training

    The Committee notes that the Administration is requesting 
$10,000,000 in FMF funds to support peacekeeping related 
training and other peacekeeping support activities. This in 
addition to funds requested for fiscal year 2000 in the 
``Peacekeeping Operations'' account.

                        Peacekeeping Operations




Fiscal year 1999 level................................       $76,500,000
Fiscal year 2000 request..............................       130,000,000
Committee recommendation..............................        76,500,000


    The Committee recommends $76,500,000 for voluntary 
contributions for international peacekeeping operations. This 
amount is the same as the level provided in fiscal year 1999, 
but is $53,500,000 below the President's request. The Committee 
notes that the Administration has also requested $10,000,000 in 
FMF funds for peacekeeping training and activities in Africa 
and to support the Enhanced Peacekeeping Initiative.
    The Committee notes that most of the increase requested in 
the President's budget is for activities of the Organization 
for Security and Cooperation in Europe (OSCE) in the Balkans. 
Sufficient funds exist within the total requested for Bosnia in 
``Assistance for Eastern Europe and the Baltic States'' to 
provide for this increase in that account.

                   african crisis response initiative

    The Committee continues to support the Administration's 
African Crisis Response Initiative and recommends full funding 
for this activity at the President's request level. The 
Committee remains supportive of efforts to develop an African 
regional capability to respond to low-intensity peacekeeping 
activities either in lieu of United States troops or in 
cooperation with them. In the past the Committee has been 
assured by the Administration that the command arrangements 
will be sub-regional, regional, possibly with United States or 
West European participation depending on the situation, and 
when appropriate or requested by African states or 
organizations, UN sanctioned.

                          war crimes tribunals

    Although most funding for war crimes tribunals is provided 
through assessed contributions to international organizations 
or from other accounts in this bill, the Committee strongly 
supports voluntary contributions for such tribunals when 
necessary and appropriate. The Joint Explanatory Statement of 
the Committee of Conference on the amendment of the Senate to 
H.R. 1141, making emergency supplemental appropriations for 
fiscal year 1999, included language recommending up to 
$13,000,000 from funds provided under ``Economic Support Fund'' 
for the International Criminal Tribunal for the Former 
Yugoslavia ``in consultation and coordination with other 
donors''. (House Report No. 106-143, page 79.) The recommended 
level was $8,000,000 above the budget request of the President.
    While the Committee supports additional assistance for war 
crimes tribunals, it also believes that other nations should 
contribute to this effort. Therefore, the Committee requests 
the Department of State to provide an accounting of the costs 
of such tribunals, and the contributions made by other nations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  International Financial Institutions


            Contribution to the Global Environment Facility





Fiscal year 1999 level................................      $192,500,000
    Rescission........................................       -25,000,000
Fiscal year 2000 request..............................       143,333,000
Committee recommendation..............................        50,000,000


    The Committee recommends $50,000,000 for the Global 
Environment Facility (GEF), administered by the World Bank. The 
recommendation is $93,333,000 below the request and 
$117,000,000 below the amount enacted for 1999.

       Contribution to the International Development Association





Fiscal year 1999 level................................      $800,000,000
Fiscal year 2000 request..............................       803,430,000
Committee recommendation..............................       576,600,000


    The Committee is providing $576,600,000 toward the U.S. 
contribution to the Twelfth Replenishment of the International 
Development Association, a reduction of $223,400,000 below the 
1999 enacted level. This is $226,830,000 less than the amount 
requested by the Administration.

                             ida and china

    In last year's report, the Committee strongly urged the 
Administration to oppose further IDA loans to the People's 
Republic of China in light of its current strong economic 
performance and its abysmal human rights record. China was 
finally graduated from IDA on June 30, 1999, but the World 
Bank's Executive Board scrambled to provide a graduation 
present to China in its final days of eligibility by approving 
a controversial credit that is believed by many credible 
experts to threaten the remaining Tibetan and Mongolian 
inhabitants of the project area. Because of the budgetary 
situation and the China decision, the Committee is unable to 
provide the full amount requested for IDA-12.

      Contribution to the Multilateral Investment Guarantee Agency





Fiscal year 1999 level................................  ................
Fiscal year 2000 request..............................       $10,000,000
Committee recommendation..............................  ................


    Because of its budget allocation, the Committee is unable 
to provide funding for a new capital replenishment at this 
time.

                 General Concerns About the World Bank


                   world bank and the private sector

    The Committee commends the IDA-12 Deputies for recognizing 
the critical role undertaken by the private sector in 
developing countries. The entire World Bank Group should have a 
complementary and not competitive role with private sector 
investment in developing countries. The Committee urges the 
Secretary of the Treasury to work with the World Bank Group to 
develop a private sector strategy that is consistent with its 
commitment to social and environmentally sustainable economic 
growth, including a social and environmental investment screen 
for World Bank Group lending that supports the private sector.

                               Montenegro

    The Committee is aware that, as a part of the Federal 
Republic of Yugoslavia (FRY), the Republic of Montenegro is 
subject to the ``outer wall'' of sanctions imposed on the FRY 
and is therefore ineligible for World Bank financing. However, 
the Committee strongly supports an exception to this policy for 
Montenegro. The current government in Montenegro is committed 
to a democratic, multi-ethnic society and should not be 
penalized due to the actions of the Federal government in 
Belgrade. Therefore the Committee strongly urges the Department 
of the Treasury and the United States Executive Director to the 
World Bank to take all steps necessary to persuade the Bank to 
modify current policy regarding the Republic of Montenegro.

                energy and environment at the World Bank

    The Committee is disappointed that overall the World Bank 
Group has failed to shift its lending portfolios toward 
environmentally sound and sustainable economic development, 
especially in the energy sector. Last year the Committee found 
that the World Bank was lending less than 2 percent of its 
portfolio to energy efficiency, demand-side management, and 
renewable energy development. The Committee is aware that the 
World Bank, with technical assistance from AID's Global Bureau, 
has been developing an Asia Alternative Energy Program (ASTAE) 
that will provide financing for energy efficiency and renewable 
energy projects. The Committee notes, however, that to date 
little actual progress has been made in that direction. The 
Committee urges the Secretary of the Treasury, while taking 
into account the limited uses for public funds in this sector, 
to encourage the World Bank to set annual targets for growth in 
its financing for energy efficiency and renewable energy 
projects, so as to exceed 10 percent of its portfolio by 2004.
    The Committee is aware that there is ample private 
financing for the energy sector in most developing countries, 
although inappropriate forms of public control have acted as a 
significant investment barrier in some. It is also aware that 
over the past 25 years, energy remains a valuable resource, but 
is no longer scarce. Africa and Central Asia are now recognized 
as important future alternatives to dependence on Middle East 
fossil fuel energy, and wind power is becoming commercially 
viable in many more areas. The Committee no longer anticipates 
a global energy shortage in the foreseeable future. However, 
where affordable and cleaner energy is not available, job 
growth, poverty alleviation, and health improvement all come to 
an abrupt halt, and often decline.
    As the primary justification for using public money in the 
energy sector is to link energy development with sound energy 
policy, both technical assistance through AID and financial 
participation by the multilateral banks must focus on putting 
into place new policies, laws, and regulations that would 
otherwise not occur. These serve to insure that the income from 
valuable natural resources benefits the population at large, 
and not just a few officials at the receiving end of the 
transaction. The involvement of AID, OPIC or the World Bank can 
provide support for the efforts of the majority of United 
States companies that seek to protect the environment and their 
own reputations in their dealings with foreign leaders who 
demonstrate little concern for either standard.
    The Committee recommends that the World Bank expand its 
current negative investment list to include projects that could 
cause irreversible harm to the environment as defined by 
internationally recognized standards, such as projects using 
persistent organic pollutants or projects within national park 
boundaries. The Committee urges the Secretary of the Treasury 
to work with the World Bank on expansion of its ``negative 
list'' and to report to the Committee on progress made on this 
matter no later than April 2000.

                  World Bank and global AIDS epidemic

    The Committee commends the World Bank for increasing its 
attention to the world AIDS epidemic. The Committee requests 
that the Secretary of the Treasury provide the Committee with a 
brief, written update by February 1, 2000, on the World Bank 
Group's global AIDS activities. The update should respond to 
issues raised by the General Accounting Office regarding World 
Bank AIDS initiatives.

         staff compliance with safeguard policies at world bank

    Although the World Bank has instituted social and 
environmental safeguard policies on issues including indigenous 
peoples, involuntary resettlement, and information disclosure, 
the Committee notes that implementation is uneven. The Bank's 
June 1999 approval of the China Western Poverty Reduction 
Project indicates that the institution continues to face a gap 
between policy and practice. The apparent rush to move the 
project to approval before China's IDA eligibility ended on 
June 30th is an example of lax enforcement of social safeguard 
policies. The Committee directs the Secretary of the Treasury 
and the U.S. Executive Director at the World Bank to work with 
the Bank management to create an incentives framework that 
includes punitive measures when staff are shown to have 
violated social and environmental safeguard policies.

                      independent inspection panel

    The Committee continues its interest in the functioning of 
the World Bank's Independent Inspection Panel. It is aware of 
the recent attempts by certain members of the Bank's Executive 
Board to reduce the Inspection Panel's effectiveness. Future 
support for the World Bank Group by the Committee may be linked 
to the Inspection Panel's ability to function in an unimpeded 
and effective manner.

          Contribution to the Inter-American Development Bank


                            paid-in capital




Fiscal year 1999 level................................       $25,610,667
Fiscal year 2000 request..............................        25,610,667
Committee recommendation..............................        25,610,667


                    (Limitation on callable capital)




Fiscal 1999 level.....................................  ($1,503,718,910)
Fiscal 2000 request...................................   (1,503,718,910)
Committee recommendation..............................   (1,503,718,910)


    The Committee has recommended funding for Inter-regional 
paid-in capital of $25,610,667 for fiscal year 2000, the same 
amount as the President's request for the Inter-American 
Development Bank. The Committee has recommended a limitation on 
callable capital of $1,503,718,910 for fiscal year 2000.

                      Fund for Special Operations





Fiscal year 1999 level................................       $21,152,000
Fiscal year 2000 request..............................  ................
Committee recommendation..............................  ................


                 Inter-American Investment Corporation





Fiscal year 1999 level................................  ................
Fiscal year 2000 request..............................       $25,000,000
Committee recommendation..............................  ................


    The Committee is not aware of any urgency for this request. 
Because of its budget allocation, the Committee is unable to 
provide funding for a new capital replenishment.

                      Multilateral Investment Fund





Fiscal year 1999 level................................       $50,000,000
Fiscal year 2000 request..............................        28,500,000
Committee recommendation..............................


    The Committee has supported the Multilateral Investment 
Fund in prior years, but notes that the request is lower than 
anticipated and that concerns have been expressed about the 
pace of utilization of funds already provided. Because of its 
budget allocation, the Committee is unable to provide funding 
at this time.

               Contribution to the Asian Development Bank


                            paid-in capital




Fiscal year 1999 level................................       $13,221,596
Fiscal year 2000 request..............................        13,728,263
Committee recommendation..............................        13,728,263


                    (Limitation on callable capital)




Fiscal year 1999 level................................    ($647,858,204)
Fiscal year 2000 request..............................     (672,745,205)
Committee recommendation..............................     (672,745,205)


               Contribution to the Asian Development Fund





Fiscal year 1999 level................................      $210,000,000
Fiscal year 2000 request..............................       177,017,000
Committee recommendation..............................       100,000,000


    The Administration is requesting $13,728,263 for paid-in 
capital and a limitation of $672,745,205 on callable capital 
subscriptions (which do not require appropriations) of the 
Asian Development Bank. The Committee recommends an amount that 
is the same as the request and $506,667 above the 1999 level.
    The recommendation is $110,000,000 below the amount 
provided in fiscal year 1999, and $77,017,000 less than the 
amount requested. The reduction is made solely because of the 
limited budget allocation available.

                        African Development Bank





Fiscal year 1999 level................................  ................
Fiscal year 2000 request..............................        $5,100,000
Committee recommendation..............................  ................


    The Committee has many concerns about United States 
participation in the pending replenishment of the African 
Development Bank. Reduction of the extremely high level of 
unsustainable past loans by the Bank is contingent on funding 
of the HIPC Trust Fund. As a major claimant on any multilateral 
debt relief scheme, this Bank has all but halted future lending 
to Sub-Saharan African member nations.
    The African Development Bank has never requested or 
received appropriations for callable capital, as has been the 
case with the World Bank and the Inter-American and Asian 
Development Banks. As a result, the United States Treasury has 
no buffer of appropriated but unobligated funds if a call is 
made on callable capital approved by the Committee in prior 
years.
    The Committee is aware of the reform efforts undertaken by 
the Bank's new president, and continues to support those 
reforms through funding for the soft-loan African Development 
Fund. As the request of $5,100,000 for the African Development 
Bank is accompanied by a request to increase the contingent 
liability of the United States by an additional $80,000,000 in 
callable capital, the Committee is unable to provide funding 
for a new capital replenishment.

              Contribution to the African Development Fund





Fiscal year 1999 level................................      $128,000,000
Fiscal year 2000 request..............................       127,000,000
Committee recommendation..............................       100,000,000


    The recommendation for the soft-loan African Development 
Fund is $100,000,000, $28,000,000 below the amount provided in 
fiscal year 1999, and $27,000,000 less than the amount 
requested.

  Contribution to the European Bank for Reconstruction and Development


                            paid-in capital




Fiscal year 1999 level................................       $35,778,717
Fiscal year 2000 request..............................        35,778,717
Committee recommendation..............................        35,778,717


                    (Limitation on callable capital)




Fiscal year 1999 level................................    ($123,237,803)
Fiscal year 2000 request..............................     (123,237,803)
Committee recommendation..............................     (123,237,803)


    The Committee is recommending $35,778,717 for the European 
Bank for Reconstruction and Development. This amount is 
identical to the appropriation provided in fiscal year 1999 and 
the same as the President's request.

                    North American Development Bank

    The Committee is aware that the North American Development 
Bank faces numerous challenges in financing United States-
Mexico border cleanup efforts, but is concerned by the fact 
that few NADBank-financed projects have gone forward. The 
Committee requests that the Secretary of the Treasury provide 
the Committee with a written, detailed accounting of NADBank's 
use of the $450,000,000 appropriated for its use in prior 
years. The report should include NADBank's strategy for 
achieving its primary goal of financing environmental cleanup 
in the border region. The report should be delivered no later 
than December 15, 1999.

                          Contract Compliance

    Since the 1997-98 Asian-Russian financial crisis, the 
Committee has been made aware that several sovereign 
governments or their instrumentalities have failed to meet 
their contractual obligations to United States corporations. In 
some instances, international arbitration procedures have 
failed thus far to result in payment, acceptable renegotiation, 
or other relief, or have been frustrated by the defaulting 
governments. Many such governments have continued to benefit 
from massive financial support from international financial 
institutions backed by U.S. contributions, notwithstanding 
their failure to abide by contractual agreements or arbitration 
procedures.
    The Committee requests that the Secretary of the Treasury 
report to the Committee not later than April 3, 2000, on 
efforts by the United States Executive Directors at the 
International Monetary Fund, the World Bank, and the Asian 
Development Bank to obtain the support of international 
financial institutions in upholding the rule of law regarding 
international contracts and arbitration procedures.

                International Organizations and Programs





Fiscal year 1999 level................................      $187,000,000
Fiscal year 2000 request (under fiscal year 1999             192,000,000
 account structure)...................................
Committee recommendation..............................       167,000,000


    The Committee has recommended $167,000,000 for 
International Organizations and Programs. This is $20,000,000 
below the fiscal year 1999 level and $126,000,000 below the 
President's request. However, as in fiscal year 1999, the 
Committee has shifted the $101,000,000 budget request for a 
grant to UNICEF from this account to the ``Child Survival and 
Disease Programs Fund'' under title II. Therefore, on a 
comparable basis, the recommendation is $25,000,000 below the 
President's request.
    The Committee recommendation also continues prior year bill 
language prohibiting the use of funds for the Korean Peninsula 
Energy Development Organization (KEDO) or the International 
Atomic Energy Agency (IAEA). Both organizations are funded 
under ``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs''.
    The Committee requires the Department of State to report 
back to the Committee within 90 days and submit all UNFPA 
agreements that may have been signed with local provincial and 
national governments of China relating to administration of 
UNFPA programs in China.

                   united nations development program

    The Committee is concerned about the President's budget 
request which recommends a decrease in the U.S. contribution in 
the United Nations Development Program and urges the Secretary 
of State to fund UNDP at the fiscal year 1999 level.

                  international conservation programs

    The Committee supports the World Conservation Union (IUCN) 
and the important programs that it assists in implementing. As 
the world becomes more focused on protecting its environment, 
IUCN plays a critical role in developing conservation 
initiatives and facilitating the protection of the environment 
without compromising expansion of economies. The Committee 
recommends that the State Department continue to increase its 
support for IUCN within the International Conservation Programs 
account.

          united nations voluntary fund for victims of torture

    The Committee strongly supports the United Nations 
Voluntary Fund for Victims of Torture and recommends $3,000,000 
for the U.S. contribution to this important program. The 
Committee believes that assisting these centers not only 
reinforces U.S. opposition to human rights violations but has 
proven to be an effective method for lessening the incidence of 
torture and promotes human rights and democracy abroad.

                      TITLE V--GENERAL PROVISIONS

    The Committee recommends that several of the general 
provisions carried in the fiscal year 1999 act be deleted. 
These provisions are either addressed elsewhere in permanent 
law, have been considered by the appropriate authorizing 
committee, or are no longer necessary.
    The Committee recommends the following new and revised 
general provisions.
    Sec. 502, ``Prohibition of Bilateral Funding for 
International Financial Institutions'' is modified by 
prohibiting funds from title II of this Act from being 
transferred by the Agency for International Development 
directly to an international financial institution for the 
purpose of repaying a foreign country's loan obligations to any 
such institution.
    Sec. 515, ``Notification Requirements'' is modified by 
adding ``International Affairs Technical Assistance'' to the 
list of accounts subject to notification.
    Sec. 516, ``Limitation on Availability of Funds for 
International Organization and Programs'' is modified by 
removing language from the 1999 act that amended permanent law.
    Sec. 517, ``Independent States of the Former Soviet Union'' 
is modified by deleting subsection (h) which dealt with the 
imposition of customs duties.
    Sec. 520, ``Special Notification Requirements'' is modified 
to delete Honduras and add Panama.
    Sec. 522, ``Child Survival and Disease Prevention 
Activities'' is modified by limiting the authorities provided 
under the section to funds appropriated under the account 
``Child Survival and Disease Programs Fund''.
    Sec. 526, ``Democracy in China'' is modified by providing 
authority for grants for nongovernmental organizations, and 
subjecting funds to the regular notification procedures of the 
Committees on Appropriations.
    Sec. 532, ``Separate Accounts'' is modified by deleting the 
change in permanent law that was contained in subsection 
(a)(5).
    Sec. 537, ``Funding Prohibition for Serbia'' is modified by 
replacing the language from the 1999 act with a funding 
prohibition on assistance to the Republic of Serbia, with an 
exemption for Kosova and Montenegro, and for programs to 
support democratization.
    Sec. 544, ``Prohibition on Publicity or Propaganda'' is 
modified by removing the limitation of $750,000 on funds to 
carry out the provisions of section 316 of Public Law 96-533.
    Sec. 546, ``Prohibition of Payments to United Nations 
Members'' is modified by prohibiting the payment of costs for 
attendance of another country's delegation at international 
conferences.
    Sec. 552, ``War Crimes Tribunal Drawdown'' is modified to 
remove the exemption for a notification regarding a drawdown 
for the war crimes tribunals for Rwanda and the former 
Yugoslavia.
    Sec. 559, ``Limitation on Assistance for Haiti'' is 
modified by removing the previous conditions on assistance and 
substituting a policy framework and a semi-annual report 
regarding implementation of the policy framework.
    Sec. 566, ``Restrictions on Assistance to Countries 
Providing Sanctuary to Indicted War Criminals'' is modified by 
listing Kosova as an entity in order to avoid the inadvertent 
imposition of sanctions intended for Serbia.
    Sec. 567, ``To Prohibit Foreign Assistance to the 
Government of the Russian Federation Should It Enact Laws Which 
Would Discriminate Against Minority Faiths'' is modified by 
changing the section heading to refer to the Russian 
Federation, rather than to Russia.
    Sec. 568, ``Greenhouse Gas Emissions'' is modified by 
requiring notification for programs and activities ``the 
primary purpose of which is'' promoting or assisting country 
participation in the Kyoto Protocol, and by requiring the 
Agency for International Development to report on expenditures 
for climate change activities by country or central program or 
activity.
    Sec. 571, ``Assistance for the Middle East'' is modified by 
reducing the cap on Middle East spending from $5,402,850,000 to 
$5,318,150,000, but by exempting $100,000,000 for Jordan from 
the calculation made to arrive at the total Middle East 
spending cap.
    Sec. 573, ``Cambodia'' combines an existing general 
provision relating to multilateral assistance for Cambodia with 
language prohibiting bilateral assistance for the Government of 
Cambodia except humanitarian assistance, including basic 
education.
    Sec. 574, ``Authorization for Population Planning'' retains 
a funding limitation of $385,000,000 for population planning 
activities that was included in the 1999 act, but deletes a 
provision that would have apportioned such funds on a monthly 
basis at a level of not to exceed 8.34 percent of the total 
available for such activities.
    Sec. 575, ``Foreign Military Training Report '' is modified 
by exempting training associated with Foreign military sales 
and for NATO members from the scope of the report.
    Sec. 576, ``Korean Peninsula Energy Development 
Organization'', is modified--by limiting KEDO funding to 
$35,000,000 from funds provided under ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs''; by removing the 
restriction on the obligation of funds prior to March 1; by 
allowing $15,000,000 to be obligated prior to June 1, 2000, 
subject to a Presidential certification regarding North Korean 
compliance with various agreements; by allowing $20,000,000 to 
be obligated after June 1, 2000 subject to a Presidential 
certification regarding North Korean compliance with various 
agreements or proposed agreements; by prohibiting the use of 
sections 451 or 614 of the Foreign Assistance Act to waive the 
provisions of the section; by allowing for a Presidential 
waiver of the certification requirements based on a finding 
that it is necessary due to vital national security interests; 
and by requiring a specified report from the Secretary of State 
on KEDO funding.
    Sec. 577, ``African Development Foundation'' is a new 
general provision that authorizes the investment of grant funds 
by grantees, and allows for the Board of Directors to waive the 
$250,000 project limitation contained in current law.
    Sec. 579, ``Notification on the Use of Operating Expenses'' 
is a new general provision that prohibits the use of funds 
appropriated under ``Operating Expenses of the Agency for 
International Development'' to finance the construction 
(including architect and engineering services), purchases, or 
long-term lease of offices except through the regular 
notification procedures of the Committees on Appropriations.
    Sec. 580, ``Iraq Opposition'' is modified by providing a 
funding ceiling of $10,000,000 for assistance to the Iraq 
democratic opposition and limiting funding to groups authorized 
under the Iraq Liberation Act (Public Law 105-338).
    Sec. 581, ``AID Budget Submission'' is a new general 
provision detailing requirements for AID's fiscal year 2001 
budget justification.
    Sec. 583, ``Kyoto Protocol'' is a new general provision 
prohibiting funds in this Act from being used to propose or 
issue rules, regulations, decrees or orders for implementation 
of the Kyoto Protocol.
    Sec. 584, ``Contribution to United Nations Population 
Fund'' is a new general provision limiting funding for UNFPA to 
$25,000,000 and imposing restrictions on the use of funds in 
China.

               provisions retained from fiscal year 1999

    The following general provisions from the fiscal year 1999 
act are retained in the fiscal year 2000 act unchanged except 
for technical corrections, references to fiscal year 2000, and 
new section numbers where appropriate:
    Sec. 501. Obligations During Last Month of Availability.
    Sec. 503. Limitation on Residence Expenses.
    Sec. 504. Limitation on Expenses.
    Sec. 505. Limitation on Representational Allowances.
    Sec. 506. Prohibition on Financing Nuclear Goods.
    Sec. 507. Prohibition Against Direct Funding of Certain 
Countries.
    Sec. 508. Military Coups.
    Sec. 509. Transfers Between Accounts.
    Sec. 510. Deobligation/Reobligation Authority.
    Sec. 511. Availability of Funds.
    Sec. 512. Limitation on Assistance to Countries in Default.
    Sec. 513. Commerce and Trade.
    Sec. 514. Surplus Commodities.
    Sec. 518. Prohibition on Funding for Abortions and 
Involuntary Sterilization.
    Sec. 519. Export Financing Transfer Authorities.
    Sec. 521. Definition of Program, Project, and Activity.
    Sec. 523. Prohibition Against Indirect Funding to Certain 
Countries.
    Sec. 524. Notification on Excess Defense Equipment.
    Sec. 525. Authorization Requirement.
    Sec. 527. Prohibition on Bilateral Assistance to Terrorist 
Countries.
    Sec. 528. Commercial Leasing of Defense Articles.
    Sec. 529. Competitive Insurance.
    Sec. 530. Stingers in the Persian Gulf Region.
    Sec. 531. Debt-for-Development.
    Sec. 533. Compensation for U.S. Executive Directors to 
International Financial Institutions.
    Sec. 534. Compliance with United Nations Sanctions against 
Iraq.
    Sec. 535. Authorities for the Peace Corps, The Inter-
American Foundation and the African Development Foundation.
    Sec. 536. Impact on Jobs in the United States.
    Sec. 538. Special Authorities.
    Sec. 539. Policy on Terminating the Arab League Boycott of 
Israel.
    Sec. 540. Anti-Narcotics Activities.
    Sec. 541. Eligibility for Assistance.
    Sec. 542. Earmarks.
    Sec. 543. Ceilings and Earmarks.
    Sec. 545. Purchase of American-made Equipment and Products.
    Sec. 547. Consulting Services.
    Sec. 548. Private Voluntary Organizations--Documentation.
    Sec. 549. Prohibition on Assistance to Foreign Countries 
that Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 550. Withholding of Assistance for Parking Fines Owed 
by Foreign Countries.
    Sec. 551. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 553. Landmines.
    Sec. 554. Restrictions Concerning the Palestinian 
Authority.
    Sec. 555. Prohibition of Payment of Certain Expenses.
    Sec. 556. Equitable Allocation of Funds.
    Sec. 557. Special Debt Relief for the Poorest.
    Sec. 558. Authority to Engage in Debt Buybacks or Sales.
    Sec. 560. Requirement for Disclosure of Foreign Aid in 
Report of Secretary of State.
    Sec. 561. Restrictions on Voluntary Contributions to United 
Nations Agencies.
    Sec. 562. Haiti.
    Sec. 563. Limitation on Assistance to the Palestinian 
Authority.
    Sec. 564. Limitation on Assistance to Security Forces.
    Sec. 565. Limitations on Transfer of Military Equipment to 
East Timor.
    Sec. 569. Withholding Assistance to Countries Violating 
United Nations Sanctions Against Libya.
    Sec. 570. Aid to the Government of the Democratic Republic 
of the Congo.
    Sec. 572. Enterprise Fund Restrictions.
    Sec. 578. Prohibition on Assistance to the Palestinian 
Broadcasting Corporation.
    Sec. 581. Sense of Congress Concerning the Murder of Four 
American Church Women in El Salvador.

              House of Representatives Report Requirements


                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Under ``Agency for International Development, Development 
Assistance'', authority is provided for the transfer of 
$2,500,000 to ``International Organizations and Programs'' for 
a contribution to the International Fund for Agricultural 
Development (IFAD);
    Under ``Agency for International Development, Micro and 
Small Enterprise Development Program Account'', authority is 
provided for the transfer of $500,000 to ``Operating Expenses 
of the Agency for International Development''; and
    Under ``Agency for International Development, Urban and 
Environmental Credit Program Account'', authority is provided 
for the transfer of $5,000,000 to ``Operating Expenses of the 
Agency for International Development''.

                              Rescissions

    Clause 3(f)(2) of rule XIII of the Rules of the House of 
Representatives requires a separate listing of rescissions. 
There are no rescissions recommended in the accompanying bill.

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f), rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effects of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law. Most of the language has been 
provided in previous measures including supplementals for the 
departments and agencies carried in the accompanying bill.
    1. The bill contains appropriations for a number of items 
for which authorizations for fiscal year 2000 have not yet been 
enacted. The bill allows funds appropriated in the bill to be 
obligated in the absence of a prior authorization of 
appropriations.
    2. The bill provides that a few of the appropriations shall 
remain available for obligation beyond the current fiscal year. 
In all cases it is deemed desirable to carry such language in 
order to provide for orderly administration of such programs 
and effective use of funds.
    3. The bill contains a number of general provisions and 
other language which have been carried in the bill in past 
years.
    4. Under ``Export-Import Bank of the United States'', funds 
are prohibited for the export of nuclear equipment, fuel, or 
technology to any country other than a nuclear-weapon state as 
defined in Article IX of the Treaty on the Non-Proliferation of 
Nuclear Weapons eligible to receive economic or military 
assistance that has detonated a nuclear explosive after the 
date of enactment.
    5. Under ``Overseas Private Investment Corporation'', the 
corporation is authorized to make expenditures, and it is 
stated that administrative expenses shall not include project-
specific costs and other related costs. In addition, funds are 
authorized to be derived by transfer from the noncredit 
account. Finally, funds are authorized for administrative 
expenses by transfer from the noncredit account.
    6. Funds are provided for the Trade and Development Agency, 
and the agency is authorized to receive reimbursements from 
corporations and other entities to cover the costs of grants 
for feasibility studies and other project planning services, to 
be deposited as an offsetting collection and to be available 
for obligation until September 30, 2001, for necessary 
expenses.
    7. Under ``Child Survival and Disease Programs Fund'' the 
bill contains authorities for the use of the fund that were 
contained in the 1999 act and are consistent with the Foreign 
Assistance Act.
    8. Under ``Development Assistance'' the bill contains 
provisions relating to abortion that were carried in the 1999 
act.
    In addition, a transfer from this account is authorized to 
``International Organizations and Programs'' for a contribution 
to the International Fund for Agricultural Development'', and 
subjects such a transfer to the notification procedures on the 
Committees on Appropriations.
    9. Under ``Private and Voluntary Organizations'', the 
Committee includes a provision that funds appropriated under 
title II should be made available to PVOs at a level which is 
at least equivalent to the level provided in fiscal year 1995. 
It also continues provisions continued from last year on 
minimum funds from private sources.
    10. Under ``International Disaster Assistance'', funds are 
made available for rehabilitation and reconstruction 
assistance.
    11. Under ``Micro and Small Enterprise Development Program 
Account'', authority is provided to guarantee up to 70 percent 
of the principal amount of any loans notwithstanding existing 
law.
    12. Under ``Economic Support Fund'', funds are available as 
cash grants to Israel and Egypt, and the cash grant to Israel 
shall be disbursed within 30 days of enactment or by October 
31, 1999, whichever is later. In addition, the cash grant to 
Egypt is provided with the understanding that significant 
economic reforms will be undertaken, and the cash grant to 
Israel is provided with direction to the President that he 
ensure that the level of assistance does not cause an adverse 
impact on the level of non-military exports from the United 
States to such country.
    13. Under ``Debt restructuring'', funds are authorized for 
purposes consistent with existing law, except that funds 
appropriated for concessional debt relief are authorized for 
``IDA-only'' countries, and up to $2,900,000 is authorized for 
improvements to the foreign credit reporting system of the 
United States.
    14. In title II, funds are provided for micro and small 
enterprise direct loans and loan guarantees, and administrative 
expenses are appropriated which may be transferred to the 
operating expenses account of the Agency for International 
Development.
    15. In title II, funds are appropriated for the 
administrative costs of the urban and environmental credit 
program, and such funds may be transferred to the operating 
expenses account of the Agency for International Development.
    16. Under ``Assistance for Eastern Europe and the Baltic 
States'', funds are made subject to section 532 of this Act.
    17. Under ``International Fund for Ireland'', $19,600,000 
is provided, which shall be expended at the minimum rate 
necessary to make timely payment for projects and activities.
    18. Under ``Assistance to Eastern Europe and the Baltic 
States'', funds are provided notwithstanding any other 
provision of law for economic assistance; funds are made 
available as if they were considered economic assistance under 
the Foreign Assistance Act; and funds for Bosnia are subject to 
certain conditions, including limitations on funds for housing. 
Funds available for an Enterprise Fund are authorized to be 
deposited in interest-bearing accounts, and shall be expended 
at the minimum rate necessary to make timely payments for 
projects and activities.
    19. Under ``Assistance for the Independent States of the 
Former Soviet Union'', the Committee has included a limitation 
on the amount of assistance that may be made available for any 
one country in the region; it has also modified language 
concerning cooperation between Russia and Iran. In addition, 
exceptions are made to the application of section 907 of the 
FREEDOM Support Act; funds are authorized for Mongolia; funds 
for the Government of Russia are subject to certain 
limitations; and certain authorities are granted for the use of 
funds appropriated for Enterprise Funds that were carried in 
the 1999 act.
    20. Under ``International Narcotics Control'', the 
Department of State is provided the authority to use section 
608 of the Foreign Assistance Act, without regard to its 
limitations, to receive excess property from an agency of the 
United States government for the purpose of providing it to a 
foreign country, subject to notification of the Committees on 
Appropriations.
    21. Funding is provided for ``Migration and Refugee 
Assistance'', and a limitation of $13,800,000 is provided for 
administrative expenses.
    22. Under ``United States Emergency Refugee and Migration 
Assistance Fund'', funds are provided notwithstanding the 
limitations contained in section 2(c)(2) of the Migration and 
Refugee Assistance Act of 1962.
    23. Under ``Nonproliferation, Anti-terrorism, Demining, and 
Related Programs'', funds are made available to countries other 
than the independent states of the former Soviet Union and 
international organizations when it is in the national security 
interest of the United States; funds are made available 
notwithstanding any other provision of law; and the use of 
funds is made subject to the notification procedures of the 
Committees on Appropriations.
    24. Funds are authorized to be made available for the IAEA, 
KEDO, and the CTBT Preparatory Commission, and funds are 
authorized for IAEA only to the extent Israel is not being 
denied its right to participate in the activities of that 
Agency.
    Under ``Debt Restructuring'', funds are available for the 
cost of selling, reducing, or canceling debt owed to the United 
States, for modifying concessional debt agreements with least 
developed countries; the limitation of subsection (e) of 
section 411 of the Agricultural Trade Development and 
Assistance Act of 1954 shall not apply to sub-Saharan Africa 
countries; and the authority of section 572 of Public Law 100-
461 shall not apply to ``IDA-only'' countries.
    25. Under ``International Military Education and 
Training'', the Committee provides IMET for Indonesia and 
Guatemala shall be only for expanded military education and 
training; limits obligation of funds for the School of the 
Americas pending a certification by the Secretary of Defense; 
and requires a report on the School of the Americas.
    26. Under ``Foreign Military Financing Program'', the 
Committee has provided that not to exceed $505,000,000 in FMF 
grants should be available for the procurement in Israel of 
defense articles and defense services, and that FMF grants for 
any non-NATO country participating in the Partnership for Peace 
Program shall be subject to the Committee's regular 
notification procedures.
    27. Under ``Peacekeeping Operations'', funds are made 
available subject to the regular notification procedures of the 
Committees on Appropriations.
    28. Under title IV, funds for a number of international 
financial institutions are made available for contributions and 
funds are made available for the United States share of the 
paid-in portion of the increase in capital stock of certain 
institutions and limitations are placed on callable capital 
subscriptions.
    29. Funds are made available for the United States share of 
the paid-in portion of the increase in capital stock of the 
Asian Development Bank and a limitation is placed on callable 
capital subscriptions.
    30. Under ``Contribution to the European Bank for 
Reconstruction and Development'', the Committee has limited to 
$35,778,717 the amount appropriated that may be expended for 
the purchase of stock during fiscal year 2000 and placed a 
limit on callable capital.
    31. Under ``International Organizations and Programs'', the 
Committee has prohibited and conditioned the funding of certain 
organizations and programs.
    32. Under ``General Provisions'':
    Sec. 502, ``Prohibition of Bilateral Funding for 
International Financial Institutions'' is modified by 
prohibiting funds from title II of this Act from being 
transferred by AID directly to an IFI for the purpose of 
repaying a foreign country's loan obligations to any such 
institution.
    Sec. 515, ``Notification Requirements'' is modified by 
adding ``International Affairs Technical Assistance'' to the 
list of accounts subject to notification.
    Sec. 516, ``Limitation on Availability of Funds for 
International Organization and Programs'' is modified by 
removing language from the 1999 act that amended permanent law.
    Sec. 517, ``Independent States of the Former Soviet Union'' 
is modified by deleting subsection (h) which dealt with the 
imposition of customs duties.
    Sec. 520, ``Special Notification Requirements'' is modified 
to delete Honduras and add Panama.
    Sec. 522, ``Child Survival and Disease Prevention 
Activities'' is modified by limiting the authorities provided 
under the section to funds appropriated under the account 
``Child Survival and Disease Programs Fund''.
    Sec. 526, ``Democracy in China'' is modified by providing 
authority for grants, and to specify that funds be subject to 
the notification procedures of the Committees on 
Appropriations.
    Sec. 532, ``Separate Accounts'' is modified by deleting the 
change in permanent law that was contained in subsection 
(a)(5).
    Sec. 537, ``Serbia-Montenegro and Kosova'' is modified by 
replacing the language from the 1999 act with a funding 
prohibition on assistance to the Republic of Serbia, with an 
exemption for Kosova and Montenegro, and an exemption for 
democratization programs.
    Sec. 544, ``Prohibition on Publicity or Propaganda'' is 
modified by removing the limitation of $750,000 on funds to 
carry out the provisions of section 316 of Public Law 96-533.
    Sec. 546, ``Prohibition of Payments to United Nations 
Members'' is modified by prohibiting the payment of costs for 
attendance of another's country's delegation at international 
conferences.
    Sec. 552, ``War Crimes Tribunal Drawdown'' is modified to 
remove the exemption for a notification regarding a drawdown 
for the war crimes tribunals for Rwanda and the former 
Yugoslavia.
    Sec. 559, ``Assistance for Haiti'', is modified to delete 
the conditions on assistance, and it now provides a policy 
framework and a semiannual reporting requirement.
    Sec. 566, ``Restrictions on Assistance to Countries 
Providing Sanctuary to Indicted War Criminals'' is modified by 
listing Kosova as an entity in order to avoid the inadvertent 
imposition of sanctions intended for Serbia.
    Sec. 567, ``To Prohibit Foreign Assistance to the 
Government of the Russian Federation Should It Enact Laws Which 
Would Discriminate Against Minority Faiths in the Russian 
Federation'' is modified by changing the section heading to 
refer to the Russian Federation, rather than to Russia.
    Sec. 568, ``Greenhouse Gas Emissions'' is modified by 
requiring notification for programs and activities ``the 
primary purpose of which is'' promoting or assisting country 
participation in the Kyoto Protocol, and by requiring the 
Agency for InternationalDevelopment to report on expenditures 
for climate change activities by country or central program or 
activity.
    Sec. 571, ``Assistance for the Middle East'' is modified by 
reducing the cap on Middle East spending from $5,402,850,000 to 
$5,318,150,000, but by exempting $100,000,000 for Jordan from 
the calculation made to arrive at the total Middle East 
spending cap.
    Sec. 573, ``Cambodia'' combines an existing general 
provision relating to multilateral assistance for Cambodia with 
language prohibiting bilateral assistance for the Government of 
Cambodia, except for humanitarian assistance, including basic 
education.
    Sec. 574, ``Authorization for Population Planning'' retains 
a funding limitation of $385,000,000 for population planning 
activities that was included in the 1999 act, but deletes a 
provision that would have apportioned such funds on a monthly 
basis at a level of not to exceed 8.34 percent of the total 
available for such activities.
    Sec. 575, ``Foreign Military Training Report'' is modified 
by exempting training for NATO members and training associated 
with foreign military sales.
    Sec. 576, ``Korean Peninsula Energy Development 
Organization'', is modified--by limiting KEDO funding to 
$35,000,000 from funds provided under ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs; by removing the 
restriction on the obligation of funds prior to March 1; by 
allowing $15,000,000 to be obligated prior to June 1, 2000, 
subject to a Presidential certification regarding North Korean 
compliance with various agreements; by allowing $20,000,000 to 
be obligated after June 1, 2000 subject to a Presidential 
certification regarding North Korean compliance with various 
agreements or proposed agreements; by prohibiting the use of 
sections 451 or 614 of the Foreign Assistance Act to waive the 
provisions of the section; by allowing for a Presidential 
waiver of the certification requirements based on a finding 
that it is necessary due to vital national security interests; 
and by requiring a specified report from the Secretary of State 
on KEDO funding.
    Sec. 577, ``African Development Foundation'' is a new 
general provision that authorizes the investment of grant funds 
by grantees, and allows for the Board of Directors to waive the 
$250,000 project limitation contained in current law, subject 
to submitting an advance report to the Committee.
    Sec. 579, ``Notification on the Use of Operating Expenses'' 
is a new general provision that prohibits the use of funds 
appropriated under ``Operating Expenses of the Agency for 
International Development'' to finance the construction 
(including architect and engineering services), purchases, or 
long-term lease of offices except through the regular 
notification procedures of the Committees on Appropriations.
    Sec. 580, ``Iraq Opposition'' is modified by providing a 
ceiling of $10,000,000 for assistance to the Iraq opposition, 
with funding limited to organizations as authorized under the 
Iraq Liberation Act.
    Sec. 581, ``AID Budget Submission'' is a new general 
provision that details the extent of budget justification data 
required by the Committee.
    Sec. 583, ``Kyoto Protocol'', is a new general provision 
prohibiting funds in this Act from being used to propose or 
issue rules, regulations, decrees or orders for implementation 
of the Kyoto Protocol.
    Sec. 584, ``Contribution to United Nations Population 
Fund'', is a new general provision limiting funding for UNFPA 
to $25,000,000 and imposing various restrictions on the use of 
funds in China.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which, in whole or in 
part, are not authorized by law:

Overseas Private Investment Corporation
Trade and Development Agency
Child Survival and Disease Programs Fund
Development Assistance
International Disaster Assistance
Micro and Small Enterprise Development Program Account
Urban and Environmental Credit Program Account
AID Operating Expenses
AID Operating Expenses, Office of Inspector General
Economic Support Fund
International Fund for Ireland
Assistance for Eastern Europe and the Baltic States
Assistance for the Independent States of the Former Soviet 
        Union
Inter-American Foundation
African Development Foundation
Peace Corps
International Narcotics Control
Migration and Refugee Assistance
Nonproliferation, Anti-Terrorism, Demining and Related Programs
Debt Restructuring (in part)
International Military Education and Training
Foreign Military Financing Program
Peacekeeping Operations
Contribution to the International Development Association
Contribution to the African Development Fund
International Organizations and Programs

                   Comparison With Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how the authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                  203(b) allocation--                     This bill--
                                         -----------------------------------------------------------------------
                                          Budget authority       Outlays      Budget authority       Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...........................            12,625            13,168            12,624            13,167
Mandatory...............................                44                44                44                44
----------------------------------------------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:




Fiscal year 2000......................................             4,755
Fiscal year 2001......................................             2,962
Fiscal year 2002......................................             2,794
Fiscal year 2003......................................               778
Fiscal year 2004......................................             1,116


               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financing assistance to 
State and local governments is as follows:
    The amounts recommended in the accompanying bill contain no 
budget authority or budget outlays for State or local 
governments.
                          Full Committee Votes

    Pursuant to the provisions of clause 3(a)(1)(b) of rule 
XIII of the Rules of the House of Representatives, the results 
of each rollcall vote on an amendment or on the motion to 
report, together with the names of those voting for and those 
voting against, are printed below:

                             Rollcall No. 1

    Date: July 20, 1999.
    Measure: Foreign Operations, Export Financing, and Related 
Programs Appropriations Bill, FY 2000.
    Motion by: Mr. Callahan.
    Description of Motion: To reduce the appropriation for the 
World Bank's International Development Association from 
$776,600,000 to $576,600,000.
    Results: Adopted 30 yeas to 26 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Boyd
Mr. Blunt                           Mr. Clyburn
Mr. Bonila                          Mr. Cramer
Mr. Callahan                        Ms. DeLauro
Mr. Cunningham                      Mr. Dicks
Mr. Dickey                          Mr. Dixon
Mrs. Emerson                        Mr. Edwards
Mr. Frelinghuysen                   Mr. Farr
Ms. Granger                         Mr. Hoyer
Mr. Hobson                          Mr. Jackson
Mr. Kingston                        Ms. Kaptur
Mr. Knollenberg                     Ms. Kilpatrick
Mr. Kilbe                           Mrs. Lowey
Mr. Latham                          Mrs. Meek
Mr. Lewis                           Mr. Mollohan
Mr. Miller                          Mr. Murtha
Mr. Nethercutt                      Mr. Obey
Mrs. Northup                        Mr. Olver
Mr. Packard                         Mr. Pastor
Mr. Regula                          Ms. Pelosi
Mr. Rogers                          Mr. Porter
Mr. Skeen                           Mr. Price
Mr. Sununu                          Ms. Roybal-Allard
Mr. Taylor                          Mr. Sabo
Mr. Tiahrt                          Mr. Serrano
Mr. Walsh                           Mr. Visclosky
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(a)(1)(b) of rule 
XIII of the Rules of the House of Representatives, the results 
of each rollcall vote on an amendment or on the motion to 
report, together with the names of those voting for and those 
voting against, are printed below:

                             Rollcall No. 2

    Date: July 20, 1999.
    Measure: Foreign Operations, Export Financing, and Related 
Programs Appropriations Bill, FY 2000.
    Motion by: Ms. Pelosi.
    Description of Motion: To strike the prohibition on funding 
for the United Nations Population Fund and insert with regard 
to such funds: a limitation of $25,000,000; a prohibition on 
use in China; conditions on availability; and a reporting 
requirement.
    Results: Adopted 30 yeas to 26 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Blunt
Mr. Cramer                          Mr. Bonilla
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. Cunningham
Mr. Dixon                           Mr. DeLay
Mr. Edwards                         Mr. Dickey
Mr. Farr                            Mrs. Emerson
Ms. Granger                         Mr. Frelinghuysen
Mr. Hobson                          Mr. Istook
Mr. Hoyer                           Mr. Kingston
Mr. Jackson                         Mr. Knollenberg
Ms. Kaptur                          Mr. Latham
Ms. Kilpatrick                      Mr. Lewis
Mr. Kolbe                           Mr. Nethercutt
Mrs. Lowey                          Mrs. Northup
Mrs. Meek                           Mr. Packard
Mr. Miller                          Mr. Rogers
Mr. Moran                           Mr. Skeen
Mr. Obey                            Mr. Sununu
Mr. Olver                           Mr. Taylor
Mr. Pastor                          Mr. Tiahrt
Ms. Pelosi                          Mr. Wamp
Mr. Porter                          Mr. Wicker
Mr. Price                           Mr. Wolf
Mr. Regula                          Mr. Young
Ms. Roybal-Allard
Mr. Sabo
Mr. Serrano
Mr. Visclosky



           ADDITIONAL VIEWS OF DAVID R. OBEY AND NANCY PELOSI

    Once again the allocation of resources for the Fiscal Year 
2000 Foreign Operations bill of $12.625 billion is simply not 
adequate to meet our national security requirements, and will 
seriously impair the President's ability to carry out an 
effective foreign policy. This low level of funding will 
prevent us from confronting new challenges and will hinder the 
ability of the United States to maintain our leadership around 
the world.
    It is also unfortunate that the bipartisan spirit, which 
characterized he Subcommittee's deliberations on this bill, was 
disrupted by the requirement imposed from above to cut an 
Administration high priority item by $200 million at Full 
Committee. The Subcommittee marked up to a level of $12.825 
billion with the understanding that it represented a freeze in 
spending, and that it was an acceptable allocation to the 
Republican leadership. After subcommittee markup occurred, the 
mandate to reduce the bill by another $200 million was imposed. 
Unfortunately, this procedure has become a pattern with many of 
the Appropriations bills this year. Its continuing occurrence 
has seriously eroded the Committee's ability to operate in a 
bipartisan fashion.
    The total recommended of $12.625 billion for the FY 2000 
Foreign Operations bill is $1.947 billion below the President's 
FY 2000 request and $715 million below last year's level of 
spending, after factoring out the IMF appropriation. With all 
the new challenges we face throughout the world and the 
requirement for resources to meet those challenges this level 
of funding is shortsighted.
    As the world continues rapidly changing, the United States 
has an unprecedented opportunity to enhance our national and 
economic security by solidifying our global leadership, through 
the spread of democracy with the promise of economic growth. 
The process of allocating our discretionary budget resources 
has once again this year failed to acknowledge that fundamental 
fact, and our foreign policy goals have been shortchanged as a 
result.
    The programs in the bill which should be funded at higher 
levels include the Independent States of the Former Soviet 
Union, Development Assistance, AID Operating Expenses, Economic 
Support Funds, Debt Restructing, Global Environment Facility, 
International Organizations and Programs, the International 
Development Association, and the Nonproliferation, Anti-
terrorism, Demining and related programs account.
    The Independent States of the Former Soviet Union was 
funded at $725 million--well below last year and $307 million 
below the amount requested. This means little or no funding for 
the Combined Threat Reduction Initiative, which is designed to 
dismantle Russian military bases in emerging Republics of the 
former Soviet Union, and to employ Russian scientists in 
peaceful and commercially productive pursuits. It also means 
cuts below last year for emerging republics such as Armenia and 
Georgia. A reduction of this magnitude also threatens our long-
term interests in the region by reducing support for small 
businesses, and exchange programs designed to develop a new 
generation of pro-reform leaders and institutional 
partnerships.
    The increases in the bill for the Child Survival Account 
are welcome, however, the cuts to the Development Assistance 
account threaten new African initiatives and Environmental 
programs, limit the ability to address the financial crisis in 
Asia, and hinder follow up needs from the recent natural 
disasters in Central America. The cut to AID's operating 
expenses will scale back necessary security upgrades at 
overseas posts and will require staff reductions. Cuts to the 
Economic Support Fund translate into reductions to programs 
intended to increase political stability and democratization in 
Latin America, Asia and Africa. Cuts in the Nonproliferation 
account will limit new initiatives for Antiterrorism, Demining 
and Export Controls. The cuts to the International Development 
Association and the GEF put the US into deep arrears once 
again.
    The cuts mentioned above do not take into account other 
emerging needs. For example the bill contains only $100 million 
of the $1.3 billion requested in conjunction with the WYE River 
Memorandum. While it may be premature to include the full 
funding for this package, there will be a need to address these 
commitments in a timely manner in tandem with implementation of 
the Accords by all parties. An allocation of $12.625 billion 
will not enable the approval of this request.
    Additionally the end of the war in Kosova has brought with 
it significant challenges for assisting in the recovery of 
Kosova itself and in helping the front line states put their 
economies back on track. Congress did provide a significant 
assistance package earlier this year; however, there will be a 
need for additional resources for peacekeeping and peace 
implementation to keep recovery efforts on track.
    Finally, the bill reduces the request for Debt Restructing 
from $120 million to $33 million, and prohibits funding for the 
Trust Fund for Highly Indebted Poor Countries (HIPC). This 
request was made before the recent historic agreements among 
the G-7 in Cologne, Germany. Those agreements, which have broad 
support from governments, multilateral institutions, and 
religious groups, will require additional budgetary resources 
beyond what is currently requested. Fully funding the US budget 
costs for this initiative, thereby facilitating sweeping 
multilateral debt relief actions for poor countries, may be the 
most significant poverty alleviation action we can take in a 
generation. The amounts currently in the bill don't even put us 
on the playing field.
    These points have not been made with the expectation that 
every dime that has been cut from the request should be 
restored. They are made to illustrate the need for more 
resources in key areas. Robust and well-directed foreign 
assistance programs support our own national security 
requirements, and enjoy the support of a majority of the 
American people. That support is based on the realization that 
process of building stability throughout the world by enhancing 
democratization and promoting economic growth ultimately 
benefits all of us, and in fact contributes to our prosperity.
                                                      Nancy Pelosi.

                                  
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