[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.