[Senate Report 107-219]
[From the U.S. Government Publishing Office]




                                                       Calendar No. 513
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-219

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



 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATION BILL, 2003
                                _______
                                

                 July 24, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                    [To accompany S. 2779]

    The Committee on Appropriations to which was referred the 
bill (H.R. 0000), making appropriations for Foreign operations 
and related programs for the fiscal year ending September 30, 
2003, and for other purposes, reports the same to the Senate 
with an amendment and recommends that the bill as amended do 
pass. deg.
    The Committee on Appropriations reports the bill (S. 2779) 
making appropriations for Foreign Operations and related 
programs for the fiscal year ending September 30, 2003, and for 
other purposes, reports favorably thereon and recommends that 
the bill do pass.



Amounts in new budget authority

Fiscal year 2002 appropriations......................... $15,440,780,000
Fiscal year 2003 budget estimate........................  16,165,932,000
Amount of bill as reported to Senate....................  16,395,200,000
Bill as recommended to Senate compared to:
    2002 appropriations.................................    +954,420,000
    Budget estimate.....................................    +252,268,000



                            C O N T E N T S

                              ----------                              
                                                                   Page
Summary of total budget authority in the bill....................     4
Introduction.....................................................     4
Accrual funding of retirement costs and postretirement health 
  benefit........................................................     4
Title I--Export assistance:
    Export-Import Bank of the United States......................     6
    Overseas Private Investment Corporation......................     6
    Trade and Development Agency.................................     7
Title II--Bilateral economic assistance:
    Bilateral assistance.........................................     8
    Child Survival and Health Programs Fund......................     8
    Development assistance.......................................    13
    International disaster assistance............................    30
    Transition initiatives.......................................    30
    Development credit authority.................................    30
    Operating expenses...........................................    30
    Payment to the Foreign Service retirement and disability fund    31
    Operating expenses of the United States Agency for 
      International Development..................................    31
    Capital investment fund......................................    31
    Operating expenses of the Office of Inspector General........    31
    Other bilateral economic assistance:
        Economic Support Fund....................................    31
        Assistance for Eastern Europe and the Baltic States......    34
        Assistance for the Independent States of the former 
          Soviet Union...........................................    36
    Independent Agencies:
        Peace Corps..............................................    40
        African Development Foundation...........................    40
        Inter-American Foundation................................    40
    Department of State:
        International narcotics control and law enforcement......    40
        Andean Counterdrug Initiative............................    41
        Migration and refugee assistance.........................    43
        Emergency refugee and migration assistance fund..........    45
        Nonproliferation, antiterrorism, demining, and related 
          programs...............................................    46
    Department of the Treasury:
        International affairs technical assistance...............    47
        Debt restructuring.......................................    47
Title III--Military assistance:
    International military education and training................    48
    Foreign military financing...................................    49
    Peacekeeping operations......................................    50
Title IV--Multilateral economic assistance:
    International Financial Institutions Summary.................    51
    International Bank for Reconstruction and Development........    52
    Global Environment Facility..................................    52
    Multilateral Investment Guarantee Agency.....................    52
    Inter-American Development Bank..............................    52
    Asian Development Fund.......................................    52
    African Development Bank.....................................    52
    Africa Development Fund......................................    52
    European Bank for Reconstruction and Development.............    53
    International Fund for Agriculture Development...............    53
    International Organizations and Programs.....................    53
Title V--General provisions......................................    56
Compliance with paragraph 7, rule XVI of the standing rules of 
  the Senate.....................................................    59
Compliance with paragraph 7(c), rule XXVI of the standing rules 
  of the Senate..................................................    59
Compliance with paragraph 12, rule XXVI of the standing rules of 
  the 
  Senate.........................................................    60
Budget impact statement..........................................    61


                                 SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                                                                recommendation
                                                                                Committee        compared with
                          Item                             Budget request    recommendation     budget estimate
                                                                                                increase (+) or
                                                                                                 decrease (-)
----------------------------------------------------------------------------------------------------------------
Export Assistance.......................................      $399,281,000      $399,281,000  ..................
Bilateral Economic Assistance...........................     9,700,704,000    10,136,111,000       +$435,407,000
Military Assistance.....................................     4,295,450,000     4,272,250,000         -23,200,000
Multilateral Assistance.................................     1,747,497,000     1,587,558,000        -159,939,000
----------------------------------------------------------------------------------------------------------------

                              INTRODUCTION

    In fiscal year 2002, the Committee appropriated 
$15,440,780,000 for foreign operations and related programs. 
This year, the Committee has provided $16,395,200,000, of which 
$16,350,000 is for discretionary spending and $45,200,000 is 
for mandatory spending.

ACCRUAL FUNDING OF RETIREMENT COSTS AND POST-RETIREMENT HEALTH BENEFITS

    The President's Budget included a legislative proposal 
under the jurisdiction of the Senate Committee on Governmental 
Affairs to charge to individual agencies, starting in fiscal 
year 2003, the fully accrued costs related to retirement 
benefits of Civil Service Retirement System employees and 
retiree health benefits for all civilian employees. The Budget 
also requested an additional dollar amount in each affected 
discretionary account to cover these accrued costs.
    The authorizing committee has not acted on this 
legislation, therefore the Senate Appropriations Committee has 
reduced the dollar amounts of the President's request shown in 
the ``Comparative Statement of New Budget Authority Request and 
Amounts Recommended in the Bill'', as well as in other tables 
in this report, to exclude the accrual funding proposal.
    The Committee further notes that administration proposals 
requiring legislative action by the authorizing committees of 
Congress are customarily submitted in the budget as separate 
schedules apart from the regular appropriations requests. 
Should such a proposal be enacted, a budget amendment formally 
modifying the President's appropriation request for 
discretionary funding is subsequently transmitted to the 
Congress.
    The Senate Appropriations Committee joins with the House 
Appropriations Committee in raising concern that this practice, 
which has always worked effectively for both Congress and past 
administrations, was not followed for the accrual funding 
proposal. In this case, the Office of Management and Budget 
(OMB) decided to include accrual amounts in the original 
discretionary appropriations language request. These amounts 
are based on legislation that has yet to be considered and 
approved by the appropriate committees of Congress. This led to 
numerous misunderstandings both inside and outside of Congress 
of what was the ``true'' President's budget request. The 
Committee believes that, in the future, OMB should follow long-
established procedures with respect to discretionary spending 
proposals that require legislative action.

                                TITLE I

                           EXPORT ASSISTANCE

                Export-Import Bank of the United States

                         SUBSIDY APPROPRIATION

Appropriations, 2002....................................    $727,323,000
Budget estimate, 2003...................................     541,400,000
Committee recommendation................................     541,400,000

                        ADMINISTRATIVE EXPENSES

Appropriations, 2002....................................     $63,000,000
Budget estimate, 2003...................................      68,300,000
Committee recommendation................................      68,300,000

    The Committee provides $541,400,000 for a subsidy 
appropriation for the Export-Import Bank. This is the same as 
the request and $185,923,000 below the fiscal year 2002 level. 
Because of a reassessment of international lending risk, the 
fiscal year 2003 appropriation will allow the Export-Import 
Bank to support approximately an additional $1,000,000,000 in 
exports over the fiscal year 2002 level. The Committee provides 
$68,300,000 for administrative expenses, which is equal to the 
request and $5,300,000 above the fiscal year 2002 level.
    The Committee directs the Export-Import Bank, no later than 
120 days after enactment of this Act, to report to the 
Committee on Appropriations the number of employees for which 
it utilizes the authority provided in this Act that permits the 
Bank to nothwithstand subsection (b) of section 117 of the 
Export Enhancement Act of 1992. This report is to include the 
positions, job descriptions, and salaries, including consulting 
fees, of the individuals for which this authority is exercised.

                Overseas Private Investment Corporation


                         SUBSIDY APPROPRIATION

                              DIRECT LOANS

Appropriations, 2002....................................................
Budget estimate, 2003...................................     $24,000,000
Committee recommendation................................      24,000,000

                        ADMINISTRATIVE EXPENSES

Appropriations, 2002....................................     $38,608,000
Budget estimate, 2003...................................      39,885,000
Committee recommendation................................      39,885,000

    The Committee provides a subsidy appropriation for the 
Overseas Private Investment Corporation (OPIC) for direct and 
guaranteed loan credit programs of $24,000,000, which is equal 
to the budget request. In fiscal year 2002, no money was 
provided for a subsidy appropriation, as $24,000,000 in 
carryover was available for use.
    The Committee includes $39,885,000 for administrative 
expenses. This level is equal to the administration's budget 
request.

                      Trade and Development Agency

Appropriations, 2002....................................     $50,024,000
Budget estimate, 2003...................................      44,696,000
Committee recommendation................................      44,696,000

    The Committee provides $44,696,000 for the Trade and 
Development Agency (TDA). This amount is $5,328,000 below the 
fiscal year 2002 level and equal to the request.
    The Committee agrees with the objectives of the orientation 
visits hosted by TDA, but would like more information on the 
amount of funds spent for these purposes. Therefore, the 
Committee requests that no later than 120 days after enactment, 
TDA submit a report detailing the total amount of funds spent 
in fiscal year 2002 on each orientation visit, the number of 
people participating in each of these visits, and the itinerary 
of each visit.

                                TITLE II

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

           UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

Appropriations, 2002....................................  $3,579,880,000
Budget estimate, 2003...................................   3,782,924,000
Committee recommendation................................   4,172,424,000

    The amounts listed in the above table for fiscal year 2002 
appropriations, the fiscal year 2003 budget estimate and the 
Committee recommendation, include funds appropriated or 
requested under child survival and health programs, development 
assistance, USAID operating expenses, USAID Inspector General 
operating expenses, mandatory retirement expenses, 
international disaster assistance, transition initiatives and 
credit programs.

                CHILD SURVIVAL AND HEALTH PROGRAMS FUND

Appropriations, 2002....................................  $1,433,500,000
Budget estimate, 2003...................................................
Committee recommendation................................   1,780,000,000

    The Committee provides $1,780,000,000 for the ``Child 
Survival and Health Programs Fund'' of which $350,000,000 is 
for child survival and maternal health. These funds are 
available for programs and activities to reduce child mortality 
and morbidity, combat infectious diseases including HIV/AIDS, 
and address a wide range of other public health problems around 
the world. The Committee reiterates its strong support for a 
comprehensive approach to global health, with an emphasis on 
building local capacity in developing countries to conduct 
effective surveillance and deliver basic health services.
    After several years of discussions, the Committee believed 
that the administration would request, and Congress would 
appropriate, funds managed by USAID in two separate accounts, 
``Child Survival and Health Programs Fund'' and ``Development 
Assistance.'' While recognizing that there are some 
shortcomings with this approach, the Committee has continued to 
appropriate funds in both accounts in order to maintain more 
effective oversight and accounting of funds.

                                HIV/AIDS

    It is widely recognized that the HIV/AIDS pandemic poses 
the gravest threat to global health. For reasons expressed in 
prior reports, the Committee believes that the response of the 
international community to this crisis has been woefully 
inadequate.
    For fiscal year 2003, the Committee provides a total of 
$750,000,000 for programs to combat HIV/AIDS. Of this amount, 
$500,000,000 is from the ``Child Survival and Health Programs 
Fund'' and $50,000,000 is from the ``Economic Support Fund'' 
(ESF), ``Assistance for Eastern Europe and the Baltic States'' 
(SEED), and ``Assistance for the Independent States of the 
Former Soviet Union'' (FSU) accounts. Of the amount provided 
under the ``Child Survival and Health Programs Fund,'' 
$200,000,000 is for a United States contribution to the Global 
Fund to Fight AIDS, Tuberculosis and Malaria.
    The Committee believes that the first priority for these 
funds should be to support HIV/AIDS prevention programs, to 
reduce the number of new infections and save lives. However, 
the Committee believes that USAID needs to devote significantly 
more resources to treatment programs (including programs to 
facilitate access by infected persons to anti-retroviral drugs) 
which have also been shown to be important in preventing the 
spread of HIV. The Committee is aware of the concern that some 
HIV/AIDS affected countries, especially those in sub-Saharan 
Africa, lack the capacity to effectively use additional funds 
for the prevention and treatment of HIV/AIDS. The Committee 
believes that where local capacity is lacking, USAID should 
urgently target resources to build that capacity.
    The Committee believes strongly that the magnitude of the 
HIV/AIDS crisis requires that USAID pursue all available 
options and authorities to ensure the most cost-effective 
utilization of available resources to produce the greatest 
possible impact in stemming the pandemic.
    Media Training.--The Committee believes that more education 
about the causes, effects, and treatment of HIV/AIDS is needed 
in many areas, especially sub-Saharan Africa and southeast 
Asia. One promising way to increase knowledge about the disease 
is through a program started in fiscal year 2002 to promote 
accurate and unbiased media reporting on the prevention of HIV/
AIDS and the care of people suffering from the disease. The 
Committee recommends that these efforts be expanded and that 
USAID make available at least $2,000,000 in fiscal year 2003.
    UNAIDS.--The Committee supports the work of UNAIDS, which 
plays a key coordination role in the global effort to design 
national AIDS plans, expand access to HIV drugs, set standards 
for vaccine trials, and collect data that is critical in 
combating the HIV/AIDS pandemic.
    Microbicides.--The Committee provides not less than 
$18,000,000 to support the development of microbicides as a 
means of combating HIV/AIDS. The Committee recognizes the 
urgent public health need to develop new HIV prevention options 
and the emerging scientific opportunities in the field. The 
Committee supports USAID's research in this area and urges the 
Office of HIV/AIDS, in conjunction with other USAID offices and 
appropriate Federal agencies, to fully implement USAID's 
comprehensive strategy to support the development and use of 
microbicides.
    Safe Blood.--The Committee encourages USAID to support the 
efforts of Safe Blood for Africa, which assists African nations 
through training and technical assistance, to develop systems 
to ensure that blood supplies are screened for HIV/AIDS and 
other communicable diseases.
    Lott Carey International.--The Committee recognizes Lott 
Carey International's (LCI) work to establish programs to help 
mitigate the devastation caused by HIV/AIDS in Africa and the 
Carribean, including education, building health care 
infrastructure, and caring for orphans, widows, and other 
family members affected by HIV/AIDS. The Committee urges USAID 
to seriously consider supporting proposals from LCI.
    Enhanced Testing.--The Committee believes that USAID should 
support wider use of new methods of testing for HIV/AIDS that 
improve the accuracy and timeliness of the results.
    Mother to Child Transmission.--The Committee continues to 
strongly support additional assistance for programs to prevent 
HIV/AIDS transmission from mother-to-child.
    Nurse Training.--The Committee continues to support 
training for nurses to cope with the HIV/AIDS crisis in sub-
Saharan Africa. Because of the acute shortage of African 
doctors, nurses are often the first and only contact that 
people have with the health care system.

                       OTHER INFECTIOUS DISEASES

    The Committee provides $185,000,000 for programs to combat 
other infectious diseases, to strengthen disease surveillance, 
and to reduce anti-microbial resistance in developing 
countries. This is the 6th year of a congressional initiative 
begun in fiscal year 1998, which has resulted in additional 
appropriations of over $400,000,000 for these activities.
    Tuberculosis.--The Committee recommends not less than 
$75,000,000 to combat tuberculosis (TB), including at least 
$65,000,000 from the ``Child Survival and Health Programs 
Fund'' and at least $10,000,000 from the ESF, SEED, and FSU 
accounts. The Committee expects funds for TB from the ESF, 
SEED, and FSU accounts to be obligated and disbursed rapidly. 
The Committee supports DOTS TB programs and other multilateral 
efforts, including the Global Fund to Combat TB.
    Malaria.--The Committee recommends not less than 
$75,000,000 from the ``Child Survival and Health Programs 
Fund'' for programs to combat malaria, a debilitating disease 
that afflicts an estimated 500 million people each year, of 
whom one million die, mostly African children. The Committee is 
aware of Medicines for Malaria Venture, a public-private 
partnership to develop new anti-malaria drugs, which are 
urgently needed. The Committee recommends that USAID provide 
direct support to this initiative. The Committee also supports 
the Centers for Disease Control program of malaria research 
centers, which are an important part of international efforts 
to combat malaria.

                UNITED NATIONS CHILDREN'S FUND (UNICEF)

    The Committee supports efforts to reach the child survival 
goals set by the World Summit for Children. In order to 
implement these goals, the Committee provides $120,000,000 from 
under the ``Child Survival and Health Programs Fund'' for a 
contribution to UNICEF. This does not preclude USAID from 
providing additional funding for specific UNICEF projects as 
may be appropriate.

                             IMMUNIZATIONS

    The Committee is aware that at least 3 million children die 
each year because they do not receive life-saving 
immunizations. Last year, Congress provided funding for The 
Vaccine Fund, which supports the international, public and 
private partnership recommendations of the Global Alliance for 
Vaccines and Immunization. The Committee strongly supports 
continued funding for this program and recommends up to 
$60,000,000 for The Vaccine Fund in fiscal year 2003.

                      IODINE DEFICIENCY DISORDERS

    The Committee is aware that iodine deficiency disorder 
(IDD) is the leading preventable cause of mental retardation in 
children. Problems associated with IDD are particularly of 
concern in Africa, south Asia, the former Soviet republics and 
southeast Europe. Private funding raised by Kiwanis 
International and implemented by UNICEF is helping to prevent 
the mental retardation of millions of children each year. In 
order to help meet the IDD goals, the Committee recommends that 
USAID provide a total of at least $2,250,000 from the ``Child 
Survival and Health Programs Fund'', and $1,000,000 from the 
FSU and SEED accounts for the Kiwanis/UNICEF IDD partnership 
program.

                   VITAMIN A AND OTHER MICRONUTRIENTS

    The Committee supports increased funding for the vitamin A 
deficiency program. Vitamin A is a low cost solution to easily 
preventable diseases and blindness. Like last year, the 
Committee recommends at least $30,000,000 for the overall USAID 
micronutrient program, of which at least $20,000,000 should be 
for programs related to vitamin A deficiency.

                           POLIO ERADICATION

    The Committee again recommends $30,000,000 for the 
multilateral effort to eradicate polio, an extraordinary 
public-private effort which is in its final years of 
completion.

                             BLIND CHILDREN

    The Committee recognizes the work being done by Helen 
Keller Worldwide, the International Eye Foundation, and other 
organizations to assist blind children in developing countries 
with simple and inexpensive methods of prevention and 
treatment. The Committee recommends that $1,500,000 be made 
available for such programs in fiscal year 2003.

                  DISPLACED CHILDREN AND ORPHANS FUND

    The Committee recommends $12,000,000 for the Displaced 
Children and Orphans Fund, which is in addition to other 
funding for HIV/AIDS orphans. The Committee has again provided 
authority to use up to $32,500 in program funds for displaced 
and orphaned children and victims of war, to enable the USAID 
office responsible for the design and management of these 
programs to monitor and oversee their implementation. USAID is 
also encouraged to use other operating expense funds, as 
necessary, to further the effectiveness of the oversight of 
these programs.

                  FAMILY PLANNING/REPRODUCTIVE HEALTH

    The Committee provides $450,000,000 for family planning/
reproductive health programs from all funding accounts. The 
Committee notes that this is equal to the amount provided in 
fiscal year 1995. Since then, the world's population has 
increased by nearly three-quarters of a billion people. The 
Committee believes that the United States should provide more 
support for family planning/reproductive health in developing 
countries, where 95 percent of new births will occur. This 
support should include expanding access to, and the use of 
modern family planning services, to avoid unintended 
pregnancies and other risks to reproductive health, including 
those associated with pregnancy, sexually transmitted 
infections and HIV/AIDS. Of this amount, $400,000,000 is to 
come from the ``Child Survival and Health Programs Fund'', and 
$50,000,000 from the ESF, SEED, and FSU accounts. The Committee 
expects these funds to be obligated rapidly.
    The Committee is aware that unchecked population growth is 
a major cause of environmental degradation, and expects USAID 
to develop performance goals and indicators which promote 
cross-sectoral collaboration on community-based, population-
health-environment programs, and to consult with the Committee 
regarding these goals and indicators.
    The Committee supports organizations such as the Population 
Media Center, which promotes the use of mass media to educate 
people in developing countries about the personal benefits of 
family planning, encourage the use of effective measures to 
prevent transmission of HIV, and adopt other health measures.

                            MATERNAL HEALTH

    The Committee is aware that pregnancy-related deaths exceed 
600,000 annually, most of which are preventable. The Committee 
believes that far more should be done to address this urgent 
need, and recommends $75,000,000 for maternal health activities 
and that additional funding be made available specifically to 
reduce pregnancy-related deaths.

                       HEALTH CARE INFRASTRUCTURE

    The Committee strongly supports The Wheelchair Foundation, 
which provides assistance for needy children and adults in 
developing countries who have lost limbs or are otherwise 
disabled. The Committee is encouraged by the administration's 
public/private campaign for volunteer and assistance efforts, 
and has provided $10,000,000 for the Foundation, to be made 
available on a matching dollar for dollar basis.
    The Committee supports the efforts of the Polus Center in 
Nicaragua to develop a mobility and social access project for 
individuals who have lost limbs from acts of war, landmines or 
diseases.
    The Committee recognizes the work of the Jeffrey Modell 
Foundation, which has established programs aimed at combating 
primary immunodeficiencies. The Committee recommends that USAID 
support the Jeffrey Modell Foundation's efforts in Central and 
Latin America. The Committee also notes the work of Esperanca 
in impoverished communities in Latin America and encourages 
ongoing support for these activities.

                              DISABILITIES

    The Committee recognizes the work of Mobility 
International/USA and believes that USAID and the State 
Department should seriously consider providing $300,000 to 
expand Mobility International/USA's professional exchange and 
other overseas programs. The Committee believes the State 
Department, USAID, and other U.S. Government entities should 
undertake additional efforts to promote equal opportunity for 
people with disabilities. The Committee continues to support 
efforts to help those in developing countries who have been 
disabled by a variety of causes.

                           LEAD-FREE CERAMICS

    The Committee is aware of an initiative by Aid To Artisans, 
an organization that provides technical and marketing 
assistance to artisans in developing countries, to promote the 
use of lead-free pottery glazes in Mexico. The use of lead 
glazes poses serious health risks for people in many countries, 
and also inhibits the marketability of ceramic products. The 
Committee believes that this initiative has the potential to 
improve the health and welfare of millions of people in Mexico 
and elsewhere, and urges USAID to support it.

                         DEVELOPMENT ASSISTANCE

Appropriations, 2002....................................  $1,178,000,000
Budget estimate, 2003...................................   2,739,500,000
Committee recommendation................................   1,350,000,000

    The Development Assistance account consists of a wide range 
of poverty-reduction and long-term development activities 
including democracy and the rule of law, free market 
development, agriculture and rural development, urban programs, 
environment and energy, basic education, and micro-credit.

                      GLOBAL DEVELOPMENT ALLIANCE

    The Committee supports, in principal, USAID's Global 
Development Alliance (GDA), to promote public-private 
partnerships in international development. However, the 
Committee has yet to receive sufficient information on this 
initiative, and has therefore provided that funds for the GDA 
Secretariat in fiscal year 2003 are subject to the regular 
notification procedures of the Committees on Appropriations.
    The Committee encourages USAID to consider using GDA funds 
to build and support schools and other educational institutions 
in developing countries. These projects should be focused on 
designing and promoting tolerant, secular education curricula 
in countries where the needs for basic education and increased 
understanding of democratic values are most acute.

                          WOMEN IN DEVELOPMENT

    The Committee recommends $15,000,000 in fiscal year 2003 
for USAID's Office of Women in Development (WID). In addition 
to providing adequate funding, the Committee expects the 
Administrator of USAID to strengthen the WID Office. The Office 
continues to play a key role in integrating gender perspectives 
into USAID's programs and policies, and providing technical 
support, research and implementation of initiatives focused on 
women's economic status and legal rights, and girls' education.
    The Committee strongly supports the mission of Women's 
Campaign International (WCI), which works to enhance the status 
of women through media, leadership, business, organizational, 
and public-service training in developing countries. The 
Committee recommends at least $600,000 for WCI in fiscal year 
2003.

                       CHILDREN'S BASIC EDUCATION

    Educating children in developing countries is fundamental 
to long term development. The Committee believes that USAID 
should significantly broaden its support for these activities, 
and provides $200,000,000 should be made available for 
children's basic education in fiscal year 2003. The Committee 
expects USAID to emphasize programs that expand access and 
quality of education for girls, enhance community and parental 
participation in schools, improve teacher training, and build 
local management capacity. USAID should ensure that it has 
sufficient education specialists to manage this increased 
emphasis on basic education.
    The Committee supports the work of Schools3, a private 
voluntary initiative to build primary schools at low cost in 
developing countries.

                 AMERICAN SCHOOLS AND HOSPITALS ABROAD

    The Committee continues to recognize the important 
contributions made to U.S. foreign policy by institutions 
funded by the American Schools and Hospitals Abroad (ASHA) 
program, and provides that not less than $19,000,000 should be 
made available to support these institutions in fiscal year 
2003. The Committee, once again, expects USAID to allocate 
sufficient sums to administer the ASHA program from funds 
provided for Operating Expenses, so it will not be necessary to 
expend any program funds for administrative purposes.
    Although the Committee understands that ASHA funds are 
available for a variety of purposes, such as construction and 
equipment, libraries, computer technology, curriculum and staff 
support, and related expenses, the Committee reaffirms its 
intention that this assistance is not to be presumed to offer 
permanent budget support to ASHA recipients. The Committee 
strongly encourages ASHA to give priority to organizations 
which demonstrate a commitment to private fundraising to match 
government support.
    By increasing ASHA funding above the fiscal year 2002 
level, the Committee intends to ensure that support is provided 
to institutions that are effective demonstration centers of 
American educational and medical practices. The Committee 
continues to be impressed with the contributions to United 
States interests made by several institutions and believes that 
they warrant further support, including Lebanese American 
University, International College; The Johns Hopkins 
University's Centers in Nanjing, China and Bologna, Italy; the 
Center for American Studies at Fudan University, Shanghai; the 
Hadassah Medical Organization; the American University of 
Beirut; the American University of Cairo; and the Feinberg 
Graduate School of the Weizmann Institute of Science.

                           VICTIMS OF TORTURE

    The Committee recommends that USAID provide up to 
$10,000,000 in fiscal year 2003 for centers for victims of 
torture that provide services consistent with the goals of the 
Torture Victims Relief Reauthorization Act of 1999.

                     PATRICK LEAHY WAR VICTIMS FUND

    The Committee continues to strongly support the Leahy War 
Victims Fund, which, since 1989, has provided essential 
orthopedic and related medical, surgical, and rehabilitation 
assistance for civilians who are disabled as a direct or 
indirect result of civil strife or armed conflict. In addition 
to enabling amputees and other people with disabilities to 
regain mobility, the Committee supports USAID's efforts to 
increase their accessibility to mainstream educational, 
recreational and economic opportunities. The Committee expects 
USAID to provide $12,000,000 for this program in fiscal year 
2003.
    The Committee is concerned with Afghans civilians who have 
suffered serious injuries as a result of the military 
operations, and recommends that the Fund, or other assistance 
in the Act that is available for Afghanistan, be used to 
provide rehabilitation and related assistance to these people.
    The Committee continues to encourage the Fund to increase 
its support for initiatives in conflict-affected countries that 
will lead to appropriate disability laws and policies, and 
improvements in and the expansion of appropriate services and 
programs that are needed by people with conflict-related, 
physical disabilities.
    The Committee again expresses its appreciation to the USAID 
employees who manage this program, and who have earned the 
respect of disability experts around the world.

                            SPORTS PROMOTION

    The Committee is aware of the intrinsic value of sports in 
enhancing child development and building communities. Olympic 
Aid is an athlete-driven, non-profit organization using sport 
and recreation to achieve these goals with programs in 
Afghanistan, Nepal, East Timor, and several African countries. 
The Committee encourages USAID and the State Department to 
provide up to $2,000,000 to support Olympics Aid's programs.

          COOPERATIVE ASSOCIATION FOR STATES FOR SCHOLARSHIPS

    The Committee supports the work of the Cooperative 
Association for States for Scholarships and expects USAID to 
continue funding this program.

                           URBAN DEVELOPMENT

    The Committee is aware that urban populations in developing 
countries are growing at a tremendous rate, and is concerned 
that, despite this trend and the immense social and economic 
problems it poses, funding for USAID urban programs and 
associated technical staff have been declining. The Committee 
strongly recommends that additional funds be provided to 
USAID's Urban Programs Office to enhance these increasingly 
important programs.

                         DEVELOPMENT AWARENESS

    The Committee endorses Operation Day's Work/USA, which 
enables interested students to study selected countries and 
raise funds for basic development activities. The Committee 
expects USAID to continue to provide funding to expand this 
program.

                    COMMERCIAL DEVELOPMENT PROGRAMS

    The Committee strongly supports micro-credit programs for 
very poor people and funding for other micro-credit activities, 
and recommends USAID provide at least $175,000,000 for these 
and other micro-credit activities. The Committee supports the 
development of poverty measurements, and recommends that at 
least half of these resources be targeted to the world's 
poorest people. The Committee also encourages USAID to begin a 
micro-credit program in Afghanistan as soon as practicable. The 
Committee recognizes the positive impact that microcredit 
programs have on the lives of women around the world.
    The Committee continues to strongly support the volunteer 
activities of the International Executive Service Corps (IESC), 
and believes that USAID has underutilized the IESC's capacity 
to promote economic growth by assisting small and medium sized 
companies. The Committee believes that aggressive use of 
volunteer organizations such as IESC produces positive results 
in development programs abroad, and shares the administration's 
support for greater volunteerism in America.
    The Committee recognizes the important role that U.S. 
credit unions and cooperatives can play in overseas programs. 
The Committee recommends $8,000,000 for the Office of Private 
Voluntary Cooperation for cooperative development 
organizations, in order to enhance their technical capacities 
and build business alliances for overseas activities with U.S. 
cooperatives.
    The Committee is aware of the efforts of the World Council 
of Credit Unions to further develop credit union systems in 
South Africa and Mexico in order to promote free-market 
principles and increase the ability of poor people to access 
credit and other banking services. The Committee recommends up 
to $2,000,000 for this initiative.
    The Committee provides $1,000,000 for the U.S. 
Telecommunications Training Institute (USTTI). USTTI is a 
nonprofit joint venture between the public and private sectors 
dedicated to providing tuition free communications and 
broadcast training to professionals from around the world.

                    AGRICULTURE DEVELOPMENT PROGRAMS

    The Committee supports USAID's renewed emphasis on 
agriculture, as it has long believed that agricultural 
development is critical to combating poverty. The Committee has 
provided that $35,000,000 should be made available for plant 
biotechnology programs, with an emphasis on research projects 
to improve food security and nutrition in Africa and Asia. The 
Committee continues to believe that dairy development is an 
important component of U.S. foreign assistance programs and 
recommends that USAID increase funding above the current level.
    The Committee notes that USAID is in the process of 
drafting an agricultural strategy paper, which the Committee 
expects will improve its internal planning mechanisms. The 
Committee recognizes that the Board on International Food and 
Agricultural Development (BIFAD) is an important part of this 
process. The Committee expects that vacant Board positions will 
be expeditiously filled and that USAID will provide BIFAD with 
sufficient resources to enable the Board to function next year.

              INTERNATIONAL FERTILIZER DEVELOPMENT CENTER

    The Committee continues to support the work of the 
International Fertilizer Development Center (IFDC) and provides 
that not less than $2,300,000 should be made available for its 
core grant. The Committee also recommends an additional 
$1,700,000 to support the research and development activities 
of IFDC.

                COLLABORATIVE RESEARCH SUPPORT PROGRAMS

    The Committee continues its strong support for the 
Collaborative Research Support Programs (CRSPs). Recognizing 
the important research and training functions of these 
programs, the Committee expects that funding above the fiscal 
year 2002 level will be provided for the CRSPs, and that the 
CRSPs be seriously considered for funding for a broad range of 
development-related activities.

                     PROTECTION OF THE ENVIRONMENT

    The Committee has a long history of supporting programs, 
through USAID, the Department of State, and the U.S. directors 
to the multilateral development banks, to protect the global 
environment. Despite increasing amounts of resources and 
greater appreciation within these agencies and organizations 
for the importance of addressing environmental concerns, as 
well as many successes on the ground, the overall trend is 
disheartening, as from forests to oceans, the global 
environment is facing unprecedented threats.
    The Committee believes that USAID should be at the 
forefront of efforts in this area, and is, therefore, extremely 
concerned by reports of proposed policy, personnel, 
programmatic and funding changes which could weaken USAID's 
expertise and role in environmental protection. Accordingly, 
the Committee directs USAID to refrain from such changes until 
USAID consults with the Committee on future plans concerning 
environmental protection and a mutually satisfactory approach 
can be reached.
    Energy.--The Committee has established a fund to address a 
wide range of energy conservation, energy efficiency, and clean 
energy programs. The Committee does not believe these programs 
have received sufficient support at a time when the environment 
is under siege in many developing countries due to, among other 
causes, unchecked population growth, extensive resource 
extraction, and the burning of fossil fuels in antiquated power 
plants and other manufacturing processes. The Committee 
provides $175,000,000 for this fund, to support programs and 
activities which promote energy conservation, clean energy, 
energy efficiency, and renewable energy technologies. The 
Committee also expects these funds to be used to assist 
developing countries to measure, monitor, report, verify, and 
reduce greenhouse gases and related activities. Like last year, 
the Committee has required the President to submit a report 
detailing U.S. Government support for climate change programs, 
efforts to promote the transfer and deployment of clean energy 
and energy efficiency technologies, and other information.
    The Committee supports the efforts of Dakota Gasification 
to develop a reliable, renewable energy technology, with 
applications in developing nations, that would combine coal 
gasification with wind power. The Committee recommends that 
USAID give serious consideration to this project.
    Office of Energy.--The Committee is concerned that USAID 
proposes to cut more than half of the budget for the Office of 
Energy and Information Technology. This office has served a 
crucial function by providing developing countries with 
expertise and other assistance on energy efficiency measures 
that can reduce costs, protect the environment, and improve the 
quality of life. The Committee puts a high premium on energy 
and environment programs, and expects the Office to be funded 
at no less than the fiscal year 2002 level.
    Biodiversity.--The Committee has also established a fund to 
protect biodiversity and tropical forests, including activities 
to deter illegal logging. The Committee supports USAID's 
efforts in this area, but believes they fall far short of what 
is urgently needed to stem the onslaught of destructive 
practices which threaten the world's remaining tropical forests 
and other areas of unique biodiversity, particularly in central 
Africa, southeast Asia, and the Amazon basin. The Committee 
provides $150,000,000 for these programs, including initiatives 
to enhance biodiversity in marine environments.
    Environment Offices.--Last year, the Committee requested 
USAID to consult with the Committee on the future role and 
funding for its Office of Environment and Natural Resources and 
Office of Environment and Urban Programs. No such consultations 
took place. The Committee reiterates its request.
    East Asian Pacific Environmental Initiative.--The Committee 
supports the East Asian Pacific Environmental Initiative 
(EAPEI), a program jointly managed by the State Department and 
USAID. The Committee is troubled that funds were not requested 
for EAPEI, and expects the administration to provide no less 
than the fiscal year 2002 level of $3,500,000 for this program.

                             PARKS IN PERIL

    The Committee continues to strongly support the Parks in 
Peril program, which matches USAID funds with private 
contributions to support conservation of imperiled ecosystems 
in Latin America and the Caribbean.

                             BIRDS OF PREY

    Although best known for its efforts to recover the 
Peregrine Falcon, The Peregrine Fund continues to build a 
record of conserving birds of prey worldwide. A significant 
undertaking in the pursuit of preservation is the establishment 
of The Peregrine Fund's Neotropical Raptor Center in Panama. 
From this location, The Peregrine Fund would conduct all of its 
work in the neo-tropics. Like last year, the Committee 
recommends $500,000 to support this goal, which the Committee 
understands will be matched by private contributions.

                           MOUNTAIN GORILLAS

    The Committee remains concerned with the survival of 
mountain gorillas which inhabit the high altitude jungles of 
Rwanda, Uganda, and the Democratic Republic of the Congo. Like 
last year, the Committee expects that $1,500,000 will be 
provided to support groups that protect these animals, such as 
the Dian Fossey Gorilla Fund International and other 
nongovernmental organizations whose mission it is to deter 
poaching and protect the mountain gorilla's habitat.

                               ORANGUTANS

    The Committee remains concerned with the destruction of 
orangutan habitat in Borneo and Sumatra, and expects USAID to 
provide $1,500,000 for continued support through 
nongovernmental organizations, including the Orangutan 
Foundation and others, for activities to save the orangutan 
from extinction. The Committee requests to be consulted 
regarding the use of these funds.

                           WATER CONSERVATION

    The Committee notes the small amount of funding requested 
for programs to provide access to reliable sources of drinking 
water. Water scarcity, and the serious health and environmental 
problems that occur from it, are reaching crisis proportions in 
many countries, and the Committee believes the international 
community should be doing more to address it. For many people 
in developing countries, a disproportionate amount of time each 
day is devoted to searching for a shrinking supply of clean 
water to meet basic needs, severely inhibiting efforts to 
promote individual and community development. The Committee is 
concerned that, when inquires were made to USAID about funding 
levels for prior and current fiscal years for clean water 
programs, only fiscal year 2000 figures were available. The 
Committee provides $100,000,000 for drinking water supply 
projects, and $450,000,000 for all water projects in fiscal 
year 2003. The Committee also directs USAID to submit a report 
to the Committee no later than 120 days after enactment of the 
Act, on the status of and funding and implementation of its 
water projects.
    The Committee strongly supports the Clean Water for the 
Americas Partnership, which is a public-private partnership 
that would help establish projects aimed at providing clean 
drinking water and protecting the environment. The Committee 
strongly recommends that USAID fund this Partnership.
    The Committee continues to support the efforts of 
International Project WET, which has been involved for nearly 
two decades in international water resources management. The 
Committee recommends that USAID support International Project 
WET's efforts to expand its research, development, and 
implementation capabilities.
    The Committee supports the Middle East Desalination 
Research Center (MEDRC), which has been integral to efforts to 
find long-term solutions to regional water problems. The 
Committee notes that the U.S. was one of the founding donors of 
the MEDRC and recommends that the Administration consider 
providing up to $2,500,000 to MEDRC.

                          UNIVERSITY PROGRAMS

    The Committee has, once again, received a large number of 
requests to fund specific activities at or through American 
institutions of higher education. The Committee strongly 
supports activities that advance international development and 
U.S. foreign policy goals. The Committee has reviewed the 
concepts proposed for funding, and recommends that USAID and/or 
the Department of State (as appropriate for the proposed 
project) actively consider proposals submitted by the following 
organizations.
    Unless a proposal demonstrates a unique, innovative, or 
proprietary capability, or demonstrates special considerations 
that justify limited or non-competitive treatment, the 
Committee expects that competitive procedures will be applied 
with regard to the proposals on the list that follows. The 
Committee also expects USAID to give priority to proposals that 
have technical merit, realistic budgets, and achievable 
objectives.
    No later than 60 days after the submission of the report 
required by section 653(a) of the Foreign Assistance Act, USAID 
should submit a report to the Committee on the status of each 
activity identified below. Such a report should include: (1) 
the status of the funding proposal by the organization 
associated with each activity; (2) the degree to which the 
proposal is consistent with and would advance international 
development and U.S. foreign policy goals for the country or 
region in which the activity would take place; (3) the degree 
to which matching or other funds would be provided by the 
organization to complement the Federal contribution; (4) to the 
extent known at the time, any decision by USAID or the 
Department of State on funding the activity, including the 
funding level; and (5) any other relevant information deemed 
important by USAID or the Department of State. The Committee 
also expects to receive a second report on the status of these 
proposals no later than May 1, 2003.
    In last year's report, the Committee noted that USAID had 
not been responsive to a number of proposals put forward by 
universities and directed USAID to improve its performance in 
this regard. The Committee is disappointed with USAID's slow 
pace in responding to the Committee's latest directives for 
handling university requests. For example, it took months for 
USAID to publish a brochure detailing basic information that 
could be helpful to universities interested in submitting 
proposals. In addition, USAID's initial efforts to set up a 
communications system, from which information on university 
projects could be easily accessed, were woefully inadequate. If 
USAID is not more responsive to Committee directives concerning 
university proposals, the Committee will have to consider 
modifying its approach.
    With the foregoing in mind, the Committee recommends the 
following proposals for USAID's active consideration:
    Africa-America Institute.--A program by the African 
Technology for Education and Workforce Development Initiative 
(AFTECH) to establish a distance learning program between U.S. 
universities and African universities.
    Alliance of Louisiana Universities.--A proposal of the 
Louisiana/Honduras Alliance, composed of five Louisiana 
Universities (University of New Orleans, Louisiana State 
University Agricultural Center, Loyola University, Tulane 
University, and Southeastern Louisiana University) and entities 
in Honduras, to develop a plan to deliver long-term capacity-
building assistance in Honduras.
    Ave Maria College of the Americas.--A proposal to create a 
scholarship program targeted at women and rural students.
    Columbia University.--A proposal, to be managed by the 
International Research Institute for Climate Prediction, for 
drought monitoring, health care, food security, and climate 
change activities.
    Connecticut State University System.--A proposal to work 
with Mico and Sam Sharpe Colleges to enhance teacher education 
programs in the Carribean region.
    Dartmouth College.--A joint proposal by a consortium of 
public and private organizations to enhance information 
technology development in Lithuania.
    Delaware Technical and Community College.--A proposal to 
develop an environmental training center in Bulgaria.
    EARTH University.--A proposal to support EARTH University, 
an institution partnered with 23 universities in the United 
States, to further develop its Center for Sustainability and 
Biodiversity in Costa Rica, which is working on enhancing 
sustainable agriculture, developing medicines using tropical 
plants, and preserving natural resources in Central America.
    Eastern Michigan University.--A proposal to establish a 
center for Middle East Studies and Research.
    Emory University.--A proposal implemented by the Atlanta-
Tbilisi partnership and executed in conjunction with several 
other Georgia universities to further develop health care 
infrastructure in the Republic of Georgia.
    Historically Black Colleges.--A proposal to support the 
efforts of these institutions to develop a virtual university 
consortium and establish an Institute for Emerging Democracies.
    Johns Hopkins University.--A proposal in conjunction with 
University of Alabama at Birmingham and the Gorgas Memorial 
Institute to improve tuberculosis control.
    Kansas State University.--A proposal for the Cereal Genome 
Initiative to use genomics technologies to develop grain 
production.
    La Roche College.--A proposal to expand programs to educate 
young people from conflict, post-conflict, and developing 
regions of the world.
    Louisiana State University.--A proposal to develop a 
commercial law program with several Latin American countries.
    Louisiana State University A&M College.--A proposal to 
provide independent media training to local governmental 
officials from developing countries.
    Louisiana State University A&M College.--A proposal to 
develop mariculture and aquiculture resources with the 
University of Namibia.
    Montana State University, Billings.--A proposal to expand 
programs in international business in order to enable MSU-
Billings to offer additional courses in accounting and e-
commerce in foreign countries.
    Montana State University, Billings.--A proposal to develop 
an online Master of Health Administration Degree Program with 
October 6 University in Egypt.
    Morehouse School of Medicine.--A proposal to establish an 
interchange of medical knowledge and technical capability to 
improve health care infrastructure in Africa.
    San Diego State University.--A proposal to help implement a 
cooperative program to address water scarcity and climate 
change in south Asia.
    San Diego State University.--A proposal to work in 
collaboration with the Peres Center for Peace to promote 
sustainable and efficient use of alternative water resources in 
agricultural development in the Middle East.
    St. Thomas University.--A proposal to further develop the 
African democracy network in order to work on issues involving 
democracy, human rights, and gender issues.
    South Dakota State University.--A proposal to enhance 
research and education with Russian and Central Asian 
governments and non-governmental organizations on agricultural 
development.
    Suffolk University.--A proposal to enhance course offerings 
at its Senegal campus.
    University of Alabama at Birmingham.--A proposal in 
conjunction with Johns Hopkins University and the Gorgas 
Memorial Institute to improve tuberculosis control.
    University of Alaska.--A program with Alaska Pacific 
University and the North Slope Borough and the Northwest Arctic 
Borough to provide training and technical assistance to 
strengthen Chukotka's economy, develop market driven systems 
and improve social conditions, particularly for indigenous 
people in the region.
    University of Arkansas Medical School.--A collaborative 
effort with the Volgograd City Health Department, Volgograd 
Medical Academy, and other public-private partners in the 
community to enhance various health care delivery systems in 
the region.
    University of Georgia.--A proposal to establish a training 
program for legal professionals, journalists, and government 
officials from developing countries.
    University of Idaho.--A proposal to help restore the food 
production and food distribution system in Afghanistan.
    University of Iowa.--A proposal to continue basic education 
initiatives in East Timor.
    University of Kentucky.--A program relating to the 
development of crop insurance in Romania.
    University of Kentucky.--A proposal for coal mine safety 
programs in the former Soviet Union.
    University of Louisville.--A collaborative program with the 
University of Alabama-Birmingham, the Medical University of 
South Carolina, and Clemson University for research on plant 
materials in the rain forests of Dominica.
    University of Louisville.--A proposal for the continued 
funding of a program in partnership with Rand Afrikaans 
University to work with impoverished communities in South 
Africa on economic reform.
    University of Massachusetts, Boston.--A proposal to conduct 
further research on international conflict.
    University of Miami.--A proposal for the Cuba Transition 
Project.
    University of Mississippi.--A project by the National 
Center for Physical Acoustics to help improve mine detection 
technologies.
    University of Mississippi.--A project by the Center for 
Marine Resources and Biotechnology to perform environmental 
research, biowaste treatment, and a hydrographic survey of 
coastal zones in Central America.
    University of Missouri, Columbia.--A proposal to build 
capacity for sustainable community development training and 
application in Afghanistan.
    University of Missouri, Columbia.--A proposal to develop 
South African indigenous plants as value-added crops and 
therapeutics for diseases.
    University of Nebraska.--A proposal by the Medical Center's 
Office of International Health Care Services to combat a range 
of infectious diseases.
    University of Nebraska, Omaha.--A proposal to further 
expand efforts to provide basic education in Afghanistan.
    University of Notre Dame.--A proposal by the Kroc Institute 
for International Peace Studies to promote institution building 
in Muslim societies.
    University of Northern Iowa.--A proposal for University of 
Northern Iowa's Orava Project to enhance democracy-building in 
Central and Eastern Europe through educational reform.
    University of Northern Iowa.--A proposal concerning the 
Global Health Corps program, which trains university students 
to conduct community health programs in under-served areas in 
developing countries.
    University of Northern Iowa.--A proposal for the Russo-
American Institute to deepen cultural understanding and promote 
professional collaboration through exchange programs with 
Moscow International University and other Russian universities.
    University of South Alabama.--A proposal to enhance the 
Birth Defects Monitoring Program in the Rivine and Volyn 
oblasts in the Ukraine, which will allow the program to begin 
monitoring environmentally linked birth defects.
    Western Kentucky University.--A proposal for the continued 
funding of an international journalist training program.
    Western Kentucky University.--A collaborative program on 
educational and cultural exchanges focused on astronomy.
    Western Kentucky University.--A collaborative program with 
Tel Aviv University on the development of a worldwide astronomy 
network.

                             COUNTRY ISSUES

                              AFGHANISTAN

    The Committee notes the many positive changes in 
Afghanistan in the past year: the brutal Taliban regime has 
been toppled; a Loya Jirga was convened which selected a 
government to serve until elections at the end of 2003; and 
international relief efforts have started to have a noticeable 
impact in some portions of the country.
    The Committee, however, also recognizes that enormous 
social, economic, and political challenges remain. These 
include a lack of security, food scarcity, insufficient 
assistance for refugees and internally displaced persons, and 
reconstruction after decades of conflict. The Committee is 
extremely concerned that, if more is not done by the United 
States and the international community to address these issues, 
Afghanistan will be increasingly at risk of relapsing into 
civil stife and a haven for international terrorists.
    The Committee is, therefore, perplexed that, despite calls 
for a Marshall Plan for Afghanistan and the critical importance 
to U.S. national security, the administration did not submit a 
formal fiscal year 2003 budget request for Afghanistan. The 
Committee has been informally advised that the administration 
plans to spend approximately $98,000,000 for Afghanistan in 
funds from the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act. The Committee believes 
that, even with supplemental funds, this amount is inadequate 
to address Afghanistan's immediate needs and recommends that 
not less than $157,000,000 should be available for these 
purposes.
    The Committee continues to be troubled by the security 
situation throughout Afghanistan as the lack of security 
continues to create severe impediments to relief and 
reconstruction efforts and has resulted, at various times, in 
the scaling back or cessation of critical humanitarian and 
development operations around the country. A more detailed 
discussion of this issue is under the ``Peacekeeping 
Operations'' heading in this report. The Committee is also 
aware of the concerns raised by some parts of the 
administration and nongovernmental organizations regarding 
military personnel engaging in humanitarian activities while 
outfitted in civilian clothing. The Committee urges a solution 
to this issue which is acceptable to all parties involved.
    The Committee notes that while conditions for women in 
Afghanistan have improved from what existed under Taliban rule, 
serious obstacles, including illiteracy, joblessness, violence 
specifically targeting women, lack of access to health care, 
and the lack of clearly defined legal rights, continue to 
hinder the progress of Afghan women. The Committee recognizes 
the difficulties inherent in implementing assistance programs 
in Afghanistan, but is nonetheless concerned about the slow 
pace and relatively small amount of assistance devoted 
specifically to improving the lives and opportunities of Afghan 
women.
    The Committee believes that the Afghan Ministry of Women's 
Affairs is uniquely positioned to become the primary center of 
capacity to carry out women-focused development in Afghanistan, 
and commends USAID for the support it has given to the Ministry 
thus far. The Committee has provided $5,000,000 to enable the 
Ministry to establish multi-service women's centers throughout 
Afghanistan, and to initiate programs to improve girl's and 
women's education and health, protect their legal rights, and 
expand their economic opportunities.
    The Committee also supports the United Nations Fund for 
Women's reconstruction activities in Afghanistan.
    The Committee recognizes the vast energy needs in 
Afghanistan and believes that the private sector in the United 
States, through organizations such as the International Energy 
Advisory Group, is well positioned to complement USAID's 
efforts in this area.

                                 BURMA

    The Committee commends Burmese democracy leader Daw Aung 
San Suu Kyi and the National League for Democracy (NLD) for 
their unwavering commitment and dedication to democracy and 
human rights in Burma. The Committee remains gravely concerned 
with the abuses inflicted upon the people of Burma by the 
repressive State Peace and Development Council (SPDC), 
including the rape and killing of ethnic minorities, the 
imprisonment and torture of political opponents, and forced and 
child labor. The Committee, like the NLD, is deeply concerned 
about the welfare of the people of Burma, and has continued its 
support of humanitarian and democracy efforts.
    The Committee supports $1,000,000 for HIV/AIDS programs and 
activities in Burma, and suggests an additional $500,000 be 
made available in commodities from the United States Agency for 
International Development's HIV/AIDS Commodity Promotion Fund. 
The Committee directs that all HIV/AIDS programs in Burma be 
carried out in consultation with the leadership of the National 
League for Democracy, and that no assistance be provided to the 
State Peace and Development Council. Given the SPDC's 
mismanagement of Burma's resources, including the investment of 
hundreds of millions of dollars into arms purchases and nuclear 
technology from Russia and China, the Committee suggests the 
State Department consider a matching requirement from the SPDC 
for funds provided to Burma to combat a rampant HIV/AIDS 
infection rate.
    The Committee counsels the State Department to be measured 
in its response to the SPDC's ongoing campaign to improve its 
image abroad, and believes that the SPDC should be judged not 
by what it says, but rather by what it does.

                                CAMBODIA

    The Committee regrets that the Government of Cambodia 
failed to hold legitimate local elections in February 2002, 
adequately investigate and prosecute human rights abuses, or 
fully implement reforms necessary for the country's economic, 
political, legal, and social development. Moreover, the 
Government of Cambodia continued to abuse the constitutional 
rights and dignity of its citizens, and the lack of the rule of 
law stifles economic development and perpetuates human 
suffering, as demonstrated by Cambodia's low ranking in the 
United Nations Development Program's 2001 Human Development 
Report.
    As the Committee believes that the Cambodian leadership 
should be held accountable for its poor governance and human 
rights record, restrictions on assistance to the Government of 
Cambodia have been continued and strengthened. The Committee 
suggests that international financial institutions, 
particularly the World Bank and the Asian Development Bank, 
conduct independent audits of their loans and grants to that 
country, including contributions to the Government of 
Cambodia's Social Fund.
    The Committee is concerned that Cambodia may become a haven 
for international terrorists and other criminal undesirables.
    The Committee remains concerned about illegal logging in 
Cambodia, and encourages USAID to support programs in community 
forest management, which can contribute to forest preservation 
as well as promote democratic development at the local level.
    The Committee commends the work of the Documentation Center 
of Cambodia, and expects that at least $275,000 will be 
provided to the Center in fiscal year 2002, with funds from 
USAID and the State Department's Bureau for Democracy, Human 
Rights and Labor. The Committee recommends that at least this 
amount be provided for the Center in fiscal year 2003, 
including, if warranted, to purchase a suitable motor vehicle 
to facilitate the Center's investigative work throughout rural 
Cambodia.

                                 CHINA

    The Committee provides $25,000,000 for programs to support 
democracy, human rights and the rule of law in China, Hong Kong 
and Tibet, of which not less than $15,000,000 shall be made 
available for programs in China to be administered by the 
Bureau of Democracy Human Rights and Labor at the State 
Department. These funds are in addition to such sums provided 
to the Bureau in the President's fiscal year 2003 request. The 
Committee expects that of the remaining funds, up to $3,000,000 
will be provided to the National Endowment for Democracy, and 
the balance will be provided to other nongovernmental and 
academic organizations to support programs relating to China, 
Tibet, and Hong Kong. The Committee strongly endorses 
activities targeted toward freedom of expression in the media 
and on the internet, the rule of law, labor reform, and 
grassroots elections in China.

                                 CYPRUS

    The Committee provides $15,000,000 from the ESF account for 
Cyprus to be used for scholarships, bicommunal projects, and 
measures aimed at reunification of the island and designed to 
reduce tensions and promote peace and cooperation between the 
two communities on Cyprus. The Committee intends that these 
resources be made available to maximize leverage to improve 
prospects for a peaceful settlement in Cyprus.
    The Committee notes the work of the Cyprus Institute of 
Neurology and Genetics, which is a bicommunal program aimed at 
providing specialized services in neurology, genetics, and 
molecular medicine. The Committee is particularly pleased with 
the progress that the Institute has made to enhance efforts on 
biomedical research, stroke prevention, gene therapy and brain 
development research on Cyprus.

                               GUATEMALA

    The Committee continues to be concerned with the unsolved 
murders of American citizens in Guatemala, including Larry Lee, 
Steven Michael Gartman, Juan Antonio Zimeri, David James Erf, 
Robert Orville Edeleman, Sister Barbara Ann Ford, Carlos 
Humberto Melgar, and Suzanne Spalding Hendricks. The Committee 
again requests the Department of State to make every effort to 
obtain the cooperation of Guatemalan law enforcement 
authorities in bringing to justice the perpetrators of these 
crimes.

                               INDONESIA

    The Committee is concerned with the political situation in 
Indonesia, as that country struggles to consolidate its 
democratic transition. While mindful of the many difficult and 
complex challenges Indonesia faces, the Committee is 
nonetheless heartened by certain positive developments, and 
supports increased assistance to Indonesia to strengthen 
democracy and the rule of law, and promote equitable economic 
development.
    The Committee is aware of reports that individuals involved 
in international terrorism have sought refuge in Indonesia, and 
commends the Indonesian Government for its efforts to apprehend 
these individuals and to cooperate more fully with the U.S. in 
combating terrorism.
    The Committee is also aware of continued reports of 
violence waged by the Indonesian military and police against 
citizens in Aceh, Papua New Guinea, and other troubled areas of 
the country, and strongly condemns these human rights 
violations. The Committee is deeply concerned with reports of 
intimidation, harassment, and arbitrary arrest of human rights 
workers and other civilians.
    The Committee sees little evidence that the Indonesian 
military is serious about reform, and encourages the Government 
of Indonesia and Indonesian civil society to continue to make 
military reform a top priority. Regrettably, the ongoing 
special trials of lower ranking officers for abuses in East 
Timor suffer from serious deficiencies, and the Indonesian 
military has sought to intimidate judges and prosecutors. The 
Committee is also concerned about the Indonesian military's 
continued involvement in illegal business practices and other 
activities, including prostitution, contraband smuggling, and 
illegal logging which threatens Indonesia's unique ecosystems.
    The Committee supports assistance to promote reform of the 
Indonesian military, particularly in the areas of human rights, 
financial transparency, and accountability. The Committee 
encourages the Government of Indonesia and Indonesian civil 
society to continue to make this reform a top priority. The 
Committee has included restrictions under section 568 of the 
Act, until the President certifies that the Indonesian Minister 
of Defense is suspending and the Indonesian Government is 
prosecuting and punishing human rights violators within the 
Indonesian Armed Forces.
    The Committee has supported efforts by the Department of 
Defense to resume certain contacts, including at a senior 
level, with the Indonesian military. The Committee is also 
aware that the administration has offered to sell spare parts 
for C-130 aircraft to Indonesia, which the Committee supports.
    In addition, the Committee has supported expanded support 
for the Indonesian police, to enable it to assume its rightful 
role in maintaining internal security.

                                  LAOS

    The Committee strongly supports the administration's 
request of $2,000,000 from ``Development Assistance'' and the 
``Child Survival and Health Programs Fund'' for activities to 
meet basic human needs in Laos. The Committee continues to be 
concerned by the repressive policies of the Government of Laos.

                                LEBANON

    The Committee believes that economic development in Lebanon 
should be a priority for U.S. foreign policy in the Middle 
East, and provides $35,000,000 in ESF assistance for Lebanon. 
However, none of these funds may be made available for the 
central Government of Lebanon.
    The Committee supports the work of American educational 
institutions in Lebanon and encourages USAID and the State 
Department make available a portion of these funds for 
scholarships and direct support of these institutions.
    The Committee is deeply disappointed that past efforts to 
secure the return of American children abducted to Lebanon have 
been unsuccessful. The Committee is aware of cases in which the 
Lebanese Government has failed to enforce the orders of the 
Lebanese civil courts. These unresolved cases will continue to 
be an obstacle to closer relations between the United States 
and Lebanese governments. The Committee calls on the Lebanese 
Government to ensure that the rule of law is upheld.

                                MONGOLIA

    The Committee supports the administration's $12,000,000 
request for assistance for Mongolia for fiscal year 2003.

                               NICARAGUA

    The Committee recognizes the important work of the Fabretto 
Children's Foundation, which provides essential opportunities 
for children in Nicaragua to escape poverty. The Committee 
recommends that USAID provide up to $1,500,000 to support four 
Fabretto programs in Nicaragua.
    The Committee also supports efforts to improve mass 
transportation systems in Nicaragua and other Central American 
countries, where cities are overwhelmed with migrants from 
rural areas seeking employment.

                                NIGERIA

    The Committee is aware that a Judicial Commission of 
Inquiry is currently investigating the causes of inter-communal 
conflict in Benue, Nassarawa, Taraba, and Plateau states. 
However, the Committee is also aware that the commission has no 
prosecutorial powers, and therefore its work does not represent 
an effective measure to bring to justice individuals 
responsible for gross violations of human rights.

                              SIERRA LEONE

    The Committee notes the progress that Sierra Leone is 
making towards restoring peace and democratic rule. The 
Committee particularly commends the efforts of the British 
Government and the United Nations to end the armed conflict, 
demobilize combatants, hold free and fair elections, and 
repatriate refugees.
    The Committee recognizes that the Government of Sierra 
Leone faces enormous challenges to rebuild the country, and has 
provided $9,000,000 in ESF assistance, in addition to funds 
from ``Development Assistance'' and funds budgeted for the 
``Countries in Transition'' program, for these purposes. The 
Committee expects that assistance provided above the budget 
request for Sierra Leone will not result in cuts to programs 
for other African countries.
    The Committee strongly supports the efforts of the Special 
Court for Sierra Leone and the Truth and Reconciliation 
Committee (TRC) to hold accountable those involved in 
atrocities committed during the conflict. The Committee 
strongly urges the Special Court to pursue those most 
responsible for these heinous acts, even if they are not living 
in Sierra Leone. The Committee is encouraged that the Special 
Court and TRC have indicated that they will assist broader 
efforts to restore the rule of law throughout the country, and 
expects at least $5,000,000 in ESF assistance to be provided to 
the tribunal in fiscal year 2003 and that substantial support 
will be provided to the TRC.
    To help combat the numerous, well-documented problems 
associated with the trade in conflict diamonds that have 
plagued Sierra Leone and other parts of Africa, the Committee 
has included language, similar to last year, concerning 
conflict diamonds.
    The Committee also directs the Secretary of State, no later 
than 120 days after enactment of the Act, to submit a report 
that identifies: (1) countries that have exported rough or 
polished diamonds to the United States that are implementing 
effective measures to curtail the trade in conflict diamonds 
(and include a description of such measures); (2) countries 
that have failed to implement effective measures to curtail the 
trade in conflict diamonds; and (3) a description of additional 
U.S. financial, technical, or other measures which could help 
countries implement effective measures to curtail the trade in 
conflict diamonds, including technological means for 
determining the origin of diamonds and tracking the trade in 
diamonds.

                                 TIBET

    The Committee recommends $3,000,000 in ESF assistance for 
programs that provide training and education to Tibetans in 
democracy and human rights, preserve cultural traditions, and 
promote economic development and environmental conservation in 
Tibetan communities. The Committee is aware of the valuable 
assistance the Bridge Fund has provided to promote Tibetan-
owned and operated businesses and educational, cultural, and 
natural resource conservation projects in Tibet.

                   INTERNATIONAL DISASTER ASSISTANCE

Appropriations, 2002....................................    $235,500,000
Budget estimate, 2003...................................     235,500,000
Committee recommendation................................     255,500,000

    With the large number of humanitarian emergencies around 
the world, the Committee believes that, even with supplemental 
funds, the administration's fiscal year 2003 request is 
inadequate to effectively respond to these emergency needs, 
especially in Afghanistan. Therefore, the Committee has 
provided $255,500,000 for ``International Disaster Assistance'' 
programs, which is $20,000,000 above the budget request and 
$20,000,000 above the fiscal year 2002 level. The Committee 
recognizes, however, that even this increase is likely to fall 
short of what is needed.
    The Committee believes that the Modular Command Post System 
(MCPS), a mobile communications, command and control facility, 
can be of value in responding to international disasters around 
the world. The Committee urges USAID and the Department of 
State to consider using the MCPS in complex relief operations.

                         TRANSITION INITIATIVES

Appropriations, 2002....................................     $50,000,000
Budget estimate, 2003...................................      55,000,000
Committee recommendation................................      65,000,000

    The Committee commends the work of USAID's Office of 
Transition Initiatives (OTI), which is on the ground in 
countries around the world providing essential assistance to 
bridge the gap between emergency relief and long-term 
development. The Committee expects that a portion of the funds 
provided above the budget request will be used for operations 
in Afghanistan.

                      DEVELOPMENT CREDIT AUTHORITY

                           OPERATING EXPENSES

Appropriations, 2002....................................      $7,500,000
Budget estimate, 2003...................................       7,591,000
Committee recommendation................................       7,591,000

     PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY FUND

Appropriations, 2002....................................     $44,880,000
Budget estimate, 2003...................................      45,200,000
Committee recommendation................................      45,200,000

    The Foreign Service retirement and disability fund is a 
mandatory expense of USAID.

   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

Appropriations, 2002....................................    $549,000,000
Budget estimate, 2003...................................     572,087,000
Committee recommendation................................     571,087,000

    The Committee provides $571,087,000 for operating expenses 
of the United States Agency for International Development. The 
Committee remains concerned about USAID's deficient financial, 
procurement, and personnel management systems, and recognizes 
that solving these problems will be costly. At the same time, 
the Committee believes that USAID's greatest resource is its 
staff, many of whom have developed extraordinary expertise in 
their areas of responsibility. The Committee is concerned that 
USAID has lost some of its most experienced professionals over 
the years due to misguided management decisions, and it does 
not want to see those mistakes repeated.

                        CAPITAL INVESTMENT FUND

Appropriations, 2002....................................................
Budget estimate, 2003...................................     $95,000,000
Committee recommendation................................      65,000,000

    The Committee has earmarked funds to upgrade USAID's 
information technology systems, which is long overdue and 
necessary to the effective management of USAID's mission-based 
operations. However, the Committee continues to be concerned 
with the lack of coordination between USAID and the State 
Department's Office of Overseas Buildings Operations, regarding 
construction of new USAID facilities. The Committee has 
provided ample funding for new building construction for the 
foreseeable future. The Committee is concerned about the 
potential cost of these building projects and expects to be 
consulted as plans progress.

       OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL

Appropriations, 2002....................................     $31,500,000
Budget estimate, 2003...................................      33,046,000
Committee recommendation................................      33,046,000

    The Committee provides $33,046,000 for operating expenses 
of the Office of the Inspector General.

                  Other Bilateral Economic Assistance


                         ECONOMIC SUPPORT FUND

Appropriations, 2002....................................  $2,199,000,000
Budget estimate, 2003...................................   2,290,000,000
Committee recommendation................................   2,250,000,000

                         MIDDLE EAST COUNTRIES

    In 1998, the United States reached agreements with the 
Governments of Israel and Egypt to reduce the levels of ESF 
assistance for these countries over a 10-year schedule. In 
accordance with this schedule, the Committee provides 
$600,000,000 for Israel and $615,000,000 for Egypt for fiscal 
year 2003. The Committee provides $250,000,000 for assistance 
for Jordan, which reflects the amount requested by the 
administration. The Committee provides $75,000,000 for 
assistance to the Palestinian people in the West Bank and Gaza, 
and notes that restrictions on the use of funds provided under 
the Act remain unchanged from prior years.
    The Committee remains concerned with the situation in the 
Middle East, and, in particular, with the welfare of the 
Israeli and Palestinian people. The Committee encourages 
continued efforts by all parties to achieve lasting peace in 
the region.
    The Committee is disappointed that this will be the last 
year of funding for the U.S.-Israel Cooperative Development 
Program and hopes that USAID will continue to utilize the 
expertise, including that of Israel's Center for International 
Cooperation (MASHAV), accumulated by this program.
    The Committee believes that continued political, legal, and 
economic reform programs should continue in the West Bank and 
Gaza. The Committee recognizes that calls for reform already 
exist within Palestinian civil society, and supports the 
provision of assistance to those groups and associations, 
including from the United States, advocating greater 
transparency, accountability, and political pluralism. The 
Committee notes that rule of law programs would enhance these 
reforms and encourages the administration to support technical 
assistance programs in the West Bank and Gaza, if practicable.
    The Committee recognizes that Egypt is a vital and 
strategic ally of the United States and plays an important role 
in the Middle East peace process. However, the Committee 
remains concerned with challenges to the rule of law, human 
rights, and democracy in Egypt. The Committee commends the 
Department of State for undertaking a review of assistance 
programs for Egypt.
    The Committee notes with appreciation Jordan's constructive 
role in the peace process and efforts to implement economic 
reforms.

                          CONFLICT RESOLUTION

    The Committee recommends at least $7,000,000 from the 
Development Assistance, SEED, and ESF accounts to support 
conflict resolution programs and activities, including those 
which bring together youth of different ethnic, religious, and 
political backgrounds from areas of civil conflict and war. The 
Committee believes that the following programs are among those 
deserving of support--
  --Seeds of Peace, a widely respected organization which 
        promotes understanding between teenagers in the Middle 
        East, Cyprus, and the Balkans;
  --The Foundation for Security and Sustainability, a public 
        institute chartered to further understanding about 
        resource scarcity and environmental problems and 
        provide opportunities to avert and better prepare for 
        potential crises;
  --The Arava Institute for Environmental Studies, which 
        manages programs that bring Arabs and Israelis together 
        to promote better relations and solve common 
        environmental problems;
  --The International Crisis Group, whose analysts in the field 
        identify potentially explosive problems, produce 
        objective assessments, and prescribe policy responses 
        to prevent or reduce the level of violence resulting 
        from complex crises; and
  --The Jerusalem International YMCA, which brings together 
        Christian, Jewish and Muslim young people in a positive 
        environment that promotes peace, respect and 
        understanding.

                             CHILD SOLDIERS

    The Committee recognizes the serious problems associated 
with child soldiers around the world, as they are used as 
combatants, camp laborers, sex slaves, and runners, under 
horrendous conditions. To help address this issue, the 
Committee recommends $5,000,000 for programs for war-affected 
youth in such countries as Afghanistan, Angola, Colombia, 
Sierra Leone, Sri Lanka, and The Democratic Republic of the 
Congo.

                          WAR CRIMES TRIBUNALS

    The Committee continues to strongly support the war crimes 
tribunals in Yugoslavia, Rwanda, and Sierra Leone. The 
Committee expects the administration to ensure that the 
tribunals have sufficient budgets, staff, and equipment, and 
provides $30,000,000 in drawdown authority for war crimes 
tribunals established or authorized by the U.N. Security 
Council with U.S. support, including the tribunal in Sierra 
Leone. The Committee also urges the administration, where 
appropriate, to support commissions or judicial bodies that 
complement the activities of these tribunals. The Committee 
notes that drawdowns made under this section are unrelated to 
the establishment of an international criminal court.

                            IRAQ OPPOSITION

    The Committee supports activities targeted toward bringing 
about a transition to democracy in Iraq, and commends, in 
particular, the ``Future of Iraq'' program. The Committee is 
pleased that the administration is working with Iraqi nationals 
from civil society, ex-military officers, international 
experts, and representatives from a multitude of NGOs to 
establish political pluralism and the rule of law in a post-
Saddam Iraq. The Committee supports the State Department 
Inspector General's efforts to bring increased transparency and 
accountability to this program.
    In addition to other Iraqi opposition programs, the 
Committee recognizes efforts to improve educational programs at 
the Universities of Sulaimani, Dohuk, and Irbil, to continue 
development efforts in parts of Northern Iraq that are not 
under the control of Saddam Hussein's government. The Committee 
recommends that the administration consider providing funding 
to these universities in order to support a range of 
initiatives, including expanding the availability of 
information technologies, learning materials, and university-
sponsored literacy programs.

    DEMOCRACY, TRANSPARENCY, AND THE RULE OF LAW IN MUSLIM COUNTRIES

    The Committee provides $15,000,000 for programs and 
activities which foster democracy, human rights, women's 
development, press freedoms, and the rule of law in countries 
with a significant Muslim population. Of these funds, the 
Committee provides $10,000,000 for the Human Rights and 
Democracy Fund of the Bureau of Democracy, Human Rights and 
Labor. The Committee also provides $3,000,000 for professional 
training for journalists.

                       FREE AND INDEPENDENT MEDIA

    The Committee strongly supports programs to promote free, 
independent and professional media in developing nations. The 
Committee expects USAID and the State Department to fund new, 
and bolster ongoing, media programs and activities in 
predominately Muslim countries, including Afghanistan, 
Pakistan, Egypt and Indonesia. The Committee expects that 
funding will be used primarily to support programs that provide 
skills development and promote a deeper understanding of the 
United States. The Committee believes that free, independent 
and professional media will provide objective news and credible 
information throughout the Muslim world, which may help to 
counterbalance political and religious extremism and terrorism.

                  PARTNERSHIP TO ELIMINATE SWEATSHOPS

    The Committee supports the Partnership to Eliminate 
Sweatshops, which facilitates cooperation among corporations, 
consumers, non-governmental organizations, universities, 
organized labor, and others to address unacceptable working 
conditions around the world through a variety of approaches. 
The Committee recommends that $5,000,000 be made available for 
this program.

          ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

Appropriations, 2002....................................    $621,000,000
Budget estimate, 2003...................................     495,000,000
Committee recommendation................................     555,000,000

    The Committee provides $555,000,000 for Eastern Europe and 
the Baltic States, which is $60,000,000 above the 
administration's fiscal year 2003 request but $66,000,000 below 
the fiscal year 2002 level. While the Committee supports and 
encourages the graduation of countries from receiving U.S. 
foreign assistance, several countries in this region, which are 
vital to U.S. interests, continue to require substantial 
support to further implement critically needed democratic 
reforms and to promote economic development. The Committee 
expects that of the additional funds provided, Bosnia-
Herzegovina, Serbia, Macedonia, and Kosovo will receive 
assistance above the fiscal year 2003 requested levels. The 
Committee also notes the progress that the Baltic States have 
made in implementing reforms and strengthening the rule of law, 
and recommends that up to $5,000,000 be provided to the Baltic 
States.

              INTERNATIONAL LEGAL AND ECONOMIC INITIATIVES

    The Committee notes the efforts by the American Bar 
Association (ABA) to strengthen democracy through programs that 
promote the rule of law in Central and Eastern Europe. The 
Committee recommends that USAID support these ABA-CEELI 
projects, especially in Belarus, Bosnia, and Kosovo. The 
Committee also notes the work of the International Real 
Property Foundation in the region.
    The Committee notes the work of the Center for Economic 
Research and Graduate Education Institute, which promotes 
economic growth and reform in Central and Eastern Europe.

                                 KOSOVO

    The Committee continues to support reconstruction, reform, 
and reconciliation efforts in Kosovo, and expects that not less 
than $100,000,000 should be made available for assistance for 
Kosovo under the heading ``Assistance for Eastern Europe and 
the Baltic States''. The Committee remains deeply concerned 
with Serbia's support of parallel security structures in 
northern Kosovo, including criminal ``bridgewatchers'' over the 
river Ibar who were responsible for injuring 26 United Nations 
Mission in Kosovo police officers in April 2002. The Committee 
has required that assistance for Serbia provided under this Act 
be reduced by an amount equivalent to Serbia's calendar year 
2002 support for these parallel structures. The Committee has 
also provided $2,000,000 to support the National Albanian 
American Council's training program for Kosovar women.

                                 SERBIA

    The Committee recommends up to $115,000,000 for assistance 
for Serbia for fiscal year 2003. The Committee remains 
committed to assisting reformers in the Republic of Serbia as 
they continue to recover from the devastation of the Milosevic 
era. The Committee is pleased that Kosovo-Albanian political 
prisoners have finally been released, and that selected persons 
indicted by the International Criminal Tribunal for the former 
Yugoslavia (ICTY) have surrendered and/or been transferred to 
The Hague. The Committee strongly encourages further economic, 
political, and legal reforms, and intends to closely follow the 
development of a free and independent media.
    The Committee notes, however, that while Milosevic has been 
out of office since October 5, 2000, many of his unfortunate 
legacies continue, including an unreformed State security 
apparatus and military, a politicized judiciary, and political 
and financial support to hardliners in Bosnia's Republic Srpska 
and northern Kosovo. The Committee has provided $750,000 for 
programs to promote reconciliation between ethnic groups 
throughout the region, and expects that USAID will adequately 
fund programs that educate the people of Serbia on past crimes 
committed by the Milosevic regime.
    While the Committee notes some progress in Serbia's 
cooperation with the ICTY, such as the issuance of arrest 
warrants for indictees, the Committee is very concerned that a 
predictable, consistent record of cooperation has not yet been 
established. Federal Yugoslav officials continue to flaunt the 
authority of the ICTY. The pace of surrenders and transfers of 
indictees, the continuing freedom of several notorious 
indictees, and highly circumscribed access to documents and 
witnesses, suggests that conditioning U.S. assistance is still, 
regrettably, necessary. It is unacceptable that, according to 
reliable reports, General Ratko Mladic, who is among those most 
responsible for the brutality that terrorized the people of the 
former Yugoslavia during much of the 1990s, continues to live 
freely in Serbia. The Committee has therefore continued, with 
modifications, the March 31 certification requirement contained 
in last year's Act.

    ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET UNION

Appropriations, 2002....................................    $784,000,000
Budget estimate, 2003...................................     755,000,000
Committee recommendation................................     765,000,000

    The Committee provides $765,000,000 for Assistance for the 
Independent States of the Former Soviet Union, which is 
$19,000,000 below the fiscal year 2002 level but $10,000,000 
above the administration's fiscal year 2003 request.

                            RUSSIAN FAR EAST

    The Committee was pleased to learn that the State 
Department and USAID provided $20,617,000 for the Russian Far 
East programs, which was above the amount earmarked in fiscal 
year 2002. The Committee has again earmarked these funds and 
encourages the administration to continue funding at the fiscal 
year 2002 level.

                         PUBLIC HEALTH PROGRAMS

    The Committee is aware of the Primary Health Care 
Initiative of the World Council of Hellenes, which was 
instituted in the former Soviet republics to provide 
desperately needed basic health care. This program, which is 
alleviating suffering of people through thousands of visits 
each month, also enhances U.S. relations with these countries. 
The Committee recommends at least $2,000,000 for this program 
in fiscal year 2003.
    The Committee continues to follow the work of the Eurasian 
Medical Education Program of the American College of 
Physicians, to enhance the medical capabilities of Russian 
physicians in the treatment of tuberculosis, cardiovascular 
disease, and diabetes. This exchange program has been carried 
out in four regions of the Russian Federation, and volunteer 
American physicians have shared experience and knowledge with 
their Russian colleagues to the benefit of the Russian medical 
profession and the Russian people. The Committee, once again, 
expresses its support for this program and requests to be 
consulted regarding future funding for it.

                                ORPHANS

    The Committee continues to support USAID's Russian orphans 
strategy, which focuses on programs to reduce the number of 
children entering state orphanages and works with orphanage 
officials to meet the immediate medical and basic needs of 
these children. The Committee applauds the work of Holt 
International Children's Services, Kidsave International, and 
Mercy Corps International.
    The Committee expects USAID to work with non-profit groups, 
especially those with contacts in the Russian Far East, 
including Rotary International, the Anchorage Interfaith 
Council, and the Municipality of Anchorage. The Committee 
recommends $4,000,000 for this program in fiscal year 2003.

                         EDUCATIONAL EXCHANGES

    The Committee recommends up to $3,000,000 for the Russian, 
Eurasian, and East European Research and Training Program 
(Title VIII). The Committee is supportive of the portion of 
this program dedicated to the FSU, especially the Central Asian 
republics, and expects funding to be limited to research and 
other activities related to Russia and Eurasia.
    The Committee continues to support the East Central 
European Scholarship Program, with its emphasis on providing 
training for participants from the countries of southeast 
Europe.
    The Committee supports continued funding for exchanges with 
secondary school educators, particularly the Partners in 
Education and Teaching Excellence Awards programs and the 
Secondary School Excellence program. The Committee encourages 
the administration to consider supporting these programs.
    The Committee also recognizes the efforts by the American 
Councils for International Education and the Institute for 
Experimental Learning to begin a program to bring individuals 
from Central Asia to participate in internships. The Committee 
recommends that USAID and the State Department consider 
supporting proposals from these organizations.

                            LEGAL EDUCATION

    The Committee strongly supports distance learning legal 
education programs that have been initiated in central and 
eastern Europe. The Committee recommends that USAID expand 
these programs and urges the Agency to seriously consider 
undertaking similar efforts in Central Asia.
    The Committee also supports continued funding for the 
Russian American Rule of Law Consortium, an outgrowth of the 
successful Vermont/Karelia Rule of Law Project, which promotes 
the development of the rule of law in the Russian Federation. 
The Consortium manages a growing number of partnerships between 
the legal communities in other U.S. states and Russian regions.

                         VIOLENCE AGAINST WOMEN

    The Committee, once again, commends USAID, the State 
Department, and the Justice Department for its programs to 
reduce domestic violence in Russia. As in prior years, the 
Committee believes the administration should continue to 
consult closely with and provide direct support to the Russian 
Association of Crisis Centers for Women to further strengthen 
local capacity to respond to this endemic problem. Emphasis 
should be given to strengthening police and prosecutorial 
capacity in this area. In addition, American grant recipients, 
including police trainers, should have expertise in domestic 
violence issues, and Russian NGOs should be consulted in the 
design, evaluation, and monitoring of these programs. The 
Committee recommends funding for these activities at not less 
than the current level, and requests the State Department to 
submit a report by April 1, 2003, summarizing the actions 
taken, results to date, and future plans for this initiative.

                                ARMENIA

    The Committee provides $90,000,000 under the heading 
``Assistance for the Independent States of the Former Soviet 
Union'' and $3,000,000 under the heading ``Foreign Military 
Financing'' for assistance for Armenia. The Committee 
recommends $750,000 for Armenia under the heading 
``International Military Education and Training.''
    The Committee encourages the efforts of the administration, 
the Minsk Group, and all parties to the Nagorno-Karabakh 
conflict to continue negotiations toward a peaceful resolution 
of the dispute. The Committee supports a mutually acceptable 
negotiated solution, and continues to endorse confidence-
building measures among all parties to the conflict, which may 
include such activities as joint commissions relating to water 
resources, refugee resettlement, landmine clearance, and joint 
activities relating to parliamentary, journalist, and rule of 
law training. The Committee encourages Turkey to reconsider 
establishing a rail link between Kars, Turkey and Gyumri, 
Armenia. The Committee believes that such action would make a 
positive contribution to America's efforts to prevent and 
respond to international terrorism and the economic development 
of both Turkey and Armenia. The Committee encourages the State 
Department and USAID to consider utilizing the American 
University of Armenia as a learning center for students from 
the region.

                                UKRAINE

    The Committee supports the administration's request for 
assistance for Ukraine, which is $14,000,000 below the fiscal 
year 2002 requested level. The Committee continues to believe 
that the independence and sovereignty of Ukraine is of crucial 
strategic importance to the United States and stability in 
Europe. The Committee notes Ukraine's reported continued 
economic growth in 2001, including a rise in industrial 
production and decline in the annual inflation rate, but 
remains concerned with an investment climate that is less than 
favorable to foreign businesses, particularly the lack of 
transparent and fair resolution of business disputes.
    While the Committee condemns the violence and 
irregularities that marred parliamentary elections earlier this 
year, it applauds the success of Ukrainian reformers at the 
polls. The Committee believes that assistance provided by the 
Act should support and bolster the ability of reformers to 
successfully press for, and implement, much needed economic, 
political, and legal reforms.
    The Committee continues to be extremely concerned with the 
unresolved murders of Ukrainian journalists Georgy Gongadze and 
Ihor Alexandrov and is dismayed by the State Department's 
report to Congress that ``little or no progress'' has been made 
in resolving these cases. The Committee continues to believe 
that the successful and credible resolution of these cases is 
essential to demonstrate the Government of Ukraine's commitment 
to the rule of law.
    The Committee is disturbed by reports of Iraqi efforts to 
obtain weapons technology from Ukraine, and directs that within 
60 days of enactment of the Act, the State Department submit a 
report to the appropriate congressional committees detailing 
the sale or transfer, if any, of weapons technology and 
armaments from Ukraine to Iraq. Should these reports prove 
credible, the Committee expects the State Department to consult 
with the appropriate congressional committees regarding the 
imposition of immediate and severe restrictions on United 
States assistance for Ukraine.
    The Committee provides $30,000,000 for nuclear reactor 
safety initiatives and $3,000,000 for coal mine safety programs 
and activities in Ukraine. The Committee also recognizes the 
growing physical security and environmental threats associated 
with unexploded ordnance and excess weapons stockpiles in 
Ukraine, and suggests that the State Department evaluate 
environmentally-safe, commercially available disposal 
technologies for demining activities, the clearance of 
unexploded ordnance, and the destruction of excess weapon 
stockpiles.
    The Committee supports efforts to improve nuclear safety in 
Ukraine and recognizes the important work of the International 
Nuclear Safety Program, including the Computer Information 
Systems component of this program.

                                GEORGIA

    The Committee provides $87,000,000 for assistance for 
Georgia, and commends Georgia for its support for U.S. efforts 
to prevent and respond to international terrorism. The 
Committee continues to support the enhancement of Georgia's 
border control capabilities, and appreciates the timely and 
effective response of Georgian authorities to the unauthorized 
deployment of Russian troops in the Kodori gorge region earlier 
this year. Like last year, the Committee remains concerned with 
the high incidence of corruption in Georgia and the limited 
progress by Russia in closing military bases in Georgia.
    The Committee provides not less than $3,000,000 for a small 
business development project relating to private sector 
technology start-ups for Georgia.

                           NAGORONO-KARABAKH

    The Committee continues to be concerned about the plight of 
the victims of the Nagorno-Karabakh conflict, and expects that 
the remainder of the $20,000,000 in humanitarian assistance, 
initially provided in fiscal year 1998, will be promptly 
disbursed. The Committee expects that should these funds be 
obligated and expended before the end of fiscal year 2003, up 
to $5,000,000 should be made available to address ongoing 
humanitarian needs in Nagorno-Karabakh.

                          Independent Agencies


                              PEACE CORPS

Appropriations, 2002....................................    $275,000,000
Budget estimate, 2003...................................     317,228,000
Committee recommendation................................     285,000,000

    The Committee strongly supports the Peace Corps' mission 
and is receptive to the President's proposal to increase the 
number of volunteers in the field over the next 5 years. The 
Committee is concerned, however, that the quality, 
effectiveness, and security of volunteers may be compromised if 
this expansion is not carefully planned. The Committee requests 
more information about the significant decline of volunteers in 
the field to 5,648 during fiscal year 2002, and is concerned 
that the Peace Corps may be overly-ambitious in budgeting for 
8,200 volunteers in the field by the end of fiscal year 2003.
    The Committee recommends $285,000,000 for the Peace Corps, 
which is a $10,000,000 increase over last year's level. The 
Committee is confident that ample resources are being made 
available to support a prudent expansion of the number of 
volunteers, as the fiscal year 2000 budget of $270,000,000 
supported a program of nearly 6,000 volunteers. The Committee 
looks forward to receiving a comprehensive analysis of how the 
Peace Corps intends to expand its programs over the next 5 
years while maintaining the quality and integrity of its 
mission.
    The Committee is pleased that the Peace Corps has initiated 
a program in East Timor and supports efforts to place 
additional volunteers there in fiscal year 2003.

                     AFRICAN DEVELOPMENT FOUNDATION

Appropriations, 2002....................................     $16,542,000
Budget estimate, 2003...................................      16,689,000
Committee recommendation................................      17,689,000

    The Committee provides $17,689,000 for the African 
Development Foundation (ADF). The Committee commends the work 
of the ADF, which provides critical, small-scale support for 
projects which benefit some of sub-Saharan Africa's most 
impoverished communities.

                       INTER-AMERICAN FOUNDATION

Appropriations, 2002....................................     $13,106,950
Budget estimate, 2003...................................      14,185,000
Committee recommendation................................      16,385,000

    The Committee provides $16,385,000 for the Inter-American 
Foundation (IAF), which is $2,976,050 above the fiscal year 
2002 level. The Committee commends the progress the IAF has 
made in addressing past management deficiencies.

                          Department of State


              INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT

Appropriations, 2002....................................    $217,000,000
Budget estimate, 2003...................................     196,713,000
Committee recommendation................................     196,713,000

    The Committee provides $196,713,000 for International 
Narcotics and Law Enforcement (INL), which is equal to the 
administration's request. The Committee is perplexed by the 
administration's decision to cut funding for INL programs in 
anti-corruption, financial crimes, border controls, and other 
law enforcement efforts, at a time when the need for these 
activities is increasingly apparent.

                         TRAFFICKING IN PERSONS

    The Committee provides up to $20,000,000 in INL funds for 
programs and activities to counter trafficking in persons. The 
Committee remains strongly committed to assisting women and 
children who are the most innocent victims of this gross human 
rights violation, which also contributes to the spread of HIV/
AIDS. The Committee believes that these funds should be used to 
combat all three components of anti-trafficking: addressing the 
root causes of trafficking, protecting and providing services 
for victims, and prosecuting traffickers. The Committee 
believes that the issue of human trafficking is sufficiently 
well-understood that these funds should not be used for 
additional studies or conferences to assess needs, but rather 
directed largely to NGOs to implement programs to prevent 
trafficking, assist victims, and prosecute traffickers.

                INTERNATIONAL LAW ENFORCEMENT ACADEMIES

    The Committee continues to support the work that the 
International Law Enforcement Academies (ILEA) provide to the 
international community. The Committee is pleased that the 
administration doubled funding for these programs from fiscal 
year 2001 to 2002, but notes that the administration's request 
for the ILEA programs has remained constant for fiscal year 
2003 even though it is considering opening an additional center 
in Latin America. The Committee urges the administration to 
provide adequate resources for each of these centers and to 
complete a new facility for the Roswell Center as soon as 
possible.

                         MARITIME INTERDICTION

    The Committee continues to believe that both the Bahamas 
and Costa Rica play important roles in combating the flow of 
illegal narcotics, especially through maritime interdiction. 
The Committee directs the State Department to submit a report, 
no later than 120 days after the date of enactment of the Act, 
on the procurement needs of the governments of the Bahamas and 
Costa Rica to implement an effective counternarcotics strategy. 
This report is to examine these needs, including an assessment 
of the procurement of high speed boats, within the context of 
the projected budget for counternarcotics programs in fiscal 
year 2004.

                     ANDEAN COUNTERDRUG INITIATIVE

Appropriations, 2002....................................    $625,000,000
Budget estimate, 2003...................................     731,000,000
Committee recommendation................................     637,000,000

    The Committee has provided $637,000,000 for the Andean 
Counterdrug Initiative, which is $12,000,000 above last year's 
level. In addition, the Committee provides authority for the 
transfer of up to an additional $35,000,000 from the 
``International Narcotics Control and Law Enforcement'' account 
for the Andean Counterdrug Initiative. The Committee has also 
provided up to $88,000,000 from the ``International Narcotics 
Control and Law Enforcement'' and ``Foreign Military Financing 
Program'' accounts for equipment (including up to $71,000,000 
for helicopters) and training for the Colombian Armed Forces 
for pipeline security in Arauca department. Including the 
amounts provided for fiscal year 2003, U.S. assistance to the 
Andean region for counterdrug and counterterrorism activities 
will total more than $2,600,000,000 over a period of 3 years. 
This amount does not include funding from the Department of 
Defense and other Federal agencies.
    The Committee is disappointed with the results of ``Plan 
Colombia,'' which has fallen far short of expectations. Neither 
the Colombian government nor other international donors have 
lived up to their financial commitments, and the amount of coca 
and poppy under cultivation has increased. In addition, peace 
negotiations have collapsed, the armed conflict has 
intensified, and the country is preparing for a wider war which 
few observers believe can be won on the battlefield. It is 
estimated that one million Colombians have been displaced from 
their homes. Alternative economic development programs have 
produced few tangible results, and the Colombian government's 
role in this effort has not inspired confidence. The Committee 
expects the Colombian government to significantly improve its 
efforts in social and economic development.
    The Committee has, in hearings and briefings, expressed its 
concerns about the administration's strategy in Colombia and 
the lack of clearly defined objectives or benchmarks for 
measuring success. However, despite setbacks, the Committee 
supports efforts to strengthen democracy and the rule of law, 
improve security and promote economic development in Colombia. 
The Committee provides the authority, requested by the 
administration, to support Colombia's unified campaign against 
narcotics trafficking and paramilitary and guerrilla terrorist 
organizations.
    The Committee has again included conditions tying the 
obligation of funds to progress on human rights, and expects to 
see significant improvements before further certifications are 
made. The Committee condemns the abuses of human rights by all 
parties to the conflict, particularly paramilitaries and the 
FARC who are responsible for the large majority of atrocities 
against civilians. The Committee is alarmed by the recent surge 
in terrorist attacks, and the continued failure of Colombian 
security forces to apprehend the leaders of paramilitary 
organizations, for whom hundreds of arrest warrants are 
outstanding. The Committee is convinced that a special unit of 
the Colombian Armed Forces dedicated to the apprehension of the 
leaders of paramilitary organizations is urgently needed, and 
has included authority and adequate funding from the 
``International Narcotics Control and Law Enforcement'' and 
``Foreign Military Financing Program'' accounts to train and 
equip such a unit.
    The Committee has retained limits imposed in fiscal year 
2001 on the number of U.S. military on duty, and U.S. civilian 
personnel employed, in Colombia.
    The Committee has again included conditions on the aerial 
spraying of herbicide, to ensure that any use of such chemicals 
or related equipment or services is consistent with Colombian 
laws, the Colombian Environmental Management Plan for aerial 
spraying, and Environmental Protection Agency regulations. The 
Committee is concerned that the manner in which the herbicide 
is being used in Colombia, where large areas are sprayed in 
proximity to people's homes and food crops, varies 
significantly from the manner of use of herbicides in the 
United States. The Committee is increasingly concerned that 
monitoring and enforcement of compliance with Colombian and 
United States laws and regulations may not meet U.S. standards. 
The Committee needs to be satisfied that, based on objective 
scientific analysis and other factors, the aerial spraying does 
not pose unreasonable risks or adverse effects to humans or the 
environment, and that effective monitoring and enforcement 
mechanisms exist to ensure its proper use.
    The Committee is aware of an initiative in Colombia, the 
Colombia Military Project, which promotes dialogue and analysis 
among civilians and retired military officers about the 
conflict and the implications of peace processes for the Armed 
Forces. Topics include a cease fire, decommissioning of 
weapons, demobilization, and the reinsertion into civil society 
of ex-combatants. Given that any successful peace process 
requires the active support of the Armed Forces, the Committee 
believes that the State Department should seriously consider 
providing financial support to the Colombia Military Project.
    The Committee is increasingly concerned that developments 
in Colombia may lead to a significant spill-over of refugees, 
insurgents, and narcotics traffickers into the territory of 
Colombia's neighbors, and expects the administration's 
allocation of resources for the Andean Counterdrug Initiative 
to reflect these volatile conditions.
    The Committee is aware of Colombia's extraordinary national 
parks and reserves, which encompass some of the world's most 
biologically diverse tropical forests. These areas, which are 
among Colombia's greatest natural resource and a potential 
source of income from eco-tourism, are increasingly threatened 
by coca farmers and illegal loggers. The Committee provides 
$3,500,000 for training, equipment and other assistance to 
protect these parks and reserves.

                    MIGRATION AND REFUGEE ASSISTANCE

Appropriations, 2002....................................    $705,000,000
Budget estimate, 2003...................................     704,565,000
Committee recommendation................................     782,000,000

    In fiscal year 2002, the Committee reduced the amount 
provided for Migration and Refugee Assistance (MRA) because an 
additional $100,000,000 had been provided in supplemental 
funding. At that time, the Committee clearly stated that this 
reduction was not to be interpreted as a lack of support for 
the MRA account or to be used as a baseline when formulating 
the fiscal year 2003 request. Thus, the Committee is 
disappointed with the amount that the administration requested 
for this account.
    The Committee recognizes that, even with supplemental 
funding, the crisis in Afghanistan has severely strained the 
MRA budget. In addition, a number of other urgent humanitarian 
crises around the world, including those in Africa, southeast 
Asia, the North Caucasus, and Colombia, have left millions of 
people at risk of starvation, exposure, and disease. Therefore, 
the Committee provides $782,000,000 for the Migration and 
Refugee Assistance account.

                         RESETTLEMENT IN ISRAEL

    The Committee provides $60,000,000 for the resettlement of 
migrants from the former Soviet Union, Eastern Europe, and 
other areas to Israel. This is equal to the amount appropriated 
in fiscal year 2002. The Committee notes that while Israel has 
accepted more than 1 million refugees since 1989, over the past 
year there has been a modest decline in the number of refugees 
from the former Soviet Union resettling in Israel. Should this 
decline continue, the Committee anticipates that funding for 
this program will be decreased in fiscal year 2004.

             UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES

    The Committee strongly supports the work of the United 
Nations High Commissioner for Refugees (UNHCR), which provides 
assistance to millions of refugees and internally displaced 
persons. The Committee is deeply concerned by the large budget 
shortfall that currently confronts UNHCR, and while the 
Committee commends UNHCR for making a number of necessary 
spending reductions, it is alarmed that this shortfall is 
beginning to adversely impact field operations in a number of 
regions.
    The Committee has, therefore, increased funding for the 
Migration and Refugee Assistance account with the expectation 
that the United Sebnate will increase its contribution to UNHCR 
should the need arise. However, the Committee notes that U.S. 
contributions now exceed 25 percent of the total UNHCR budget 
and that other international donors are not contributing 
sufficient amounts or following through on outstanding pledges. 
The Committee urges UNHCR to use the U.S. contribution to 
leverage additional support from other nations.
    The Committee continues to be concerned by allegations that 
refugees in Africa were sexually abused by employees of UNHCR 
and nongovernmental organizations in the field. While the 
Committee recognizes that the United Nations has initiated an 
investigation and implemented measures to prevent a recurrence, 
including hiring protection staff, the Committee urges the 
United Nations to ensure that its investigation is thorough and 
completed in a timely manner, and that those responsible for 
these acts are punished. The Committee also urges appropriate 
nongovernmental organizations to take similar action.

 THE UNITED NATIONS RELIEF AND WORKS AGENCY FOR PALESTINE REFUGEES IN 
                             THE NEAR EAST

    The Committee recognizes the important contribution of the 
United Nations Relief and Works Agency for Palestine Refugees 
in the Near East (UNRWA), to provide basic humanitarian 
services to approximately 3.8 million refugees in the region. 
The Committee is concerned, however, with reports that some 
individuals involved in international terrorism have come from 
refugee camps administered by UNRWA. The Committee urges UNRWA 
to cooperate with efforts to prevent and respond to acts of 
international terrorism.

        PROTECTION OF INTERNATIONAL HUMANITARIAN RELIEF WORKERS

    The Committee is extremely disappointed that the State 
Department ignored a directive in Senate Report 107-58, which 
was subsequently endorsed in House Report 107-345, to submit a 
report to the Committee on Appropriations on the efforts of 
United States and international humanitarian organizations to 
improve the safety of relief workers. The Committee directs 
this report to be submitted no later than 30 days after 
enactment of the Act.

                            TIBETAN REFUGEES

    Like last year, the Committee supports continued funding to 
assist Tibetan refugees and recommends $2,000,000 for this 
purpose. The Committee, again, requests that the State 
Department coordinate with USAID in determining responsibility 
for long term assistance for Tibetan refugees.

                  NORTH KOREAN REFUGEES/ASYLUM SEEKERS

    The Committee remains deeply concerned with the abuses 
inflicted upon the people of North Korea by the repressive 
Stalinist regime, and notes that extrajudicial killings, 
torture, starvation and a failed economy have caused thousands 
of North Koreans to seek refuge in the People's Republic of 
China. The Committee recommends the State Department utilize 
increased funding provided in the Act to safeguard the human 
rights and dignity of North Korean refugees and asylum seekers, 
whether through the establishment of camps, contributions to 
organizations, or other means. The Committee is deeply troubled 
by the horrific fate that awaits those who are forcibly 
repatriated to North Korea.

          REFUGEES AND INTERNALLY DISPLACED PERSONS IN AFRICA

    The Committee notes the dire situation of the more than 4 
million refugees and IDPs throughout Africa living in 
deplorable conditions. The Committee urges the administration 
to work with international organizations, including the World 
Food Program and UNHCR, as well as other governments to provide 
additional assistance to the region in fiscal year 2003.

            EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

Appropriations, 2002....................................     $15,000,000
Budget estimate, 2003...................................      15,000,000
Committee recommendation................................      32,000,000

    The Committee notes that the Emergency Refugee and 
Migration Assistance (ERMA) fund has been drawn down several 
times over the past year. The Committee is concerned that, 
despite some supplemental funding, the ERMA account has been 
reduced to substantially lower than anticipated levels. The 
Committee provides $32,000,000 for ERMA, which is $17,000,000 
more than the amount requested.

    NONPROLIFERATION, ANTI-TERRORISM, DEMINING, AND RELATED PROGRAMS

Appropriations, 2002....................................    $313,500,000
Budget estimate, 2003...................................     372,400,000
Committee recommendation................................     376,400,000

    The Committee provides $376,400,000 for the 
Nonproliferation, Anti-terrorism, Demining, and Related 
Programs account, which is $4,000,000 above the amount 
requested for fiscal year 2003. The Committee continues its 
strong support for these programs which are critical to efforts 
by the United States to combat the proliferation of weapons of 
mass destruction, prevent and respond to international 
terrorism, and help improve border security.

          COMPREHENSIVE TEST BAN TREATY PREPARATORY COMMISSION

    The Committee fully funds the request of $18,200,000 for a 
contribution to the Comprehensive Test Ban Treaty Preparatory 
Commission. These funds help leverage donations from other 
nations for the International Monitoring System, which is 
designed to collect data from seismic, hydroacoustic, 
infrasound, and radionuclide stations around the world, 
enhancing U.S. capabilities for detecting and monitoring 
nuclear tests.

                   INTERNATIONAL ATOMIC ENERGY AGENCY

    The Committee is concerned that the request for a 
contribution to the International Atomic Energy Agency (IAEA) 
is insufficient, as the IAEA is facing increasing demands on 
its budget to execute a range of programs that are critical to 
U.S. security interests. The Committee provides $3,500,000 
above the amount requested for the IAEA.

                         HUMANITARIAN DEMINING

    The Committee supports the State Department's Humanitarian 
Demining Program to clear landmines and other unexploded 
ordnance that continue to endanger people in over 60 countries. 
The Committee provides $57,000,000 for these activities. Of 
this amount, up to $10,000,000 may be made available for the 
Slovenia Trust Fund, on a dollar-for-dollar matching basis.
    The Committee notes that several country recipients of 
demining funds from the NADR account also receive large amounts 
of assistance from the ESF, SEED, or FSU accounts. The 
Committee is concerned about pressures on the NADR budget which 
contains a limited amount of humanitarian demining funds, and 
believes that demining programs in these countries should be 
funded jointly from both NADR and these other accounts.

                      SMALL ARMS AND LIGHT WEAPONS

    The Committee is aware that small arms and light weapons, 
including mortars, rocket propelled grenades, and heavy machine 
guns, have been used by international terrorist organizations, 
contributed to human rights violations, fueled conflicts, and 
impeded development efforts. The Committee provides $4,000,000 
in fiscal year 2003 for the Small Arms Destruction Initiative, 
which provides assistance to countries that have requested help 
in eliminating stockpiles of these weapons. This is $1,000,000 
above the fiscal year 2002 level.

                       Department of the Treasury


                INTERNATIONAL AFFAIRS TECHNICAL TRAINING

Appropriations, 2002....................................      $6,500,000
Budget estimate, 2003...................................      10,000,000
Committee recommendation................................      10,500,000

    The Committee strongly supports the Department of the 
Treasury's International Affairs Technical Assistance program 
and provides $10,500,000 for fiscal year 2003. This amount is 
$500,000 above the budget request and the fiscal year 2002 
level. The Committee appreciates the responsiveness of the 
Treasury Department to Committee requests for information 
concerning its international affairs programs.

                           DEBT RESTRUCTURING

Appropriations, 2002....................................    $229,000,000
Budget estimate, 2003...................................................
Committee recommendation................................      40,000,000

    The administration did not request funding for the Heavily 
Indebted Poor Country Trust Fund, as the U.S. pledge was 
fulfilled last year.
    The Committee notes that the administration requested 
transfer authority of up to $40,000,000 from ``Development 
Assistance'' to implement the Tropical Forest Conservation Act 
of 1998 (TFCA). The Committee is disappointed that only 
transfer authority was requested, and instead provides 
$40,000,000 for the Treasury Department for this purpose. The 
Committee continues to be alarmed that the world's tropical 
forests are being destroyed at an alarming rate, and believes 
that the TFCA is an effective mechanism for protecting 
endangered forests.

                               TITLE III

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

             INTERNATIONAL MILITARY EDUCATION AND TRAINING

Appropriations, 2002....................................     $70,000,000
Budget estimate, 2003...................................      80,000,000
Committee recommendation................................      80,000,000

    The Committee continues its strong support for the 
International Military Education and Training (IMET) program 
and has provided $80,000,000 for this account which has 
increased by a total of 60 percent over the last 3 years. The 
Committee believes that, by capitalizing on the worldwide 
respect for the U.S. Armed Forces, the IMET program offers a 
unique opportunity to establish valuable contacts with foreign 
militaries and promote American values.
    The Committee agrees with the general premise that IMET can 
help reform foreign militaries. However, the Committee believes 
that, in certain instances, where militaries are rife with 
corruption, flaunt the rule of law, or fail to hold accountable 
members who commit atrocities, IMET assistance is of limited 
value. Absent a commitment on the part of foreign militaries to 
reform, IMET training can accomplish little, and it can 
associate the American people with the very abuses IMET seeks 
to prevent. Rightly or wrongly, many perceive IMET 
participation as bestowing a degree of legitimacy from the 
United States on the actions of the foreign militaries and 
governments. When making decisions to provide IMET, the 
administration should consider the impact that these signals 
will have on larger U.S. foreign policy interests and target 
this assistance accordingly.
    The Committee directs the State Department, in conjunction 
with the Department of Defense, to provide a report not later 
than 120 days after enactment of the Act, containing the number 
of civilians from non-governmental organizations that 
participated in the IMET program during fiscal year 2002. The 
report should also include the professional backgrounds of 
these individuals, their nationality, and the type of IMET 
program in which they participated.
    The Committee is aware that previously enacted legislation, 
including the Security Assistance Act of 2000 (Public Law 106-
280), authorized assistance levels above the administration's 
fiscal year 2003 request for IMET assistance for Greece and 
Turkey and encouraged joint training of Greek and Turkish 
officers to the maximum extent practicable. The Committee 
continues to be supportive of these initiatives, which could 
help strengthen ties between two important NATO allies, and 
encourages the administration to fund these programs at the 
highest appropriate level.

                       FOREIGN MILITARY FINANCING

                          GRANT PROGRAM LEVEL

Appropriations, 2002....................................  $3,650,000,000
Budget estimate, 2003...................................   4,107,200,000
Committee recommendation................................   4,067,000,000

    The Committee provides $4,067,000,000 in Foreign Military 
Financing grant programs for fiscal year 2003. This is 
$417,000,000 above the fiscal year 2002 allocation, and 
$40,200,000 below the administration's request. The Committee 
expects to provide approximately $300,000,000 in fiscal year 
2002 supplemental support for many of the same countries that 
will receive assistance in fiscal year 2003.

                         MIDDLE EAST COUNTRIES

    The Committee provides the administration's request of 
$2,100,000,000 in FMF for Israel and $1,300,000,000 for Egypt. 
The Committee also provides the request level of $198,000,000 
for Jordan.

                                 TURKEY

    The Committee supports military assistance for Turkey 
without the 10-to-7 ratio of assistance to Greece, because 
these funds will be used only to support Turkey's command of 
the International Security Assistance Force in Afghanistan and 
for its military role, in cooperation with the United States 
and Greece, in Operation Enduring Freedom and other efforts 
against international terrorism.

                             BALTIC STATES

    The Committee continues to endorse the measures that 
Lithuania, Latvia, and Estonia have taken to bring their 
militaries in line with Western standards. The Committee 
strongly supports full funding of the administration's request 
for IMET and FMF for the Baltic States.

                                TUNISIA

    The Committee supports the administration's request of 
$5,000,000 in FMF and $1,500,000 in IMET assistance for 
Tunisia.

                    FOREIGN MILITARY TRAINING REPORT

    The Committee commends the administration's efforts to 
improve the transparency and accessibility of the fiscal year 
2001-2002 Foreign Military Training Report. The Committee 
expects next year's report to be similar in content and in the 
amount of information that is classified. The Committee expects 
to be consulted on the format and contents of the report, if 
the administration anticipates making significant changes in 
its format or content.

                              PATROL BOATS

    The Committee recommends $5,000,000 for the Government of 
Malta to purchase additional coastal patrol boats. The 
Committee also urges the Administration to seriously consider a 
request from the Government of El Salvador to purchase 
additional high-speed, aluminum patrol boats.

                          NON-LETHAL EQUIPMENT

    The Committee is concerned that, too often, foreign 
soldiers and law enforcement officials, because they lack the 
proper training and equipment, have failed to deal effectively 
with civil unrest and rioting, resulting in unnecessary 
bloodshed. The Committee believes that the administration, in 
consultation with the Committees on Appropriations, should 
consider providing up to $7,000,000 from the ``Foreign Military 
Financing Program'' and ``International Narcotics Control and 
Law Enforcement'' accounts to help governments train and equip 
units with non-lethal weapons. This assistance should be 
provided only after thorough vetting of participants and 
consistent with existing laws on human rights.

                        PEACEKEEPING OPERATIONS

Appropriations, 2002....................................    $135,000,000
Budget estimate, 2003...................................     108,250,000
Committee recommendation................................     125,250,000

    The Committee notes that the primary justification that the 
administration has used to oppose expanding the mandate of the 
International Security Assistance Force (ISAF) in Afghanistan 
is its commitment to train the Afghan national army to handle 
security in the country. While the Committee believes that 
properly training and equipping the army is essential to long 
term security and stability in Afghanistan, the Committee is 
deeply concerned with the current security situation in that 
country, the progress of the training program, and the paucity 
of funds that appear to have been budgeted for this purpose in 
fiscal year 2003. The Committee understands that the situation 
in Afghanistan remains fluid and dynamic, and, therefore, 
recommends that $7,000,000 from the ``Peacekeeping Operations'' 
account be made available to support efforts to establish an 
effective Afghan national army. In addition, the Committee 
strongly urges the administration to consider a wide rage of 
options, including expanding the mandate of the ISAF, to deal 
with the immediate security needs in Afghanistan.
    The Committee is concerned that the administration's 
request proposes cuts in important peacekeeping missions in 
Africa. The Committee recommends that $10,000,000 of the funds 
provided above the request should be used to restore some of 
these reductions.

                                TITLE IV

                    MULTILATERAL ECONOMIC ASSISTANCE

              International Financial Institutions Summary

Appropriations, 2002....................................  $1,174,796,000
Budget estimate, 2003...................................   1,437,097,000
Committee recommendation................................   1,357,097,000

    The Committee recommends the total amount of paid-in 
capital funding shown above to provide for contributions to the 
International Bank for Reconstruction and Development, 
International Development Association, Multilateral Investment 
Guarantee Agency, the Global Environment Facility (GEF), the 
Inter-American Development Bank's Inter-American Investment 
Corporation and Multilateral Investment Fund, the Asian 
Development Fund, the African Development Bank and Fund, the 
European Bank for Reconstruction and Development, and the 
International Fund for Agriculture Development.
    World Bank.--The Committee continues to follow the World 
Bank's efforts to reform its internal grievance procedures. 
Despite some progress, it remains apparent that as long as the 
Bank and the other international financial institutions are 
immune from the court process, they need to do more to ensure 
that complaints are independently investigated and adjudicated 
in accordance with due process, and that managers are punished 
for misconduct, especially retaliation. The Committee is 
particularly concerned with the professionalism of the Bank's 
legal department, and questions its ability to carry out its 
responsibilities fairly and effectively. Among other things, 
the Bank's lawyers have expended resources prolonging cases 
that should have been resolved quickly, or defended management 
when it would have been in the interests of the institution to 
represent the complainants, who often cannot afford lawyers of 
their own.
    World Commission on Dams.--The Committee is concerned with 
the World Bank's failure to formally adopt the guidelines 
recommended by the World Commission on Dams (WCD), whose 
report, ``Dams and Development,'' addresses a complex, 
controversial subject in a balanced way, including proposing 
comprehensive, practical and innovative guidelines for future 
action. The Committee again urges the Bank to continue to 
engage with the full range of interested parties in the 
implementation of the WCD's report, and to integrate these 
guidelines to the fullest extent practicable into the Bank's 
relevant operational policies and directives, including those 
relating to resettlement, environmental assessment, and water 
and energy policies.
    International Monetary Fund.--The Committee remains 
concerned that the IMF has not implemented many of the 
recommendations of its 1994 Working Group on the Status of 
Women, especially those aimed at increasing the number of women 
in managerial positions. Last year, the Committee urged the IMF 
to obtain an updated regression analysis to determine what 
further steps are needed to correct persistent gender 
disparities in hiring and promotion. Regrettably, the IMF has 
failed to do so.

         International Bank for Reconstruction and Development


                 INTERNATIONAL DEVELOPMENT ASSOCIATION

Appropriations, 2002....................................    $792,400,000
Budget estimate, 2003...................................     874,338,000
Committee recommendation................................     837,338,000

                      GLOBAL ENVIRONMENT FACILITY

Appropriations, 2002....................................    $100,500,000
Budget estimate, 2003...................................     177,813,000
Committee recommendation................................     177,813,000

                Multilateral Investment Guarantee Agency

Appropriations, 2002....................................      $5,000,000
Budget estimate, 2003...................................       3,631,000
Committee recommendation................................       2,631,000

    The Committee remains concerned about the Bujagli dam 
proposal and expects to be consulted concerning the U.S. 
position prior to a vote on this project.

                    Inter-American Development Bank


                 INTER-AMERICAN INVESTMENT CORPORATION

Appropriations, 2002....................................     $18,000,000
Budget estimate, 2003...................................      30,352,000
Committee recommendation................................      18,352,000

                      MULTILATERAL INVESTMENT FUND

Appropriations, 2002....................................................
Budget estimate, 2003...................................     $29,591,000
Committee recommendation................................      29,591,000

                         Asian Development Bank


                         ASIAN DEVELOPMENT FUND

Appropriations, 2002....................................     $98,017,000
Budget estimate, 2003...................................     147,386,000
Committee recommendation................................     127,386,000

                        African Development Bank

Appropriations, 2002....................................      $5,100,000
Budget estimate, 2003...................................       5,104,000
Committee recommendation................................       5,104,000

                        AFRICAN DEVELOPMENT FUND

Appropriations, 2002....................................    $100,000,000
Budget estimate, 2003...................................     118,073,000
Committee recommendation................................     108,073,000

            European Bank for Reconstruction and Development

Appropriations, 2002....................................     $35,779,000
Budget estimate, 2003...................................      35,805,000
Committee recommendation................................      35,805,000

    The Committee notes that Article 1 of the Agreement 
Establishing the European Bank for Reconstruction and 
Development (EBRD) states that the Bank's purpose is to foster 
transition toward market economies in countries that are 
committed to and applying the principles of multiparty 
democracy and pluralism. The Committee, therefore, is troubled 
by the EBRD's decision to hold its annual meeting next year in 
Tashkent, Uzbekistan, and expects the Treasury Department and 
the EBRD to use this opportunity to urge the Government of 
Uzbekistan to meet its commitments under the ``Declaration on 
the Strategic Partnership and Cooperation Framework Between the 
Republic of Uzbekistan and the United States of America'', by 
ensuring respect for human rights and freedoms, building a 
multiparty democracy, and implementing judicial and legal 
reforms.

            INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT

Appropriations, 2002....................................     $20,000,000
Budget estimate, 2003...................................      15,004,000
Committee recommendation................................      15,004,000

    The Committee recommends $15,004,000 for a contribution to 
the International Fund for Agricultural Development (IFAD) and 
expects the United States to continue its strong support of 
IFAD during negotiations for the 6th replenishment of IFAD.
    The Committee is supportive of the IFAD's new rural finance 
policy, and encourages IFAD to coordinate more effectively with 
cooperative development organizations in the United States to 
build sustainable, member-owned cooperatives and credit unions.
    The Committee also supports IFAD's continuing participation 
in the enhanced Heavily-Indebted Poor Countries (HIPC) 
initiative. The Committee recommends that the administration 
explore ways to ensure that IFAD's continued participation in 
the enhanced HIPC initiative will not detract from its capacity 
to manage its development programs.

                INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Appropriations, 2002....................................    $208,500,000
Budget estimate, 2003...................................     310,400,000
Committee recommendation................................     230,461,000

    The Committee provides $230,486,000 for the ``International 
Organizations and Programs'' account. This amount does not 
include funding for the Korean Peninsula Energy Development 
Organization and the International Atomic Energy Agency which 
are provided for in the Nonproliferation, Antiterrorism, 
Demining, and Related Programs account.

               UNITED NATIONS FUND FOR VICTIMS OF TORTURE

    The Committee continues to support the United Nations Fund 
for Victims of Torture and recommends a U.S. contribution of 
$5,000,000 in fiscal year 2003. The Committee is aware that 
this Fund supports nearly 100 treatment programs and projects 
for victims of torture in over 50 countries. The Committee 
urges the State Department to seek additional contributions 
from other governments for the Fund.

  INTERNATIONAL EFFORTS TO COMBAT THE ILLICIT TRADE IN SMALL ARMS AND 
                             LIGHT WEAPONS

    The Committee directs the Secretary of State, no later than 
120 days after the date of enactment of the Act, to transmit a 
report describing the activities undertaken, and the progress 
made, by the Department of State or other agencies and entities 
of the U.S. Government in implementing the goals of the Program 
of Action of the 2001 United Nations Conference on the Illicit 
Trade in Small Arms and Light Weapons in All Its Aspects.

                     UNITED NATIONS POPULATION FUND

    The Committee provides $50,000,000 for a U.S. contribution 
to the U.N. Population Fund (UNFPA), the same amount as in 
fiscal year 1995. These funds are to be made available 
expeditiously.
    UNFPA is the world's largest multilateral family planning 
agency, with programs in over 140 countries including many 
which do not receive assistance from USAID. Last year, the 
President requested $25,000,000 for UNFPA, based on a February 
2001 determination by the State Department that the UNFPA's 
program in the People's Republic of China was not in violation 
of the ``Kemp-Kasten Amendment'' which prohibits United States 
funds to any organization or program which ``supports or 
participates in the management of a program of coercive 
abortions or involuntary sterilization.''
    After lengthy negotiations and a series of comprises, the 
House and Senate approved up to $34,000,000 for UNFPA. The 
Statement of the Managers accompanying the fiscal year 2002 
Foreign Operations Conference Report made clear that the 
Congress intended to provide $34,000,000 for UNFPA. Congress 
also continued the prohibition on the use of United States 
funds in China.
    Allegations that UNFPA was in violation of Kemp-Kasten 
prompted the administration to withhold disbursement of the 
fiscal year 2002 funds for UNFPA and to dispatch a 3-member 
investigative team to China in April. The Committee is aware 
that coercion exists in China's family planning program, and 
strongly condemns these violations of human rights. However, 
the Committee notes that it is UNFPA's policy to neither fund, 
support, or promote abortions in China or elsewhere. UNFPA's 
programs in China have focused on improving women's 
reproductive health and access to modern contraceptives to 
reduce the incidence of abortion, as well as on activities to 
reduce the spread of HIV/AIDS.
    The Committee is concerned that the withholding of the 
fiscal year 2002 funds for UNFPA--the majority of which were 
requested by the administration--is contrary to the intent of 
Congress and will adversely affect family planning/reproductive 
health and HIV/AIDS programs worldwide. The Committee believes 
the United States should be a world leader in supporting family 
planning/reproductive health and combating HIV/AIDS.

                   UNITED NATIONS ENVIRONMENT PROGRAM

    The Committee has provided $13,486,000 for a United States 
contribution to the United Nations Environment Program, which 
plays a key role in addressing a wide range of environmental 
problems, including ozone depletion, the unsafe use of toxic 
chemicals, and land-based and marine pollution. This is 
$3,461,000 over the amount requested, but $8,000,000 below the 
amount contributed in 1994. The Committee recognizes that 
UNEP's activities are complimentary to U.S. interests in 
protecting the global environment, and believes the United 
States should more strongly support UNEP.

                           WORLD FOOD PROGRAM

    Traditionally, the Committee has provided funds for costs 
associated with the delivery and management of U.S. food 
donations to the World Food Program in the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act. In 
its fiscal year 2003 budget, the administration requested funds 
for this purpose in the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations 
Act. The Committee prefers to continue its past practice, and 
provides $6,000,000 for the World Food Program.
    The Committee is extremely concerned with the food security 
crisis in Southern Africa, where a combination of adverse 
climate conditions, mismanagement of grain reserves, and 
questionable government policies, particularly in Zimbabwe, 
have put approximately 7 million people at risk. The Committee 
has provided additional funds in the ``International Disaster 
Assistance'' and ``Migration and Refugee Assistance'' accounts 
to help address this crisis and urges the administration to 
increase food aid to the region.

                       UNITED NATIONS UNIVERSITY

    The Committee is aware that U.N. University contributes, 
through research and capacity building, to international 
efforts to address pressing global issues such as food 
security, environmental degradation, and governance. Rather 
than a degree-granting institution, U.N. University is an 
important resource for the United Nations, promoting bridges 
between the United Nations and the international academic 
community. The Committee encourages the administration to 
consider resuming support for U.N. University.

                                TITLE V

                           GENERAL PROVISIONS

    Sec. 501. Obligations during last month of availability.
    Sec. 502. Private and Voluntary Organizations.
    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 for 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. 515. Notification Requirements.
    Sec. 516. Limitation on Availability of Funds for 
International Organizations and Programs.
    Sec. 517. Independent States of the Former Soviet Union.
    Sec. 518. Export Financing Transfer Authorities.
    Sec. 519. Special Notification Requirements.
    Sec. 520. Definition of Program, Project, and Activity.
    Sec. 521. Child Survival and Health Activities.
    Sec. 522. Notification on Excess Defense Equipment.
    Sec. 523. Authorization Requirement.
    Sec. 524. Democracy Programs.
    Sec. 525. Prohibition on Bilateral Assistance to Terrorist 
Countries.
    Sec. 526. Prohibition on Assistance to Foreign Governments 
That Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 527. Debt-For-Development.
    Sec. 528. Separate Accounts.
    Sec. 529. Compensation for United States Executive 
Directors to International Financial Institutions.
    Sec. 530. Compliance With United Nations Sanctions Against 
Iraq.
    Sec. 531. Authorities for the Peace Corps, Inter-American 
Foundation and African Development Foundation.
    Sec. 532. Impact on Jobs in the United States.
    Sec. 533. Special Authorities.
    Sec. 534. Arab League Boycott of Israel.
    Sec. 535. Administration of Justice Activities.
    Sec. 536. Eligibility For Assistance.
    Sec. 537. Earmarks.
    Sec. 538. Ceilings and Earmarks.
    Sec. 539. Prohibition on Publicity or Propaganda.
    Sec. 540. Prohibition of Payments to United Nations 
Members.
    Sec. 541. Nongovernmental Organization--Documentation.
    Sec. 542. Withholding of Assistance for Parking Fines Owed 
By Foreign Countries.
    Sec. 543. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 544. War Crimes Tribunal Drawdown.
    Sec. 545. Landmines.
    Sec. 546. Restrictions Concerning The Palestinian 
Authority.
    Sec. 547. Prohibition of Payment of Certain Expenses.
    Sec. 548. Special Debt Relief for the Poorest.
    Sec. 549. Authority to Engage in Debt Buybacks or Sales.
    Sec. 550. Haiti Coast Guard.
    Sec. 551. Limitation on Assistance to the Palestinian 
Authority.
    Sec. 552. Limitation on Assistance to Security Forces.
    Sec. 553. Protection of Tropical Forests and Biodiversity.
    Sec. 554. Energy Conservation, Energy Efficiency and Clean 
Energy Programs.
    Sec. 555. Afghanistan.
    Sec. 556. Zimbabwe. Sec 557. Nigeria.
    Sec. 558. Burma.
    Sec. 559. Enterprise Fund Restrictions.
    Sec. 560. Cambodia.
    Sec. 561. Foreign Military Training Report.
    Sec. 562. Korean Peninsula Energy Development Organization.
    Sec. 563. Colombia.
    Sec. 564. Illegal Armed Groups.
    Sec. 565. Prohibition on Assistance to the Palestinian 
Broadcasting Corporation.
    Sec. 566. Iraq.
    Sec. 567. West bank and Gaza Program.
    Sec. 568. Indonesia.
    Sec. 569. Briefings on Potensial Purchases of Defense 
Articles or Defense Services by Taiwan.
    Sec. 570. Restrictions on Assistance to Governments 
Destabilizing Sierra Leone.
    Sec. 571. Voluntary Separation Incentives.
    Sec. 572. Uzbekistan.
    Sec. 573. American Churchwomen in El Salvador.
    Sec. 574. Commercial Leasing of Defense Articles.
    Sec. 575. War Criminals.
    Sec. 576. User Fees.
    Sec. 577. Funding For Serbia.
    Sec. 578. Community Based Police Assistance.
    Sec. 579. Excess Defense Articles for Central and Southern 
European and Certain Other Countries.
    Sec. 580. Overseas Private Investment Corporation and 
Export-Import Bank Restrictions.
    Sec. 581. Requirements Relating to Private Organizations.
    Sec. 582. Corporate Responsibility.
    Sec. 583. Modification to the Annual Drug Certification 
Procedures.
    Sec. 584. Transparency of Government Receipts.
    Sec. 585. Cooperation With Cuba on Counter-Narcotics 
Matters.
    Sec. 586. Prohibition on Funding for Abortions and 
Involuntary Sterilization.
    Sec. 587. Tibet.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE 
                                 SENATE

    Rule XVI, paragraph 7 requires that every report on a 
general appropriation bill filed by the Committee must identify 
each recommended amendment, with particularity, which proposes 
an item of appropriation which is not made to carry out the 
provisions of an existing law, a treaty stipulation, or an act 
or resolution previously passed by the Senate during that 
session.
    Items providing funding for fiscal year 2003 which lack 
authorization are as follows:

Child Survival and Health Programs Fund.................  $1,780,000,000
Development Assistance..................................   1,350,000,000
International Disaster Assistance.......................     255,500,000
USAID Operating Expenses................................     571,087,000
USAID Operating Expenses, Office of Inspector General...      33,046,000
Economic Support Fund...................................   2,250,000,000
Assistance for Eastern Europe and the Baltics...........     555,000,000
Assistance for the Independent States of the Former 
    Soviet 
    Union...............................................     765,000,000
African Development Foundation..........................      17,689,000
Inter-American Foundation...............................      16,385,000
International Narcotics Control and Law Enforcement.....     196,713,000
Migration and Refugee Assistance........................     782,000,000
Emergency Migration and Refugee Assistance..............      32,000,000
Nonproliferation, Anti-Terrorism, Demining and Related 
    Assistance..........................................     376,400,000
Treasury Technical Assistance...........................      10,500,000
Debt Restructuring......................................      40,000,000
International Military Education and Training...........      80,000,000
Foreign Military Financing Program......................   4,067,000,000
Peacekeeping Operations.................................     125,250,000
International Organizations and Programs................     230,461,000
International Development Association...................     837,338,000
Asian Development Fund..................................     127,386,000
African Development Fund................................     108,073,000

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on July 18, 2002, 
the Committee ordered reported en bloc H.R. 5010, the 
Department of Defense Appropriations bill, 2003, S. 2778, an 
original Commerce, Justice, State, and the Judiciary 
Appropriations bill, 2003, and S. 2779, an original Foreign 
Operations, Export Financing, and Related Programs 
Appropriations bill, 2003, each subject to amendment and each 
subject to the budget allocations, by a recorded vote of 29-0, 
a quorum being present. The vote was as follows:
        Yeas                          Nays
Chairman Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Mrs. Landrieu
Mr. Reed
Mr. Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mrs. Hutchison
Mr. DeWine

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee report on 
a bill or joint resolution repealing or amending any statute or 
part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by the bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets, new matter is printed in italic, and existing law in 
which no change is proposed is shown in roman.
    With respect to this bill, it is the opinion of the 
Committee that it is necessary to dispense with these 
requirements in order to expedite the business of the Senate.

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget authority                 Outlays
                                                       ---------------------------------------------------------
                                                           Committee     Amount  of     Committee     Amount  of
                                                        allocation \1\      bill     allocation \1\      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees, fiscal year 2003:
 Subcommittee on Foreign Operations:
    Discretionary.....................................         16,350        16,350         16,076    \2\ 16,074
    Mandatory.........................................             NA            45             NA            45
Projection of outlays associated with the
 recommendation:
    2003..............................................  ..............  ...........  ..............    \3\ 5,838
    2004..............................................  ..............  ...........  ..............        5,467
    2005..............................................  ..............  ...........  ..............        2,685
    2006..............................................  ..............  ...........  ..............        1,078
    2007 and future years.............................  ..............  ...........  ..............        1,065
Financial assistance to State and local governments                NA   ...........             NA   ...........
 for  2003............................................
----------------------------------------------------------------------------------------------------------------
\1\ Levels approved by the Committee on June 27, 2002.
\2\ Includes outlays from prior-year budget authority.
\3\ Excludes outlays from prior-year budget authority.

NA: Not applicable.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2002 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2003
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Senate Committee recommendation
                                                                                                                            compared with (+ or -)
                             Item                                     2002         Budget estimate      Committee    -----------------------------------
                                                                  appropriation                      recommendation         2002
                                                                                                                        appropriation    Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
           TITLE I--EXPORT AND INVESTMENT ASSISTANCE

            EXPORT-IMPORT BANK OF THE UNITED STATES

Subsidy appropriation.........................................          727,323           541,400           541,400          -185,923   ................
Administrative expenses.......................................           63,000            68,300            68,300            +5,300   ................
Negative subsidy..............................................          -11,000           -13,000           -13,000            -2,000   ................
                                                               -----------------------------------------------------------------------------------------
      Total, Export-Import Bank of the United States..........          779,323           596,700           596,700          -182,623   ................

            OVERSEAS PRIVATE INVESTMENT CORPORATION

Noncredit account:
    Administrative expenses...................................           38,608            39,885            39,885            +1,277   ................
    Insurance fees and other offsetting collections...........         -290,000          -306,000          -306,000           -16,000   ................
Subsidy appropriation.........................................  ................           24,000            24,000           +24,000   ................
                                                               -----------------------------------------------------------------------------------------
      Total, Overseas Private Investment Corporation..........         -251,392          -242,115          -242,115            +9,277   ................

              FUNDS APPROPRIATED TO THE PRESIDENT

Trade and development agency..................................           50,024            44,696            44,696            -5,328   ................
                                                               -----------------------------------------------------------------------------------------
      Total, title I, Export and investment assistance........          577,955           399,281           399,281          -178,674   ................
                                                               =========================================================================================
            TITLE II--BILATERAL ECONOMIC ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

      United States Agency for International Development

Child survival and health programs fund.......................        1,433,500   ................        1,780,000          +346,500        +1,780,000
    UNICEF....................................................         (120,000)  ................         (120,000)  ................        (+120,000)
Development assistance........................................        1,178,000         2,739,500         1,350,000          +172,000        -1,389,500
    (Transfer out)............................................         (-18,500)  ................  ................         (+18,500)  ................
International disaster assistance.............................          235,500           235,500           255,500           +20,000           +20,000
    Emergency supplemental....................................           50,000   ................  ................          -50,000   ................
Transition Initiatives........................................           50,000            55,000            65,000           +15,000           +10,000
Development Credit Program:
    Subsidy appropriation.....................................  ................  ................  ................  ................  ................
    (By transfer).............................................          (18,500)  ................  ................         (-18,500)  ................
    (Guaranteed loan authorization)...........................         (267,500)  ................  ................        (-267,500)  ................
    Administrative expenses...................................            7,500             7,591             7,591               +91   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, development assistance........................        2,954,500         3,037,591         3,458,091          +503,591          +420,500

Payment to the Foreign Service Retirement and Disability Fund.           44,880            45,200            45,200              +320   ................
Operating expenses of the U.S. Agency for International                 549,000           572,087           571,087           +22,087            -1,000
 Development..................................................
    (By transfer).............................................           (3,500)  ................  ................          (-3,500)  ................
Capital Investment Fund.......................................  ................           95,000            65,000           +65,000           -30,000
Operating expenses of the U.S. Agency for International                  31,500            33,046            33,046            +1,546   ................
 Development Office of Inspector General......................
                                                               -----------------------------------------------------------------------------------------
      Total, U.S. Agency for International Development........        3,579,880         3,782,924         4,172,424          +592,544          +389,500

              Other Bilateral Economic Assistance

Economic support fund:
    Camp David countries......................................        1,375,000         1,215,000         1,215,000          -160,000   ................
    Other.....................................................          824,000         1,075,000         1,035,000          +211,000           -40,000
    (Transfer out)............................................          (-3,500)  ................  ................          (+3,500)  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Economic support fund.........................        2,199,000         2,290,000         2,250,000           +51,000           -40,000

International Fund for Ireland................................           25,000   ................  ................          -25,000   ................
Assistance for Eastern Europe and the Baltic States...........          621,000           495,000           555,000           -66,000           +60,000
Assistance for the Independent States of the former Soviet              784,000           755,000           765,000           -19,000           +10,000
 Union........................................................
                                                               -----------------------------------------------------------------------------------------
      Total, Other Bilateral Economic Assistance..............        3,629,000         3,540,000         3,570,000           -59,000           +30,000

                     INDEPENDENT AGENCIES

                   Inter-American Foundation

Appropriation.................................................           13,107            14,185            16,385            +3,278            +2,200
    (By transfer).............................................  ................  ................  ................  ................  ................

                African Development Foundation

Appropriation.................................................           16,542            16,689            17,689            +1,147            +1,000
    (By transfer).............................................  ................  ................  ................  ................  ................

                          Peace Corps

Appropriation.................................................          275,000           317,228           285,000           +10,000           -32,228

                      Department of State

International narcotics control and law enforcement...........          217,000           196,713           196,713           -20,287   ................
    (By transfer).............................................  ................  ................          (71,000)         (+71,000)         (+71,000)
Andean Counterdrug Initiative.................................          625,000           731,000           637,000           +12,000           -94,000
Migration and refugee assistance..............................          705,000           704,565           782,000           +77,000           +77,435
United States Emergency Refugee and Migration Assistance Fund.           15,000            15,000            32,000           +17,000           +17,000
Nonproliferation, anti-terrorism, demining and related                  313,500           372,400           376,400           +62,900            +4,000
 programs.....................................................
    Emergency supplemental....................................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Department of State...........................        1,875,500         2,019,678         2,024,113          +148,613            +4,435

                  Department of the Treasury

International Affairs Technical Assistance....................            6,500            10,000            10,500            +4,000              +500
Debt restructuring............................................          229,000   ................           40,000          -189,000           +40,000
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Department of the Treasury....................          235,500            10,000            50,500          -185,000           +40,500
                                                               =========================================================================================
      Total, title II, Bilateral economic assistance..........        9,624,529         9,700,704        10,136,111          +511,582          +435,407
          Appropriations......................................       (9,574,529)       (9,700,704)      (10,136,111)        (+561,582)        (+435,407)
          Emergency appropriations............................          (50,000)  ................  ................         (-50,000)  ................
          Rescission..........................................  ................  ................  ................  ................  ................
          (By transfer).......................................          (22,000)  ................          (71,000)         (+49,000)         (+71,000)
          (Transfer out)......................................         (-22,000)  ................  ................         (+22,000)  ................

                TITLE III--MILITARY ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

International Military Education and Training.................           70,000            80,000            80,000           +10,000   ................

Foreign Military Financing Program:
    Grants:
        Camp David countries..................................        3,340,000         3,400,000         3,400,000           +60,000   ................
        Other.................................................          310,000           707,200           667,000          +357,000           -40,200
                                                               -----------------------------------------------------------------------------------------
          Subtotal, grants....................................        3,650,000         4,107,200         4,067,000          +417,000           -40,200

    (Limitation on administrative expenses)...................          (35,000)          (37,000)          (35,000)  ................          (-2,000)
    Associated outlays:
        Israel................................................  ................  ................  ................  ................  ................
        Egypt.................................................  ................  ................  ................  ................  ................
        Other.................................................  ................  ................  ................  ................  ................
    (Transfer out)............................................  ................  ................         (-71,000)         (-71,000)         (-71,000)
                                                               -----------------------------------------------------------------------------------------
      Total, Foreign Military Financing.......................        3,650,000         4,107,200         4,067,000          +417,000           -40,200

Peacekeeping operations.......................................          135,000           108,250           125,250            -9,750           +17,000
                                                               =========================================================================================
      Total, title III, Military assistance...................        3,855,000         4,295,450         4,272,250          +417,250           -23,200
          Appropriations......................................       (3,855,000)       (4,295,450)       (4,272,250)        (+417,250)         (-23,200)
          Emergency appropriations............................  ................  ................  ................  ................  ................
          (Limitation on administrative expenses).............          (35,000)          (37,000)          (35,000)  ................          (-2,000)

          TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

             International Financial Institutions

                       World Bank Group

Contribution to the International Bank for Reconstruction and
 Development:
    Global Environment Facility...............................          100,500           177,813           177,813           +77,313   ................
Contribution to the International Development Association.....          792,400           874,338           837,338           +44,938           -37,000
Contribution to Multilateral Investment Guarantee Agency......            5,000             3,631             2,631            -2,369            -1,000
    (Limitation on callable capital subscriptions)............          (25,000)          (14,825)          (14,825)         (-10,175)  ................
                                                               -----------------------------------------------------------------------------------------
      Total, World Bank Group.................................          897,900         1,055,782         1,017,782          +119,882           -38,000

Contribution to the Inter-American Development Bank:
    Contribution to the Inter-American Investment Corporation.           18,000            30,352            18,352              +352           -12,000
    Contribution to the Enterprise for the Americas             ................           29,591            29,591           +29,591   ................
     Multilateral Investment Fund.............................
                                                               -----------------------------------------------------------------------------------------
      Total, contribution to the Inter-American Development              18,000            59,943            47,943           +29,943           -12,000
       Bank...................................................

Contribution to the Asian Development Bank: Contribution to              98,017           147,386           127,386           +29,369           -20,000
 the Asian Development Fund...................................
Contribution to the African Development Bank:
    Paid-in capital...........................................            5,100             5,104             5,104                +4   ................
    (Limitation on callable capital subscriptions)............          (79,992)          (79,603)          (79,603)            (-389)  ................
    Contribution to the African Development Fund..............          100,000           118,073           108,073            +8,073           -10,000
                                                               -----------------------------------------------------------------------------------------
      Total...................................................          105,100           123,177           113,177            +8,077           -10,000

Contribution to the European Bank for Reconstruction and
 Development:
    Paid-in capital...........................................           35,779            35,805            35,805               +26   ................
    (Limitation on callable capital subscriptions)............         (123,238)         (123,328)         (123,328)             (+90)  ................
Contribution to the International Fund for Agricultural                  20,000            15,004            15,004            -4,996   ................
 Development..................................................
                                                               =========================================================================================
      Total, International Financial Institutions.............        1,174,796         1,437,097         1,357,097          +182,301           -80,000

           International Organizations and Programs

Appropriation.................................................          208,500           310,400           230,461           +21,961           -79,939
                                                               =========================================================================================
      Total, title IV, Multilateral economic assistance.......        1,383,296         1,747,497         1,587,558          +204,262          -159,939
          (Limitation on callable capital subscript)..........         (228,230)         (217,756)         (217,756)         (-10,474)  ................
                                                               =========================================================================================
      Grand total.............................................       15,440,780        16,142,932        16,395,200          +954,420          +252,268
              Appropriations..................................      (15,390,780)      (16,142,932)      (16,395,200)      (+1,004,420)        (+252,268)
              Rescissions.....................................  ................  ................  ................  ................  ................
              Emergency appropriations........................          (50,000)  ................  ................         (-50,000)  ................
          (By transfer).......................................          (22,000)  ................          (71,000)         (+49,000)         (+71,000)
          (Transfer out)......................................         (-22,000)  ................         (-71,000)         (-49,000)         (-71,000)
          (Limitation on administrative expenses).............          (35,000)          (37,000)          (35,000)  ................          (-2,000)
          (Limitation on callable capital subscript)..........         (228,230)         (217,756)         (217,756)         (-10,474)  ................
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